In a changing economic climate, it can be helpful to know that other people have the same concerns as you do.
In fact, a recent survey by the Mortgage Lender revealed that of the 2,000 adults polled, 25% had no idea as to when they would feel ready to apply for a mortgage. The reasons for this lack of confidence varied considerably, from worries about debt to your employment status. While these worries are more than justifiable, getting a mortgage isn’t as insurmountable a task as you may think.
With the help and guidance of financial management tools, such as our MyMAB app, you can gain the confidence, expertise, and tools to get mortgage ready. Let’s take a look at some of the common concerns and findings from the survey, and how you can use our app to overcome these.
Proving a stable income
One of the biggest key factors in getting a mortgage is having a steady income, according to 27% of UK adults. When it comes to applying, the first thing a lender will take into account is your incomings and outgoings.
If you’re unsure about if you have enough income to afford a mortgage against your other financial commitments, there are multiple features of the MyMAB App you can use to put your mind at ease.
The digital coach can guide you through all the aspects of a mortgage application. This will be especially useful if you fall into the 25% of UK adults that have ‘no idea when they would be mortgage ready.’
Another key factor for a successful mortgage application, according to 26% of UK adults, is being in full-time employment. While this is a good sign that lenders look for, it’s not always the case. For example, you may be self-employed and still earn enough on a monthly basis to be considered for a mortgage. You may also be in part-time employment, whether you have one part-time job or three. If you fall under this category, it is important that you keep your books up-to-date and have all invoices ready to show any lenders upon their request.
At the end of the day, lenders want to know you can afford your mortgage, and they are less interested in where that money is coming from.
Whether you work full-time, are self-employed, or have enough part-time work to make up a full month's salary, our app’s affordability calculator would be an excellent way to determine whether your earnings are enough to have your application accepted.
Saving for a deposit
With 23% of homebuyers stating that having enough of a deposit saved up made them mortgage ready, it’s only natural that many of us want to ensure we’re staying on track with a steady savings plan. While we have discussed and busted the myth of the big deposit, you will likely still need at least a 5% deposit.
A key feature within the app is the ability to create your own tailored savings plan. You can input existing savings, plan out projected savings, and pinpoint when you’d like to buy a house. The app highlights how much you’ll need to save each month to meet your goal of saving for a deposit, and lets you know if you’re on track or need to adjust your timeline.
Having a good credit score
Credit scores have always been a key part of borrowing money, whether it’s for car loans or credit cards. They also play a pivotal role in securing a good mortgage deal. In fact, 18% of borrowers point to good credit scores when considering their mortgage readiness. Working on improving your credit score is important as it will determine what kinds of mortgage a lender will offer you but if you have a low credit score, it is still possible to get a mortgage.
If you’re looking for an idea of what you could borrow, check out our borrowing calculator.
Concerns about outstanding debt
If you’ve amassed any outstanding debt over the years that you’re not capable of paying off, whether this be through gambling, sizeable loans, overdrafts, or short-term financing such as Buy Now, Pay Later schemes, you may be worried about how much this will impact you getting a mortgage. In fact, 17% of adults surveyed stated that not having any outstanding debt would be the only point at which they’d feel ready to apply.
The MyMAB app offers borrowing and affordability calculators can help you review exactly what you can afford, so you’ll know where you stand in terms of your borrowing power and have an idea of how much your monthly mortgage repayments could look like.
Ready to take the next step?
Getting a mortgage is actually much easier than you think, and the factors that you are concerned may set you back may not be the case at all. Once you’re ready to apply, our app will put you in touch with an adviser, who will be able to talk you through your options and find solutions that are tailored specifically to your individual circumstances.
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.