How Do I Increase My Mortgage Amount?
Are you looking to buy your first home but struggling with your mortgage affordability?
There are steps you can take to enhance your affordability and secure a higher mortgage loan.
If you’re a first-time buyer eager to explore the possible avenues to boost your mortgage affordability, you’ve landed in the perfect spot. In this blog we’ll guide you through effective tips to get you one step close in your journey towards owning your first home.
How Do I Boost My Mortgage Affordability?
Improving Your Credit Score
It’s no secret that having a higher credit score makes you a more appealing applicant to a lender. Having a good credit score helps demonstrate to a lender that you’re more likely to be able to repay your mortgage payments on time every month.
If you’re credit score seems low, then go through your report with a fine toothcomb. If there are any errors such a wrong address, then make sure you fix them as soon as possible.
You can also improve your credit score by making sure you pay all your bills on time. Timely repayments will increase your score and showcase to lenders you are able to make payments on time.
Adding another applicant onto your application
Another way you can boost your mortgage affordability if you’re a first-time buyer is to add another applicant onto your mortgage application.
By joining forces with a partner, family member or even a friend, you will have another annual salary, that a lender can consider which will subsequently increase your mortgage loan amount.
Make sure you choose a reliable co-applicant with a stable income, and you guessed it, a good credit history.
If you choose to do this, you need to make sure you’re aware that both applicants share responsibility for mortgage repayments.
Using other people to boost your mortgage affordability
By leveraging the financial standing of others, you can boost your mortgage potential.
Having a guarantor with a strong financial standing can increase your borrowing capacity. Some lenders may also accept financial assistance from family members, potentially boosting your mortgage size.
Reducing the amount of debt in your name
Lenders take into account your debt-to-income ratio when deciding how much you can borrow.
Your debt-to-income ratio is the amount of debt you have compared to the money coming in each month.
By reducing the amount of debt, you have in your name it will increase your overall mortgage loan.
Tackle your largest debts first, this is allowed you to have more disposable income aka cash in the bank to demonstrate you can afford your monthly repayments.
Saving up for a larger deposit
By saving up for a larger deposit, it reduces the loan to value ratio (LTV)
The loan to value ratio is simply the ratio of what you borrow as a mortgage against how much you pay as a deposit.
By making the LTV this makes lenders more willing to offer a higher mortgage / loan amount to you.
To help with your savings, you can try setting up a goal on your banking app which will create a clear goal that you can see where you can track your progress. To speed up hitting the goal you can try cutting our unnecessary expenses such as coffee trips and buying your lunch every day at work.
Receive expert first-time buyer mortgage advice!
At UKMC, we believe that purchasing your first home should be a celebration about hitting one of the biggest milestones in your adult life.
However, complex jargon and complicated processes can make this cause for celebration feel stressful for first-time buyers.
Our first-time buyer services involve searching through thousands of mortgage products from many different lenders to help find the best deal to suit your specific requirements. From low deposits to interest rates, we can help you to navigate through the entire property-purchasing process with ease.
To find out more about our mortgage advisor services or how mortgages work for first-time buyers, please feel free to reach out to our knowledgeable team today to arrange your appointment with one of experienced mortgage advisors.
Our family-run business is based in Warrington, so you can either pay our friendly team an in-person visit or get in touch by calling us on 01925 573328.
Alternatively, you can book your own appointment directly on your proffered time and date here – we look forward to hearing from you soon!
* As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments.
Disclaimer
UK Mortgage Centre Limited is an Appointed Representative of Refresh Mortgage Network Limited. Refresh Mortgage Network Limited is authorised and regulated by the Financial Conduct Authority. We are entered on the Financial Services Register under firm number 1019794.
As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments. The Financial Conduct Authority does not regulate some forms of buy-to-let mortgages.
The Financial Conduct Authority does not regulate will writing and taxation and trust advice.
You may be charged a fee for your advice. A typical fee is £495, which would be payable when you receive your mortgage offer. Your dedicated advisor will discuss this further on your free initial phone call.
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