What do you Need to Get a Mortgage?

Arranging a mortgage is essentially about providing evidence of affordability and creditworthiness. Before applying, you need to make certain you can afford it. In addition to borrowing enough for the house purchase, you need a deposit which can be anything from 10 – 30% of the value of the property. Costs such as stamp duty, legal fees and removal charges need to be covered and you need to ensure you can afford the monthly repayments for the next 20 – 25 years. It is essential to do your research and find the mortgage that best suits your circumstances now and in the foreseeable future.

 Key Steps to Getting a Mortgage

Once you have the necessary deposit and are confident with your financial budgeting, you can use a broker or apply, usually online, to 2 or 3 of the most appropriate mortgage providers. The general rule is that lenders will allow you to borrow between 4 or 5 times your annual salary so the first step is to confirm your income. Usually, 3 months of bank statements will provide evidence of income, but payslips may also be required. Length of employment can be important as it shows stability and continuity.

Identity checks and credit checks will also establish whether you are likely to be accepted. If you already have large debts or poor credit due to missed payments, then this may limit the providers who will lend to you. Many lenders will carry out stress tests to check your ongoing affordability by looking at your outgoings and lifestyle – could you cope with a sudden increase in interest rates, for example?

If you feel overwhelmed by the process or can’t find the right deal, using a mortgage broker can often be a great solution as they will have established relationships with lenders and can help you through the process. However, you should still compare a variety of lenders to ensure what is being offered is right for you.