Getting Approved For A Mortgage: 6 Top Tips

*This is a collaborative post.

Applying for a mortgage can feel overwhelming, especially if you’re navigating it for the first time. With so many steps, requirements and unfamiliar terms, the process can seem quite daunting. But with the right guidance and preparation, getting a mortgage can be far less stressful than you might think. Here are some practical tips to help you move through the application process with confidence and ease.

Get Expert Help Early

Before you dive into the details of credit scores and deposits, it’s a smart move to speak with a qualified Mortgage Broker. They can guide you through the entire process, from understanding your borrowing capacity to finding the best deals suited to your circumstances. A mortgage broker can also explain lender criteria in plain terms and help you avoid costly mistakes early in your application journey.

Improve Your Credit Score

Many people worry that a bad credit score will affect their mortgage application. However, this is not necessarily the case for everyone. You may seek comfort knowing that some people have been approved for a mortgage even with a poor credit score. Typically, it will depend on the lender that you go for. Every lender will have different criteria when it comes to credit scores. Some may see a bad score as a disadvantage, while others don’t mind as much. However, to give you more confidence going into your mortgage application, it is recommended that you try and improve your credit score to provide you with the best chance possible at getting approved. 

There is plenty of credit score advice online that you can seek inspiration from. Try not to feel too disheartened, it is possible to improve your credit score, and some lenders may see past a bad score. Ideally, you want to get your payments as organised as possible. Get out of the habit of letting your monthly bills pile up and work out a strategy to pay them off one by one. 

Make Sure You Have A Deposit

If you want to get your mortgage approved, you must ensure that you have an upfront deposit. Bear in mind that most houses need at least a 10% deposit of the house’s value. So, if you want to buy a home valued at £300,000, you will need at least a £30,000 deposit. You will need to state what deposit you have in your mortgage application. The more money you can put down, the better. This is because you will need to borrow less, which will make your monthly mortgage payments smaller. 

Saving for your deposit can often feel never-ending. However, there are plenty of helpful tips online that can steer you in the right direction. It all comes down to budgeting. It would help if you started to think about your spending habits. Could you minimise the number of meals that have in restaurants? Or could you trade that morning coffee from the café for one at home? It’s small changes like this that will help to make a big difference. 

Pay Off Outstanding Debts 

Most people fail to see a mortgage as long-term debt. The word “debt” can strike fear into many of us; however, it doesn’t have to. Debt is a normal thing that many of us go through in life. Statistics show that 63% of UK adults have personal debt. However, if you want to make the mortgage process a lot less stressful, it is advised that you pay off any other outstanding debts that you may have before taking on this huge responsibility. It will help you get your finances in order – so you don’t feel added pressure when it comes to paying your monthly mortgage payments. 

As you wait to get your application approved, it can be helpful to know that some lenders will not like seeing a lot of existing debt. Therefore, emphasising the importance of getting it sorted as soon as possible. Look for some helpful tips online to get you started. Organisation is vital. List your debts in order of priority and try to pay off those with higher interest rates first. 

Prove That You Can Make Payments

To help you get your mortgage approved, you will need to supply proof of income on your application. You need to show lenders that you can afford the monthly mortgage payments. The best way to do this is by having a full-time job. If you cannot provide any proof of income, your mortgage application will not be approved by the lender. So, if you have a job, it is recommended that you stay in this job throughout your application. Avoid applying if you are unemployed. If you are struggling to find a job, it is recommended that you reach out to a recruiter who may be able to help you find a suitable role based on your skillset. 

Another essential thing to note is payslips. Three months’ worth of payslips is usually the standard requirement for most mortgage applications. So, this is something you will need to bear in mind if you have only just started a new job. Other proof of income includes P60 documents from the past two years and any other payments that you may receive, such as benefits or working tax credits. It is crucial that you get this part of your application correct. If you have a mortgage broker on your side, they will guide you through this part of the process. 

Find Out What Mortgage You Can Afford

What mortgage can you afford? This is an important question that you need to know the answer to. Just because your lender can offer you a large sum of money, this doesn’t mean that you should take it all. Doing this may put you in a difficult financial situation as the more money you borrow, the higher your monthly payments will be. Use a mortgage affordability calculator; you can easily find one of these online – to help you work out what fees you can afford. It can help you get your finances in order – so you are ready to dive into homeownership. 

You must take other costs into account. Start by writing down a list of your income versus your monthly outgoings. Take into account important things like money for your food shop, utility bills and council tax. As well as paying your monthly mortgage payment, you will also need enough money to afford the extras that come along with it. Although it can all sound rather daunting, it doesn’t have to be if you stay organised and set yourself a budget each month. This will help you avoid overspending and getting yourself into a difficult financial situation further down the line.