Spring is the time that most people look to buy/sell their house, a critical period of planning for mortgage buyers and a time to make sure you are mortgage ready.
Independent Mortgage advisor and Financial Advisor, Jon Nield from Clarke Nicklin Financial Planning in South Manchester has compiled a step by step guide for mortgage seekers. Since joining as an Independent Mortgage Advisor, Jon was quickly promoted to an Independent Financial Advisor and now covers all aspects of financial planning advising both private clients and companies.
Jon Nield provides his Expert Opinion :
Our customers tell us that it’s never been harder to land a mortgage. People are being turned away, not because they have difficult or unusual financial circumstances but because of a lack of prior planning. This doesn’t just apply to first time buyers, it’s also relevant to subsequent applications too. Don’t assume that it’s plain sailing; it’s still a stringent process.’
To combat this Jon has listed a few pointers to help buyers prepare to get that mortgage:
- Get saving; the obvious starting point for first time buyers. There are some worthwhile government funded schemes available such as Lifetime ISA (Individual savings account) and the Help to Buy scheme which has been extended to 2020. It was originally intended to run until December 2016.
- Get your paperwork in order; most providers want payslips and bank statements up to three months, some ask for six.
- Consider your outgoings; providers are allowed full access into your bank accounts (not credit cards) and commitments such as golf, football season tickets, indulging in monthly pampering sessions are taken into consideration. The past 18 months are generally tracked.
- Register to vote; Lenders will use electoral roll details to confirm names, address, previous addresses. It usually must be up to date before they are willing to offer a mortgage.
- If you have loans, credit cards to pay off ensure you set up direct debits to show you can handle your money. You won’t be turned down for having a credit card, only if you are not managing it.
- Sometimes a change of job could jeopardise your chances due to the probation period. You therefore might need to consider timing of this.
It is still possible to get a mortgage. Don’t get disheartened by the media surrounding interest rates and lack of availability as there are still good deals out there. Being prepared will give you a greater chance of getting the right mortgage within your means with the best terms for your lifestyle.’
Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it. Think carefully before securing other debts against your home.
Past performance is not a reliable indicator of future performance.
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