No Credit History Can Hurt
The very common misconception is that poor credit history is a bad thing for a mortgage application. Poor credit history doesn’t necessarily mean lenders will not want to lend to you or that they will instantly reject your application. In fact, having no credit history could be more likely to lead to a rejected mortgage application.
Lenders want to see that you have ‘borrowed and paid back’ before. If you have had a few issues along the way this doesn’t generally phase a lender, providing you can show a strong deposit and steady income. Having no credit history is sure to make a lender think twice.
Self-employed individuals find it hard to get a mortgage
Running a business is already a tough task, when you find out it can also be harder to get a mortgage it may have impact on your thoughts about being self-employed. It is true that the self-employed have it harder, it’s definitely not impossible to get a mortgage though. The most important thing is to make sure you are speaking with the correct people. There are lenders that offer mortgages to self-employed individuals even with just 1 years accounts.
There are hundreds of lenders, shop around it can save you a lot of money
Just because you hold an account with your bank it doesn’t necessarily mean they will provide you with the best mortgage deal available for you. Even the lowest rates don’t always mean the best deal for you. It is important to think about the overall value of the lifetime of your mortgage, consider the fees and bonuses available for you. Whatever you do don’t assume that the first offer will always be the best offer.
The importance of the broker
Its easy to assume that working with a broker is just introducing a middleman waiting for their cut, you couldn’t be more wrong! While some brokers will charge a fee, they are some of the hardest workers in the industry. Generally, a broker’s income will rely on matching people with lenders so they will always go the extra mile to find you the best deal. Mortgage brokers are experts in their field so you don’t have to be, their knowledge and expertise can be priceless when it comes to finding the right deal for you.
Chop years off your mortgage
When you have secured your property and mortgage the monthly repayments should be viewed as a minimum monthly payment. Overpaying on your mortgage can really knock the years off the term of your loan. Its always sensible to consider putting funds aside for your mortgage whether it’s from bonuses or if you receive some inheritance as it could save you lots of money in the long term.