The mortgage market is a strange beast but whatever else happens, there are some things you can do to help us get you the best deal.
Rates go up and down, offers come and go, and things change regularly in the mortgage market. Whenever there is a well-publicised change, like the recent drop in interest rates, it tends to become a talking point. However, the bottom line is that there is nothing we can do about the national interest rate. So, to state the obvious a little here, whether you are taking out a new mortgage, or one of the millions who need to re-mortgage this year, your deal will always be based in the rates that are available at the time.
The bottom line is that although there is nothing we can do about the base rate, you can potentially still affect the rate you are offered. Here are some things that you can do to help us get you the best rate available.
Understand Your Credit Score – Your credit score is a major factor in determining the interest rate you’ll be offered. Lenders see a high credit score as a sign of reliability, which should lead to lower interest rates. Don’t let a low score stop you talking to us though, there is often something that can be done. Here are some steps you can take to boost your credit score:
- Check Your Credit Report: Get hold of your credit report and check for errors or discrepancies. Correcting these can improve your score. You would be surprised how easy it is to suddenly unearth a long forgotten debt or find a mistake on your history. Even a small mistake can matter.
- Pay Off Some Debts: Reducing outstanding debt can improve your credit utilisation ratio, which is a significant component of your credit score. If you have debts that could be cleared by the equity in your house sale, and thereby reduce your outgoings, there could be some leeway. Talk to us about this.
- Avoid New Credit: Try not to take on any new debt in the months leading up to your mortgage application. It will not only affect your affordability, but multiple credit enquiries can also negatively impact your score
Be Ready to Provide Information – Deals come and go, and rates change rapidly. So, we want to make sure things go through quickly and easily when we find you the right deal. It really helps if you always have the paperwork ready and that it’s completely up to date. The mortgage provider will need to know about your circumstances. So, keep dynamic, up to date records of the following:
Proof of Income
Employment Details / Self Employment details
Identification
Proof of Address
Details of Outstanding Debts
Other things that will come into play:
Property Information – you can often get a mortgage in principle without this, but you will need details of your property for the mortgage.
Deposit Amount – The bigger the better when it comes to deposits. Remember though, you may need additional information if you are borrowing money from a relative or even if it is a gift. This is particularly true if they are moving in with you. Speak to us about this.
Some of the above could easily affect your deal rates, income change from promotion perhaps or the amount of deposit you have saved, and these could clearly change. That’s why you need to keep your records up to date and ready to go.
Lock In When it’s Right – It may seem obvious, but if you get the right deal and we are all happy that it’s going to work for you, lock it in. Be ready to do the paperwork when you need to. I am not suggesting that you ever make a hasty decision, just the opposite, we will be here to make sure the deal is right for you. So, when we are all agreed that it is going to work for you, lock the deal down so it doesn’t get away.
Let Us Help You Understand the Market in Context – Yes, interest rates have recently seen a decline, and yes, that could make this good time to lock in a mortgage deal. However, if we have all learned anything in the last few years, it’s that things can change. Part of our job is to be informed about market trends and the current mortgage situation. We spend time keeping up with news updates and financial forecasts as well as the current deals in the market, so we have the big picture and the small details to draw on. Not to mention the years of experience and good practice. So, talk to us and let us put all that stuff you are seeing in the news in context of something that matters more than big headlines about rate changes and government policy. Let’s put it in the context of you, your circumstances, your financial situation and your future
The mortgage market can be fast moving and, despite the long term nature of the loan, the window for the application is very much in the here and now. Call us, let’s talk about what you need, when you need it, and what that means in terms of the right rate for you.