New homes provider Bromford is encouraging West Midlands homebuyers to get financially fit in 2023, by sharing its top tops on how to get mortgage ready. Bromford has teamed up with independent financial advisors Mortgage Advice Bureau to offer new property seekers helpful advice on how to get mortgage ready before buying a home, helping first-time buyers to take their first steps onto the property ladder.
Catherine Jarrett, Director of Sales and Marketing at Bromford, said: “Now more than ever, it is becoming increasingly difficult for first-time buyers to get onto the property ladder. At Bromford, we’re passionate about educating house hunters on how they can get mortgage ready, helping them to get off on the right foot.
“Many first-time buyers overlook Shared Ownership as a viable option for buying their own home, and we’re here to show them that this shouldn’t be the case. We strive to ensure the home buying journey is as stress-free as possible and offer our support from start to finish. Now is the perfect time for homebuyers to get a start on their new year’s resolution of buying a property, and we’re looking forward to helping a whole host of people make the move to their very own home in 2023.”
Helen Pierson, Director at Mortgage Advice Bureau, said: “We continue to support buyers into and beyond 2023 by presenting as many mortgage solutions as possible to those wanting to get onto the property ladder. Some may not even know they can secure the finance they need, while others might think the market has shifted too far beyond their reach when the opposite is true, as appetite to lend in the shared ownership space is actually increasing.
“Being prepared is a great way to smooth out the homebuying experience. Time spent on getting organised beforehand reduces the stress of the journey, making it a far more exciting and enjoyable experience. Those who want to embark on owing their own home should start by utilising the services of a quality adviser who understands all the options available.”
1. Get organised
Before applying for a mortgage, it’s important to get as organised as possible, and make sure all your documents are in order. It’s a good idea to keep your latest 12 months’ bank statements and payslips, as your lender may need these to verify your income, outgoings, address and rental history.
Make sure your passport has not expired, that your driving license and bank statements are registered to your current address, and that you have evidence of where your deposit is coming from.
2. Register on the voters’ roll
Ensuring you are registered to vote will increase your credit score, as lenders will use it to help verify who you are and where you’ve been living over the last three years. You can easily register online at https://www.gov.uk/register-to-vote.
3. Know what’s on your credit file
During the process of applying for a mortgage, lenders will look at your credit file to see what loans and credit cards you have outstanding. You can use free services such as https://www.moneysavingexpert.com/creditclub/ to check your credit report and score.
4. Pay loans and minimum payments on your credit cards on time
Staying up-to-date with paying your outstanding loans shows you have a good attitude to debt, which is something that lenders look out for. If you consistently pay on time, you’re demonstrating good behaviours for the future, making your application more likely to be accepted.
If you don’t have a credit card already it’s a good idea to apply for one. Using it to pay for small items like groceries, and then paying off the balance each month, can be enough to improve your credit rating.
5. Don’t max out your overdraft
Lenders often look out for red flags such as maxed-out overdrafts. Make sure you don’t run up additional bank charges for going over, as this gives the impression that you’ve over-committed and are unable to keep up with payments.
Bromford is providing a range of Shared Ownership homes across the West Midlands. Shared Ownership gives those who do not currently own a property the chance to secure a new build home with Bromford. Homebuyers pay a mortgage on the share they own and pay rent on the remaining share, meaning a smaller deposit is required.