When the time comes for you to remortgage or buy a property for the first time, there are certain things you can do to speed up the process.
If you can get yourself as ‘mortgage-ready’ as possible (around six months prior to you needing a mortgage) then when the time finally comes, you will be in a much stronger position and your mortgage could go through much quicker.
So what can I do to get myself ‘mortgage-ready’?
When applying for a mortgage or when remortgaging, your lender will perform an affordability test on you, to see if your finances are in order and ultimately decide if you are trustworthy enough to lend money to.
The tests will include a look at your income versus your expenditure, so it’s important that you are able to show that you are capable of keeping your finances in order.
Loans
If you have any outstanding loans, try and pay these off before you apply for your mortgage, and avoid taking out any more loans in the meantime.
Keep on top of payments
Pay all your bills on time. This can be anything from a phone bill, to general household utility bills. This will prove you are reliable and financially independent.
Electoral role
A simple but effective thing to do is to register on the electoral role. Also, make sure any bills you have are registered to your current address, so everything is easy to trace.
Employment
It is advisable to remain in the same employment for at least six months. This will give evidence that you have a regular, stable income coming in every month, and there is less chance of your employment being terminated on the spot, like it would if you were still on a probation period. You will be asked to provide pay slips over the last three to six months, so it’s important you can provide these.
Regular saving
If regular savings can be traced on your bank statements, this can be good for a number of reasons. Not only can it show where the money for your deposit has come from, but it can also prove to your lender that if you are able to save £500 a month, for instance, then this is money that can then go towards paying off a mortgage.
Consider your credit rating
Using a credit card responsibly can help improve your credit score, showing that you are able to look after your own finances and pay off any outstanding debts within a certain timeframe. Just make sure you register the card to the address you are actually living at, and you could even hook it up to your direct debit card, so you don’t have to worry about forgetting to pay it off every month.
The main thing is to prove that your spending patterns are in line with how you see yourself when you have a mortgage. If there are any cutbacks you can make, then now is the time to make them. Perhaps if you have a gym membership that you don’t use regularly, or have subscriptions that you probably don’t need, then it would be a good idea to cancel them for now, just to save you that extra bit of money. After all, every penny counts!
Contact us
If you’d like to speak to an adviser about how you can help improve your affordability and get yourself ‘mortgage-ready’, then please get in touch with the team at Alexander James Mortgage Services. With a network of over 11,000 products, we can help you find the right mortgage that suits your needs exactly. Just give us a call today and we can arrange either a face-to-face or telephone appointment at a time that is convenient for you.
Nigel Glossop is from Alexander James Mortgage Services – for further information, call 0333 6000 008, email enquiries@ajms.co.uk or visit www.ajms.co.uk.
Your home may be repossessed if you do not keep up repayments on your mortgage.
There will be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1.5%, but a typical fee is 0.3% of the amount borrowed.
Correct at time of publication. The views and opinions expressed herein are those of the individual contributor and do not necessarily reflect those of the Chancellors Group of Estate Agents Ltd or its subsidiaries. References to legislation, best practice and other matters with legal implications such as fees, rules and processes are included for information and editorial purposes only and are not authoritative, nor should they be interpreted as advice. When in doubt you should only take advice from an industry professional or solicitor where appropriate. E&OE.
