A third of UK mortgage applications are facing rejection, we have some tips to help stop you being rejected.
Having a mortgage application declined can be very disheartening and can affect a house sale so it’s important to do everything you can do to help improve your chances of being accepted.
1. Deposit.
A deposit is crucial when purchasing a property and the larger the deposit the better the chances. This also means the less you have to lend from the bank.
2. Credit Score.
Having a good credit score is very crucial in getting your mortgage approved so its very worth checking. You can access your credit score online for free. When signing up make sure all the information is correct as having a spelling mistake can bring your credit score down. Your credit score is a reflection of your financial spending and lending so make sure you address this before applying for a mortgage.
3. Clearing debt.
This is linked to your credit score but making sure that any outstanding debt is cleared first-hand will greatly improve your chances for getting a mortgage offer through. Showing the lenders that you are reliable at repaying loans will show you in better light.
4. Paperwork.
When applying for a mortgage a lot of paperwork is required to successfully prove your identity. Making sure your passport and driving licence are all up to date as these pieces of documents can take a few weeks to have sorted out.
5. Broker
Using a mortgage broker can save you a lot in fees and the interest rate you secure. Nearly 50% of UK applicants use a broker. Brokers are able to search through hundreds of lenders and find you the best deal saving you potentially thousands, so if you haven’t already find yourself a good broker!
We use Mortgage Advice Bureau in Poundbury, Dorset.