How You Can Improve It
How much you earn isn’t the only thing that decides being approved for a mortgage! There are lots of other factors that lenders look at, too, and understanding them will give you a much better chance of securing the best possible mortgage deal. So here are some of the things that affect your mortgage eligibility, along with how professional advice on mortgages from a broker can help.
Credit History
Your credit score plays a big part in your mortgage eligibility. Lenders want to see that you’ve managed your credit responsibly in the past, and things like missed payments, defaults, CCJs, or a history of payday loans can all raise red flags.
Employment
How much you earn, and the stability of your income, will influence how much you can borrow. Lenders prefer applicants who are in steady, long-term employment, but self-employed individuals or those with irregular income can still qualify! You just need to have the right documentation.
Outgoings and Debt
What you spend will be something that lenders focus on, too. They will analyse your monthly outgoings, including loans, credit card payments, childcare costs, and even subscriptions to things like streaming services. This is to make sure that you can comfortably afford the mortgage repayments.
Deposit Size
Generally speaking, the larger your deposit, the lower the risk to the lender. A 10% deposit is usually the minimum that is required, but being able to save up for a 15% or 20% deposit can help you to access mortgages with much better rates.
Property Type and Value
It’s easy to assume that all homes are the same, but some properties are considered more mortgageable than others. Non-standard constructions such as timber-framed homes can make lenders pause, as can properties that are noticeably under or overvalued.
Why Working with a Mortgage Broker Is So Important
Trying to navigate all of the above can be really overwhelming, and that is where a mortgage broker comes in. They know what individual lenders are looking for and will be able to match you with one that is most likely to say yes. This can be really useful if you aren’t in regular work or have a poor credit history. Being matched with lenders who are open to working with borrowers like you reduces the risk of rejections and wasted time – and protects your credit score in the process.
A broker can help you to improve your application, too. They’ll make sure that you have all the documents you need and can provide handy tips on presenting yourself in the best possible light. This could be waiting for a missed payment to fall off your report, or applying for a smaller mortgage. That way, when you do apply, you’re in the strongest possible position to be approved.
Your Next Steps
Your mortgage eligibility is something you can work on and improve, and a broker can help you to do that. That’s why you have a much higher chance of being approved when you work with one. So why not get in touch with a trusted team today?
