If you are a first-time buyer in Kent, Bedfordshire or the surrounding areas and are looking to maximise your chances of mortgage approval, then this latest blog post has been created just for you.
It’s no secret that the process of securing your first mortgage can be daunting. However, with the help of your local and trusted mortgage broker it can be simplified.
We hope the SIX top tips below will help you as a first-time-buyer.
At Thameside Mortgages, we always recommend being proactive before you start your mortgage application in order to give you the best possible chance of first-time approval.
By implementing the below suggestions, you can significantly increase the probability of stepping onto the property ladder sooner rather than later.
- Build A Strong Credit Profile
- Save for a Larger Deposit
- Manage Your Debt-to-Income Ratio
- Maintain Stable Income
- Seek Mortgage Advice
- Stay Within Your Means
Build a Strong Credit Profile
When considering your mortgage application as a first-time buyer, lenders thoroughly assess your creditworthiness as a key factor. Therefore, it’s highly recommended by our team to get proactive about building a strong credit profile the best you can. A simple tip to start with may be reviewing your credit report and addressing any errors. Other things within your control to build a strong credit profile may include; reducing credit card balances, paying your bills on time, and avoiding taking on new debts. All implementation towards better credit can significantly increase your mortgage approval chances.
Save for a Larger Deposit
The second way of improving your first-time-buyer approval chances is by saving for a larger deposit. We understand that in the current financial and economic times, this can be difficult. However, if this is possible for you, it will put you in a great position. This is because a larger deposit will help to reduce the loan-to-loan (LTV) ratio which makes you much less risky to lenders. In order to save a larger deposit, it’s advisable to set a monthly budget and allocate a certain amount of income to your house deposit. Furthermore, you may also consider exploring cost-saving measures or consider additional income options.
Manage Your Debt-to-Income Ratio
When lenders are checking out your application, they will analyse your debt-to-income ratio as a key factor. Essentially, the lender will compare your monthly debt payments to your income. It’s highly recommended to do what you can as a first-time-buyer to lower your debt-to-income ratio as best as you can. If possible, you may want to pay off outstanding debts depending on your current financial situation. We 100% recommend avoiding taking on new loans.
Maintain Stable Employment and Income
It’s no secret that lenders prefer borrowers that have proof of stable employment and income. If you’re applying for a first-time-buyer mortgage, it’s preferable if you avoid changing jobs for the short-term. This is because concerns can be raised about the stability and predictability of your new employment to the lender. Fundamentally, if you have a stable income, minimal debt and stable employment, you are much likely to be approved for a first-time-buyer mortgage.
Seek Mortgage Advice and Pre-Approval
The mortgage process can be complicated and we believe you should seek mortgage advice for pre-approval, or an Agreement in Principle (AIP). Local and trusted mortgage brokers, like Thameside Mortgages, can help you to understand your options and guide you toward suitable lenders. We have access to over 90 lenders so it puts us in a great negotiating position.
Stay Within Your Means
It’s advisable to stay within your means as a first-time buyer and be realistic about what you can afford. With interest rates ever-fluctuating, it’s important to have a budget and to avoid stretching it if possible. As well as the house deposit and monthly mortgage payments, there are also solicitor and estate agents fees to take into consideration.
Securing approval for a first-time buyer mortgage is a big step for anyone and requires careful planning. The proactive measures suggested above, such as building a strong credit profile, will ensure that you’re in the best possible position for success when it comes to submitting your application. It can be a stressful time but when you have a local 5-star company like ourselves fighting your corner, it makes things much easier.
Get in Touch
Are you looking for professional and personable assistance in securing a first-time-buyer mortgage? If so, we would love to hear from you today and arrange an initial chat. Call us today at 0345 512 0125 or use our online contact form.
*A mortgage is a loan secured against your home or property. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other loan secured on it. The Financial Conduct Authority does not regulate most forms of buy-to-let mortgages*
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