It’s no secret that getting your foot on the property ladder is harder than ever before. The newspapers and media outlets have devoted numerous column inches and news segments to the issue plaguing Britain’s young professionals, their tone glum and pitying.
However, this doesn’t mean that your dream of climbing onto those illustrious rungs should be forsaken. There’s plenty that you can do to improve your chances of finding a mortgage and purchasing a property, and here are three important steps to get you started…
#1: Focus on Building a Strong Credit History
Most first-time buyers will lack the funds to buy property outright, so they’ll have to turn to professional moneylenders to help them. One of the key criteria that mortgage companies will use to assess your suitability to borrow is your credit history, and the more positive it is, the higher your chances of securing a favorable deal. Unfortunately, lots of young professionals lack any credit history at all, but luckily this is easily remedied. One of the simplest and quickest ways to boost your score is by borrowing, and a low interest credit card is the ideal starting point. If you can take one out for just six months, ensuring that you settle your bills promptly whenever you receive them, you should earn a great score to get you started.
#2: Secure Stable Employment
Two further criteria that lenders will use to assess you are your employment history and status. Those who are self-employed, hold temporary contracts, or have been in their roles for under six months may all struggle to secure a favorable mortgage deal, so it’s worth spending a year or so before you wish to buy trying to remedy this. Although specialist professional entities may offer a solution for some, for the majority of would-be buyers, trying to find a stable, secure contract (if only in the lead up to taking out your mortgage) will do a world of good to the outcome of your application.
#3: Amass a Sizeable Deposit
Thirdly and finally, you should try to amass as big a deposit as you can. The greater your funds, the better the deals that you’ll be able to negotiate, and the more options there will be available to you. Budgeting, looking for additional sources of income, and exploring the government’s Help to Buy ISAs are all wonderful ways to bolster your total, and could really make a difference when it comes to securing a mortgage contract.
Prepare yourself for the property ladder now to move one step closer to your dreams of home ownership.