If you’re struggling to find a mortgage deal, don’t panic. Even if you are not the ideal mortgage customer, you can still be successful in finding a mortgage when you present yourself in the best possible light and resolve any issues that could be affecting your chances of securing a home loan. If you don’t have much of a deposit, you lack job history, or you are experiencing another potentially problematic mortgage issue, take a look at these ways to solve the problem without stress.
1. Solve Your Bad Credit Score
Your credit report shows the details of your financial history and it includes debts like credit cards and bank loans. Your payment history and borrowing behaviour in the past affects your credit score but it can also be affected by factors such as fraud, or wrongly accredited payments. If there are items that shouldn’t be there you can apply for corrections and improve your credit score. You can also improve the fact that you have no credit history by taking out a carefully managed credit card.
2. Get Help on a Low Income
If the size of your income is affecting your ability to get a mortgage, look into schemes such as Help to Buy, Right to Buy, and shared ownership. You can also refine your house hunting criteria to look for smaller and cheaper properties, in cheaper areas of the UK.
If the size of your income is affecting your ability to get a mortgage, look into schemes such as Help to Buy, Right to Buy, and shared ownership. You can also refine your house hunting criteria to look for smaller and cheaper properties, in cheaper areas of the UK.
3. Manage a Small Deposit
According to flagstone.co.uk, you need to have at least 5 percent of the value of the home saved as a deposit. But even with this deposit you will struggle with some lenders. It is best to save as long as you can in order to build up the biggest deposit possible. If that’s not achievable, look at assistance from the Help to Buy mortgage guarantee scheme.
4. Solve the Self-Employed Problem
When you are self-employed it is tougher to get a mortgage. But it is not impossible, according to flagstone.co.uk. You need your accounts up to date over a period of three years or more. And you can work out your business projections so the lender can see how your financial future looks. It can be tricky to apply as a self-employed person but a good mortgage broker or adviser can help you work this out.
5. Fix a Lack of Time in the UK
You will need to have been living in the UK for at least three years as the lender will want to check your earnings and your credit history over this time. But it is possible to get a mortgage – you will need independent advice, however, so make sure you discuss it with a mortgage adviser. In all cases, if you are struggling to get a mortgage for a property purchase seek financial advice as there are many avenues open to you and you may have missed some of them.
