Oxfordshire new homes provider offers advice on how to get mortgage fit in 2024

With the average age of a first-time buyer steadily increasing in recent years, Bromford is issuing some helpful advice on how best to prepare for taking on a mortgage, helping with the sometimes daunting process of embarking on buying your first home.

Catherine Jarrett, Director of Sales and Marketing at Bromford said: “It’s incredibly important that first-time buyers have a solid understanding of the financial implications that come with getting onto the property ladder, with making that big step an important milestone for many. At Bromford, we’re passionate about seeing people into their first homes and feel it’s important to educate house hunters on how to get off on the right foot.

“Many first-time buyers overlook Shared Ownership as a viable option for buying their own home, and we’re here to demonstrate how it can accelerate the mortgage application process compared to buying from the open market. We strive to ensure the home buying process is as smooth and stress-free as possible, with dedicated support throughout.

“This year offers a great opportunity for buyers to make their first entry into the housing market, and we look forward to helping as many people as possible move into their very first home.”

Helen Pierson, Director at Mortgage Advice Bureau, said: “Many mortgage brokers offer a free initial consultation to help you determine how much you can borrow, what the setting up costs will be and how much your mortgage will cost you each month, so that you can determine what’s affordable to you.”

1. Maximise your credit score

One key thing that lenders look out for is the capacity to pay off credit such as car repayments, credit cards and loans, frequently and efficiently. With most credit companies, there’s a limit for each user, for example £1,500.

Lenders tend to reward people for using a lower amount of their threshold, for example using £500 of £1,500 rather than £1,000 of it will likely see your score increased and your case reviewed more favourably when borrowing.

If you currently have no credit history, lenders will have little to assess your mortgage viability against. Not using or owning a credit card could mean your credit score is lower than it should be, making it more difficult to be accepted by your chosen mortgage provider.

It’s handy to get into a routine with your credit repayments, perhaps using it for specific purchases each month. For example, paying for regular payments such as fuel and food shops through a credit card helps to display routine repayments without using up too much of your threshold.

2. Don’t exceed your overdraft

There are many aspects of money management that could be looked upon unfavourably by mortgage providers, and going above the agreed overdraft limit with your bank is likely to raise alarm bells when applying for a mortgage.

Not only does it reduce your credit score and mean a lender is less likely to approve your mortgage, but it also leads to further penalty payments down the line if your overdraft is agreed with a high interest repayment rate for exceeding, which can indirectly impact the amount you can put down as a deposit.

3. Set a borrowing target

Setting a financial goal to aim for can help to rationalise your expectations for both how high a deposit you can place and ultimately the value of your mortgage after that has been determined. Once this figure has been set, you can then begin to calculate exactly how much to save per month, making decisions on different purchases based around that specific target.

Setting a monthly figure aside each month also adds structure, routine and purpose to your finances, with the carrot of your new home at the end of it encouraging you to continue saving to achieve this more quickly.

When applying for your mortgage, showing a willingness and ability to save effectively will display financial savviness and sensibility to the lender, which combined with a strong credit score could stand your application in good stead.

4. Get your documents in order

When applying for your mortgage, an essential piece of admin that must be completed is updating all of your important documents to ensure that all the details are correct and valid. This includes your passport (which must be in date) driving license and bank statements, which must all be registered to your current address.

Your credit file will also be viewed by a potential lender, so it’s important that you read through it thoroughly to get any clerical mistakes altered – a lender may decline your application for even the smallest piece of incorrect information.

Registering on the electoral roll is also an important administrative step when seeking a mortgage, providing a lender with verification of your address and your previous living situations to prove that your application is above board.

5. Source independent advice

There are many organisations out there that can offer advice around applying for a mortgage, tailored to your specific circumstances.

Some mortgage advisors and comparison websites offer free and independent consultations for many home seekers including first-time buyers. These consultations are a reasonable starting point to help you understand what to expect from the application process, such as comparing rates, organising paperwork or determining the construction of your mortgage.

There are also many online tools that can help you determine an estimate for how much you can borrow, based on your current household income, which can provide first-time buyers with a clearer picture on the type and cost of home they are likely to be looking at.

Bromford provides a range of Shared Ownership and outright sale homes across Oxfordshire. For more information on Shared Ownership, visit https://www.bromford.co.uk/sharedownership/.

For more information on Bromford and the homes available, go to https://findahome.bromford.co.uk/.