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Top tips on getting a mortgage

Getting approved for a mortgage can be difficult if you don't know how. The following are some tips on getting a mortgage.

Good credit history

Make sure you have a clean credit history by paying off all your debts. Banks will do checks on your credit rating and ability to repay the mortgage so it is important that you can demonstrate that you can manage your finances. Paying off your debts will increase your chances of getting a mortgage. It will be easier to manage your debt going forward. Keep you finances in order to show that you can afford to take out a mortgage.

Deposit

Having a sizable deposit is very important when getting a mortgage. Save as much as you can to use as a deposit. Most lenders will require that you have at least 10% of the value of the property for a deposit. Having between 15% and 20% will greatly increase your chances of being approved. Paying more money towards a deposit means that you can access lower interest rates. This means that you will pay less in interest in the long run.

Shop around

As with most loans mortgage rates can vary considerably among lenders. Because of this it is often worthwhile shopping around to get the best deal for you. Get quotes from at least four separate mortgage providers and compare the rates and terms offered. Some of the major lenders include Barclays, Halifax and Nationwide. Consider using a mortgage broker if you still have trouble getting the right mortgage for you.

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