January 10, 2022
Matthew Fairy

Advice for First Time Home Buyers

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Tips for First Time Home Buyers

How to achieve first time buyer success with our 5 handy tips!

Could this be the year you finally get on the property ladder and buy a house? With an increase in availability of 95% mortgages many first time buyers are hopeful that they will be able to purchase their first property. Unfortunately, whilst there is more availability of suitable mortgages there isn't any guarantee that you will be approved. In order to improve your chances of having your mortgage application approved we have put together 5 handy tips:

1. Register to Vote

How does this have anything to do with mortgages I hear you ask! Well, if you are not registered on the electoral roll it will not be possible to be approved for a mortgage with certain lenders. Whilst the primary aim of registering is to prevent fraudulent voting, it also forms a key part of credit applications and this will be one of the first checks your mortgage provider undertakes. To register you can simply complete the form online (although you can only do this if you are a British citizen, Irish citizen or a Commonwealth or EU citizen who is currently residing in the UK).

2. Check your Credit Report

It is always a good idea to check your credit report as this includes any financial issues on your record in the last six years. You can check this using ClearScore, Equifax or Experian - all free of charge. If you’ve filed for bankruptcy or received a county court judgement within those 6 years then you will probably already be aware of the issue and how it could affect your application. Whilst it records significant issues it also lists smaller incidents, like late bill payments which can have a negative impact on your credit score. On occasions you may see something on the report you weren’t aware of and even an error. This can be easily corrected by contacting the relevant creditor.

“Mortgage providers will check to see how many credit arrangements you already have before they approve your mortgage, and they want to see that number as low as possible.”

3. Make Sure your Finances are in Order

There has never been a better time to tidy up your finances! Your mortgage lender will want to see that your financial affairs are in order. Start by closing any bank accounts that you no longer use. If you have small amounts of money in different accounts, it may be worth placing these altogether in one account as it provides a clearer picture of your position financially. A good tip if you have a Lifetime Individual Savings Account (LISA) is to top it up to the maximum £4,000 annual allowance as the government bonus of £1,000 will then be added to boost your savings.

4. Pay off any Outstanding Debts

Credit arrangements will be checked by mortgage providers before they approve your mortgage. Ideally they will want to see the number of credit arrangements you have as low as possible. For any smaller outstanding debts it's worth clearing these if possible (obviously without subtracting money from your deposit).

5. Delay New Credit Applications

Lenders commonly perform a hard enquiry change for search on your credit score when you make new credit applications. Having numerous hard searches in a short space of time can affect your credit score temporarily. This is why it is advisable to delay any new credit applications until your mortgage application is approved (including new phone contracts, car financing, new credit cards and any type of loan).

Independent Mortgage Brokers

At Transparent Mortgage Services we help first time buyers across the UK get on the property ladder. Our independent advisors scan the entire market to find the best type of mortgage for you and keep up-to-date on any new government schemes that help first time buyers purchase their first home. To discuss your mortgage options with an expert contact our friendly team today - 01424 444 59.

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