“We really want to become homeowners this year” is something we often hear from our clients. Is one of your New Year's resolutions to get your first home, move into a larger property or relocate to your desired area? LIFT-Mortgages can help!
Moving to a new house is an excellent target for 2021. Since Covid-19 and the lockdowns, many people who felt they were content in their current homes realised they needed things such as a garden, more space, better views and more local walks. This means that the property market is now busier than ever, so we have come up with some tips and tricks that can help you help us speed up the process:
Check your credit score and make sure there are no unknown credit issues: You can check your credit score online via many safe and secure sites. When you check your credit score, it is considered a 'soft inquiry' and does not affect your rating. Some things that may lower your credit score are late repayments, length of credit history (a longer credit history is better) and new credit (every time you apply for new credit, it can lower your score). Check your score sooner rather than later, then if you do discover some unknown issues you can do something about it. If you don't already own a credit card, we would suggest getting one and paying it off in full each month; you can use it for things such as your weekly food shop and getting fuel for your car. Paying off your credit card in full each month will help boost your credit rating.
Consider clearing any debts you may have: similar to the above, it is important to try and clear any debt you have before applying for a mortgage. This will help you lower your debt-to-income ratio; you should at least try and pay off more than the minimum each month and don't miss any repayments.
Speak to a broker, so you understand the deposit you need: a broker will help you understand how much deposit you need, what house price range you can consider, how long it will take to pay off your mortgage and how much your monthly repayments will be. Currently, unless using a government scheme, lenders require a 10% deposit. However, we recommend that an extra 5% will often give a client a much better rate.
Make sure all of your key documents are addressed to the same property: this is a straightforward step but can make the process run a lot more smoothly. Make sure that all of your important documentation (bank statements, council tax) come to your address, not your parent's house or an old property.
Get an agreement in principle: this is a statement from a lender saying how much they will lend you towards your home. During Covid-19 many estate agents are not letting you come for viewings unless you have one of these anyway. It is important to have one of these before you put an offer on a house, your mortgage broker will help you obtain one.
If you want to get your dream home in 2021, follow the steps above and please get in touch so our team can help make this possible!
Your home may be repossessed if you do not keep up repayments.