Mortgage

The Five Factors that will affect Your Chances for Mortgage Approval: Explained

Getting a mortgage is not always easy – in fact, getting that perfect mortgage that fits your needs and those of your family the best is hard. It’s not impossible, however, and with a few simple steps you’ll be able to narrow down your choices to a handful of attractive offers. It all starts with you, how you see your future, how you handle your finances, and how you handle credit.

However, what if you are unfortunate enough to have a lower income? What if you have a bad credit score? What if you are self-employed, or have not saved for a deposit yet? What if you haven’t lived long enough in the country? Here are the five factors that will affect your chances for mortgage approval: explained.

Your credit score

Your credit score is simply a measurement of how reliable you are in paying your debts. You need to be sure that you can prove you pay your obligations on time, and consistently – that’s what the credit score is all about. Just because you have some debt here or there does not mean that there will be a problem. You need to be able to show you are reliable and that your debts are manageable.

Your income

Lenders will look at your income to determine how much you can pay back periodically – and hence, how much they can possibly loan you. If your income is not sufficient, the government has many programmes to help you with this.

Why a deposit matters

The larger the deposit, the smaller the amount you need to borrow and the easier it is for you. No deposit? There are government schemes that assist you and pose a guarantee.

Self-employment is a bit tougher

Though it’s usually a tougher process, self-employed people can still get a mortgage by hiring a specialist such as a mortgage advisor from Bristol firms like Open Vision Finance to advise and assist them.

In the UK for less than three years?

Usually mortgage lenders will expect you to have a residence within the country for three years or more. If not, specialists can help you with documentation for your application to be considered in a better light.

If it seems unfair to you when you look at the above descriptions of requirements, then remember that mortgage lenders are in it for the business. Mortgage lenders basically look for two things: your ability to pay back your obligations, and your willingness or reliability when it comes to performing those obligations. All of the above are basically only guidelines (those that are most commonly used), but if you have a good broker who can help you sort things out, your chances of success increase dramatically. Nothing is impossible with the right help.