Buying a home is one of the most expensive things you’ll do and, from the moment you decide to take the plunge to getting those keys in your hand, it can take up a lot of time and effort.
When you’ve taken the time to save up for a deposit, get your credit rating in good shape, find the perfect property and do your sums to work out what you can afford, you feel like you should be a good candidate for a mortgage lender to say yes to.
But what if they say no?
We want to help you get the home you want and deserve, so here’s a few things you could consider doing to turn a no into a yes.
Increase term
Increasing term means extending the number of years you take out a mortgage for – for example, you could increase your term from 25 to 30 years.
The immediate benefit to increasing your mortgage term is that your monthly payments will be lower because they’re spread over a longer period.
Increasing the mortgage term also means that the amount you’ll pay back overall will also increase. However, if your financial position changes in the future and you could afford to pay more, you could explore the possibility of reducing the term.
Reduce your Loan to value (LTV)
Having a low LTV increases your attractiveness to lenders as you present a lower risk. Most lenders also offer lower rates if the LTV is lower – so if you were to take out an 85% mortgage, the interest rate is likely to be lower than for a 90% mortgage.
You can reduce your LTV by reducing the amount of money you borrow from the mortgage lender. You could do this by either putting down a larger deposit or by purchasing a cheaper property and keeping your deposit amount the same.
Reconsider your mortgage product
Different mortgage products have different interest rates attached, so by choosing a different product you could reduce the interest rate which in turn will reduce your monthly payments. For example, some lenders may offer a lower interest rate if you want to fix your monthly repayments for 2 years instead of 5 years, or if you choose a fixed rate over a variable rate.
Look for an alternative lender
Each mortgage provider has their own set of criteria that they measure borrowers against – taking things like income, credit score and existing debts into consideration. This means that if one lender isn’t able to provide you with a mortgage based on your individual circumstances, there may be another one that can.
Our mortgage advisers have access to a panel of more than 90 lenders and will work with you to find the right mortgage deal for your needs.
Helping find the right options for YOUR needs
No matter what your personal circumstances, our mortgage advisers in Doncaster are on hand to provide expert advice and do everything they can to help you buy a home. They’ll be on hand to guide you through every step of the home buying process from your first appointment.
If you’d like to arrange a free initial no-obligation appointment with an adviser in Doncaster, give us a call on 01302 798573 or send us an e-mail.
Meet our mortgage brokers in Doncaster