Whether you’re a first-time buyer or moving onto your fifth property, the amount of work that goes into finally owning your own property doesn’t really change. From assessing your budget, to finding the right mortgage product, to making sure you’ve got good enough credit… it can be overwhelming.
Don’t worry. While it can seem like a lot to do, and it is, there are plenty of things you can do to make the whole process a lot smoother. Since we live in a digital age, there are plenty of ways you can help get approved for mortgages online. Whether it’s doing research, using a mortgage calculator or trying an online mortgage broker, you can find the right deal and increase your chances of being approved without having to leave your home!
Want to know more? Just keep reading.
Check Your Credit History
If there’s one thing that can stop a mortgage application before it even gets off the ground, it’s having poor credit.
Many people aren’t even aware of their credit score, either ignorant or just too scared to check. If you aren’t sure, luckily there’s plenty of services online that can give you a thorough report. Websites like Experian and Clear score have their own rating system for credit but will explain to you clearly how good or bad yours is.
This isn’t something you can ignore. A poor or even average credit score isn’t going to look good to any potential lenders. They do such a thorough check of your credit as they want to know that you are a reliable investment. If in the past you have shown that you are able to repay loans on time and are generally good with your finances, then that is a good indicator that you won’t fall behind on mortgage repayments.
If you’re worried about a low credit score, there are things you can do to improve it over time.
- Use your credit card little and often and pay off on time.
- Don’t use too much of your available credit
- Get on the electoral roll to confirm your address and make it easier to verify your identity
- Make sure your name is on your bills
- Fix any mistakes you see on your report. If your credit history is tied with someone else or you see something suspicious make sure to sort it as fast as you can.
- Make sure to have a good overview of your finances. As you get older, you’ll have more monthly outgoings so make sure to stay on top of them.
The first step of applying for mortgages online is using a credit checking website, so once you’ve done that, you’re well on your way.
Covering All Costs
When applying for mortgages online, one thing you shouldn’t forget is all the other costs that come with applying for a mortgage. It can add quite a lot to your total cost.
From building’s insurance to Stamp Duty, other fees and bills are going to pile up on top of your deposit, so make sure you’re prepared for them. Luckily, there are ways to stay on top.
Checking stamp duty. Stamp Duty is mandatory tax for most homeowners, so make sure not to leave it out of your budget. There are plenty of online Stamp Duty Calculators that you can use to make sure you’re aware of how much you’ll be paying.
Insurance. From Buildings Insurance to Life cover, there are a lot of both required and optional insurances that you’ll want to think about before you put down any money for your deposit. Luckily, as with most things nowadays, there are plenty of comparison websites to compare insurance deals and apply.
Miscellaneous costs. And then there are all the random costs you may not have thought have about. When applying for your mortgage think thoroughly about every step and what is going to cost you money. There are valuation fees, hiring a van and movers, making your old property presentable for potential buyers etc. You need to stay on top of it.
There are literally thousands of deals on the UK market, and ideally you want to compare most of them to find a suitable mortgage. While this is an impossible task on your own, this is where mortgage brokers and comparison websites come in.
It’s best to avoid banks and building societies when asking about mortgages as not only will they only show you limited options, they certainly aren’t going to point you in the direction of any better deals.
Luckily there are plenty of mortgage brokers for you to try, many of which are online. An online mortgage broker functions similarly to a comparison website. For most of these services you need to put in a few details like if you’re a first-time buyer, your budget and how many people are applying and then it will list the mortgage deals you could be accepted for. While these services can’t go into too much detail and sometimes won’t work if you’re in a complicated financial situation, they’re always good for an overview.
Online mortgage brokers are usually free, but some will offer to take your application further in which case they usually will charge a fee. While this is optional, you’re paying for the expertise of this company and for the peace of mind to not having to chase the application yourself so it’s worth considering.
When it comes to applying for mortgages online, there is so much you can do from the comfort of your own home. The internet has made finding products and services so much easier and by staying smart and doing your research, it’s a great tool for finding the right mortgage as well. As long as you stay on top of your budget, you should be fine.