LONDON, UNITED KINGDOM--(Marketwire - Oct. 3, 2012) - Barratt Homes is urging first time buyers to invest time now to get mortgage savvy, to avoid the disappointment of being beaten in the race to secure their first home; be it flats in London or a period country house.
Getting a mortgage remains the biggest issue for customers buying a home, with many first time buyers not aware how the barriers can be overcome. By following a series of simple practical steps, buyers looking for houses for sale in London can make themselves more attractive to mortgage providers and that means not only getting a mortgage but getting a cheaper rate as well.
Adrian MacDiarmid, Barratt Homes' Head of Mortgage Lender Relations comments: "Lately we've had a few signs that things are finally starting to ease up, including the introduction of the Government backed 95% mortgage scheme NewBuy. So we're encouraging potential buyers to make themselves as attractive as possible to a mortgage provider and have released our top five tips to making yourself 'mortgage fit'.
"A person's credit score helps lenders to decide not only whether you are eligible for a mortgage, but also how good the interest rate is. It can be affected by a number of things, from missed bill payments to lack of information, which you might not even consider."
- Check your score
First of all, check your score. You can do this quite easily online with the two main credit reference agencies, Experian and Equifax. Ensure all information is correct and if it isn't, write to the agency and request that they change it. If you have a poor score, you will be able to start making changes to improve it.
- Understand your limits
If you have existing credit such as credit cards and loans, you must ensure that you keep up with the minimum repayments. If you are really struggling to pay, speak to your lender as this may show favourably on your credit score. Similarly try not to exceed 30 per cent of your credit limit, if you do, lenders may view this as 'excessive' debt.
- The family connection
Details of your family's credit score are not kept on your file, so long as you don't have any joint finances. So if a family member, partner or housemate has a poor credit score, keep your finances rigidly separate. This includes joint accounts and bills under both names. If you do, you are likely to be co-scored and this could stop you securing a mortgage.
- It's all history
You may not realise, but those with no credit history are often viewed as less credible as lenders have no information to base their decision on.
Although you should never get in debt to build up a credit history, by taking out a credit card and using it regularly (ensuring you pay off the bill at the end of the month with a direct debit) you will begin to build a credit history. Another good way to build your score is by taking out a mobile phone contract.
- Get on the electoral roll
You should try to show lenders that you have a 'stable' lifestyle, for example you are in full-time employment and live at a fixed address. If you aren't already, register for the electoral roll as you're unlikely to get credit without it. Also if you can, provide information such as a landline number rather than a mobile number.
It sounds simple, but one slip up on the application form could scupper your chances for securing a mortgage. This could be from a simple mistake, such as putting a salary of £3,000 instead of £30,000 but it could also be from inconsistent information (even on other mortgage application forms) as this can flag up possible cases of fraud and could slow down or stop your application altogether.
Also bear in mind that submitting numerous applications in a short space of time could have a negative effect as lenders will worry about why you have been rejected before.
Adrian concluded, "By following these steps now, purchasers should find that they are in good stead for securing a mortgage when the time comes to getting a foot onto the property ladder."
For more information please call the sales hotline on 0844 811 3399 open seven days a week from 8am to 9pm or log on to www.barratthomes.co.uk.
NOTES TO EDITORS:
- For further information about Barratt Homes, please call Paul Howlett on 0207 2994873 or email firstname.lastname@example.org.
- Barratt Group sold 12,637 homes in the last financial year, making it the biggest housebuilder by volume in Britain.
- Barratt Group was awarded a maximum five star rating for the third consecutive year in the 2012 Home Builders Federation Customer Satisfaction Survey.
- In 2012 site managers working for Barratt Group won the highest number of NHBC Pride in the Job Quality Awards for a record eighth consecutive year.
- Barratt Group was named Housebuilder of the Year at the Housebuilder Awards 2011.
- Barratt Group is the only housebuilder to provide a five year warranty on the fixtures and fittings in its new build homes at the time of purchase.
- Images of a selection of developments are available to the media at