Trinity's tips for a successful mortgage application

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Qualifying for a mortgage can be a complicated affair and many buyers find the process of applying for a mortgage daunting. By getting to know what a lender requires from you it is possible to save time and money, also to increase the chances of being accepted by a bank.
A major difficulty with the banks today is that they constantly change their acceptance criteria. To secure a mortgage you will need a good deposit, a clean credit history and a decent income.
Five times your income
It is still possible to borrow up to five times your joint income, although most lenders lend around four times. One lender will allow up to four applicants to be on a mortgage and they will take all income in to consideration. Mortgage lenders use affordability models to calculate how much you can borrow. If you are applying for a loan and in a position to repay your debts, then you should consider repaying them. Bonuses Many lenders will take bonuses in to consideration, but some are more generous than others. For example, the Royal Bank of Scotland will only take 25% of any bonus in to account and ING Direct will not accept annual bonuses at all. Trinity Financial has access to a lender that allows 60% of a bonus to be used as part of your income. Deposit The bigger your deposit, the lower you monthly repayments will be. You will need at least a 10% deposit to qualify for an affordable mortgage and to access the lowest rates you will need a minimum deposit of 25%. Key tips for getting a mortgage include:
  • Making sure that you do not miss any financial commitments. Missing a credit card or loan payment will count against you
  • Reducing your personal debt will enable you to borrow more
  • Ensuring you do not apply for credit while your mortgage application is going through
  • Keeping pay-slips and P60's
  • Checking your rating and knowing what your credit score is
  • Ensuring you are on the electoral role
Call Trinity Financial for expert mortgage advice on 020 7520 9427. June 8, 2011
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