Buying your first property can be quite daunting regardless of whether it is going to be your main residence or whether it is intended as a property you will rent out. This process can often be even more challenging when you work on a yacht. If you are thinking about that first purchase and are maybe saving towards a deposit, there are many other helpful things you could be doing to make the journey as easy as possible, especially when it comes to securing and arranging a mortgage.
As every persons’ situation will be slightly different there is no definitive, but our experts have compiled some guidance to help make the process as simple as possible, and quite possibly increase your chances of getting the mortgage you need. Because if you have not tried and found out already, the mortgage options for yacht crew are few and far between so giving yourself the best possible chance could make all the difference.
Credit Report: Get It Right
Getting access to your credit file is highly recommended, even if you do not have any significant debts. There are several services that are free to use, a couple of which are ‘Money Saving Expert Credit Club’ or ‘CheckMyFile’. There are also subscription services available with credit reference agencies like Experian or Equifax. So, when you have access to your credit file, you are looking for:
- Check for any errors – If you spot any problems get in touch with the credit provider or company involved and ask them to update the record
- Electoral Roll – Check to make sure you are on the Electoral Register at your current address as this can be a big help when trying to get a mortgage. You can register at Gov.uk
- Manage your debts – It is recommended that you keep well below the limit on credit cards and other revolving accounts. Close dormant accounts that are no longer being used
- Keep credit up to date – Missed or late payments on finance can be enough for some lenders to refuse a mortgage, irrespective of the reason. Set up a direct debit on things like credit cards to pay at least the minimum payment
Documents: Get Them Ready
Mortgage lenders will undoubtedly want to see supporting documents as part of the application process to validate the information provided at the initial ‘Approval in Principle’ stage. It is therefore critical to make sure all your documents are in order. Some of the typically requested items are:
- Bank Statements – Minimum of 3 months bank statements for all active UK and foreign currency accounts to evidence income and regular outgoings. Online statements are usually ok in most instances, assuming they are downloaded from the bank website and show your name and address. A UK based bank account is essential
- Proof of Income – Latest 3 months payslips and current contract of employment. Additional payslips may be required if any element of your income is from bonuses, tips or gratuities
- Proof of Deposit – Statements for 3-6 months are usually required to show your deposit has been saved over time. If any of the deposit is being gifted by a close family member the lender may require a letter from them to confirm the monies are being gifted
Following the basic tips from our mortgage experts will undoubtedly put you in a much stronger position when buying your first property and want to begin the process of trying to get a mortgage to help buy it.
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