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10 common mistakes to avoid when applying for a mortgage

Expert advice on how to steer clear of pitfalls and increase your chances of mortgage approval

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1. Not shopping around for the most suitable mortgage deal: It’s important to compare mortgage rates and terms from multiple lenders to find the most suitable deal for you – a mortgage broker can help you do this 

2. Not having a good credit score: Lenders will typically check your credit score and history when you apply for a mortgage – get your credit file and review it – a mortgage broker can help with this 

3. Not having a clear budget: It’s important to have a clear understanding of how much you can afford to borrow and what your monthly mortgage payments will be – as a rough guide this is 4.5x your annual salary (or joint salaries), less any credit commitments e.g. car finance or credit card debt 

4. Not having a large enough deposit: The larger the deposit you have, the more likely you are to be approved for a mortgage and the better the terms of the mortgage will be.

5. Not being honest about your financial situation: Lenders will need to see proof of your income and expenses when you apply for a mortgage. It’s important to be honest about your financial situation to avoid any issues with your application. A mortgage broker can discuss your options prior to submitting an application. 

6. Not getting a decision in principle (also known as an agreement in principle): It’s a good idea to get pre-approved for a mortgage before you start looking for a home. This will give you an idea of how much you can borrow and what your monthly payments will be –speak to a mortgage broker who can advise.

7. Not understanding the terms of the mortgage: Make sure you fully understand the terms of the mortgage, including the interest rate, fees, and any potential penalties – a mortgage broker will help and advise you.

8. Not considering the total cost of ownership: In addition to the mortgage payment, you’ll also need to consider the cost of buildings insurance, and any necessary repairs or renovations.

9. Not being prepared for additional costs: Stamp duty, solicitors, lender, broker and survey fees can be significant and will need to be paid when you complete the mortgage. Make sure you have enough money saved to cover these costs – a mortgage broker can confirm what these will be

10. Not reviewing the mortgage documents carefully: It’s important to review the mortgage documents carefully before signing to make sure you understand all the terms and conditions of the loan. A mortgage broker will take time to walk you through these documents to ensure you fully understand 

At The Mortgage Branch, we are here to help you secure the most suitable mortgage for you, whatever your situation.


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