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How to Improve your chance of getting approved for a Mortgage

The mortgage application process is a difficult process, even for those that have moved before. There are many different factors that could affect your mortgage application, as there any many different criteria for assessing your application depending on your mortgage provider.

Regular & Stable Income

Mortgage lenders are more likely to give you a mortgage is you have a regular income and are in a stable and long-term employment. It is recommended that you have been in your current role for at least three months before applying for the mortgage. It is not uncommon for the mortgage provider to check with your employer that your job is secure and long term.

Credit History

The better your credit history, the better your options will be when choosing your mortgage. You are also more likely to receive a more favourably deal.

Mortgage providers use different credit agencies. The three main agencies are Experian, Transunion and Equifax. You can obtain a free credit report from any of these three.

The report will make you aware of any incidents that might have occurred in the past, e.g missing a payment or problems with any credit. All these incidents could possible affect your application for a mortgage.

It is also worth reading your credit report carefully as you might find mistakes on the report. If you do, contact the agency and ask them to amend the record.

It is also worth noting that if you have never had credit before, a mortgage lender might not want to approve you are for a mortgage. So you might need to apply for a credit card, to build up a positive credit history.

Increase your deposit

The larger your deposit the better your chances are of being successful with your mortgage application. It is also likely to improve the rate of your mortgage.

In the current market the usual deposit is 5% of the property price, so if you can increase the deposit by just 1% can change the rates, and your monthly payments.

Paperwork

Make sure that you have all the relevant paperwork to hand before you apply for your mortgage. This can reduce the chance of delays with your application and the approval process. Any piece of paperwork missing can cause delays or even result in the application process having to start again.

Ensure that everything on your paperwork is correct and supports the information that is being stated on your mortgage application. E.g. Don’t state you earn £50,000 per annum, while you payslips only total £40,000 per annum.