Threshold Mortgage Advice

How to secure the right mortgage for you in 2020

Happy New Year! There’s something about spending an excessive amount of time with relatives over Christmas that makes people want to move home.

Could it be because your brother cheated at Monopoly and bought Park Lane or that you’ve slept on the old pull out bed because your Aunt Sarah came to stay?

Whatever your reason for wanting to move, whether you’re a first time buyer or a current homeowner, you’ll want the best possible rate that 2020 can offer.

Get the right advice

Before you do anything, you need to make a plan and without knowing the answers to the below points, it can be tricky to know exactly where to start.

Talking to a mortgage expert ahead of making any application can help you to understand:

  • The type of mortgages you may be eligible for
  • The current rates on the mortgage market
  • Your credit history
  • How much you could borrow
  • The property types that may be easier to mortgage

Knowing the road that lies ahead can help you to plan, which is important if you’re still saving a deposit or wanting to move quickly.

Start saving

Factors such as your credit history, employment type and even the type of mortgage you’re applying for can all affect the size of the deposit you need. If you pose a financial risk to a lender, you may need a higher deposit, so it can be a good idea to save as much money as you can afford to.

Before you roll your eyes at the thought of having to eat beans on toast for a year, check out some thrifty saving ideas and ask an adviser about the current savings accounts that could help you boost your savings.

Reign in your spending

Even if you’ve had a mortgage before, remember that you’ll need to undergo credit checks as evidence of your ability to manage money and debt.

Anything that might affect your credit score negatively needs to be avoided and that includes excessive splurges and unnecessary borrowing.

Check your credit score

Your credit score can vary depending on which credit reference agency (CRA) you use, which is why it’s always best to compare a few and keep a note of any discrepancies.

If you notice something on your report that doesn’t quite look right, you may be able to contest it by contacting the creditor directly to discuss the debt or by contacting the CRA to update their records.

Get organised

While mortgage advisers can make the process of securing a mortgage much smoother, you’ll still need to find a property and move home.

Things to consider for the near future might include:

  • Where you’ll get your insurance from
  • Which removals company you’ll use
  • Which of your items and coming with you on the move – Could you sell some unloved ones to put toward the cost of moving?
  • The solicitor you’ll work with

Have your documents ready

It’s also helpful to have any documents needed to fill out your mortgage application ready. Delays can cost money and having the necessary paperwork and documents ready and prepared in advance can prevent delays.

These can include:

  • Your passport
  • A copy of your birth certificate
  • Proof of employment (if necessary)
  • A record of your accounts if you are self-employed. Ensure these are up to date, accurate and have been signed off by a chartered accountant.

Send us a message

If buying a home is one of your goals for 2020, speak to a member of our team who can answer any questions you have about the mortgage process and your eligibility for this year’s most competitive rates and products.

Feel free to send us a message.

Your home may be repossessed if you do not keep up repayments on your mortgage

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