There are quite a few people being turned down for mortgages these days. Although banks are giving some financial stimulus to try to get them to lend more money, they are still being quite fussy about who they lend to, because they are nervous. This means that you will need to do everything you can to make yourself an attractive customer to them.
One of the main things that they will look at is your credit record. They want to make sure that you have proved you are a reliable payer in the past. This means that you need to be up to date with paying all of your bills as well as your debts. So make sure that you do not have any outstanding payments like this.
They will also want to check that you have the means to back the mortgage. They will look at your income and not only need you to have had a permanent job for at least three months but also a salary that will not only cover the repayments, but also your current bills as well.
When calculating how much to lend, a bank will often look at your salary figure. They tend to have a formula where they will multiply it, perhaps by three and lend you that amount. If there is more than one salary that will pay in to that household, then this can really help. Not only will it encourage them to lend to you, they are likely to lend you more. They will also have more reason to believe that you will manage the repayments.
If you are going in to a branch to discuss the mortgage then make sure that you make an effort. Dress neatly and be very polite. Make sure that you work hard to show the staff member that you are serious about repaying the mortgage and demonstrate how you will be able to do this.
They will need to be sure that you have the means to pay back the loan and so you will need to do everything you can to prove that. Keeping a clean credit record, having a good income and not too many outgoings are the main ways to convince them. They may still refuse, but keep trying hard and approach different lenders and you should hopefully find one that will trust you with a debt.
