Getting a mortgage might seem like jumping a lot of hurdles, however, there are ways to make it less tricky and improve your odds. You’ll need to be able to afford it and also appear attractive to lenders.
Some of the things you should be doing include:
Register To Vote
If you’re not on the electoral roll then you can pretty much say goodbye to any chance of getting a mortgage. It’s kind of a dealbreaker. You could have the perfect credit score, but without being registered a mortgage is extremely unlikely. It’s used as an identity check, to make sure you are who you say you are. It’s free to become registered so if you’re not on it and are thinking of applying for a mortgage get on it now.
Manage Your Available Credit
This is all about how much credit you have available to spend on things like your overdraft and credit cards. Lenders would rather see that you are using less than fifty percent of your available balance. If you are using a good proportion of your available credit, try to avoid lowering your limits so you don’t suddenly appear as though you are close to the edge. However, it’s also not good to look like you have access to too much credit. Just try to keep it well balanced.
Close Old Accounts
If you’re no longer using an account, it might be a good idea to close it. Leaving it open may be seen as a fraud risk, and it might also mean that your details need to be updated. If apply for a mortgage, having longer, stable credit accounts are positive, so don’t close the older credit account on your file if it shows that you are good at managing your money.
Check Your Score Yourself
You need to make sure you are fully aware of what you are dealing with and what the lender are potentially going to see. Even if your credit score is poor, looking at it and monitoring it gives you the opportunity to fix the problems that could be causing you to have a bad credit rating. If you are struggling with debt you may want to ask yourself, How does debt relief work?
Pay Bills On Time Even If It’s The Minimum Amount
Defaults can affect your credit score for at least 12 months, and they will appear on your file for six years. Missing just one payment could be the difference between getting a mortgage or not. Make sure there is a direct debit set up on every bill you have, and never miss a payment.
Don’t Apply For Other Credit Just Before A Mortgage
In the three months leading up to your mortgage, try not to apply for any other credit. It might hinder your score and lead to your being rejected. Some even recommend a six-month gap just to be sure. Be very wary of payday loans, you should try to avoid them if possible as a mortgage company is very likely to avoid you if you have had one in the last 12 months.
If you apply for a mortgage and get turned down don’t let it put you off. Instead, follow the tips above and try again in 12 months’ time. Try to make positive changes to improve your score.