When you finally pluck up the courage to move from your humble abode, the vast array of home loans on offer can be staggering. You may be tempted to simply stay put and not put yourself through the financial wringer, but you know deep down that venturing up the property ladder is the sensible thing to do. If the current value of your home means that you have a good amount of equity in your property, now may be the right time to move. But how do you go about securing the most favorable home loan to ensure you don’t pay back more than you have to when taking out a mortgage on your new home?
Live Frugally Three Months Before Applying
Most home loan lenders will assess your financial situation through wage slips and bank statements. It’s vital that you don’t dip into your overdraft or make any reckless spending decisions in the three months prior to applying for a mortgage. You don’t want the bank manager spotting your penchant for champagne and caviar. Be sensible and live within your means by using the budget template available at vertex42.com. You need to be the epitome of a responsible borrower.
Give Your Credit Rating A Boost
It’s imperative that you have a strong credit score. Without one, you will find it nearly impossible to find a mortgage with a favorable interest rate that is available to you. This means you could be forking out higher monthly repayments with a greater interest rate, all because you dipped into your overdraft a few too many times or missed that one payment for your electricity bill six months ago.
Consider shoring up your credit rating by applying for one of the many credit cards reviewed at best.creditcard. This isn’t for you to go and splash the cash, but simply for you to have a credit card in your name. There is no need to spend anything on it, and you can tuck it away in a drawer. Just by merely having a credit card, you are showing your borrower credentials in a positive light.
Think About Hiring A Broker
If scouring the internet for the best deals isn’t really your thing, consider employing a broker to search on your behalf. These individuals are expert at sourcing the best mortgage deals for their clients and often have exclusive deals with particular lenders. Ask friends and family to see if they have been particularly happy about the service that their broker provided. There can be no better recommendation than word of mouth. For a small fee, you could find a mortgage that isn’t available on the high street or the Internet.
Remember when you purchased your first house and how terrifying that was? You are an old hand at this now and moving up the property ladder is much less tricky than trying to find yourself on the first rung. Do your research, boost your credit score and try to source the best mortgage product out there that’ll enable you to continue on your homeownership journey.