As the weather begins to finally warm up and summer creeps closer, many of us will be thinking about getting our bodies beach ready in time for the holiday season.
However, with over 1.5 million people needing to remortgage in 2024*, getting beach body fit shouldn’t be the only priority over the next couple of months; getting remortgage ready should also be high on homeowners’ agendas, too.
As a Maidenhead mortgage broker, we see many instances of where those applying for a mortgage come into difficulties as a result of very minor things, which, if addressed in advance, would not have been an issue.
So, whilst we can’t help you sculpt that perfect body, we can help you get a few things in order that might support you when it comes to getting a mortgage in 2024.
With that in mind, here are the first five tips. The remaining five will feature in part 2, which we’ll publish later this month.
- Don’t overapply
When it comes to summer sunscreen, you can never overapply. However, you can overapply in the context of mortgage applications. It’s important that in the months leading up to the point at which you apply for a mortgage, you don’t apply for anything else that’s finance-related – be it new insurance, credit cards or a car loan. The reason is that every application you make leaves a trace on your credit score. And, if there’s suddenly a flurry of applications for credit, it’s likely to be interpreted – even if it isn’t the case – as you being desperately in need of credit. If you can’t avoid this altogether, then do your best to minimise it.
- Make the most of a mortgage broker
Yes, we know that this might sound like something that a mortgage broker might say – but it’s true. There are many benefits of using a mortgage broker. However, finding the best remortgage deal is definitely in the top three. Presented with information from the applicant – and with in-depth knowledge of the mortgage market – a good mortgage broker will be able to quickly identify the best mortgage dealsand rule out those that aren’t suitable. This will make the mortgage application process quicker and help avoid any heartache associated with being refused a mortgage.
- Counterintuitive credit
Okay, so we’ve just advised you not to apply for credit in the run up to applying for a mortgage. However, if you’ve done your own credit check (which we recommend, by the way) and found that it’s not as good as you’d hoped – or simply downright terrible – then it’s worth getting a new credit card … and using it. It may sound counterintuitive, but it works. However, this piece of advice comes with one caveat: you not only need to spend using the credit card, but you also need to pay it off every month, too. It doesn’t have to be a lot. Let’s say between £50 and £100 each month. But if you can show that you’re able to clear your debt on a regular basis, you will build your credit score.
- Trim up
No, we’re still not talking beach bodies here. Instead, we’re referring to your spending. Ideally, you want the three months prior to remortgaging to be lean when it comes to spending. So, when you know that you’re going to apply for a new mortgage, ensure that the preceding three months show your spending habits at their very best. To do this, cut any unnecessary expenses, review your current Direct Debits and standing orders and cull anything that might give the impression that you’re frivolous when it comes to money.
- Get over your overdraft
Are you a regular overdraft user? Or have you ever found yourself in your overdraft without even needing to be? If you’ve answered ‘yes’ to either of those questions, then our advice is to stop as soon as possible. As with the last point, lenders typically want to see the last three months’ worth of activity. And, if you’ve gone into your overdraft at any point during those 90 days, it will not be viewed favourably – after all, it demonstrates that you’re living close (financially, that is) to the edge.
If you’re about to apply for a mortgage but unsure of how your credit report stacks up, or would like to ask any question when it comes to remortgaging, our team of Maidenhead mortgage advisers can help.
Contact the team directly on 01628 560820 or by emailing enquiries@altonmortgages.co.uk for expert mortgage advice in Berkshire.