A leading mortgage expert reveals how you can increase your chances of getting a mortgage in one easy step.
Getting a mortgage has become tougher in recent years, with the cost of living crisis seeing approvals for mortgages to buy homes down by 20% at the end of 2022. However, not all is lost as mortgage expert Sian Thomson, the co-founder and director of Prestige Mortgage Solutions, reveals an easy step you can take to increase your chances of getting approved for a mortgage that’s right for you:
“A lesser known way of improving your chances of mortgage approval is by asking for a Mortgage Capacity Report. This simple report can dramatically change the amount that you can get from multiple lenders, meaning you are more likely to get offers that are within your means, taking you one step closer to being a homeowner.”
Here Sian shares more details about Mortgage Capacity Reports, and how taking this easy step may be the answer to your mortgage woes.
Table of Contents
What is a Mortgage Capacity Report?
A Mortgage Capacity report is a document that shows a lender how much money a person might be able to borrow for a mortgage based on their specific circumstances i.e. income, savings or responsibilities. Sian explains:
“This report is more thorough than just checking your bank. You’ll undergo a short questionnaire by a qualified mortgage broker who will get all of your needs and outgoings down on paper. This will then be used to see what level of mortgage you are able to afford, and which ones you are then likely to be approved for, saving you some of the guesswork.”
To Create This Report, Your Mortgage Broker Will Look at Things Like:
■ Any outstanding loans or mortgages you already have, including buy-to-let.
■ The value of any property you already own.
■ Your current income.
■ Any other outgoings such as child support or business expenses.
You will then be given a Mortgage Capacity Assessment Letter that will detail which level of mortgage you are most likely to receive approval for, helping streamline the process and allow you to plan your future
Is it worth it?
Sian believes that more potential homeowners should think about getting a Mortgage Capacity Report before they start their mortgage journey, with it making the process much smoother and far more rewarding:
“Not only do Mortgage Capacity Reports make getting a mortgage easier, but they’re also far more reliable than just going to a bank or lender, who don’t always provide a mortgage that is a true reflection of what you can pay based on your circumstances.”
They’re more Accurate
A Mortgage Capacity Report is far more thorough than just visiting your bank or a lender, who will often use affordability calculators to determine which mortgages you can be offered. These will often miss out on certain key details about your life, meaning you may be offered mortgages that are far too high or low for your needs. An experienced broker will be able to assess all of your relevant finances and provide you with an accurate figure with detailed justification why, helping your case for approval.
A Mortgage Capacity Report gives you greater financial credibility when dealing with lenders, with any figures backed up by the expertise of your chosen mortgage broker. This can be especially helpful with lenders who may have declined your previously, with the opinion of a reputable broker able to help your case.
These reports won’t suggest specific lenders but will document the maximum recommended amount you can borrow, as well as projecting your rate of repayment using current market interest rates, as well as other mortgage costs.
If you’re struggling to get that much-needed mortgage approval, getting a Mortgage Capacity Report could be the exact step you need to finally get the ball rolling, and get your mortgage journey on track:
“With the average Mortgage Capacity Report between £300 – 500, I think it’s a worthwhile investment when embarking on your mortgage journey. Time is of the essence when it comes to negotiating your
mortgage, so improving your chances of getting approved can make all the difference, and could be the Mortgage Capacity Report the very thing you need to make your dreams come true.”
ABOUT PRESTIGE MORTGAGE SOLUTIONS LTD
Providing award-winning mortgage and insurance advice you can trust, Prestige Mortgage Solutions is a leading, family-run Mortgage and Protection firm that puts people first, offering mortgage and insurance advice across Scotland and England.
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