7 steps to getting a better mortgage deal

Securing a great mortgage deal is on every property purchaser’s list, whether a first-time buyer or an experienced property owner.

More competitive mortgage interest rates mean a better deal for you in the short and long term, with super savvy buyers decreasing their monthly repayments or enjoying a shorter mortgage term with the right mortgage product.

Taking steps to secure a better mortgage deal, however, begins long before you begin your property search. Follow our top tips for improving your chances of being approved for a more competitive mortgage deal.

1. Check your credit score

Your credit score matters, especially when securing credit for the biggest purchase of your life! Lenders use your credit score during the application process to determine whether you are responsible enough to become one of their valued customers.

Your credit score provides an overview of all your accounts over the past six years and makes for interesting reading for would-be lenders as top credit reference agency Experian details:

“Your credit report provides a detailed record of how you manage credit. For lenders who are just getting to know you, a credit report tells a lot about your experience with various kinds of credit. The best way to visualize what your credit report says is to check it yourself.”

Your credit report provides details of personal information, current and previous employers, open loans and credit accounts, open and resolved collection accounts, bankruptcies, and credit enquiries from other lenders.

If your credit score isn’t where you want it to be, many credit reference agencies provide useful pointers on how to improve your outlook.

2. Register on the electoral roll

A rather simple way to boost your credit score and your chances of securing a better mortgage deal is by registering on the electoral roll. Being registered to vote is hugely important to prospective lenders, with many using this data to verify your identity during the application process.

3. Prove you’re a responsible lender

Cleaning up your credit is only part of proving that you are a responsible lender. If you have debts, keeping up with repayments and managing any available credit you have carefully will improve your chances of getting a better mortgage deal.

The key is balance. Lenders don’t want you to be using tons of your available credit, but having no credit history at all is just as damaging.  When paying off debts and getting more of your available credit back, resist the urge to decrease your limits.

4. Save a bigger deposit

The bigger your house deposit, the better the mortgage deal so go beyond saving the minimum deposit of 5% of the property purchase price if you can.

There are several government initiatives that could help you save more. Existing Help to Buy ISA account holders (the scheme is no longer open to new applicants) should take advantage of this saving scheme to earn a tax-free top-up. 

The Lifetime ISA is another option that’s open to first-time buyers aged 18 to 39. If you can save up to £4,000 per year, you’ll receive a 25% tax-free bonus.

There are many ways that you can boost your house deposit. Reducing monthly bills, cutting unnecessary expenses and using a second source of income to raise a deposit are the most popular.

5. Change your job status

We wouldn’t recommend starting a new job three to six months before applying for a mortgage. But if you have time to spare, switching your current position for a more stable role with regular income can help you during the mortgage application phase.

6. Shop around…

Comparing the mortgage market is a must, with shopping around able to secure you a better deal. There are countless mortgage products on the market; do your research and reap the rewards for the long term.

7. …or let us do it for you

Don’t take on searching for a better mortgage deal alone. Our experts are here to help, and with the entire mortgage market at our fingertips and years of experience under our belts, we’re well placed to assist you.

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