Prior to buying my first house back in 2019 I had this notion that getting a mortgage was as simple as asking for a personal loan. I was of course very wrong on that front and it was only once I began speaking with the team at Accelerate Mortgage that it dawned on me how wide of the mark I had actually been. There is much to consider before taking on a financial commitment of this size, and this is what you need to be thinking about ahead of getting your mortgage.

Credit Score

It is absolutely critical that you have a healthy credit score if you wish to get a good mortgage and this is something which you ought to check before even applying for one. The last thing that anyone wants is to be rejected for a mortgage based on this, so be sure to go in with your eyes open. What may happen if your credit score is neutral, is that you will get a higher interest rate on repayment and you will also be offered a lower sum. To boost your chances here, if you do have a poor rating, you could get a guarantor to add their name to the mortgage, someone with a good credit history who essentially covers the risk.

Deposit Size

The size of your deposit is a really important thing to consider as this will greatly impact the size of the loan which you eventually take on. In reality it is pretty simple, the higher the deposit the lower the amount you will borrow and therefore the less you will pay back. Beyond this however having a sizable deposit also indicates to a lender that you are a smart investment and so they will also be likely to offer you a better quality product with lower interest rates and a better repayment plan. This is why it makes sense to gather as much money as possible at this early stage, even if that means taking interest free loans from family and friends.

Terms and Conditions

Because of the fact that a mortgage is a loan which is taken over a long period of time, it is absolutely critical that you have something built into the agreement which covers you for any changes in your circumstances. At the very least you should expect to be able to take mortgage holidays if you have an issue, you should be able to overpay when you like without it costing you any money and there should also be the opportunity for you to pay the mortgage off in its entirety should the chance befall you. These are terms and conditions which each mortgage should have built-in.

And finally check out what is required from you in order to get the mortgage, beyond a deposit you may find that the lender wishes you to get life insurance that will cover you in the event of your passing. These are details which you need to know going in.