Unlocking the door to your dream Seddon Homes property: Top tips for securing a mortgage

Posted on October 17th, 2023

The journey towards homeownership is one we all aspire to experience – it’s an important milestone and the start of a new chapter in your life. Seddon Homes understands this and is committed to developing stunning new homes. To turn this dream into a reality, you’ll very possibly need a mortgage. That’s why we’ve created a guide of top tips for securing a mortgage, so you can unlock the door to your dream Seddon Homes property…

Understand your budget

To kickstart your journey towards home ownership, you need to work out what your budget is. Typically, mortgage lenders lend up to 4.5 times your gross annual income (including the income of any joint buyers). This should allow you to secure a mortgage that covers not only the property’s purchase price, but any additional costs and fees, such as arrangement and valuation fees.

Moreover, make sure you research the different types of mortgages available. Would a fixed-rate mortgage, offering a consistent interest rate for several years, suit you? These mortgages provide certainty in your repayments. Or perhaps a variable-rate mortgage would be suitable, which ‘tracks’ the Bank of England base rate or the lender’s variable rate, allowing you to potentially take advantage of fluctuations in the interest rates.

When researching these mortgages, you should consider the length of your mortgage term. A longer repayment term results in lower monthly payments but potentially higher overall interest costs, so make sure to factor in your lifestyle and any changes that may occur. Are you planning on starting a family or changing careers? In making a decision on making a mortgage offer, lenders will take into account considerations such as committed expenditure and dependants.

Additionally, obtaining an agreement in principle (AIP) is a key step. It entails an initial credit check to confirm your eligibility for a mortgage by an affordability criteria. In most instances, it doesn’t impact your credit score but provides an insight into your borrowing capacity and the houses within your budget.

Check your credit score

Take some time to check and improve your credit score – it plays a crucial role in the process of securing a mortgage. A good credit score can make you more attractive to a prospective lender and can be improved by several things:

Pay high credit card balances on time
Have a well-managed mix of credit types
If you have an overdraft, manage it well
Pay your bills on time
Maintain a long credit history
Avoid the submission of new credit applications
Register on the electoral roll

By proactively managing and enhancing your credit score, you’re not only improving your chances of securing a mortgage but positioning yourself better for favourable loan terms and interest rates.

Save your deposit

When buying a home, the general rule is simple: the larger your deposit, the better. A substantial deposit not only increases your chances of securing a mortgage, but reassures lenders, as it reduces their risk. Obviously, the lower your loan amount, the lower the interest payable. However, if saving for a sizable deposit feels challenging, rest assured that there are multiple options available to help you when you find your dream Seddon Homes property, including our fantastic Deposit Builder scheme.

There are lenders who are offering 95% mortgage loans to the value of a new build, providing you with the opportunity to put down a 5% deposit. Additionally, here at Seddon Homes, we’re proud to offer a fantastic range of guidance and schemes designed to help you secure your forever home with a smaller deposit. We’ll take another look at these schemes later in this blog.

Pay your bills, reduce spending and cut debt

During the application process, lenders conduct an affordability assessment to ensure you can afford your mortgage repayments. This evaluation involves a thorough examination of your financial well-being, including your spending habits and existing debts. To strengthen your application in securing a mortgage, consider the following:

Pay your bills on time
Reduce unnecessary spending – such as cancelling any unused subscriptions
Work on paying down existing debts
Close any inactive accounts

Prepare your paperwork

When securing a mortgage, take some time to prepare and get your paperwork in order. A successful application involves several steps, and having the necessary documents ready in advance can streamline the process. We’ve noted some key documents below:

Identification – such as a passport or driver’s licence
Bank statements and other financial documents
Proof of employment
Proof of income, such as payslips (or proof of accounts if you are self-employed, such as tax calculations)

Gathering these documents early will help you spot any errors that could negatively affect your application. It also gives you plenty of time to make sure you’re on the electoral register if you aren’t already. This is often checked by lenders as proof of residency, providing confidence that the checks are conducted accurately and linked to the right person at the correct address.

As you navigate the application process, take your time to complete the forms accurately. Paying attention to detail can help avoid unnecessary delays, and in the rare event of an application being denied, it provides an opportunity to refine and improve your submission before reapplying.

Use a mortgage advisor

Here at Seddon Homes, we understand the process of securing a mortgage can seem complex, which is why we recommend using an independent mortgage advisor who can help smooth out the process. We’re delighted to introduce our recommended panel brokers, who can provide invaluable advice and information as you embark on this journey – free of charge, with no broker fees.

Our recommended mortgage advisors are fully qualified and regulated, can help minimise stress and support you in achieving your goals. Whether you’re looking for a second opinion on advice already received, or want some support as you navigate choosing a lender or mortgage, our Seddon Homes advisors are here to help. We’ll check your eligibility and can have this done in a matter of hours to help speed up the process, and can achieve an offer in less than 3 days!

Using a specialist new build mortgage advisor will also be a benefit when looking for a mortgage on a new home. To get in touch with our panel, simply email [email protected], and a member of our friendly team will be happy to help.

Seddon Homes support

We want to ensure that buying your forever home is as straightforward and stress-free as possible so that you can make your house a home sooner than you think! At Seddon Homes, we’re thrilled to offer an amazing range of guidance and schemes* to help you move into your forever home, including:

Deposit Builder: Secure the Seddon Homes property of your dreams and save for your deposit whilst your new home is built.
100% mortgages: First-time buyers who have been renting for at least 12 months can apply for a deposit-free 100% mortgage.
Relatives Reward Scheme: Save for a bigger deposit with help from your relatives.
Help2Move: Reserve your home up to 6 weeks before your current property is sold. Our team is here to assist and advise, and can even help with agent fees.
SelectSolicitor: A Seddon Homes referred Solicitor can help ensure the conveyancing process is as straightforward as possible.

Unfortunately, we aren’t able to offer all our schemes on every plot, but we’ll always do our best to find an offer that can help you.

Open the door to your dream Seddon Homes property

Here at Seddon Homes, we want to ensure you’re equipped with the knowledge and confidence needed to make your dream home a reality. So, if you’re ready to take the leap and unlock the door to your dream Seddon Homes property, or if you’d like more information about our properties, get in touch today!

Take a look at our range of stunning developments here. To find out how we can help you, call us on 01925 839 504 or fill out our simple enquiry form, and one of our friendly Sales Advisors will be happy to help.

*T&Cs apply.

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