Planning to buy a home in 2025? Getting yourself into the best possible financial shape before applying for a mortgage is crucial. With some preparation and the right guidance, you can secure a deal that fits your needs and improve your chances of being approved the first time around.
Here’s how to get started:
1. Check Your Financial Health
Your credit score is a key factor when applying for a mortgage, but don’t worry if it’s not perfect—there are options out there.
Recent research found that more than half of those with credit issues don’t believe they’ll own a home by the end of next year. That’s why it’s important to check your credit score now using tools like Experian or ClearScore. This will give you a clear picture of any issues that could lead to rejection.
Even if you’ve had missed payments or a County Court Judgment (CCJ), some specialist lenders can still consider your application, provided you’ve set up a repayment plan. And if your application is rejected, don’t give up—take steps to improve your credit score and apply again with better prospects.
2. Organise Your Paperwork
Getting a mortgage requires detailed financial documentation, so now is the time to gather everything you’ll need. Lenders typically ask for:
Proof of income
Employment details
Records of any debts and monthly expenses
For self-employed individuals, this can be more complex. Lenders often require two to three years of financial records, which can be challenging for freelancers, company directors, or those with irregular income. Preparing these in advance will save time and stress when you’re ready to apply.
3. Consider Alternative Paths to Homeownership
First-time buyers may want to explore options like Shared Ownership. This allows you to purchase a percentage of a property while paying rent on the remainder, often to a housing association. Over time, you can increase your ownership through a process called ‘staircasing.’
Shared Ownership has become increasingly popular, with a 23% rise in such mortgages last year. It’s a great way to make homeownership more accessible, especially if affordability is a concern.
4. Review Your Current Mortgage
If you already have a mortgage, it’s worth reviewing your terms—especially if you’re nearing the end of your fixed-rate period. Key details to check include:
Your current interest rate
The term length
The end date of your fixed rate
If your deal ends in 2025, start the remortgaging process at least six months early. This will help you avoid being switched to your lender’s Standard Variable Rate (SVR), which is often higher.
Additionally, if your financial situation has improved—perhaps you’ve had a pay rise or strengthened your credit score—you might qualify for a more competitive rate.
5. Seek Specialist Advice
Not everyone fits the traditional mortgage applicant profile, and that’s okay. Whether you’re self-employed, have unique financial circumstances, or a less-than-perfect credit history, specialist lenders can help.
Speaking to a professional mortgage adviser is a smart move. They can assess your situation, explore your options, and guide you toward the right solution for your needs.
At The Mortgage Social, we’re here to help you take the right steps toward securing your dream home. Whether you’re buying for the first time or looking to remortgage, we offer expert advice tailored to your situation.
Ready to get started? Let’s make 2025 the year you achieve your homeownership goals.
🏡 Your home may be repossessed if you do not keep up repayments on your mortgage 🏡
🏡 You may have to pay an early repayment charge to your existing lender if you remortgage 🏡
🏠 Your property may be repossessed if you do not keep up repayments on your mortgage 🏠
☔️ As with all insurance policies, conditions and exclusions may apply ☔️
☔️ The cost of this insurance depends on several factors, such as your age, where you live & your occupation. As a result, the cost you will pay is based on your own circumstances ☔️
💷Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage💷
🏠Not all Buy to Let Mortgages are regulated by The Financial Conduct Authority🏠
The Mortgage Social is a trading style of Bubble Finance Hub Limited 🫧
Bình luận