The Financial Conduct Authority (FCA) conducted a Mortgage Market Review in 2014 and introduced rules to ensure borrowers are issued with mortgages they can afford both now and in the future. This has resulted in Lenders asking for more information at application stage, such as how much borrowers spend on childcare and travel costs as well as non-essential items such as holidays or eating out. Bank statements are scrutinised so the earlier you get your finances in order the better.
Improve your Credit Rating
Make sure you are on the electoral roll and check your credit file for mistakes. Remember that as far as most lenders are concerned, the information they get from a credit reference agency is correct, even if this is not the case. Make sure any problems are corrected before you apply for a mortgage. Keep up to date with payments on loans and credit card to ensure that you maintain a good payment profile. Cancel any unused store cards, credit cards and bank accounts.
Reduce your Debts
Your borrowing is based on your income and outgoings so its worth looking at any existing credit arrangements you have to see if these can be repaid before applying for a mortgage.
You will need a deposit for your home purchase. Generally, the bigger deposit you have, the wider the choice of products will be available to you. There may be additional fees such as Stamp Duty Land Tax which you may need to pay depending on your circumstances.
Know your Budget
Work out how much you can comfortably afford to pay each month. This is something that we will explore at depth when we speak to you.
Your home may be repossessed if you do not keep up repayments on your mortgage.
For mortgage advice you can choose how we are paid: pay a fee, usually 0.4% of the loan amount or we can accept commission from the lender.
Registered address – Heritage House, 9b Hoghton Street, Southport Merseyside PR9 0TE.
Country of registration – England | Registration number – 04249019