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Top Tips to Make Your Mortgage Application Successful

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Getting a mortgage is something that most people have to succeed at if they want to buy a home. It is a big part of home ownership and can be a huge hurdle. However, there are things that you can do which will help you to be more likely to be accepted for a mortgage.

Have a stable job

One huge influence on whether you will get a mortgage is your job. You will need to be in a permanent job and have been there for at least three months normally. You need to be through any probation period and be a permanent member of staff. This will show the lender that you have a secure income and so will be able to afford the repayments. Although it is possible to get a mortgage if you are self-employed, contracting or freelancing your options are very much smaller and the mortgage will be a lot more expensive. You will also find that you will be more likely to be turned down if you do not have a stable income.

Earn as much as you can

It is wise to make sure that you are earning as much as possible when you apply for the mortgage. So, before you apply see whether you can get a pay rise, do lots of overtime or try for a promotion. Do everything you can so that your pay slips are really high. This will impress the lenders and therefore they are more likely to allow you to have the mortgage.

Spend as little as you can

It is a good idea to also reduce your spending in the months leading up to your application. The lenders are likely to want to see your bank statement to see whether you can afford the repayments. This is something that will set you in good stead for when you have the mortgage as well because you will need to make sure that you have enough spare money to keep finding to pay the mortgage repayments. It could be easier to cut down than you think. With the motivation of being able to own your own home in your head, this should help to motivate you. If you compare prices on everything that you buy, you could find that you will be able to save money without going without anything. However, if you can buy less things as well, you will be able to save even more. Think about every item that you buy and ask yourself whether you really need it, if you do this while reminding yourself of your goal it could help you. You might be able to start buying more once you take on the mortgage as your current account will not be scrutinised after that.

Save a large deposit

You will need to save a deposit for most mortgages. The lender will want you to pay some of the money towards the property, both to prove that you are able to manage your money well and be disciplined with your spending and to provide a buffer so if the house decreases in value. You will normally have a set amount that you have to save, perhaps 5%, but it is always a good idea to aim higher if you can. Not only will that mean that you can show the lender that you are capable of big savings, but you will also not have to borrow so much money, which will make your bad credit loan cheaper and you will be paying interest on less money.

Pay off your debts

Another worthwhile thing to do which would help you is to pay off other debts that you have. This will mean that you have less money coming out of your account each month in most cases as you will be making regular repayments on those debts. If you can stop those, then you will be looked on more favourably by the lender. You will also be able to more easily manage the repayments, which will advantage you each month as well as making your account look better so increasing your chances of getting the mortgage.

Have a good credit record

A credit check will be done and if you have a stable job, pay off your debts and are spending sensibly then this will go very much in your favour. However, it is still worth a check to make sure that everything looks good. There might be things that you have forgotten about or incorrect items on the credit report that you will want to change or sort out before you apply.

This may seem like a lot of big things to sort out. However, if you can get them done before you apply it can make a huge difference to your chances of getting a mortgage. Most of them will also help you in other ways, by making it easier for you to make the repayments on the mortgage.

Reducing the Costs of Car Ownership

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If you own a car you will be aware of how expensive it can be to run it. There are so many different things that you have to pay for and each of these can add up to a lot of money. It is worth thinking about whether you can reduce the cost and if you split it up into separate parts and try to reduce each one, this can help.

Insurance

One of the most expensive costs for drivers tends to be insurance. This is why there are quite a few insurers that decide that it is okay to drive without it. This is an offence though and so is certainly not something that anyone should do. However, there are ways that you might be able to reduce the cost of your insurance.

Young drivers tend to be penalised the most as they tend to be the ones most likely to have an accident. This means that they will find their insurance is very high. However, by comparing different insurers they may be able to find some cheaper companies to use. It is worth trying comparison websites, just to get an idea of what sorts of premiums you are looking at, but remember that not all companies are on there and they may only recommend the ones that pay them a lot of commission.

It is important though, to make sure that you are choosing insurance that will cover you for everything that you need. You need to think about whether you are happy to have the minimal third party, which will be the cheapest option or if you want or need extra cover. If you drive while at work then you will need extra cover for that and you might want cover that will pay for any damage that you do to your vehicle. You might want to include legal cover, accidental damage and windscreen damage. There are many options and it is worth discussing these with the insurer before taking out the insurance to find out what things you can leave out and decide whether you want those or not. It will all depend on your personal value on those things and whether you feel it is worth paying the extra for them.

MOT 

Legally you have to have your car MOTed and the cost may not vary much between different garages. However, if you need any work done on the car, then the cost could vary. If you use a dealer, for example, they can tend to be dearer than a specialist repair shop. You may also find that if you are handy yourself, you might be able to do some of the possible repairs before the MOT which could save money. If it has to be retested after being repaired you have to pay for the Mot twice, so try to do it before. Check simple things like light bulbs and tyres as you could change them at a lower cost. If you are trained or knowledgeable in how cars work then you might eb able to make some other checks as well to ensure everything should pass before you take the car in.

Tax

Although legally everyone has to pay car tax, there are ways you can save money on it. Firstly, if you pay for 12 months, rather than just 6 months then the tax is cheaper. Therefore, if you save up in advance you will be able to save some money. Secondly, the tax varies depending on the vehicle that you have. When you are changing your vehicle, it could be wise to look into the cost of the tax and see whether it might be better to choose one that has a lower tax rate. If you are not sure how much it would be you should be able to find out form the DVLA.

Servicing and repairs

Many people do not bother to get their car serviced because it is expensive. However, if it is regularly serviced then it could mean that it will not break down so often. It could also mean that faults are found more quickly and so can be repaired before damage is caused to other parts of the car or that the damage is so bad it has to be replaced rather than repaired. It is worth comparing prices of services though as you will find they can vary a lot. Ask around locally with friends and family to see who they would recommend as well as you will want good value for money, rather than just going for the company that is the cheapest but may not do a good job.

Fuel

The fuel to run the car can feel like one of the biggest expenses because it is ongoing. Every time we fill up we will notice the cost of it. It is something that could be cheaper though. By using the car less often, carrying less weight in it (by removing roof racks, roof top boxes and items form the boot) and driving more efficiently we will have to fill up less often. It is also worth looking at the cost of fuel locally or asking other drivers that you know, to find out where might be the cheapest place to fill up.