Top tips on securing the right mortgage
IF you’re looking to secure a mortgage, it’s always advantageous to take some expert advice.
Nicola Georgiou, managing director at Manchester-based UK loan broker Freedom Finance, has a few sage words and top tips to set you on the right track.
She said: “Lending has continued to rise yearon-year and first-time buyers and those looking to remortgage have been forced to take out larger loans as a result of everincreasing house prices, and to take advantage of the low interest rates.
“It is also interesting to note, though not surprising, that the buy-to-let market has seen an increase in house pur- chases month on month, as many owners rushed to complete before the new stamp duty rate was introduced.
“While it is positive that consumers are benefiting from the current low interest rates to secure a property, it is important that borrowers are mindful that many of the top rates advertised are only on offer to those with perfect credit scores.
“Borrowers need to be made aware of the risks associated with shopping around online for mortgages, as in the long term this can affect your credit score and limit your chances further of taking out the best loan for you.”
Break up with your partner – wait! There is no need to ditch your loved one, but if your partner has a poor credit history you should keep your credit accounts and bills separate to prevent financial linking.
Although sharing a bank account with your live-in partner is an exciting step in any relationship, consider both your scores before joining any financial products.
Stay loyal – with bills ranging from long-term commitments such as mortgages to temporary memberships like Netflix and spinning classes, your outgoings can become confusing.
Staying loyal to banks can improve you credit score over time, and if you have not done so already, set up direct debits to pay your bills on dates that suit your payday.
The more controlled your finances are, the more you increase your chances of never missing a payment, which could also negatively impact your score.
Beware of financial window shopping – too many ‘hard’ loan searches online can have a negative impact on your credit score. Be cautious – many of the attractive headline loan products are not available to everyone.
Shopping around and applying for various enticing loan deals could actually harm your overall chances of getting a loan by leaving a hard credit footprint which will damage your score if you are rejected.
Register to vote – whatever your political preference, if you are not on the electoral roll you will have difficulty getting any mainstream credit.
Get connected – the number of people using landlines in 2016 has started to dwindle.
Having a fixed line or even a mobile phone contract under your name can increase your credit score with many lenders. You may not be able to register for products online if you don’t.