Steps to Improve Your Mortgage Chances Edinburgh

This guide looks at how key groups of property-owners and first-time buyers could give themselves a better chance of getting the mortgages they need.

Start with your credit history

Whatever type of mortgage you want, you should start by checking your credit report.

This is your personal credit history of what you have borrowed - such as loans, mortgages and credit cards - plus your repayment record and other information that lenders take into consideration when they decide whether you are a good risk.

Items in your credit report, along with details from your application, are used to calculate a credit score, which will determine whether you receive an offer and how much interest you will pay, so it makes sense to ensure that everything is up-to-date and accurately reflects your circumstances.

First-time buyers

Mortgages of 125 per cent and 100 per cent of the value of a property are a thing of the past and even 90 and 95 per cent deals are thin on the ground.

So for many, the traditional five per cent deposit is not likely to be enough.

Before you speak to an independent financial advisor or make a mortgage application you should consider:

Saving in a high interest account to build up a deposit and take advantage of any fall in house prices.

Making sure credit history is accurate and up to date. And if you’ve had problems repaying credit in the past, work to improve your credit history. For example, ensure you pay bills and credit card balances on time, don’t take out more credit to fund a glamorous lifestyle and try to pay off any outstanding amounts.

Buyers should also register to vote, as this can count in your favour with lenders.

Consider buying with another person or in a shared ownership scheme. It is not just housing associations that can help you get your first property, some house builders are offering this service and some may even help you find a suitable mortgage.

Investigating the Open Market HomeBuy scheme. From next year, the government is offering a £1,500 grant to first-timers under the scheme but the offer is likely to apply only to key workers in certain geographical areas.

Remortgages

For 1.4 million people, 2008 is the year when their fixed-rate mortgage expires, according to the Financial Services Authority (FSA).

If you fall into this group, improve your chances of getting an affordable replacement de...