Expert advice at the beginning of your journey

Having a good deposit really matters in the current market. Typically the more you can put down, the lower the interest rate you are likely to be offered.

While lenders may be prepared to lend you up to 95% of the property price, with the borrower putting in the remaining 5% as a deposit, better deals and rates are available to those who can put down, say, 20% or even more.

It's not all about your own savings, you may also be able to use money gifted from other family members such as your parents or grandparetns to help with the deposit.

This is where our Broker’s knowledge of the marketplace really helps. They will be able to provide examples that illustrate what you’d pay, depending on how much deposit you’re able to provide.

Understanding how lenders use your credit works is really important before you make a mortgage application. It’s important to understand that mortgage lenders look at far more than your score. 

A potential mortgage lender will often consider the information on your full credit file, which includes details of your payment history on your credit accounts. 

They’ll also look at things such as how much credit you have available to you, how close and how often you reach the limit on your credit cards or over draft and whether you have missed any payments in the past.

The three main credit reference agencies that lenders use are Experian, Equifax, and Transunion trading as Credit Karma. 

Our Brokers can guide you through the credit file maze and explain to you how to get a copy of your file, interpret the detail and explainn how lenders will look at it.

Before you start arranging property viewings, the big question is always “How much can I borrow?” In the past, the answer to this would have been a rule-of-thumb multiple based on your salary, or your joint salaries if you were buying with someone else.

Since the 2008 credit crunch and the financial crisis that followed, mortgage lenders were required by the Financial Conduct Authority (the regulator of the financial services industry), to adopt an approach to lending based on your ability to make the repayments - This is known as affordability. This means that banks and building societies are now required to scrutinise borrowers’ incomes, outgoings and credit history closely and apply strict affordability criteria, ensuring that borrowers can comfortably afford their repayments now, and in the foreseeable future.

This is where your Mortgage Broker  fits in. Although lenders are all bound by the same general principles and criteria, there are slight variations in the way they apply them. So it really pays to work with a Mortgage Broker. Their knowledge of the market and understanding of the approach adopted by individual lenders means they can help you present your application in a positive light, to the right lender, saving you time and stress.