First time buyers not to despair
A North Staffordshire estate agency has issued a word of encouragement to first-time buyers struggling to get on the property ladder, with a series of tips on improving their chances of getting a mortgage.
Heywoods Property of Newcastle-under-Lyme said that gone were the days of easy credit, 100% home loans and self-certification mortgages, but with careful planning and research many first-time buyers still stood a fair chance of getting a home loan approved.
It almost goes without saying that saving for a sizeable deposit is one of the best things a first-time buyer can do, but Heywoods believes that maintaining a good credit rating is equally important.
The company said that first-time buyers needed to be aware of the factors that affected their credit rating, such as the length of time that they stayed at the same address, making sure their name appeared on the electoral roll, staying loyal to the same bank and keeping up with any loan repayments.
Heywoods, which also offers a mortgage advice service, stresses that having no previous credit can be a disadvantage. It advises people to apply for a credit card, spend a modest amount on it and repay the balance by direct debit to demonstrate that they can borrow responsibly.
But this, it added, was only the tip of the iceberg and by going to an independent mortgage advisor first-time buyers could get invaluable tips and information to enhance the odds of mortgage application success.