{"id":24926,"date":"2021-07-26T07:50:24","date_gmt":"2021-07-26T07:50:24","guid":{"rendered":"https:\/\/transfergo.wpengine.com\/how-to-get-a-mortgage-in-the-uk\/"},"modified":"2024-10-29T20:45:40","modified_gmt":"2024-10-29T20:45:40","slug":"how-to-get-a-mortgage-in-the-uk","status":"publish","type":"post","link":"https:\/\/wpvip.tgalpha.com\/gb\/how-to-get-a-mortgage-in-the-uk","title":{"rendered":"How to get a mortgage in the UK"},"content":{"rendered":"\n

If you\u2019ve been living in the UK for a while, the chances are that buying a house here has crossed your mind. Whether it\u2019s a farfetched dream or a reality that\u2019s in close reach, it\u2019s difficult not to think about homeownership when living here. After all, the UK is pretty much obsessed with it.<\/span><\/p>\n\n\n\n

Unlike other European countries\u2014like Germany, a nation of renters, for example\u2014the UK values homeownership highly. The desire to own a home is officially deeply rooted in the British psyche. <\/span><\/p>\n\n\n\n

But of course, very few people can afford to buy a house outright. And that\u2019s where the mortgage market comes in.<\/span><\/p>\n\n\n\n

Curious to find out more? Here\u2019s how to get a mortgage in the UK. <\/span><\/p>\n\n\n\n

What is a mortgage?<\/strong><\/h2>\n\n\n\n

Firstly, let\u2019s start with the basics. A mortgage is a loan taken out for the purpose of buying property or land. It is \u2018secured\u2019 against the value of the property until it\u2019s paid off. Generally, mortgage terms run for 25 years but can sometimes be shorter or longer. <\/span><\/p>\n\n\n\n

Since average house prices don\u2019t correlate with average earnings in the UK, many people take out mortgages to help them buy their home. In fact, it\u2019s estimated that there are almost 11 million mortgages in the UK. <\/span><\/p>\n\n\n\n

How can I get a mortgage?<\/strong><\/h2>\n\n\n\n

One of the main criteria for being eligible for a mortgage is taxable earnings. You must be a UK taxpayer to be successfully approved for a mortgage. You must also have enough money to put down a deposit. Depending on the mortgage, this can be as little as 5% of the property\u2019s value.<\/span><\/p>\n\n\n\n

Mortgage lenders also like it if you\u2019ve built up a bit of a credit report. This is so they can assess whether you have a good repayment history. A credit report looks at any accounts you\u2019ve opened for the past six years including loans, overdrafts, credit cards, mortgages and certain utilities. If you\u2019ve not taken out credit before, it’ll be more difficult for them to assess your creditworthiness.<\/span><\/p>\n\n\n\n

The best way to increase your chances of getting a mortgage is by contacting a trusted mortgage advisor as soon as you start thinking about buying a house. They will be able to assess your eligibility and advise on how to improve your chances of being accepted for a mortgage. Mortgage advisors are paid commission from the lender, but may also charge a small fee. However, when you consider the hassle and bureaucracy that goes into buying a house, this fee is more than worth it.<\/span><\/p>\n\n\n\n

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How can I improve my chances of getting a mortgage?<\/strong><\/h2>\n\n\n\n

One of the first ways to improve your mortgage eligibility is by saving enough money for a deposit. The higher the deposit you have, the less money you\u2019ll need to borrow. And the less money you borrow, the smaller your monthly repayments and overall interest to pay.<\/span><\/p>\n\n\n\n

You\u2019ll also need to make sure you\u2019re earning enough money to pay UK tax. The more money you earn, the more you\u2019ll be able to borrow. You\u2019ll need to build up a credit file, too. Credit reference agencies like Experian<\/a>, Equifax<\/a> and TransUnion<\/a> offer free online credit reports so you can check your eligibility yourself.<\/span><\/p>\n\n\n\n

If you\u2019ve not built up much of a credit file, there are many ways to do so. This could be as simple as paying your bills on time. Contact an independent mortgage broker as soon as you start thinking about a mortgage. The mortgage industry is highly regulated and brokers are obliged to give you impartial advice that\u2019s in your best interests.<\/span><\/p>\n\n\n\n

What do you need to get a mortgage?<\/strong><\/h2>\n\n\n\n

There are many ways to improve your chances of being accepted for a mortgage. These include:<\/span><\/p>\n\n\n\n