Oliver Rea-Jayson our mortgage broker in St Albans, Hertfordshire offers mortgage and protection advice for first time buyers, buy-to-let investors and anyone looking to move home. If you want to purchase a property read our top tips, call our mortgage advisors on 01727 845500 or complete our booking consultation and we will get in touch.
Build up a good credit rating, and review your credit score before you organise your mortgage
Showing you are responsible with money and have a good credit history will help you get a mortgage. Make sure you always pay your credit card payments and other debts on time because if you don’t your credit rating will be affected.
Before you start looking for a property ask for a copy of your credit rating so you can check all details, for example, have they got your current address and correct personal details? Under the new GDPR rules it is now free to get a copy of your credit rating. It shows your loans, overdrafts, mortgages, and some utility payments that were open for the last six years. If there are mistakes, you can ask your credit issuer to make the changes.
If you find you have a bad credit score, you may get turned down by the mortgage lender. If you are in this situation, we recommend you speak to one of our mortgage advisors as we may encourage you to rebuild your credit score and wait and reapply in six months to one year when your credit score should have improved.
Add your name to the electoral roll
Mortgage lenders will check that you are listed on the electoral roll as it is an easy way to check your identity and current address details. Your credit file will show if you are on the electoral roll. You can register on the electoral roll for free, just email your local council to get yourself added.
Pay off your debts & manage your credit
Some people think it is better to have savings than pay off their debts, but it is important to pay off anything you owe first before you start saving for a mortgage deposit. Not only will you be paying interest on your debt, but it will disadvantage your mortgage application if you owe money when you apply for your mortgage.
It is also necessary to manage your credit limit. Don’t have too much credit as lenders might be concerned that you won’t be able to pay off all your debts, but also don’t spend too close to your credit limit.
Make sure you add your name to household utility bills and council tax bills
If you rent a property with other people or own your home with a partner, make sure your name is added to all household bills. If your name is on the bills and they are paid on time that is proof to a lender that you can pay your outgoings on time. Similarly, if you rent a property always have your own contract with the owner as you can show a mortgage lender that you have paid your rent on time.
Keep your bills and documents up to date
Make sure that all your address details are up to date. You need to make sure for example your driving licence address is the same as your address on the electoral roll or a mortgage lender will query it.
If you have just split up from a partner and were financially linked, for example you had a joint bank account or credit card account make sure that you close these accounts as soon as possible and set up your own accounts.
Understand all the costs of purchasing a property and save for a deposit as soon as possible
It is important to understand all the costs of buying a house, as you have other purchasing costs as well as the deposit. Speak to your mortgage broker who can give you approximate costs and timings so you can prepare your finances.
Speak to a mortgage broker before you go house hunting.
Use a mortgage broker who doesn’t charge you for their mortgage advice. Lonsdale Mortgages offer a free initial consultation and will not charge you to arrange a mortgage as we get commission from the lender when your mortgage completes. We review your financial circumstances so you know exactly how much money you can borrow and what price of property you can afford.
Our Lonsdale Mortgage brokers will discuss different mortgage products, so you make the right choice for your circumstances. We can explain the advantages and disadvantages of different mortgages, so you are well placed to make the best financial decisions.
Using a mortgage broker to complete your house purchase can save you time as we can complete relevant paperwork, for example your mortgage application form, and liaise with your lender and solicitor. This saves you time when you are busy purchasing your first house.
Close inactive accounts but keep accounts that you have had for longer
When you apply for a mortgage, the mortgage lender will check how long you have had your credit cards or bank accounts. It is good to close accounts you no longer use, but before you do this consider how long you have had accounts as older accounts are important to show a long credit history.
Research the areas where you would like to live so you know how much property costs
Visit the area where you want to purchase your first home. Walk the local streets so you are familiar with the area. Remember to visit the roads you like at different times of the day and in the evening. If you know where you want to purchase your first home and how much the property costs and what you can afford to borrow, you will be in a much better position to act quickly when houses come up for sale.
Sign up with local estate agents
Make sure you get the first call when a new property comes onto the market. Sign up with all the local estate agents and regularly call them and keep in touch.
‘At Lonsdale Mortgages we work with first-time buyers looking to purchase homes in different parts of Bedfordshire, Hertfordshire and North London. We work with buyers in St Albans, Harpenden, Watford, Park Street, Radlett, London Colney and Luton. If you are looking for a property and require mortgage advice, please call one of our mortgage broking team on 01727 845500.’
As a mortgage is secured against your home, it may be repossessed if you do not keep up the mortgage repayments.