The idea of a ‘cheap’is, of course, appealing, but as most will know is about as common a commodity as a unicorn horn.
After all, major lenders the world over don’t earn billions every week by giving stuff away free of charge.
As such, the very best that can be hoped for is a mortgage that’s at least no more expensive than it needs to be.
There’s nothing worse than finally getting a 30-year deal sorted after several months of messing only to discover you’ve made the wrong decision; a reality hundreds of UK buyers face every day.
So, in the spirit of helping as many buyers as possible remain on the more agreeable side of the fence, here’s a quick overview of the tried and tested tips guaranteed to help you find a much better mortgage deal:
1 – Don’t Ignore Your Credit Score.
Right off the bat, ignorance is by no means bliss when it comes to your credit score…not for a moment. Before making a single application, be sure to check out your credit report and see if there are any black marks that you need to get rid of. If you don’t, there’s a good chance you’ll be turned down altogether by most lenders or will at least be given a much less affordable deal than if you had first taken the time to address your credit score blemishes.
2 – Delay Career Changes.
More often than not, the length of time you’ve been in your current job will influence the mortgage you’re offered; lenders prefer those that are in long-term secure positions and have a long track record of income stability. As such, if you are planning to switch to a new job or career path, it might be wise to wait until after you’ve completed the deal and received the financial assistance, by which time your career switch won’t influence anything.
3 – Consider Existing Debts.
While it’s true to say a few simple debts that you’re paying off responsibly can actually help your credit score, any evidence that you’re slowly but surely drowning in debt will do you no favours at all. As such, if you are aware that your current debts are a little bit on the extensive or troubling side, you might want to address these before going ahead with a mortgage application.
4 – Bigger Deposits Are Better Deposits.
The bigger the deposit you’re able to hand over, the more likely you are to be accepted by the lender and the better the deal you’ll be offered as a result. As such, while it can be painful to pump more than absolutely necessary into a deposit, it will benefit you hugely in the long term.
5 – Be Honest.
Last but not least, while it’s wholly illegal to lie on a mortgage application this is not the only reason why brutal honesty is important. Not only will you regret lying further down the line when you find yourself unable to keep up with the payments and losing your home, but even during the application process any discrepancies could see the application being thrown out, delayed enormously, or slapped with a whole bunch of added fees and processing charges.