Editorial & Advertiser Disclosure Global Banking And Finance Review is an independent publisher which offers News, information, Analysis, Opinion, Press Releases, Reviews, Research reports covering various economies, industries, products, services and companies. The content available on globalbankingandfinance.com is sourced by a mixture of different methods which is not limited to content produced and supplied by various staff writers, journalists, freelancers, individuals, organizations, companies, PR agencies Sponsored Posts etc. The information available on this website is purely for educational and informational purposes only. We cannot guarantee the accuracy or applicability of any of the information provided at globalbankingandfinance.com with respect to your individual or personal circumstances. Please seek professional advice from a qualified professional before making any financial decisions. Globalbankingandfinance.com also links to various third party websites and we cannot guarantee the accuracy or applicability of the information provided by third party websites. Links from various articles on our site to third party websites are a mixture of non-sponsored links and sponsored links. Only a very small fraction of the links which point to external websites are affiliate links. Some of the links which you may click on our website may link to various products and services from our partners who may compensate us if you buy a service or product or fill a form or install an app. This will not incur additional cost to you. A very few articles on our website are sponsored posts or paid advertorials. These are marked as sponsored posts at the bottom of each post. For avoidance of any doubts and to make it easier for you to differentiate sponsored or non-sponsored articles or links, you may consider all articles on our site or all links to external websites as sponsored . Please note that some of the services or products which we talk about carry a high level of risk and may not be suitable for everyone. These may be complex services or products and we request the readers to consider this purely from an educational standpoint. The information provided on this website is general in nature. Global Banking & Finance Review expressly disclaims any liability without any limitation which may arise directly or indirectly from the use of such information.

THE TOP THREE WAYS OF IMPROVING CHANCES FOR MORTGAGE APPROVAL

With tougher mortgage rules coming into full effect earlier this week, there are three main areas that potential borrowers should evaluate before meeting with lenders, says deVere United Kingdom.

deVere United Kingdom’s ‘Top Three Ways of Improving Chances for Mortgage Approval’ list comes amidst mounting criticism of the Financial Conduct Authority’s (FCA) changes from some industry and consumer campaigners.  The new checks, introduced on Saturday, will see potential homebuyers having to give further personal details about expenditure when applying for a mortgage in an attempt, says the FCA, to avoid a return to pre-crisis irresponsible lending.

The Top Three Ways Of Improving Chances For Mortgage Approval
The Top Three Ways Of Improving Chances For Mortgage Approval

Kevin White, Head of Financial Planning at deVere United Kingdom, the UK division of deVere Group, one of the world’s largest independent financial advisory organisations, comments: “Unlike some, we are actively championing the FCA’s more stringent processes to help ensure responsible lending.

“Although it has been widely reported, or perhaps misreported, that borrowers will now be ‘grilled in three-hour interviews’, it is our belief that if people adhere to three basic evaluation points before meeting their lender, there should be no additional obstacles to obtaining a home loan than there would have been before the changes came into force.”

According to deVere United Kingdom, the ‘Top Three Ways of Improving Chances for Mortgage Approval’ are 1) to redeem any credit cards, store cards or personal loans before your application 2) to understand your credit score before the interview and 3) to know and minimise your spending habits.

Mr White explains: “If at all possible, store and credit cards plus personal loans should be cleared as this will indicate a greater degree of mortgage affordability.  Also, make sure that you are managing your finances well.  Showing a constant overdraft on your bank statements could hinder your mortgage application as it shows that you have not been managing your money well enough.  With lenders possibly going back over your bank statements up to six months, getting your finances in order sooner rather than later is a must.”

He continues: “The second ‘should- do’ is to know what does and doesn’t impact your credit score, as this is one of the things that will show the lender if you are a ‘good risk’ or not.  For example, if you are not on the electoral roll, then make sure you get on it as soon as possible as this helps with the mortgage application.  You can obtain your credit file through various agencies and it would be wise to make sure you check your file for any errors that may be on there.

“On point three – knowing your spending habits – you should be aware of any luxury or major unnecessary expenses or direct debits and scrap them, where possible.  In essence, if you are not spending beyond your means, then you should not have a problem getting a mortgage.”

deVere’s UK Head of Financial Planning concludes: “We’re confident that should these check points be achieved, borrowing homebuyers will significantly increase their chances of being approved.

“We base this confidence on experience.  With the changes in lending criteria over the last five years, such as 100 per cent mortgages being removed from the market and the removal of the ‘self-certification’ mortgage, we implemented the new tougher rules over 12 months ago – and have secured a good degree of success for both our UK-based and overseas clients.”