If you're only thinking about buying a property at the moment you may want to consider getting mortgage fit now.
So when you're ready, so are your finances.LOOK AFTER YOUR CREDIT SCORE
There isn’t a specific credit score you need for a mortgage, and that’s because there isn’t just one credit score.
When you make an application for a mortgage or other type of credit, lenders work out a credit score for you. This is to help them decide if they think you’ll be a risk worth taking - if you’ll be a responsible, reliable borrower and likely to repay the debt. Usually, a higher score means you’re seen as lower risk – the more points you score, the more chance you have of being accepted for a mortgage, and at better rates.
Most Credit Score reference agencies will provide you with top tips to repair and maintain a good score.SAVE YOUR DEPOSIT
Before looking at properties, you need to save for a deposit. Generally, you need to try to save at least 5% to 20% of the cost of the home you would like.
For example, if you want to buy a home costing £150,000, you’ll need to save at least £7,500 (5%).
Saving more than 5% will give you access to a wider range of cheaper mortgages available on the market.KNOW THE POSSIBLE COSTS
Apart from your monthly mortgage payments, there are others costs when buying a home.
- Survey costs
- Solicitor’s fee
- Removal costs
- Buildings insurance
- Initial furnishing and decorating costs
- Mortgage arrangement and valuation fees; and
- Stamp Duty (Land and buildings Transaction Tax in Scotland, or Land Transaction Tax in Wales).
First-time-buyers will pay no Stamp Duty on the first £300,000 for properties worth up to £500,000.WORK OUT YOUR BUDGET
When you have your own home there's lots to think about and unfortunately lots of bills to pay.
Working out your budget now will help you get prepared for the future.
The Money Advice Service has a great online tool that will help.https://www.moneyadviceservice.org.uk/en/tools/house-buying/mortgage-affordability-calculatorENSURE ALL YOUR DOCUMENTS HAVE THE SAME ADDRESS
We all move around and sometimes forget to update our address's on various accounts. Several different addresses in your name may affect you credit score so take the time ensure they're all the same and ensure your registered voting address matches up on the electoral role.MAKE SURE YOU PHOTO IDENTIFICATION IS VALID
If using a Driving Licence or Passport to help validate your identification make sure the details are correct and in date.THINK CAREFULLY ABOUT APPLYING FOR NEW CREDIT
Remember any new credit agreement will count as "committed expenditure" and may reduce the amount a Lender will be willing provide as a mortgage.
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