For some reason, the myth that getting a mortgage loan in Europe is trivial. As if the bankers themselves chasing potential borrowers, as soon as they descended from the ramp. In reality, everything is completely different. I may not be able to explain for whole Europe but now, to get a mortgage in the UK, you will have to work hard and fulfill a number of immutable requirements explained in this article.
Get a good credit history.
It is annoying, but any little thing can ruin your credit history – overdue payment of the bill, frequent moves from place to place, and even the fact of checking a credit rating. A popular tip for newly minted immigrants is to take a credit card from a bank, even if it is not needed, in order to regularly pay off debts on it and thereby build a positive credit history. This has an undoubted meaning if in the future you are going to apply to the bank for a large loan.
Calculate your budget.
Use a loan calculator like this to estimate your future expenses. Do you have enough money left over after the monthly payments to pay for other mandatory expenses – a private school, utilities, insurance for a car? Since it is impossible to predict the mortgage loan rate in advance. If you give a loan at the highest rate possible.
Document Your income
All banks will want to see your earnings over the past few months. Therefore, you will need to document your income. mortgage brokers in Northampton emphasize people to document their income to show representatives in detail.
Do not change jobs if you plan to take a mortgage.
From the point of view of banks, the longer you work for your current employer, the safer you are as a borrower. It is highly undesirable to change jobs if in the near future you plan to apply for a loan. Most lenders prefer a potential borrower to work at the current place at least 3, and better – 6 months. If you are still on probation, wait for it to finish, so as not to get a turn from the gate.
Get rid of debt
It is unlikely that banks will be pleased with candidates who have impressive credit card debts and other financial burdens. Try to reduce them to a minimum – this will characterize you as a responsible borrower, and, therefore, increase the chances of getting a loan.