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Mortgage approval Tips

Mortgage tips for getting your mortgage approved

Monday 8 July, 2019

As mortgage approvals increase and interest rates remain low is now a good time to move?

The UK housing market has hit some turbulent times in recent months. However many people view this as a small ‘blip’, especially given recent mortgage approval rates that according to Which? are at an all-time high over the last 3 years. In April 2019 more than 40,000 people had their mortgage approved, showing the finance sector is still growing. 

Mortgages approvals are up for remortgages and homebuyers

Figures show that it is the market as a whole that is really strong and not just those re-mortgaging with equity in their properties. This may come as quite a surprise to most, as the housing market is believed to be going through a so called ‘blip’. However this could in part be due to uncertainty surrounding Brexit and tax changes which has reduced the number of investors purchasing properties. 

Is it a good time to move house or buy your first home?

Consequently, some homeowners and first time buyers feel they can get a better deal not having to compete with investors, making it a perfect time to move house or buy their first property. As a result we have seen a rise in homeowner transactions and first time buyers purchasing their first home, which is what the government wanted to achieve with their tax changes. 

Also people looking to buy or remortgage can benefit from interest rates at an all-time low, with lenders battling to take a share in this market, promoting higher approval rates and the introduction of specialist mortgages. 

Vishal Gulrajani, Mortgage Broker in Cheshunt, Hertfordshire, said:

‘Some people reading this article will have credit concerns or be disheartened from previous mortgage attempts, when their mortgage application was refused. So here are a few mortgage approval tips which should help you be part of the 89% of people who had their mortgages approved earlier this year.’

Tips for getting your mortgage approved

  1. Maximise your credit rating by checking there are no mistakes on your credit profile through credit Karma, Experian and Equifax. 
  2. You can help maximise your credit rating by using a low percentage of your available limits on your credit card, not missing payments and making sure you are on the electoral roll and registered to vote. 
  3. Save as much for a house deposit as possible. This could include gifts from friends and family as this will allow you to obtain a better interest rate and helps a lender see you in a more favourable light. It could also enable a mortgage lender to offer less stringent credit criteria. 
  4. Help a lender give you more by improving your affordability and not having too much debt by clearing any unnecessary loans or credit cards.

Vishal Gulrajani, Mortgage Broker in Goff’s Oak & Cheshunt, Hertfordshire, continued: 

‘Overall the increase in mortgage approvals is fantastic news and shows the country is in a financially stable condition, even though the house market is not booming. With mortgage rates at an all-time low it could be a perfect time to review your mortgage and take out a fixed rate mortgage by fixing your mortgage rate for a certain number of years. It may also be a good time to consider moving and purchasing a new home. Everyone’s financial and personal circumstances are different and I understand each personal scenario is unique, but even if you have had a bad mortgage experience in the past now maybe a good time to revisit the mortgage market. At Thomas Oliver our mortgage broking team are experienced at dealing with a range of clients including first time buyers, investors looking for a buy to let mortgage and homeowners wanting to move or remortgage. 

In summary…

If you have been considering moving contact us now before you find a property so we can get your mortgage application ready in time. Our mortgage brokers can offer you a free mortgage consultation. We process your mortgage with the lender and we don’t charge you anything until your mortgage completes. This allows you to benefit from our excellent customer service and allows us to obtain the best mortgage solution for your individual circumstance. Call our mortgage broking team based in Goff’s Oak, Hertfordshire now on 01707 872000 to arrange a mortgage appointment.

As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments.

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