With the launch of the new government 95% mortgage scheme and the extension of the stamp duty holiday, now is a great time to secure a mortgage to purchase the perfect property for you.

Securing your mortgage application can be a tricky affair in the current climate, especially if you are a first time buyer. Our estate agents in Canary Wharf are here to help with advice on how to improve your chance of getting approved.

Top 10 tips to secure a mortgage for first-time buyers

Let our property experts share their tips on how you can be successful in navigating your way to financing your dream home.

1. Work out what you can afford

Before you start house hunting and looking for a mortgage, check to see what you can afford to pay back each month taking into account your income, outgoings and any other debt repayments.

2. Get a copy of your credit score

By getting a copy of your credit score, you will know what potential mortgage lenders will see about you. Agencies like ClearScore, Experian, Equifax, Transunion can provide you with your score. Try to clear up any irregularities before applying for a mortgage.

3. Before you apply, reduce any other debts

Having multiple other debt repayments such as credit cards and loans will not help your mortgage application. Try reducing these debts before applying as this means you will be looked on more favourably by the lender and also allows them lend you more under their calculations.

4. Have proof of income ready

Have your P60, 3 months of payslips and bank statements ready to provide to lenders as they will need these to process your application. If you are not a typical employee, you will need the last 3 years of your business accounts.

5. Show evidence of your deposit

You will also need to show proof of funds for your deposit and how you earned it. Lenders like to see that it has been saved for regularly over a period of time. If it was a gift, then you’ll need to show proof it was a gift and not a loan.

The good news is that you now only need 5% deposit under the new mortgage guarantee scheme!

6. Check what schemes you are eligible for

There are multiple schemes available to help you get your first home such as the 95% mortgage scheme and help-to-buy equity loans for first time buyers. Make sure you avail of every scheme you can to increase your purchasing power.

7. Account for legal and other costs

As well as your deposit, you’ll also need to account for your solicitor’s fee, any application fees, the cost of an engineer’s survey report, the cost of furnishing your property, etc. Be sure you take everything into account to ensure you don’t fall short on the way to purchasing your property.

8. The bigger the deposit, the better

Having a big deposit means you can choose from a wider range of mortgages and avail of lower repayment options.

9. Calculate your stamp duty

The good news here is that the stamp duty holiday has been extended which means you will pay less stamp duty, and therefore you can afford a bigger deposit or a higher priced property.

10. Shop around for the best rate

Make sure you check to see where you can get the best rates and offers before deciding to go with a particular lender. Let them know that you are shopping around to give you the best chance of being offered their best terms.

We can help you find your first home in London

Armed with these tips to get your mortgage sorted, take the first steps to your new home by contacting us today to see how we can help you secure your dream property.

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