5 tips to boost your mortgage chances
With the recent changes to the rules around shared
ownership giving more people the opportunity to get on the housing
ladder we spoke to Justin Massey of Index
Mortgages Limited. Justin is a mortgage and protection advisor
and has helped countless people through the process of buying
shared ownership properties over the last 15 years. Here he gives
some tips on what lenders look for when you apply for a mortgage to
buy a shared ownership home.
rules have opened the door to more people than ever before to
buy a shared-ownership property - but the flip-side to that is
lenders are becoming increasingly strict on who they lend money to.
So here are a few tips to help you get ready if you're thinking of
buying a shared-ownership property over the next few months.
first - make sure you can show lenders that you can manage
your money. This might sound obvious but you'd be surprised how
many people I've seen whose bank statements show that they
regularly go overdrawn. Even if it's only by a small amount, this
could be frowned upon by lenders as they might assume it from your
statement that you're not able to manage your finances. Another
important thing to consider is to make sure that you pay all of
your bills on time - any red mark on your record can contribute to
you not being accepted for a mortgage.
credit file - it's important to make sure that this is
clear as lenders use this information to make decisions on whether
you get a mortgage or not. Lenders look at credit reports to decide
whether or not to approve customers for loans and mortgages. Your
credit file gives a picture of how trustworthy you are when it
comes to paying back money. It takes into account credit card
repayment history, the frequency of credit applications and how
often you've changed address so it's really important that your
information is correct before applying for a mortgage.
You can find out more about this and how you can check your credit
file for free on the money saving supermarket website.
that you're registered on the electoral roll - many people
don't realise that not being registered to vote can really hurt
your chances of getting a mortgage. Not being on the full register
can make it difficult to get any kind of credit as it can cause
tracing and identification issues.
If you need to register to vote, you can do so by clicking here.
will usually be the largest loan most of us will ever
apply for so it's crucial to show lenders that you're not taking
the decision lightly. To give yourself a better chance of getting a
mortgage, we recommend that you don't apply for any other type of
credit in the three months prior to applying for a mortgage.
statements tell the story of your spending so it's
essential that you keep them as clean as possible. With the rise of
online gambling, many people now have accounts with bookmakers but
this is something that could be frowned upon by lenders. Regardless
of how much you spend on gambling it can be seen as risk and as
such, could harm your chances of being accepted for a mortgage.
The same principle applies to payday loans - from a lenders
point of view, if you can't afford to manage day-to-day how will
you afford to pay back the biggest loan that you'll probably ever
If you stick to this simple advice you will give
yourself a far better chance of being accepted for a
These tips are just a guide and everyone's circumstances
are different so I would advise you to talk to a financial advisor
to get the best advice for you.
17 March 2016