Top 10 tips for getting a mortgage
- Your credit score matters. …
- The starting point is your own sums. …
- You’ll be better off in the same job. …
- Debts don’t help. …
- You’ll need proof of income. …
- 6… or accounts if you’re self-employed. …
- The bigger the deposit the better. …
- Buying with someone else can be easier.
Then, can you get a mortgage without a job?
One way you might be able to qualify for a mortgage without a job is by having a mortgage co-signer, such as a parent or a spouse, who is employed or has a high net worth. A co-signer physically signs your mortgage in order to add the security of their income and credit history against the loan.
Correspondingly, how long do you have to be in a job to get a mortgage?
With many lenders wanting to see that you have been with your company for a good length of time, you might want to hold off on changing your job before you have a mortgage offer agreed. In most cases, you should ideally be employed in your current told for at least 3 to 6 months before applying for a mortgage.
How long does it take to get a mortgage?
The average time for mortgage approval time is around 2 weeks. It can take as little as 24 hours but this is usually rare. You should expect to wait two weeks on average while the mortgage lender gets the property surveyed and underwrites your mortgage application.
In almost all cases, you will need a deposit of at least 5% of the property price. But the average house deposit for a first time buyer in the UK is around 15%. The bigger the deposit, the lower your mortgage interest rate and the smaller your monthly repayments.
Ideally, you should save as much as possible before buying a home. The minimum required deposit is 10%, but aim for 20% if possible. If you’re borrowing more than 80%1 of the property value, you’ll need to take out Lenders’ Mortgage Insurance or Low Deposit Premium.
How easy is to get a mortgage as a first-time buyer? It can be very easy, and many lenders welcome first-time applicants. In fact, first-time buyers now make up the majority of home purchases (at the time of writing) with terraced houses and semi-detached properties being their preferred choices.
A credit score of 750 is a ‘Fair- Excellent’ score across all the UK credit reference agencies. This is generally a good score and will mean you’ll have options of mortgage lenders. The exact mortgage rate you’ll be offered will depend on your unique circumstances.
Ensure your ID and address documents are up to date
- Passport – must not be expired.
- Driving License – must have your current address.
- Council tax statement – latest one available.
- Utility Bills – usually dated within 3 months.
- Bank statements – physical statements are required if you use these as proof of address.
Furthermore, the definition of what constitutes a gap in employment may vary between lenders. Some may consider just a single week to be a break in employment that can affect your mortgage options. Other lenders may accept a gap of 4 weeks between contracts, as long as there is an acceptable explanation.