Justin Basini, CEO of ClearScore offer five simple steps to help you get the best deal on your mortgage
Start with your finances
The days of banks falling over themselves to give you a mortgage are gone. But borrowers can boost their chances of a successful application by ensuring every effort has been made to show the bank they can be trusted.
Sit down and work out your budget and what you can realistically afford.
Don’t rush into finding a property, take time to look at different type of property in different areas to find what suits you.
Before applying for a mortgage, you’ll need to be sure you can borrow enough to cover the purchase of the property and that you’ll have enough spare to cover all the associated costs and fees.
Check your credit score
Make sure to check your credit score and report to see where you stand. You can check this for free at ClearScore.
There are some easy steps you can take to improve your score and give yourself the greatest chance of getting the best deal.
Make sure you’re on the electoral roll and your address is correct on your credit report. Lenders will check your name against your address and everything should match up perfectly.
Take out a credit card, and get into a routine of spending some money and paying it back on time every month. Not only will this boost your credit score it will also prove to lenders that you are able to pay money back on time.
Pay the largest deposit you can reasonably afford
The larger your deposit, the less you’ll need to borrow. In turn, your mortgage lender will perceive you as less of a credit risk and usually give you a lower interest rate.
Shop around
Your bank is often your starting point if you’re thinking of taking out a mortgage but don’t be afraid to shop around. This might be a longer process but it can save you a lot of money in the long run.
Alternatively, ask an independent mortgage broker for advice. They should have information that is unavailable to consumers – so a good broker can match you to the right deal. It also offers an extra layer of protection if things go wrong.
Be Patient
Don’t start panicking and applying for lots of mortgages from different banks, each one will leave a footprint on your credit history and too many footprints can make lenders wary of you.
