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  • Writer's pictureThe Cedar Crest Team

BIGGER MORTGAGE LOANS

Updated: Jun 7, 2022

How to boost your mortgage borrowing power


 


 

“If you’re looking to secure a bigger mortgage, one of the best things you can do is to pay off your debts.”


When it comes to obtaining a bigger mortgage, there are a few things you need to consider. Firstly, you need to make sure that you are eligible for a bigger mortgage and can meet the mortgage repayments. This depends on your income, credit score and other financial factors.


 

FIRST THINGS FIRST – PAY OFF YOUR DEBTS

If you’re looking to secure a bigger mortgage, one of the best things you can do is to pay off your debts. This will show potential lenders that you’re a responsible borrower and improve your chances of getting approved for a bigger loan-to- value (LTV).

Paying off debt isn’t always easy, but it’s worth it if it means securing the amount of mortgage you require. Start by creating a budget and making extra payments on your debts each month. If appropriate, you may also want to consider consolidation or refinancing to get a lower interest rate and save money in the long run.


 

CLOSE ANY OLD CREDIT ACCOUNTS

If you have any old credit accounts that you no longer use, it’s a good idea to close them. This will help improve your credit rating. When you close an account, the credit card company will report this to the credit bureaus. Your credit score will then go up because you’ll have one less open account on your report.

If you’re not sure whether or not to close an account, you can always contact the credit card company and ask for their advice. They’ll be able to give you guidance so you can make an informed decision for your situation.


 

IMPROVE YOUR OVERALL CREDIT RATING

Your credit score is one of the most important factors that lenders will consider when you apply for a mortgage. A higher credit score will usually mean a lower interest rate and vice versa. Make sure you pay all your bills on time, including your credit card bills and any loans you may have. This shows prospective lenders that you’re responsible with your finances and are less likely to default on your loan.

Also, try to keep your credit card balances low. Lenders like to see borrowers who use their credit cards responsibly and don’t max out their limits and don’t open any new lines of credit before applying for a mortgage. Lenders will see this as a sign of financial responsibility and are more likely to approve your mortgage loan.


 

GET YOUR ACCOUNTS ORGANISED

If you’re self employed, it’s important to get your accounts in order before you apply for a mortgage. This is because the lender will want to see that you’re generating a regular income and that your business is stable.

Having up-to-date and accurate financial records and accounts will help to reassure the lender that you’re a responsible borrower and that you can afford the monthly mortgage payments. It will also make the application process quicker and smoother.

 

CUT YOUR SPENDING

It is important to cut your spending when applying for a mortgage because the lender will evaluate your debt-to-income ratio. This is the amount of money you spend each month on debts, divided by your monthly income. A high debt-to-income ratio may make it difficult to get approved for the mortgage you require.

In addition, having lower monthly outgoings can help you qualify for a better interest rate on your mortgage. This could save you thousands of pounds over the life of the mortgage loan. Therefore, it is worth it to make some sacrifices in your budget in order to get a lower interest rate and monthly payment.


 


EXTEND YOUR LOAN OVER A LONGER TIME PERIOD

When it comes to applying for a bigger mortgage loan, it may make it more affordable to extend the loan over a longer time period. This can help to reduce your monthly payments and make them more manageable. However, it’s important to weigh up the advantages and disadvantages of extending your mortgage before you make a decision.

For example, you’ll end up paying more interest in the long run if you extend your loan term. So be sure to consider all of your options before making a decision. If you’re thinking about applying for a longer mortgage term, we can help you assess the various options available to you.


 

CONSIDER GETTING OTHER PEOPLE INVOLVED

If you’re looking to obtain a bigger mortgage loan, another option to consider is to get other people involved as guarantors. A guarantor is a person who agrees to be responsible for the debt if you, the borrower, cannot repay it.

They are usually a family member but could be a friend, and they sign a legal agreement stating that they will be responsible for the debt if you cannot repay it. Having a guarantor can help you to get approved for a bigger mortgage, but if you default on the mortgage, your guarantor will be responsible for paying it back. So, think very carefully whether you should get a guarantor involved in your mortgage application.


 

OBTAIN PROFESSIONAL MORTGAGE ADVICE

It is always important to obtain professional mortgage advice. We are able to help you find the right mortgage product available that will fit with your individual needs and circumstances, and provide advice and guidance so that you can make an informed decision.

We will always aim to negotiate the best terms and conditions on your behalf with the lender, and offer you our specialist knowledge and support throughout the entire process. This peace of mind can be invaluable, especially if you are a first-time buyer or self-employed.


 

>> CONTACT US TO FIND THE RIGHT MORTGAGE LOAN FOR YOU << So, if you are thinking about taking out a mortgage, whatever the size or value, we can help make the whole process as smooth and stress-free as possible for you. To discuss how we can help you, contact Cedar Crest Ltd – telephone UK T: +44 (0) 203 883 1017, HK T: +852 6645 4462 – email info@cedar-crest.co.uk.

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