As we begin 2019, there is a good deal of certainty within the property market – thanks to the array of low fixed rate mortgages available. With this in mind, Barratt Homes, which is building new homes at St George’s Gate in Shide, is urging homebuyers to act soon to secure the very best deals.
A quick search of mortgage providers will show offers as low as 1.48% fixed until 2021. For those aiming to take advantage of the array of excellent rates available, the challenge is to make themselves as attractive as possible to lenders.
There are a number of practical steps potential homebuyers can take to do just that – and Barratt Homes has compiled its top tips for making yourself mortgage fit.
Michelle Storer, Sales Director for Barratt Homes says:
“Whether they are entering the property market for the first time or hoping to climb further up the property ladder, we are urging homebuyers to put themselves in the best possible position to help them bag some excellent fixed rate deals. It’s a valuable way to be sure you know exactly what you will be paying for the foreseeable future.
“Our top tips give customers the inside track on how these decisions are made and what action homebuyers need to take. Credit scoring can be affected by things that many people simply wouldn’t consider, such as missed payments to not being registered on the electoral roll.”
Barratt Homes says that lending criteria now also means that potential buyers need to provide a clear picture of their finances, something which will put them in the best position for a swift mortgage assessment and offer.
BARRATT HOMES’ TOP MORTGAGE TIPS:
• Be aware of your credit score
First of all, check your score. It’s easy to find because there are a number of free-to-use agencies online. Make sure all information is correct, If it’s not, write to the credit agency and request that they change it. If you have a poor score, there is plenty of advice available to help you start making changes to improve it.
• Don’t over do it
Existing credit such as credit cards and loans can be a bind but you should ensure that you keep up with the minimum repayments – pay more if you can. If you are really struggling to pay, speak to your lender as this may show favourably on your credit score. Don’t use up all your available credit if you can help it. If you’re at your limit, many lenders may be concerned about loading more onto you.
• Be honest about your spending
Mortgage applications provide a clear picture of your finances, so be completely honest about your spending now and what is planned for the future. It will provide your lender with an accurate picture.
• You may be better off alone
If you have joint finances with anyone in your family, these will show up in your credit score. It is possible this may affect your chances of securing a mortgage. So, if your partner or housemate has a poor credit record, try to keep your finances separate.
• Do you have a history?
Some people think they will have an excellent credit score if they’ve never borrowed before. This is not necessarily the case because it means they have no credit history. If a lender has nothing to base their decision on, they may be inclined to avoid funding your home.
Never let debt build up, but it may help if you take out a credit card and use it regularly. Always pay it at the end of the month with a direct debit though. This will help you build a credit history and show you are worth investing in. Mobile phone contracts are another good way of proving you are creditworthy.
• Get on the electoral roll
Demonstrating that you have a stable lifestyle is a good way to show mortgage providers you are trustworthy. If you are in full-time employment and live at a fixed address, that’s an excellent start. If you aren’t already, register for the electoral roll as you’re unlikely to get credit without it.
• Be consistent and double check
It might sound obvious but take your time with your application form and make sure you’ve got your facts right. Even a simple mistake – like saying you earn £3,000 a year when you actually earn £30,000, could delay your application and cause you to miss out on a great deal. Also, be consistent with the information you provide. If you have said one thing to a lender and something else to another, you may be caught out. Worse still, it could be flagged as fraudulent. At best, it will likely slow down the process.
Another red flag is submitting a number of applications in a short space of time. This will show up on your credit record and lenders may question why you have been rejected by others.