On the topic of residential mortgages and the ever-growing cost of living, owning a home may seem impossible. But it’s achievable, and the process is more straightforward than expected. By following our step-by-step guide on getting a Mortgage to boost your chances of obtaining a property that fits all your needs, conquering this mountain known as ‘the mortgage process’ will be simple. Referring back to the question, “How can I get a mortgage?” Don’t let daunting paperwork or high costs discourage you; discover what can make homeownership possible today.
Lenders must be satisfied that you can easily manage your mortgage repayments before they extend credit to you. To guarantee this, lenders will check every detail of your financial history:
- Income sources
- Expenses
- Past debts;
- And even a simulation to see if you can cover the costs should interest rates increase or if life throws surprises at any time.
Before beginning your mortgage exploration, getting financially organised and building up your credit score is essential. Take the time to examine your credit report before approaching lenders; this will provide you with information about prior payments and an opportunity for corrections if any errors have been made that can influence your rating.
Once you understand your suitability status, utilise a mortgage calculator to understand better the amount you can borrow and its potential cost. When performing these calculations, remember other expenses that need to be factored in, such as;
- Legal fees,
- Valuation fee,
- Stamp duty (if applicable),
- Moving costs;
- and any mortgage charges
How do I know if I qualify for a mortgage?
“How can I get a mortgage?” start by submitting an Agreement in Principle to see if you’re eligible for the money you need from your chosen lender. They will then inform you whether they can lend it once your mortgage application is submitted. Nevertheless, the sum that they agree to loan could vary based on what details and paperwork are included with your application.
How do I get approved for a mortgage?
Every mortgage provider has unique requirements for assessing loan applications. However, these key factors are typically considered:
Your Age: Most lenders require applicants to be at least 18 years old. They also set an upper age limit, often based on your age when the mortgage starts (typically no older than 75 or 80) or when it ends (usually between 75 and 95).
Your Employment Status: Lenders evaluate your employment type and income consistency. Having a long-term job with a stable salary simplifies approval. Approval might be harder to secure if you are self-employed, work part-time, or operate as an independent contractor. Nevertheless, with proper preparation, acceptance is still possible.
The Property Type: Buying a non-standard property, such as a thatched-roof house, an apartment above a shop, or a barn conversion, may raise concerns for lenders. These properties might be harder to sell if repossession occurs. Despite this, mortgages are available, though lender options may be fewer. = “How can I get a mortgage?”
Your Credit Rating: Lenders review your credit history to gauge your reliability. Your report covers past loans, credit cards, overdrafts, mortgages, and mobile phone contracts. It also shows the total borrowed and repayment punctuality. Even with a poor credit rating, getting a mortgage is possible, although your options may be limited. Consulting a bad credit mortgage broker can improve your chances if your credit is severely damaged.
The Size of Your Deposit: Lenders assess your deposit size carefully. Larger deposits reduce risk, making approval easier and providing access to better deals. The bigger your deposit, the higher your chances of success!
How long does it take to approve my mortgage application?
Mortgage lenders aim to make decisions quickly, focusing on your specific circumstances. The process typically takes about four to six weeks. However, please pay attention to any letters or messages we may send, as we might need additional information before reaching a final decision. We value your time and strive to respond promptly.
Although lenders have varying requirements, the main factors assessed in mortgage applications include your age, employment status, property type, credit score, and deposit size. Proper preparation can improve your chances of securing a mortgage. We hope this brief guide has given you an idea of what to expect when applying for financing. It is also advisable to consult a mortgage broker authorised by the Financial Conduct Authority (FCA) for expert advice.
Thank you for reading our publication “How Can I Get A Mortgage? | The No.1 Effortless Guide.” Stay “Connect“-ed for more updates soon!
