Are you mortgage ready? If you’re looking to get your foot on the ladder, your first port of call should be getting your finances in good shape before lenders review them and assess your ability to make repayments on your loan. Here are some top tips from our Mortgage Broker in East Sussex for standing yourself in good stead:
1. Save
To improve the chances of being offered a mortgage on favourable terms, save as much as you can towards a deposit. Open a dedicated savings account and make sure it’s paying a competitive interest rate.
2. Check your credit score
A good credit rating can help you secure a better mortgage deal, with a lower interest rate. To improve your credit score ensure you are on the electoral roll, pay utility bills on time and pay off your credit card balance in full each month.
3. Budget
Review your income and outgoings. If you have accounts, memberships or subscriptions that you no longer use, close or cancel them. Prospective lenders will look at the debt you currently have, including whether your current account is in credit. If you have any savings, it makes sense to pay off loans and credit cards but leave enough saved to cover emergencies.
4. Time is of the essence
During lockdown, many lenders withdrew their ‘high loan-to-value’ (LTV) products which typically only require a deposit of 5% or 10%. Many lenders are now returning to the high LTV market; if you are a serious mover, you may need to act quickly.
5. Get good advice
A mortgage is all about getting the most suitable deal for your circumstances too. We have our finger on the pulse of the mortgage market and can advise and support you through the entire mortgage process.
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments
Clifford Osborne are Independent Financial Advisors (IFA) based in Eastbourne, East Sussex, offering mortgage advice, early retirement advice, pension advice and more. Our clients often come from Uckfield, Lewes, Brighton, Tunbridge Wells, Hastings, Bexhill, Newhaven, Seaford, Crowborough and further afield. Read more mortgage news and other financial advice in our blog.
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The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.
It is important to take professional advice before making any decision relating to your personal finances. Information within this blog is based on our current understanding of taxation and can be subject to change in future.
It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK; please ask for details. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor.
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.
If you withdraw from an investment in the early years, you may not get back the full amount you invested. Changes in the rates of exchange may have an adverse effect on the value or price of an investment in sterling terms if it is denominated in a foreign currency. Taxation depends on individual circumstances as well as tax law and HMRC practice which can change.
The information contained within the blog is for information purposes only and does not constitute financial advice.
The purpose of the blog is to provide technical and general guidance and should not be interpreted as a personal recommendation or advice.
