Securing a mortgage deal is often considered the most stressful part of home-buying. With so many lenders and mortgage options out there, deciding where to start can feel overwhelming.
Here, we break down the important parts of the mortgage process to help you stay ahead of the game:
Before you apply
When looking to secure any type of lending, it’s important to make sure your credit rating is healthy and all information held about you is up to date. All mortgage lenders will use a Credit Reference Agency (CRA) to help assess your mortgage application. In the UK there are 3 main CRAs – Callcredit, Equifax and Experian. These companies hold information on your financial behaviour (such as number of loans and other credit held, repayment history, credit applications made etc) and mortgage lenders will use this information, along with their own additional checks to help them decide whether to lend to you.
For a small statutory fee, you can request a copy of your credit records by contacting the CRAs. The information held by each one may be different, so it’s worth contacting them all. If you find something wrong on your credit file you can dispute it by complaining to the lender that has made the mistake.
Call Credit: www.callcredit.co.uk or call 0845 366 0071
Equifax PLC: www.equifax.co.uk or call 0844 335 0550
Experian: www.experian.co.uk or call 0344 481 8000
Looking for the best mortgage deal
The mortgage deal you’ll get will depend on your circumstances and preferences: Are you a first time buyer, re-mortgaging or moving house? Are you looking for a fixed, variable or discounted rate? Are you buying using the Governments’ ‘Help to Buy’ scheme? Do you have a good credit history? How much of a deposit are you able to put down?
Shop around for a mortgage that suits your needs – but remember that not all mortgage providers appear on comparison sites. This is the case for Glasgow Credit Union, as our mortgages are available exclusively to people who live or work within the G postcode area. As such we are unable to be featured on UK wide comparison sites.
What to bring to your mortgage appointment
All lenders will have slightly different criteria, but typically these are the documents you’ll need to bring to your mortgage appointment:
Copy of contract of employment
Recent payslips or self-assessment form SA302/accounts for self employed
Recent bank statement
Most recent P60
Details of any current loans/credit cards etc
Mortgage appointments can take between 1 and 2 hours. Having details of your income, expenditure, and future plans to hand will help your appointment run smoothly. If you’re applying for a joint mortgage, you’ll need information for both individuals applying. The type of information you’ll be asked for includes:
Income (annual salary and monthly/weekly take-home pay)
Outstanding balances on credit cards and loans
Details of other expenditure (such as insurances, utilities, Council Tax, childcare, grocery bills and essential travel costs)
Names and dates of birth of any financial dependents
Your estimated age of retirement
How much of a deposit you have, and where it has come from?
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
We’re committed to working with members, local organisations, and employers to increase financial awareness in the wider community.
For more hints and tips check out our Financial Wellbeing Hub, which includes articles and guides covering everything from budgeting to getting onto the property ladder.
If you have any questions or would like help with any of our services, please contact us on 0141 274 9933. The information contained above is specific to the requirements of Glasgow Credit Union. Other lenders requirements may vary.
Please check first that you are eligible to apply:
You are aged 18 or over
You have a UK bank account in your own or joint names
You are a permanent UK resident
You have never been bankrupt or had a Court Decree
To complete your application you will need:
Your current employer's address details
Details of monthly income and outgoings
Bank or building society details (sort code and account number)
To enable us to make a decision on your loan application we will contact Credit Referencing & Fraud Prevention Agencies. This will register a search against your credit record and if your application is successful we will share the information we hold for you with these agencies. Further details are available in our Privacy Notice
It is important that you read the Privacy Notice document above. If there is anything that you do not understand, please contact us.
Please be aware that the longer you take to pay back a loan, the more you will pay back in interest. If you go for a shorter term your monthly repayment might go up, but you'll save in interest and pay back your loan faster.