Easter is traditionally one of the busiest times of the year for the housing market so if you are house hunting this weekend, it’s worth doing some groundwork beforehand. Property prices are steadily rising, especially in and around London, as there is little stock on the market. This means it is very competitive out there.
There is also growing concern among buyers that the Mortgage Market Review will may make it harder to get your mortgage approved. However, there are some things you can do to help yourself:
1) Get your finances in order:
- Lenders are now thoroughly checking your expenditure versus your income.
- Preferably at least three months before starting an application you should rein in your spending.
- Lenders will be looking to see whether you can still afford your mortgage when interest rates rise.
2) Credit check yourself:
- Check your credit rating with Equifax and Experian, as a poor credit rating can severely dampen your mortgage plans.
- If there are any mistakes, you can get them corrected.
- Knowing the full extent of any problems in advance can help brokers tailor their advice accordingly.
3) Pay off outstanding debts:
- Pay off any outstanding debts if you can, as this will maximise the amount you can borrow.
4) Act as though you already have the mortgage:
- Banks are more concerned with your spending history as opposed to what you say you’ll do in the future.
- Most lenders will require your past three months pay slips and bank statements to check up on the information you provide.
An independent mortgage broker can help with all of these. In our experience, the sooner we speak to a client, the sooner we can give them advice that is tailored to their particular circumstances. While banks offer in-house ‘advisers’, they can only offer you the bank’s products, whereas Anderson Harris can go through all the options.