Whether you’re a current homeowner or a first-time buyer, the process of applying for a mortgage can seem daunting and complicated. In our current age of new technology, more people are choosing to apply online; while this is undoubtedly an easier option, that doesn’t mean you won’t need a bit of help.
Follow our tips so you can apply with ample preparation, and know you’re getting the best deal available.
“Mortgage” (CC BY 2.0) by investmentzen
Things to Do Before Applying
When applying for a mortgage online, you definitely shouldn’t go in blind. There are some things that you can do beforehand to speed the process along, as well as improving your chances of a good mortgage rate.
Firstly, get your documents in order. Lenders require proof of your identity, your income, and your employment (you normally won’t be able to get a mortgage unless you’ve been at your workplace for at least two years). If you wait until the last minute to source these, the application process will be dragged out significantly. The great thing about online applications is that you can upload your documents digitally; they’ll remain safely in one place, and your lender can’t lose them.
Additionally, knowing your credit score is vital. If it’s too low this will seriously affect your chances of getting accepted for a mortgage. Thankfully, you can check your credit score for free online. Low credit scores can be improved through the following ways:
- Closing down any old unused credit accounts
- Paying off debts
- Linking your bank details to get a free boost
Finally, use an online mortgage calculator to figure out exactly how much you’ll be able to borrow, as well as your repayments. Do this so that you don’t get a bad deal with a lender.
“Mortgage” (CC BY 2.0) by Got Credit
Things to Do During Your Application
It’s highly recommended that you opt for an online mortgage broker such as Trussle, since they’ll liaise with lenders directly and save you a lot of time. In addition, you’re more likely to get a better mortgage rate than if you’d have gone to a lender directly, because a lot of brokers have exclusive deals for their customers. Trussle’s free mortgage services save £290 on average per month, which is a considerable saving.
Don’t worry if you choose to go to a lender directly though, as there are still some tips you can follow to improve your chances of getting a good mortgage deal when you’re applying online.
- Don’t be afraid to shop around. There’s no need to opt for the first lender you find! Online, you have thousands of options at your fingertips and often you’ll need to do a bit of research before you get the best rate.
- Put down the largest deposit you can afford, which will reduce your monthly payments.
- Apply for a mortgage in principle (which is compulsory in some areas of the UK). Your chosen lender promises to give you a certain amount of money, which can be the deal-breaker between you and another buyer for a property.
Overall, applying for a mortgage online doesn’t have to be that difficult. By following these tips, you’ll have an easier time finding a good mortgage rate and make the process run a lot smoother.
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