Top tips to get a mortgage if you live in a low acceptance rate area

As new information shows that the East Midlands is one of the toughest regions in the country to get accepted for a mortgage, financial experts and mortgage brokers Choice Finance explain what those who live in Leicester, Nottingham and Derby can do to boost their chances of securing a property.

Related topics:  Finance
Warren Lewis
12th September 2017
top tips
"Being on the electoral role will improve your credit score as it helps confirm a person’s identity"

New data from the University of Nottingham has shown that for those living in the East Midlands, the chances of getting accepted for a mortgage are four times less likely than other parts of the country. Although this revelation leave some aspiring home owners feeling downcast, experienced mortgage brokers Choice Finance are urging those in the East Midlands to get savvy, not sad and look at ways they can boost their chances of securing a mortgage.

When the requirements for getting a mortgage become unrealistic such as high interest rates or needing deposits of up to 40%, this is known as “credit rationing”. Some of the factors are out of the consumer’s control, but Choice Finance have a few tips that everyone can try to get themselves in the best possible position for mortgage applications and avoid falling in to the 37% that get refused in the East Midlands.

Get on the electoral role

Being on the electoral role will improve your credit score as it helps confirm a person’s identity. Make sure any house moves are recorded as well, and register every time to boost credit scores, but be aware moving house frequently in a short space of time will also bring up a red flag.

Pay bills on time

Paying any bills or direct debits on time shows that a borrower is a safe bet, so future lenders will be more likely to accept mortgage applications. Setting up a system where all payments go out just after payday will help to ensure that everything is paid up on time.

Keep hold of payslips

Most of the time, applicants will be required to show payslips from the last three months at least, but it can be more so keep a cache of around six months’ worth up to date. For those who are self-employed, have SA302 form from HMRC for the last three years, or full accounts for the same period.

Prepare to compromise on the property

Lenders don’t like unusual properties or ones that might not hold their value. Older buildings that have structural issues or apartments over shops or cafes can be a cause for concern, so if it looks like it might be a struggle getting accepted for a mortgage, think about looking at other options.

Speak to a qualified broker

Mortgage brokers now boast a successful approval rate in 9 out of 10 cases, so in a difficult market such as the East Midlands, it’s certainly worth having a chat with an advisor and weighing up options. Having access to deals that aren’t on the high street or online means that brokers can source the best possible avenues for each individual applicant.

Matthew Pennell, managing Director of Choice Finance, said “The East Midlands has lots going for it in terms of economy, beautiful scenery and plenty of property options. It’s easy to get downcast when you hear that your area is one of the toughest to get accepted for a mortgage, but dealing with the things you do have control over is a really positive step, and will show lenders that you’re serious. There’s no need for anyone to rule out buying in the East Midlands, they just need to be savvy, do their research and get advice from experts.”

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