FOR SECURING A MORTGAGE IN 2023
Got your eye on your dream home? Securing a mortgage can be daunting but we can help make the process of securing your first home as smooth and exciting as it should be. Here are our top tips for raising a mortgage in 2023.
1. IMPROVE YOUR CREDIT SCORE
You’ll need a credit score of at least 721 to get a mortgage with reasonable interest rates, but many lenders will be looking for higher scores than that.
There are simple things you can do to boost your credit score such as closing down credit card accounts that are no longer in use and ensuring you are on the electoral register. You should also avoid applying for credit in the six months before your mortgage application so lenders don’t imply that you’re reliant on credit.
Roberto Seresoan from Capricorn Financial, one of Telford Homes recommended financial advisors, also suggests keeping expenditure on a credit card below 30% in order to show a lack of reliance and make it easier to stay on top of re-payments.
2. FACTOR IN LONG-TERM FINANCES
When budgeting for a major investment like a mortgage, you’ll need to think about your long term finances in order to plan to keep up with payments.
Thinking about the bigger picture, look into what future costs and savings you’ll encounter. For example, you can save up to 56% on your energy bills when moving into a new-build home. All Telford Homes apartments have an Energy Performance Certificate (EPC) of B, compared to the national average of D. This means that these modern properties have annual running costs that, according to recent data from CBRE, could save you up to £2,600 a year on your energy bills compared to the national average [1].
Roberto Seresoan also highlights that anything beyond your base salary, such as bonuses, shares and commissions won’t be considered when lenders look at your credit score, so don’t factor these into your finances when considering a mortgage.
3. GET A DEAL THAT WILL SUIT YOUR PERSONAL FINANCES
Once you’ve identified any future costs and savings to understand your long-term finances, it’s vital to get the right advice from someone who can look across the whole market, in order to find the best deal for your personal circumstances.
Max Sugden, Transactions Director, Telford Homes says:
“It’s so important to have the right guidance every step of the way. At Telford Homes, first-time buyers are supported through each stage by our onsite sales team and recommended solicitors and financial advisors. What’s more, buyers will receive a comprehensive induction with a dedicated Customer Service Manager as well as home user guides provided upon completion, to help them settle in.”
4. MAKE SURE DETAILS, ACCOUNTS AND RECORDS ARE UP TO DATE
Roberto Seresoan from Capricorn Financial also suggests making sure accounts and records are up to date. Any incorrect addresses or details on credit cards and accounts can impair payments, so make sure HMRC has your latest details.
He also says: “Always close accounts connected to old addresses. You don’t want to be liable for missed payments made by new residents at the address so it’s always safest to close them down.”
5. TAKE ADVANTAGE OF OFFERS
There are many offers and incentives that could push you over the line to securing a mortgage. When you reserve a 1, 2 and 3 bedroom apartment at The Lock, we will match a 5% deposit, with an additional 5% of the sale price, freeing up any spare savings you have to help with the cost of moving or furnishing your new home. This will give you a 10% deposit in total, and then you’ll need a 90% mortgage via a reputable lender. Find out more HERE.
The Lock offers stylish one, two and three bedroom apartments each with high ceilings, an open plan kitchen and living space, and modern fittings and fixtures throughout. The Lock also boasts an array of fantastic on-site amenities, including a 16-hour concierge service, a fully equipped gym, landscaped gardens, on-site cafes, a supermarket, and a flexible working zone as an alternative and refreshing space to working from home.
As a first-time buyer, you’ll be opening the door to not just a new apartment, but a whole community fit for a variety of lifestyles. In total, the masterplan at Greenford Quay will deliver 2,118 high quality homes, as well as over 20,500sqm of commercial space. The new neighbourhood features a new canal footbridge, an incredible listed heritage building and beautifully sculptured public space. It will also feature an on-site primary school, and the award-winning nursery, Puzzle Monkey, is now open. An additional health centre, contemporary offices and a vast array of shops, restaurants and leisure facilities offer residents an exciting new neighbourhood, right on their doorstep.
[1] file:///C:/Users/jhart/Downloads/Cost%20effectiveness%20of%20new%20build%20homes%20FINAL%20_002_.pdf