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Get Mortgage Ready

Buying a property can be a really stressful time for anyone but that first house purchase is particularly exciting so a bit of financial planning in advance can help to minimise your stress.

Timing is everything
Take advantage of the stamp duty holiday while it’s here as it won’t be around forever. It’s a perfect kick-start to get on the housing ladder as no stamp duty is payable on the first £500,000, making your first home just that little bit more within reach.

Review your loans
Mortgage lenders will be reviewing your finances to check they are lending responsibly and that you could reasonably pay the mortgage amount back each month. So, it’s worth considering if you can pay back any loans before you apply for your mortgage, and it’s also not a good idea to take out a new loan shortly before you apply. If you do have any outstanding loans, showing that you are paying them back each month will prove your reliability.

Know your income and expenditure 
Go through your finances in detail and work out what’s coming in, what’s going out and if there’s enough left to pay the mortgage – as a mortgage lender will do exactly that. It gives you the opportunity to review how you spend your money and make any cutbacks where necessary – it might be that you can eat out less, spend less on takeaway coffees, or cancel any memberships or subscriptions that you’re not getting your money’s worth from. If you do this 6 months before you apply for a mortgage you could be in a much better position to get the mortgage accepted.

Influence your credit score
A good credit rating is important in order to secure a mortgage. There are several things you can do to improve your credit score such as:

  • Being registered on the electoral roll – as this traces you back to your current address
  • Paying bills and rent on time
  • Keeping your credit card balance low

Save regularly
This shows that you are responsible with money, will be able to pay the monthly mortgage payment and can also prove where your deposit will come from.

Seek professional advice
It’s also worth getting some proper financial support to make sure you find the best product and the best deal for you. smarthomes have their own mortgage advisor, Louise Lewis, who offers independent financial advice on mortgages. Just contact Louise on 0121 744 4144 for any mortgage advice you may need.

If you need any advice on buying, selling, or renting a property, please get in touch with us on 0121 744 4144.

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