Choosing to move from renting to a mortgage is a significant decision. But, the change doesn’t have to be a scary one!
While a mortgage is likely to be one of the most significant financial commitments you’ll make, plenty of great deals are around. Before you jump into finding a Plymouth mortgage, make sure you’re aware of the factors that could affect your eligibility.
From credit scores to debt, there’s a vast range of things to consider. If you’re unsure where to start, keep reading! We’re here to help you find the mortgage that suits your needs.
Top Tips To Remember When Finding A Mortgage
Here are some of the most important factors to consider when looking for a mortgage. Don’t forget these!
1. Check Your Credit
Before you apply, find a copy of your credit report. This will be held by credit reference agencies (for example, Equifax or Experian). Checking your credit report beforehand will allow you to see what lenders will see when they receive your application.
Don’t worry if your credit score isn’t the best; there are many tricks to give it a quick boost. This includes closing credit cards you no longer use or checking whether you’re on the electoral roll.
2. Review Any Debts
Potential mortgage lenders will see if you have any outstanding loans or credit card debts. If you know you have some outstanding payments, try to reduce these as much as possible to show the lenders you’re on top of money management. This will improve the chances of your loan being approved, plus you may be able to borrow more.
3. Remember The Deposit
When it comes to finding a mortgage, saving for a large deposit is one of the most important tips. The more you can offer for the initial deposit, the broader choice of mortgages will be available to you. The best rates go to those with more significant deposits, plus you’ll also receive lower monthly payments due to your better deal. Of course, saving for longer isn’t always possible – but if you can delay your application, you’ll save in the long run.
4. Get Your Records Together
Mortgage lenders need to see proof of income, so make sure you have a P60 form ready for your application. This form summarises your annual income, plus all tax deductions. Many lenders also ask for three months of payslips and bank statements to assess how much you’re spending vs how much money is coming in.
This process can be much more complex if you’re a freelancer or self-employed. Mortgage lenders want assurance that you’ll be able to keep up with payments. To prove that you can, ensure that you have a SA302 form (from the HMRC) that shows the last three years of earnings.
5. When In Doubt, Ask For Help
At the end of the day, cementing an excellent mortgage deal can be confusing. If you’re unsure how to proceed or who to talk to, professional advice can make the experience much easier.
The Pilkington Estates team is always here to help. Whether it’s your first mortgage or not, we want you to find the best loan for your needs. We can connect you with an Independent Mortgage Advisor to make the moving process stress-free. Find our bespoke mortgage services here.
Final Thoughts
Is it time for you to apply for a Plymouth mortgage? Our knowledgeable team is here to help you throughout the moving process, from buying to selling. Contact us here for personal advice and expert property services.
