Getting a mortgage can seem like a daunting process, and it’s easy to make mistakes that could impact your financial future. Getting a mortgage presents challenges at every step of the journey, from the beginning stages of saving for a mortgage to engaging with the best provider, there’s a lot to consider.
Before diving into homeownership, it’s important to be aware of common pitfalls that many people face when applying for a mortgage. Here are five common mistakes to avoid to ensure a smoother, more successful journey toward securing your dream home.
What's in this blog?
1. Not keeping an eye on your credit score
Before applying for a mortgage, you should be keeping a close eye on your credit score to ensure you get access to the best rates available. The UK has three major credit reference agencies. It’s worth checking your score with all three as different lenders use different criteria to assess your credit worthiness.
2. Having documents registered at a previous (or parents’) address
With the move to paperless documents, many clients don’t realise their bank statements or payslips include an incorrect address. To help prevent delays, or even a failed credit search, it’s really important to have your current address on all documentation before you apply for a mortgage.
3. Not registering on the electoral roll
Not registering on the electoral roll can have a significant impact on your credit score. Make sure you are registered on the electoral roll at your current address as soon as possible.
4. Out of date ID
It may seem obvious, but occasionally I come across an out-of-date passport. Make sure both your passport and driver’s licence are in-date, and ensure your driver’s licence is registered at your current address before submitting your documents with your mortgage application.
5. Not factoring in the arrangement fee
Some clients I speak to only consider the headline rate they see advertised. The lowest rate doesn’t always mean you get the best deal as many products have an arrangement fee attached to them. It’s therefore important to factor this into calculations, as well as the interest rate.
Read part 2 for more common mortgage mistakes.
About the Author
Martyn Allen is a Maji mortgage advisor who also runs his own company, MA Financial. He is an independent, whole of market mortgage broker with over 15 years’ experience in the financial services sector. Whether you’re buying your first home, re-mortgaging, moving home or looking for an investment property, he provides personalised, professional and trustworthy mortgage & insurance advice.
Get in touch with Martyn at m.allen@martynallenfinancial.co.uk
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