Qualifying for a mortgage can be a complicated affair and some first-time buyers may find it daunting. It is important to choose the correct lender and not to pay a higher rate than necessary.
By getting to know the process of how a mortgage works and what is required by the lenders, it is possible to secure a lower interest rate and to increase the chances of being accepted for an appropriately sized loan.
A recent BBC article outlined the key tips for getting a mortgage:
- Ensure you are on the electoral roll
- Make sure you do not miss any financial commitments – missing a credit card or loan repayment will count against you
- Reduce your personal debt as this will enable you to borrow more
- Ensure you do not apply for credit while a mortgage application is going through
- Keep payslips and P60s
- Check your credit rating to make sure that you know what your credit score is
- Do your homework to find out what the lender requires from you