Getting approved for a mortgage in Bristol can usually be made much smoother if you come prepared and have a solid understanding of your finances (income and outgoings), your anticipated monthly budget, and the amount of deposit you have saved. A mortgage broker can work through your current financial situation to understand how much you may be able to borrow, and which lenders may be most suitable for you.
The Mortgage Company always recommends looking over your bank statements to get a good view of your general monthly spending habits, and be clear on any committed expenditure such as any credit cards, loans or car finance. This type of expenditure can impact what you are able to borrow, so it is important to ensure you know how much you are paying each month, and whether there are any outstanding balances on any of these commitments.
Another tip from The Mortgage Company would be to check your latest credit report. You can download free credit reports from the likes of Clearscore or CreditKarma, or for a more detailed report you can turn to Experian or Equifax (these usually come with a monthly cost, but sometimes there are free trial promotions – as long as you cancel). Your credit report will tell you your credit score, which is a rating based on your financial history – how well you have managed any debts or financial commitments you have had in the past and currently. Your credit score can go up or down and is not fixed. Your credit report will also tell you if you have made any late payments, missed payments or defaults on your account, which could impact your ability to achieve a mortgage. There are mortgage lenders who can consider certain types of late or missed payments; again this is an important factor in your decision in progressing with a mortgage broker who has experience in this area.
Finally, when looking to apply for a mortgage, get organised with the other documents. These would be your payslips if you are employed, or your self employed accounts if self employed as a sole trader or a Limited Company. Usually mortgage lenders look for 3 months’ payslips and at least 2 years’ worth of self employed accounts. Again, if you are not sure whether you fit this criteria, get in touch with a mortgage broker. There are some lenders who can consider shorter periods of time in employment or self-employment, depending on the specific circumstances.
There may be a fee payable for mortgage advice. The precise amount will depend upon your circumstances, and will be discussed with you before proceeding. Your home may be repossessed if you do not keep up repayments on your mortgage.