STEP 2: THE MORTGAGE NITTY GRITTY

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:

• Photo ID
• 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?