Skipton Building Society won the prestigious title of Best Mortgage Provider at the YourMoney.com Personal Finance Awards 2024, the first time the mutual has picked up the coveted prize.
As part of YourMoney.com‘s Spotlight series, which showcases the award winners, Emma Jaggar, senior mortgage product manager, provides five key things to prepare before applying for a mortgage.
1. Have your deposit and money for other costs ready
When buying a home, the deposit is typically the largest upfront cost. However, there are other essential expenses to budget for, and understanding these early in the process will really help. In addition to the deposit, factor in costs like valuation fees (to confirm the property’s worth for mortgage purposes) and solicitor fees for legal paperwork.
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Consider potential fees for any expert guidance you may need. Then are furniture and set-up costs for your new space, which can add up. Depending on the property value and if it’s applicable, you might also need to pay stamp duty – an additional tax on property transactions. Being financially prepared for these helps ensure a smoother purchasing journey.
2. Check your credit file
A clean and accurate credit file is important in the mortgage process, as it’s a key factor a lender will evaluate to understand your financial reliability. Make sure all information, including your address and electoral roll registration, is up to date.
Review your payment history carefully, as it reflects your repayment behaviour. Look for any errors and correct them if needed. Also, some credit reporting agencies offer tips to improve your score – following these can boost your creditworthiness in the eyes of lenders.
3. Make sure your bank statements are ready
Lenders and mortgage advisers typically require your last three months of bank statements, and these will be reviewed closely.
They’ll look for steady income, manageable expenses, and a responsible approach to spending. Showcasing good financial habits can positively impact how lenders assess your application.
4. Have evidence of your income ready
Proof of income reassures lenders about the stability and sustainability of your finances. If you’re employed, your payslips provide a snapshot of your earnings over time.
For self-employed individuals, SA302 tax forms or certified accounts can demonstrate income consistency. Lenders want to see that you have the means to cover monthly mortgage repayments comfortably. If you receive any additional income – like bonuses, overtime, or rental income – make sure to have documentation for these as well.
5. Find the right mortgage adviser for you
Choosing the right mortgage adviser is a personal decision and can make the process much smoother. If you prefer to research independently, price comparison websites can help you compare rates and terms. If you want professional support, advisers can assess your options, guide you through available products, and help with paperwork.
Some advisers charge a fee, while others may be free. Remember to factor this into your budget. A good adviser will help simplify each stage, offering reassurance and expertise as you navigate the journey to homeownership.
Skipton Building Society is the UK’s fourth-largest building society, established in 1853, The society has over one million members and over 80 branches. Skipton Building Society is part of the Skipton Group, which is creating an impact at the centre of the UK housing sector.
The group is made up of key businesses from across the housing and financial industry, which includes Connells Group, which helps over one in 10 individuals buying and selling homes, offshore finance capability Skipton International, Skipton Business Finance and Jade Software Corporation.
