With Banks and Building Societies becoming much more stricter on who they lend to we have decided to share some hints and tips on how to become the perfect borrower. AFP Partnership Mortgage Advisers are located in Shrewsbury and offer a variety of different mortgages; for Self Employed & Directors, First Time Buyer Mortgages, Let to Buy Mortgages. If you are looking for mortgage advisers in the Shrewsbury area please consider us. We work with many mortgage lenders and not tied into one mortgage provider, this means we can find you the best deal. To arrange an appointment please contact Shrewsbury 01743 364377, we can also visit you in the evenings if this is better for you.
Banks are now looking at whether mortgage applicants can afford their loan repayment should interest rates rise which can really frustrate (even the perfect borrower!) if you can easily afford the repayments at their current rate.
Looking For Your First Mortgage But Don’t Know Where to Start?
Taking out your first mortgage can be daunting, complicated and very stressful. It can also waste so much time talking to the wrong type of lender. If you are located in the area of Shrewsbury and looking to speak to someone who can sit with you and explain what everything means then contact AFP Partnership Mortgage Advisers on 01743 364377 or 07887 920121. We help and advise many first time buyers!
Tom Robinson, a freelance Web Designer from Shrewsbury has had previous experience and frustration said “I have recently applied for a mortgage and found the whole situation frustrating and their processes totally illogical”. Tom went onto say “I found a couple of mortgage lenders which were prepared to lend me and my partner the money as the word ‘freelancer’ can put lenders off even though I have a good credit rating and regular money coming in” He went on to say “I am not looking forward to my application if we need to purchase a bigger house”
Situations like this happen daily and if you are Self Employed or a Director here are some useful tips to help you pass the lenders rigourous mortgage applications.
How Clean is Your Credit History?
Before your start your mortgage application register an account (if you have not already) on Experian and check your credit rating score. Signup for a free trial (it’s free is you cancel within the time limit) and you wont be charged to use their site. If you forget to cancel it you will be charged. Experian is a great tool as it looks into your history, past and present, and tells you if there are any issues to report. This allows you to prepare a response to the lender if there is an issue to report.
Monitor Your Outgoings
You should look at your monthly outgoings and try and make adjustments several months leading up to your application. Mortgage lenders will scrutinise a borrowers bank statements with a ‘fine tooth comb’. Lenders will look at the last three months bank statements and payslips as part of their process. They will look at your expenditure and what outgoings you have; such as house hold bills, child car, existing loan repayments, mobile phone bills and your general spending patterns to asses if you would be a good borrower. Some lenders can look a-lot deeper if they are not quite sure or satisfied. The MMR (Mortgage Market Review) requires banks for assess if applicants would still be meet the repayments should the interest rates rise, this means that borrowers can not receive the mortgage offer they need to be able to purchase their new home and borrow the money the require.
Duration of Your Mortgage
Mortgages were typically spread over 25 years however; this changed during the ‘boom years’ when banks and building societies started to offer mortgages upto 40 years. To reduce your monthly repayments, which may please the lender, look into the possibilities of borrowing the money over a longer duration and not just a 25 year mortgage.
Fixed Rate Mortgages
Opting for a fixed rate mortgage could be a sensible thing to do. At AFP Partnership mortgage advisers in Shrewsbury we process many fixed rate mortgage applications, with many applicants opting for a five year fixed mortgage. This is because of the threat of the interest rates climbing. Contact us to enquire about a fixed mortgage and what rates are currently on offer. Fixed rate mortgages are a good solution as you know what your repayments are going to be for the next five years, irrespective of what goes on the mortgage market. However, there are hidden clauses so please be-careful and make sure you know what they are before signing up to anything.
AFP Partnership are mortgage advisers in Shrewsbury dealing with a range of different mortgages:
- Mortgages For Self Employed & Directors
- First Time Buyer Mortgages
- Let to Buy Mortgages
- Buy to Let Mortgages
- Repayment Mortgages
- Interest Only Mortgages
- Equity Release Mortgages