The secret to getting the best mortgage deal can come into play a year or more before you’re ready to move, and continues during the course of your mortgage. Jon Stockdale from Jigsaw Mortgages shares his 6 top tips to getting yourself mortgage-optimised, giving you access to the best deals for your individual needs, and how to get the best out of your mortgage during its term.
1. Regularly check your credit score
Damage can be done to your credit score without you doing anything wrong. For example, a default payment on a loan or credit card may show up even when a payment hasn’t been missed. This damage can be reversed if you’re aware of it and can address it.
The higher % loan to value mortgage you need, the higher your credit rating will need to be. I recommend checking your credit score at least every 3 months.
2. Keep your current account in credit
Don’t go overdrawn or default on standing orders and direct debits – this can put lenders off and reduce your mortgage options.
3. Be honest about your financial position
If you have a credit card or loan, your lender can see it! It’s best to be up-front about your true position is so you can find the best mortgage deal.
4. The cheapest mortgage may end up costing you more
While short term rates may be cheaper than long term rates, they may not be better for you in the long run
The best option for you depends on your financial circumstances, including changes to these – expected or unexpected – during the course of the mortgage. Talk to your broker to discuss your options.
5. Optimise your mortgage during its term
I encourage my clients to check in with me a couple of times a year to review their position.
For example, residential mortgages usually have a 10% overpayment facility, so you can overpay by up to 10% a year without early repayment charges. This can take years off the term of the mortgage and save you a significant sum in interest.
6. Get a mortgage health check – even if you’re not ready to move
This will identify any areas you can work on to improve your appeal to lenders and give you access to better deals when you’re ready to move.
Jon has over 40 years experience in financial services. He specialises in securing residential, Buy-to-Let and commercial mortgages and financing across all demographics. Jon is renowned for securing a mortgage deal where others may have struggled, while the care and attention he pays to his clients helps ease the stresses of the process.
If you’d like Jon’s advice he can be reached via Kai Carter Estates or at email@example.com