If you’re moving home and need a new mortgage, moving your current mortgage to a new home or changing your existing mortgage then you need to plan ahead to help improve your chances of being approved. Out tips can help you get a better result from the banks mortgage calculators.
You need to plan at least 3 months ahead but 6 would be better, get your spending under control because the banks are going to scrutinise your bank statements, the more you spend the less you can borrow. Try to maintain a level or increasing bank balance. If your bank balance decreases each month it may appear that you are spending more then you earn. That’s not going to do you any favours.
Mortgage lenders will now ask for a detailed expenditure form so you need to know how much you are spending each month, think about all of the little extras such as eating out, clothes and weekends away on top of the usual more obvious bills such as utilities, travel expenses etc. They will even want to know about changes to your income and expenditure to see if this will affect the amount they could lend you.
If you have children you will find that the number of children you have will affect the amount of mortgage you could borrow, the lender will want to know about child care costs and school fees if any.
Think about your current debts, loans, credit cards, store cards, hire purchase are all going to impact on the amount the banks will lend you.
If you plan to repay these debts try to do this at least 3 months before you apply for your mortgage as some lenders will still include half of the debt in their calculations leaving you with a smaller mortgage or forcing you to borrow elsewhere possibly at a higher rate of interest.
Get your credit score up
Most lenders will use the information on your credit file even if it is incorrect, so check your credit report with a free trial* for mistakes and check your credit score at the same time. Take action to increase your score if needed such as getting yourself on the electoral role. Try not to apply for credit for at least 3 months before you plan on applying for your mortgage as this can affect your score. Get your card balances down to increase your credit card headroom, this is the difference between your credit limit and the amount you owe on the card. Banks like to see that you are not maxing out your cards.
All mortgage lenders are different, they will lend different amounts, operate different credit scoring systems and have different lending policies. Speak with us, all of our Advisers have at least 20 years experience as a mortgage broker so we know the best route to getting the banks mortgage calculator to offer the amount you need. Call us Free on 0800 193 0178 or contact us via our website.
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