1. Don’t use Pay Day Loans

I am going to repeat myself again, “don’t use payday loans”. Mortgage lenders hate these with a passion and it shows instant signs of financial pressure. Not only are the interest rates sky high, but some Mortgage lenders will decline a Mortgage application just off the back of seeing a recent payday loan.

2. Manage your Finances

Mortgage lenders will expect to see that you can manage your current finances. This will mean that they will look at your current income and outgoings, and assess whether you can afford the Mortgage.
Mortgage lenders will then look at whether you have paid your bills on time, whether you have missed any payments, or whether you are gambling all your money away every month on your favourite football team.
All these points shows signs of financial pressure and a Mortgage lender will ask themselves, can this individual afford this Mortgage?
If you fit into any of those points then I would strongly urge you to re-consider where your money is spent or speak to an independent money advice service

3. Paperwork is King

No Mortgage lender will consider a Mortgage application unless you have all the relevant paperwork. Yes, there are some lenders who require minimal information but, most Mortgage lenders require you to have photo identification, bank statements and evidence of your income.
Be prepared and ensure your Merrigan-Reis adviser has all the required paperwork. This will ensure there are no delays in your Mortgage application.

4. Get on the electoral roll

Most Mortgage Lenders use the electoral roll to help verify your name, address and where you live. They use this system for a number of reasons, but mainly because it helps fight against fraud. You can easily register on the Gov.uk website and you will soon see the rewards particularly if you are looking to improve your credit score.
Credit Reference agents like Check My File use the electoral roll to help determine your credit score (you check your credit score here after signing up).

5. Use a Mortgage Broker

I might be stating the obvious to some people but, using a Mortgage Broker will really help your chances of getting a Mortgage deal.
Mortgage brokers have a great insights into lenders criteria and at times get exclusive Mortgage deals which may not be on the high street.
Mortgage Brokers also deal with all the admin and speak to the lenders direct on your behalf. So if you’re wondering how to get a mortgage or you don’t understand how a Mortgage works, then a Mortgage Broker is a must!

6. Property Type

Most properties in the UK are built of brick/stone with a tile/slate roof. However, some properties are built of ‘non-standard’ construction. These types of property can cause issues with some Mortgage lenders. There are a number of reasons why, but an example could be that the property is above commercial premises and because of this, the flat could be difficult to sell.
So if you see a flat/house and the price is too good to be true then there is probably some underlying problem around the construction i.e. short lease, re-sale value, noise, or even future plans for the area.
Flats are an interesting one. Most mortgage lenders will not lend money against a flat with a short lease i.e. 60 years – you may think 60 years is long, but to a Mortgage lender that is really short. Check if the lease is being extended, if it is not then it could cost you thousands of pounds to extend. Make sure you undertake research and you ask the selling estate agent the following types of property questions:

What is the house built of? (Brick, Wimpey no fines, Lang easiform, Stone)

How many years are left on the lease? (A lease longer than 100 years is ideal)

Are there any future developments planned in the area? (you don’t want a brand new noisy road to be built in your back garden)

If you are buying above a commercial premise, what lease does the shop have? (you don’t want a nice stationary shop below your premises closing down and a burger joint moving in, imagine the smell!)

Once you are ready to re-mortgage, move to a new mortgage deal, or purchase your first home, then consider the above 6 points and you will soon be on the property ladder.
Speak to Merrigan-Reis for the right advice. Contact us anytime through social media or our website