Finance Roll

Ever since the credit crisis of 2008 the financial landscape has changed for us all irrevocably. One of the most obvious examples of this has been the difficulties experienced by both businesses and by individuals in securing credit, whether in the form of a business loan or, for the ordinary working man or woman, a credit card or mortgage.

Much has been written about the difficulties in particular facing many people - especially young people - in securing a mortgage to take their first, faltering steps on to the property ladder. But the problem of getting a mortgage is not restricted to first time buyers only. Even people who have a mortgage at present are finding it extremely hard to extend their borrowings to help them make the move to a bigger property as their needs change. As a result, the property market is in a state of stagnation.

While there is an understandable tendency to be pessimistic about the future confronted with such circumstances, there are, happily, a number of simple, straightforward tips which can help you secure a mortgage to buy the home of your dreams. Note we said these tips were simple, but that is not to say they are necessarily easy to implement. To get on the housing ladder these days will take planning and a degree of self-sacrifice, but if you are willing to commit to them, the following tips will undoubtedly help

The first tip could not be simpler. Make sure your details are recorded on the voters roll. Credit agencies always check this and it could not be simpler to ensure you name is down.

As lenders have become much more choosy about the people they are willing to grant mortgages to, it has become increasingly more important to be able to demonstrate that you can put down a significant deposit towards the purchase price of your new home. The days of one hundred per cent loans are gone and are unlikely to return in the foreseeable future, if at all. The most competitive mortgage deals are reserved for those who are able to fund a substantial deposit. This is where self-discipline and sacrifice come into play. If you are able to commit to save as much of your free cash as you reasonably can for a period of time, to build up a sizeable deposit, you not only stand a much better chance of getting a mortgage in the first place, but also of securing a better interest rate as well. It's worth bearing in mind though that the very best rates available tend to be for borrowers who are able to put down a deposit of more than twenty five percent of the property value.

When assessing any mortgage application banks, building societies and other lending institutions will pay close attention to the applicant's credit report. It is important to be aware that these reports are not always foolproof and very often may contain errors which could adversely affect your application. As a result, it is essential that you check your credit score yourself in advance of any mortgage application and address any errors which are contained in the paperwork. By paying a small fee to the relevant credit agency you can get hold of a copy of your report and once you have identified any discrepancies it is usually pretty straightforward to have them rectified by contacting the relevant company direct. A small amount of work here can save a great deal of pain and distress at a later date.

Another thing that lenders are looking for when considering any mortgage or credit application is that the applicant appears to have a stable, solid background. That is, they favour applicants who have held down a job for a decent amount of time and who can demonstrate that they have lived at the same address for some time too.

Applicants who have a chequered employment history or who appear to have moved from address to address in a short space of time are likely to alert the interest of the underwriters, leading to their application failing.