A, B, C and D – get mortgage ready!

Knowledge is power, so get mortgage ready by learning your ABCs and Ds:

Advice

Knowing what mortgage is right for you isn’t always easy. That’s why it’s essential to get professional advice so you can find the best deal for your personal situation.

Be prepared with a Budget

You’ll need lots of paperwork to apply for a mortgage, so get prepared. Documentation you’ll need includes utility bills, a form of ID, P60 from your employer, pay slips from the past three months, as well as the last three to six months’ bank statements. If you’re self-employed, you’ll need a statement of two to three years’ accounts signed off by an accountant and an SA302 tax

return form. You should also take the opportunity to kick your budget into shape. Look at what’s coming in and out of your bank account, and cancel any unnecessary subscriptions or memberships you don’t need.

Credit rating

Improving your credit score will help you secure a better mortgage deal. You can do this in a variety of ways, for example by registering on the electoral roll, making loan and bill payments on time, and paying off your credit card balance every month.

Deposit and Debt

Saving for a deposit should be a major priority before applying for a mortgage – the bigger the deposit, the better your mortgage will be. To help you along, try to find a savings account with a competitive interest rate. Paying down your debt should also be high on the agenda, as lenders will look into the amount of debt you have. They’ll also look at your current account to see whether it is in credit, as well as checking that you’re making more than the minimum repayments (as not doing so suggests you are living beyond your means). So, paying off your debts can only be a good thing.

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