Helpful tips for First Time Buyers

How much you can borrow will depend on three main things: your income, your outgoings and the size of the deposit you plan to put down.

We would like to advise you of the following tips in order to help with your mortgage application:

1. Your deposit.

In most cases, you are required to provide a 10% deposit. Therefore, signing up for a regular savings account would be a good idea. If you receive money from relatives in order to assist with your deposit, do remember that this would be a Gifted Deposit. Your chosen lender will need to see evidence of the gift and may require a letter from the person that has provided funds to state that it is a gift and is not repayable.

2. Credit Report

We would recommend that you sign up for a credit report account with either Equifax or Experian. Keep a close eye on your report as your broker/mortgage company will check this when applying for mortgages. All of your information should be correct and up to date. Do try to stay away from Buy Now Pay Later deals as these can affect your score in a negative way.

3. Bank Statements

A mortgage lender will require sight of your bank statements and pay slips to check your affordability. It is recommended to cut back on your spending in the months before you apply for a mortgage.

4. Electoral Roll

Being on the electoral roll helps as lenders often use the electoral roll data to help identify you. This also helps your credit score.

Our team at mosshaselhurst are always happy to assist please call on 01606 74301.