It seems that these days it is increasingly harder to obtain a mortgage in the current climate, especially as the housing market seems a little unsettled, especially with Brexit being a major factor in that uncertainty.
However, there are things you can do which will hopefully make getting a mortgage easier. We cannot stress enough how important it is to save, save, save for as much deposit as you can towards the property purchase. The more you have, obviously, the less mortgage you will need to take out and therefore more likely to be approved for one. There are a number of ways you could help yourself save up, the main one being if you move in with your parents and save money that way as you hopefully would not be paying anywhere near as much as if you were renting a property yourself. If you are renting elsewhere, it may be worth having a look around to see if you can find cheaper accommodation and save money that way. Maybe house share with other people and then you would just be paying a room rental. Normally a 10% deposit is required before you can get a mortgage for the rest of the 90% but at present that is also dependent on the actual price of the property, depending on how much equity is in the property and whether it would be worth it for them should you not be able to keep up the repayments.
Your parents or grandparents may be generous enough to give you a lump sum towards your property deposit – especially if you are living with them and they want to get rid of you fast!
Make sure your credit rating is good, pay off any bad debts you have and do not get into anymore. The best way of doing this is not to use a credit card at all. Have a debit card only where money will only come out of your account if you have it. This is a great deterrent not to spend money unnecessarily.
You also have the option of the government’s Help to Buy scheme, where you do not need such a large deposit (only 5%) and the government will then give you an additional 20% (interest free for the first five years) and you just need to get a mortgage for the remainder amount. This tends to be for new builds.
As well as having a good credit score, they will check whether you have full time employment and how long you have worked there – you will need to prove time worked at that particular job and they will look into all your incomings and outgoings to ascertain whether they think you will be able to keep up the regular monthly repayments. The longer you have been employed by the same company and can show payslips, the better. For those who are self employed, you will need to show your accounts relating to the last three years.