Improve your chances

How to improve your chances of being approved for a mortgage

Before you seek a mortgage there are many steps you can take to improve your chances of mortgage approval and gaining a good deal:

1. Improve your credit score
If you have a credit card then make sure you’re making regular monthly repayments without any misses. Even if you haven’t applied for a credit card before, it can have a negative effect on your credit. Try to counteract that by applying for credit as early as possible in your mortgage hunt.

2. Cut back on your spending
Lenders are likely to ask for the last six months’ worth of your bank statements to prove that you’re a trustworthy candidate for a mortgage. Don’t make any unnecessary large payments that can make your spending habits look reckless.

3. Register to vote
You may think this is totally irrelevant to your mortgage application but lenders actually use electoral roll data in identity checks to ensure you are who you say you are.

4. Get rid of debt
If you have the ability to do so, then pay off any outstanding debt you owe. A debt-free candidate has a better chance of securing a mortgage.

5. Organise your accounts
If you’re self-employed or own your own business it’s important that you get your accounts in order. The more years proof of income, the better. Get a chartered accountant to organise these for you as it’ll carry more weight. Alternatively provide an SA302 form, which is easily available from the Inland Revenue.

6. Shop around and seek specialised advice
All lenders have different lending criteria. Some will favour a large deposit over bad credit, where some will offer a self-employed mortgage with just one year’s of account information. Independent advisors have access to all the lenders in the UK and will be able to tailor your mortgage deal to your specific needs.

*If you fail to keep up with your mortgage repayments, your home may be repossessed