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Four Top Mortgage Tips for First-Time Buyers

Four Top Mortgage Tips for First-Time Buyers

A mortgage is one of the biggest financial commitments that you’re ever likely to make, so it pays to find the best deal you can. Often, however, securing any mortgage at all is half of the struggle. You need to be happy with the terms of the agreement you take out, but your lender also has to be happy lending to you in the first place.

To make sure that your application gets accepted, here are four top tips to help you out…

Tip One: Credit Scores are Important

To assess your initial chances of getting your application accepted, it pays to get a copy of your credit report from a referencing agency. This will give you an insight into what lenders will see when you approach them. If it doesn’t look good, then the wisest course is usually to hold off applying for a mortgage and spend some time trying to improve it. This is a lot easier than you might think; little things like adding your name to the electoral roll and closing inactive credit card accounts can be just the boost your credit score needs.


Tip Two: Stick with the Same Job

If you’re considering looking for a new job, whether this is because you’re unhappy at work, want to be closer to where you live, or need a higher wage, then it’s a good idea to hold off until you have a mortgage agreement in place. The majority of lenders won’t consider you unless you can show that you’ve been in the same job for a decent length of time – usually, around six months.

Tip Three: Try to Reduce Your Debts

One thing you can guarantee that lenders won’t want to see on your application is outstanding debts. This means that a little planning in advance is often necessary to have your application granted. If you know that you owe cash on a credit card or have unpaid loans, then spend a few months to a year doing a little housekeeping and trying to get them in order. If you can do this, you’ll not only be improving the results of your lender’s affordability calculations but also demonstrating that you can manage money responsibly.

Tip Four: When It Comes to Deposits, the Bigger the Better

Before you apply for a mortgage from a lender like Saffron Building Society, it pays to make a concerted effort to save towards a deposit. The larger the deposit you have at your disposal, the greater the choice of mortgages that will be available to you. Lenders offer their best rates to those who have a hefty sum of money behind them, and you’ll also find that you qualify for better deals and can secure lower monthly repayments.

Follow our top tips and you’ll have your perfect mortgage and the home of your dreams in no time!

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