Renting but plan to buy? 7 first time buyer tips to get ahead of the game

Renting but plan to buy? 7 first time buyer tips to get ahead of the game

 

Is 2022 (or beyond) the year to make your first time buyer dreams come true?

“The feeling of getting the keys to your very first home is wonderful and one you will never forget, mortgage adviser Jo Jingree says. “It is the start of a new beginning, for the first time being able to make your mark and create the home you have always wanted.”

However, starting that process as a first time buyer can be a very daunting time. Which is why, whether you’re a couple of months away or a year from buying your first home, we’ve listed some very important pointers to tick off to help you get ahead of the game.

 

1. Tell your bank your most up to date address

When was the last time you gave your bank your most up to date address?

“In all my years of working as a mortgage adviser,” Jo says, “It’s something that’s very easily forgotten.” But why is it important?

“Mortgage lenders needs to see your bank statements,” Jo says. “It helps them verify your income, affordability, and deposit. And in some cases, lenders can use your bank statements for your proof of address. It all helps to build a picture of where you are living and your most up to date circumstances. And it’s such an easy issue to solve to help put you in a better position when it comes to applying for a mortgage.”

 

2. Set up a forwarding address

Did you live or rent elsewhere before you moved into your current rental property? If so, make sure you set up a Royal Mail redirection at your previous address to make sure all your mail moves with you.

Jo says: “This service will ensure you won’t miss any important documents and will help prevent your personal details from falling into the wrong hands.”

3. Update the Driver and Vehicle Licensing Agency (DVLA)

This point is relevant to any drivers. So, if you drive be sure to update the DVLA about where your car is registered sooner rather than later.

That way if any parking fines, fixed penalty notices or dreaded speeding tickets are sent your way, you’ll know about it before they get missed – and before it’s registered as a debt in the County Court.

“Along with this being time consuming for you, it can also go against your credit score – which, unfortunately, can be a barrier to getting a mortgage,” Jo adds.

 

4. Get on the electoral roll

Politics aside, even if you do or don’t vote, the electoral register is often used for credit referencing purposes to confirm identity and counteract fraud. It’s a quick and easy way to strengthen your credit history and better yet, it only takes a matter of minutes to do.

 

5. Think about getting a credit card

Jo says: “Getting a credit card – which you pay off in full each month – helps prospective lenders see you can manage your money by using credit and then clearing the balance. It builds a good credit history.”

 

According to Experian – a credit reporting company – a credit card can help you build positive credit if you ‘focus on making on-time payments and avoid maxing out your card’. Which are two great tips to keep in mind.

 

6. Check your credit rating

If you haven’t already, be sure to check out your credit rating to see how it fares and if you need to do anything now to help you in the long run.

Your credit rating is a check against your personal finances. It looks at information from your credit report to understand your financial behaviour. This happens anytime you apply for a loan – and the same for a mortgage – to make sure you can afford to repay it.

As we’ve seen before, a poor credit rating can be a barrier to getting a mortgage.  That’s because banks are cautious about who they lend to. It’s all about risk and essentially, they want to know you can a) afford to pay the debt back and b) have a good history of doing so.

However, there are some lenders who will be prepared to lend even if you’ve been refused elsewhere so a poor credit score isn’t necessarily a deal breaker. Here at Mortgage Confidence, Jo has a history of working with those who are credit impaired.

 

7. Get an affordability check

This will help you set expectations on what you can and can’t afford.

“Although online affordability calculators are great at giving you a broad overview of how much you could afford, I’m able to take a much closer look at all the factors.

“Just recently, I was able to help one couple secure £55,000 more by taking a deep dive into their personal finances,” Jo says.

 

Renting but thinking of buying?

 

If that’s the case get in touch with Mortgage Adviser Jo Jingree who has more than 15 years’ experience in the field. Over that time Jo has helped countless first time buyers get their foot on the ladder. 

Please be aware that by clicking on to some of the above links you are leaving Mortgage Confidence Ltd website. Please note that Mortgage Confidence Ltd nor HL Partnership Limited are responsible for the accuracy of the information contained within the linked site(s) accessible from this page.