Getting a mortgage can be a real struggle, and with the poor economy of the UK taking its time to get back on track, it’s no surprise that many first-time buyers simply can’t get anywhere on the market. Unless you’re lucky enough to be born with rich parents or want to wait a good few years to save up a large amount of cash for a deposit, here are some of the things that you can do to improve your chances of getting a mortgage.
- Improve your credit score
One of the reasons why many people fail to get a mortgage is because they don’t have a suitable credit score. Lenders are very reluctant to give mortgages to those who don’t have incredible credit ratings, so there are a few things that you can do to improve yours.
Remember that not taking out any loans can be just as bad for your credit score as taking out too many and failing to pay them back. Take out a credit card and make some small purchases – ensure that you pay them back within the month and you’ll build up a good score over the months.
The secret with building your credit score is to make sure that you pay back everything you borrow on time and don’t miss any payments.
- Get a higher income
This is much harder to do in reality, since many people don’t have the luxury of switching to a higher-paying job. However, if you’re currently studying or taking courses to improve your qualifications and apply for better jobs, you might discover that your income will be in the next bracket by next year. With a higher income, you stand a much better chance of getting a mortgage. Take on some extra part-time work if you need to boost your income a bit, or speak with your partner about the possibility of getting a mortgage in joint names.
- Put down a larger deposit
By offering to put down a larger deposit, the banks might just be persuaded to give you the mortgage that you want. The larger the deposit you put down, the more you’ll be able to borrow and the more likely you are to get a mortgage in the first place. If you can’t get a mortgage at the moment due to not having enough money for the deposit, you can either look at getting a smaller mortgage or wait for a few months to give yourself time to save up more for the deposit. Many banks offer savings schemes that you can take advantage of, and you should always look for the ones which offer a higher interest rate.