If you are refinancing or looking to purchase a high-value property, you may struggle to secure a large mortgage loan for a variety of reasons. It may be due to income, affordability, loan-to-value (LTV) criteria or other factors. However, most of the time mortgage lenders place limitations on how much they are willing to offer one individual. The good news is that every lender is different, and with enough preparation and advice, it is possible to secure a large mortgage. Within this article, you will find practical tips on how to make yourself more attractive to lenders and improve your chances of getting a large mortgage.

Prepare For Your Mortgage Application

Firstly, you will need to start assembling all the documentation you will need for your mortgage application. This will give you an opportunity to highlight any changes and improvements you need to make to increase your chances of acceptance. Documents you will need to prepare include a passport or driving licence to prove your identity, as well as current utility bills, a P60 form from your employer, and recent bank account statements. If you are self-employed, you will need to prepare a statement of your accounts from the past two to three years. You may also need to obtain a tax form SA302, if you have earnings from more than one source.

Use The Right Mortgage Broker

A well-connected mortgage broker will have an understanding of the full range of mortgages available across the market. If you apply through the right mortgage broker, your chances of getting approved will be much higher. Advias is an experienced mortgage broker, who provides larger loans to ambitious clients. They offer a variety of services, including large residential mortgages, commercial mortgages, bridging finance, and development finance. You will receive unique property finance advice, as everyone’s circumstances and needs are different. This is where the team at Advias can help you secure the best deal and purchase your dream property.

Improve Your Credit Rating

Taking action in advance will give you access to a wide number of potential lenders for your circumstances. Ideally, you will also have the chance to pick and choose the best rate. Therefore, it is crucial to examine your credit score and prevent any errors or problems from slowing down your application. You may want to check your credit score by using the three key agencies – Equifax, Experian, and TransUnion. This will allow you to check all details and ensure everything is accurate. Some useful ways to improve your credit score include registering on the electoral roll and paying your bills on time.

Enhance Your Employment Status

To improve your mortgage eligibility, you may want to consider enhancing your employment status wherever possible. For example, you may be able to transfer from a temporary or fixed-term contract to a permanent contract. Alternatively, it may be possible to ask for a pay rise, which will boost your borrowing power. Most private-sector employers tend to respond to pay rise requests from employees instead of proactively reviewing salaries. Therefore, if you have been working for the same employer for at least a year, this may be a reasonable request.

Pay Off Your Debts

When lenders assess your mortgage application, they will look at the amount of money you owe already. As a result, the more debt you have, the less you will be allowed to borrow. Be sure to pay off your existing debts, even if this means tapping into your savings. You may also consider consolidating your debt and readjusting your budget. With a proper budget plan and a commitment to forego certain luxuries, you will be able to pay off your debts earlier and manage your finances. Consequently, your application will be more appealing to lenders.

Lower Expenses

Apart from your income, lenders will also consider affordability by analysing the way you spend your money on a regular basis. For instance, they may look at your living expenses, lifestyle choices, childcare costs, and other factors. Therefore, in order to increase your borrowing power, you may need to do a money makeover. It may be beneficial to use a budget planner to get a full understanding of where your money goes and where you can potentially cut down. Some helpful examples can be cutting out takeaway coffees, cycling or walking to work, and cooking your own meals.

Consider A Guarantor Mortgage

If you have tried a few different strategies and they have not increased your potential, you may want to join forces with other people. For example, you could get a guarantor, such as a parent or another family member, who can take some of the risk out of your mortgage. A guarantor typically offers their property or savings as security against the loan. However, it will also mean that they can be held liable for the debt, if you default on repayments.