From maximising your credit score to putting down the biggest deposit possible, there are plenty of ways to improve your mortgage rate: our experts explain how.
Everything starts with a credit score when it comes to buying a property, as it’s what lenders primarily judge you on. The higher your credit score, the easier it will be to keep your interest down, but there are things that you can do to improve your credit score.
Checking your credit report regularly and fixing mistakes will hold you in good stead, as will registering to vote and being on the electoral roll. Missing payments and applying for a lot of credit in a short space of time on the other hand, will damage your credit score.
The better the down payment, the better your mortgage can potentially be. If you can put down a deposit of 25% or over, you could be given a great deal from a lender, as you’ll be paying far less interest and of course, less money back to the lender overall.
Check you’re eligible for a government help to buy scheme. The equity loan programme for example can enable you to borrow up to 20% of the purchase price of a property interest-free for five years, so long as you place a 5% deposit on it.
Mortgage lenders will always prefer a candidate that can prove steady income and long periods of unemployment are not ideal for your application. Self-employed prospective buyers come under scrutiny in particular, so it’s imperative to document your income thoroughly.
The best mortgage offer is not always as obvious as it may seem. Finding the best mortgage requires research – it’s not always as simple as accepting a loyalty discount from your bank – just and it’s wise to seek advice from a mortgage broker.
Some advisors provide their services for free, but often they earn their money from lenders by only recommending their mortgages. Factoring in a good, independent broker into your costings will save you a lot of money over the years on your mortgage.