Are you planning to apply for a home loan? Did you recheck your preparations for securing a loan? Well, mortgaging may seem an easy thing itself but once a person steps into it, he gets frustrated due to the tough procedure. Around a few months ago, the procedure of mortgaging has become tougher as now the lenders show more concerns and require a detailed report of borrower’s income, financial position, and even the spending habits.
If you are planning to secure a loan, be aware of the current changes as the lender can ask for the pounds you spend for the haircut and even for cleaning the clothes. Getting shocked? Well, this is true and mortgaging is undoubtedly becoming tougher. So what to do in such circumstances? The best approach is to secure your loan with the help of Mortgage brokers in Bath who understand the policies and provide an easy solution to their clients. Well, below some crucial suggestions are discussed that can prove helpful for a borrower.
Reduce the Other Borrowings!
If you want your loan application approved then it is vital to reduce the other borrowings as if you have applied around 3 months ago for a car loan of £8000, the lender may not approve a new loan even if you go to another lender. However, if you have applied for a car loan or any other loan around one or two years ago and you have a great record of paying the instalments of the loan on a timely basis then it can go in your favour for securing a new loan. Meanwhile, the applicant should make sure to reduce the borrowings around six months ago before applying for a loan.
Keep your Credit Cards on Direct Debit!
Most of the qualified mortgage brokers in Bath recommend the applicants to keep the credit cards on direct debit as this is how they can avoid missing any payment. Well, if you cannot pay the full amount monthly, pay the amount you can afford easily through the card and arrange the remaining amount separately.
Don’t Exceed the Overdraft Limit!
Do you know that a badly managed bank account is more than enough to see “Rejected” on the loan application? Yes, the lenders require the details of your bank transactions for approving the loan so it is better for a borrower to not cross the overdraft limit. More on, even if your income is fine, the lender prefers to ask the details of borrower’s bank account. In short, it is better for an applicant to ponder the above three suggestions for a securing loan with convenience.