If you’re thinking about getting a mortgage, there are a number of things that can affect your eligibility aside from a deposit
The Chancellor’s announcement in the 2017 Budget to raise the stamp duty threshold to £300,000 for first time buyers brought some measure of relief to young people struggling to raise the money to get on the property ladder.
But, while the change may have made the dream of home ownership for young people more real, applying and being accepted for a mortgage is a rigorous process and being prepared will significantly improve your chances of success. These are the key things you need to ask yourself:
How much debt do you have?
Mortgage providers want to lend to people who will be able to make their loan repayments, so they don’t want to see people with high balances racked up on credit cards or personal loans. Try to reduce your debts as much as possible before applying for a mortgage, as it'll show the lender you can manage your money responsibly.
Find out more about how to reduce your debt here.
Do you have proof of what you earn and what you spend?
When assessing how much to lend you, mortgage providers will want to see evidence of what you earn and what you spend. With this in mind, you’ll need a copy of your most recent P60, as well as six months’ worth of bank statements. As you gather together your bank statements, it’s worth scanning them to see if there are any areas where you can make savings.
Get expert help
The mortgage market is huge and can be confusing to navigate. Enlisting the help of a mortgage broker or financial adviser can prove helpful, as they can search the market for the best deals and give you help in completing the mortgage application.
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