TMG HQ

✨5 tips for getting a mortgage:

1) Make sure all income is provable
• All lenders will check your income, and that of any joint applicant to make sure it is what you say it is. Well ahead of applying for your mortgage it is beneficial to get your paperwork together to ensure that everything is in order when you need to prove your income.
2) Save a large deposit
• The larger the deposit you can save the better are your chances of getting a mortgage as lenders try to limit the risk they are taking with each mortgage.
3) Check your credit rating
• Every lender will assess your credit rating to see if you are reliable as a borrower
4) Don’t apply for any new credit
• You should not apply for any new debts as this will be recorded on your credit file and new debts will flag up to a prospective lender that you are stretching yourself financially
5) Payoff unsecured debts
• If you have unsecured debts with siezable monthly payments then it would be beneficial if you pay these off prior to applying for a mortgage. This will reduce your regular outgoings and increase the amount of income available to service your new mortgage ✨

✨How is your credit score determined?

• Payment History 35%
make a payment or miss a payment, it’s on your credit file
• Amounts you owe 30%
try to owe under 50% of total limit on all credit
• Credit History 15%
the longer you’ve had credit, the clearer the picture of how you manage debt
• Types of Credit used 10%
• New Credit 10%

How does it affect home buying?

• A credit score is a number between about 300-900 that conveys to lenders how risky you are as a borrower
• Your payment history, current debt levels, types of credit accounts and the average age of all your credit accounts all affect your credit score
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