Getting a mortgage can be stressful and worrying. It’s not a complicated process, however, something as simple as not remembering to register to vote can bring the entire process to a halt. You could be left wondering why you were refused a mortgage when you seem to be such a safe bet for your bank! 

It starts with the right mortgage provider 

Each mortgage provider differs slightly in how they make lending decisions, but all will consider your deposit, income and employment status, credit history, outgoings and debts. 

Credit report 

Go online and take a look at your credit report and make sure all payments, past and present are on time. From your mobile phone contract to car finance, credit cards, overdrafts and any other borrowings. Then check your credit score, if you have always paid on time and your credit score is low, find out why. 

Make sure you are on the electoral register 

This takes two minutes to do online and without it you will not get a mortgage. 

Balance your borrowing and available credit 

If you have a credit card, with a high limit, even if you do not use it, this can dissuade a potential lender from offering you a mortgage because of the potential to run up a lot of debt. Yet it’s also worth remembering not to lower your limit to the balance as this looks like you have used all available credit. 

Equally, it's as important to have some credit history to show your lender you can pay back debt. As a general rule, the fewer debts you have - the fewer outgoings you have, meaning you can borrow more.

Streamline accounts

The more history you have with your bank the better so don’t close or switch accounts. However, if you have several accounts, you do not use, shut them down. You don’t want the risk of fraud ruining your chances.

Don’t apply for credit

If you are applying for a mortgage ideally avoid applying for any other credit beforehand. If you get refused this will show on your credit report.

Take a look at your spending

Your lender typically will want to see your last three bank statements so beforehand look at your spending and reduce it where you can.

Gather your paperwork

Your most recent payslips and bank statements for the past three months, proof of deposit, ID –passport, and proof of address.

Mortgage calculator

At any point, you can go online and get a reasonably accurate idea of how much you could borrow using one of the high street bank’s mortgage calculators.

Agreement in principle

An agreement in principle, allows you to see if a potential mortgage provider will lend to you and is a soft search of your credit history. You do not necessarily have to be in a position to buy to get an agreement in principle, although to process your application further following the steps above will help secure a mortgage successfully.

Are you ready to buy or do you simply need some advice? Browse our properties.

When it comes to property, there are no hard and fast rules when choosing where to invest. The UK has a rich, diverse and ever-evolving swathe of properties. From Art Deco, Tudor and Edwardian to ultra-modern there is an endless choice, and where you choose to invest comes down to your vision, budget and individual aspirations.

The possibilities are endless, it could be that you are a seasoned investor and you have now turned your attention to creating flats in what were terrace houses. Perhaps you are making your first steps on the buy-to-let ladder by letting your home. Perhaps you enjoy refurbishing properties or simply looking for a rental-ready property that needs no work for a solid and straightforward investment, managed by a letting agent.

A good opportunity is just that!

It’s no secret that property prices have increased rapidly over the past few years. Great investment property opportunities exist everywhere. Right now, as property price increases cool there is greater scope for buying below the asking price. This allows a little more budget for development. As a landlord, you can raise standards and achieve a greater rental yield.

Rental Yield

To calculate rental yield, divide the difference between annual rental income minus the annual costs, by the purchase price of the rental property. You can find many rental yield calculators online which will save time when calculating what is an appealing investment.

The Lancashire coast is an example of a region that in terms of an average rental yield offers a good return on investment. This is because the average property price is relatively low, while the average rent price is relatively high. House prices on the southeast coast over the past ten years have doubled, while in other regions prices have increased at a much slower rate.*

Every property is unique and while rental yields differ from property to property there are other factors to consider, as you seek your ideal property investments it’s important to focus on more than rental yields.

How quickly do you want to let your property?

Refurbishing a property depending on the level of work involved can take time. Investing in an already refurbished flat means it can be let out immediately. Waiting for builders or materials while you refurbish a terrace house or suburban detached house, can eat into your rental revenue. That said, letting a larger house room by room could offer a greater rental return and could be easily worth the investment of time and money.

What motivates you?

There are many developers and landlords savvy enough to realise that raising the standards of let properties is a passion that makes a lot of business sense. Providing the best possible property to let may cost more initially but it will increase, the value of your property and rental revenue and attract great tenants.

Not entirely sure where to invest in the property market? Contact us today to see how we can help.

*Office for National Statistic

What does it really mean when you read a headline which mentions falling house prices? We hear this phrase so often that we are led to believe it! The media constantly churns out facts and figures to scare us all and warn of looming doom!

For most people, buying a house is a long-term investment and if house prices rise or fall it’s always best not to focus on the headlines, instead take a step back and put things in perspective.

If we look at last year, house price increases indeed dipped due to interest rates rising and the impact of the minibudget. In 2022 house prices grew by 2.8% over all for the year, falling from a growth rate of 4.4%.* Yet according to the office for National Statistics average UK prices increased by 12.6% over the year to October 2022. So, it depends on who you ask! Not to mention regional differences and property type - often houses increase in value more rapidly than flats.

Predictions

Zoopla predicts a 5% fall in house prices, while Lloyds bank gives a higher figure of 9%. Many analysts agree house prices will fall for the next two years but rise again in 2025. Perhaps more optimistically the housing market could simply level out, with smaller drops in house prices. There is still a shortage of houses and therefore this will stabilise the market.  The housing market is simply returning to a pre-pandemic norm with more realistic interest rates. The good news is without rapidly rising prices, there is more long-term stability.

The good news

Ultimately if you are selling, the value of your home will have gone up considerably over the past years so if it falls a little you have still gained. If you are about to purchase your first property and still gathering the deposit and you know it may take a little longer, at least house prices are not rocketing which gives you a little more time.  And when you are in a position to make an offer, you may find that you have a lot more wriggle room in terms of making a lower offer and saving some money.

Long term

Buying a house is a long-term investment for most of us and even large drops in value will not create big gains or losses. For example, if you buy a house for £200,000, typically the deposit is 10%, £20,000. If you plan to wait thinking house prices will drop by 10% you have saved £2000, in terms of a deposit. In a long-term investment, this is not a significant amount of money.

If the worst does happen, you buy a house tomorrow and house prices suddenly drop by 10% unless you are planning on selling within the next 2 years, with house prices set to rise again in 2025 then again realistically you have lost £2000, temporarily before gaining again. In both the above scenarios, in the long term, you will still gain.

Local Area

Properties in St Johns Wood had an overall average price of £1,628,759 over the last year. The majority of sales in St Johns Wood during the last year were flats, selling for an average price of £1,128,422. Terraced properties sold for an average of £3,080,623, with semi-detached properties fetching £4,045,143. Overall, sold prices in St Johns Wood over the last year were 6% down on the previous year and 7% up on the 2018 peak of £1,524,581. However, with our location being close to Central London and the general demand for buyers looking to be here, combined with the continued international demand, especially while the Pound is weak, there has been continued sales and lots of positivity.

Conclusion

The future looks good, yet even if there is a sudden drop in the grand scheme of things, it’s not such a bad thing! In fact, does it even matter? What’s important is finding a house you can call home and cherish the memories you make in it.

Looking for your first home or your forever home? Browse our properties.

Nationwide Price index*