If you’re hoping to get onto the property ladder may be shocked and confused when they see how many options there are when it comes to mortgages. Below we have answered some of the key questions that you may be asking yourself about getting your first mortgage.
What documents do you need to apply for a mortgage?
Before you start the process of applying for a mortgage make sure that all of your information is correct with your bank. The next step is to start collecting up all of the documents you will need for the mortgage application. These documents will include:
- Your last three months’ payslips
- P60 form from your employer
- Bank statements of your current account for the last three to six months
- Statements from your savings accounts
- Proof of any benefits received
- Statement of two to three years’ accounts from an accountant (if self-employed)
- Tax return form SA302 if you have earnings from more than one source or are self-employed
- Self-employed people should look to provide information alongside their tax return, which supports what the SA302 says about their income, such as bank statements
- Utility bills
- Passport or driving licence (to prove your identity)
What can I do to improve my chances of getting a mortgage?
One of the main things you can do to improve your chances of getting a mortgage is to check your credit score. Lenders will review your credit report which is a detailed report of your credit history to determine whether you qualify for a loan and at what rate.
You can get a good look at the state of your credit score on Noddle
Once you have your credit report, make sure that everything is correct as incorrect information can negatively affect your credit. Things to watch out for:
- Debts that you have already paid off
- Information of a former spouse that shouldn’t be there
- Out-of-date information
You should also make sure that you have registered yourself to vote in your local area. Lenders use electoral roll data in identity checks to ensure you are who you say you are an live where you say you live.
How much can I borrow?
The amount that you can afford to borrow for your mortgage will depend on a few different factors. Lenders will calculate how much they will lend based on your income and your outgoings.
How much deposit do I need?
There is no set or standard amount that people need to have saved up before the can get a mortgage. But simply, the more money you have upfront for the deposit, the cheaper the mortgage deals you will be able to get. In recent years first time buyers have typically put up a 10-20% deposit but some lenders will accept as little as a 5% deposit but this will depend on the lender and any other factors involved such as help-to-buy schemes.
Talk to your mortgage broker to discuss the mortgages they have available.
How can I make sure I get the right mortgage deal for me?
Employing the services of a trusted and qualified mortgage broker will give you the piece of mind that you are getting the right mortgage deal. They will be able to shop around for a wide range of mortgages and point out which are the deals most appropriate to your circumstances.
If you’re ready to get started with finding your first mortgage. Get in touch with us and we will be more than happy to talk with you about your options.
Important : Your property may be repossessed f you do no keep up repayments on your mortgage.
This firm usually charges a fee for mortgage advice. The amount of the fee will depend on your circumstances and will be discussed with you at the earliest opportunity.
