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YOUR COMPLETE GUIDE TO GETTING A MORTGAGE

Omni Finance

Understanding the steps involved can significantly ease the path to securing your dream home


NAVIGATING THE MORTGAGE application process can seem daunting, whether you’re a first-time buyer or returning to the housing market ater years away. Understanding the steps involved can significantly ease the path to securing your dream home. Preparation is key, from knowing what lenders look for to how you can increase your chances of success and avoid unnecessary delays.


HOW MUCH DEPOSIT DO YOU NEED? When working out how much deposit you’ll need, it’s worth noting that most lenders require a minimum of 5%. However, the larger your deposit, the cheaper your mortgage rate will likely be. This makes exploring how you can save and maximise your deposit in the run-up to applying for a mortgage is worthwhile. A gifted deposit can be helpful if you’re fortunate enough to have a supportive family willing to assist. Another resource to consider if you’re aged 18-39 and buying a home for the first time is the Lifetime ISA (LISA). With a LISA, you can save up to £4,000 each tax year, and the government will top up your savings with a 25% bonus – up to £1,000 annually. Alternatively, schemes like shared ownership can make homeownership accessible with a smaller deposit. Guarantor mortgages are another viable solution, allowing loved ones to help by putting up security rather than offering money outright.


PREPARING FOR YOUR MORTGAGE APPLICATION The six months before applying for your mortgage are crucial. Use this time to get ‘mortgage ready’ by addressing key areas of your financial health. Start by checking your credit rating. If there are any errors on your report, ensure they are corrected quickly, as they could raise issues with lenders. Additionally, ensure you’re registered to vote. Being on the electoral roll is vital; lenders use this information to verify your identity and prevent fraud. If you’re not eligible to vote, you can include a notice of correction with proof of address to avoid difficulties. Keeping your bills up to date is also essential—set up Direct Debits wherever possible to avoid missed payments, which could impact your credit score.


BOOSTING YOUR FINANCIAL PROFILE Steering clear of overdrafts in the months before your application is another important step, as some lenders view recent overdraft use as a red flag. Similarly, avoid applying for new lines of credit in this period, as frequent credit searches can raise concerns with lenders. Reducing your spending will also work in your favour. Lenders will scrutinise your outgoing expenses through your bank statements, so demonstrating a disciplined approach to your finances can increase your chances of approval. Cutting back not only boosts your credibility with lenders but can provide you with additional financial breathing room during the property-buying process.


HOW LENDERS ASSESS YOUR APPLICATION Lenders will carefully examine your household income, regular expenditures, and any outstanding debts when deciding how much they are willing to lend you. They need to ensure you can comfortably afford the monthly payments on your mortgage. Your credit history is equally important. Lenders will analyse your credit report to gain a clear picture of your financial habits and reliability. It’s also worth thinking ahead about the required documentation. Compile essential documents early, such as identification (passport or driving licence), your last three months’ payslips, and your most recent P60. If you’re self-employed, you’ll need statements covering two to three years of accounts. Lenders will likely also request your current account bank statements from the last three to six months and details of your regular expenses, including loans, childcare costs, and general living expenses.


SECURING A MORTGAGE IN PRINCIPLE One step many prospective home buyers overlook is obtaining a mortgage in principle also called an agreement in principle or decision in principle). This is essentially a statement from a lender stating how much they could lend you based on your income and outgoings. While not a guarantee of a mortgage, it shows you’re serious and prepared when bidding on a property. It’s wise to get a mortgage in principle as early as possible, even before you start househunting. Once you’ve found your desired property and your offer has been accepted, you can move on to the formal mortgage application process, which involves a full credit check and property valuation.


MOVING FROM APPLICATION TO COMPLETION After submitting your formal application, lenders will assess all the provided information, conduct additional checks, and, if satisfied, issue a formal mortgage offer. Once your solicitor informs them of your completion date, the lender will transfer the agreed loan amount to fund your purchase. At this stage, it’s essential to remain responsive and proactive, ensuring there are no unnecessary delays. With all the moving parts coming together, you’ll soon be ready to take ownership of your new home.


>> NEED MORE GUIDANCE ON GETTING MORTGAGE READY? << The mortgage process doesn’t have to be overwhelming. By preparing thoroughly and seeking professional advice, you can make informed decisions throughout your home buying journey. For expert-tailored support or further information, we’re here to help make your dream of homeownership a reality! Contact Omni Finance – telephone 01424 236903 – email simon.hickman@omnifinance.co.uk


The Mortgage & Property Magazine is published quarterly for Omni Finance by Goldmine Media Limited. All enquiries should be addressed to The Editor, The Mortgage & Property Magazine, c/o Goldmine Media Limited, 124 City Road, London EC1V 2NX. Please note that The Mortgage & Property Magazine does not accept unsolicited contributions. Editorial opinions expressed in this magazine are not necessarily those of Goldmine Media Limited and Omni Finance does not accept responsibility for the advertising content. Offers and promotions may have limited availability. To discover more, visit the Omni Finance website: www.omni-finance.co.uk. All Rights Reserved 2025. The content of the articles featured in this publication is for your general information and use only and is not intended to address your particular requirements. Due to the devolved administrations of the United Kingdom, the information relates to England only except where explicitly referred to otherwise. Articles should not be relied upon in their entirety and shall not be deemed to be, or constitute, advice. Although endeavours have been made to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No individual or company should act upon such information without receiving appropriate professional advice after a thorough examination of their particular situation. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of any articles.


THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. AS WITH ALL INSURANCE POLICIES, CONDITIONS AND EXCLUSIONS MAY APPLY. YOUR BUY-TO-LET PROPERTY MAY BE REPOSSESSED OR A RECEIVER OF RENT APPOINTED IF YOU DO NOT KEEP UP PAYMENTS ON YOUR MORTGAGE. MOST BUY-TO-LET MORTGAGES ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY (FCA). EQUITY RELEASE MAY INVOLVE A HOME REVERSION PLAN OR LIFETIME MORTGAGE WHICH IS SECURED AGAINST YOUR PROPERTY. TO UNDERSTAND THE FEATURES AND RISKS, ASK FOR A PERSONALISED ILLUSTRATION. EQUITY RELEASE REQUIRES PAYING OFF ANY EXISTING MORTGAGE. ANY MONEY RELEASED, PLUS ACCRUED INTEREST, TO BE REPAID UPON DEATH OR MOVING INTO LONG-TERM CARE. EQUITY RELEASE WILL AFFECT POTENTIAL INHERITANCE AND YOUR ENTITLEMENT TO MEANS-TESTED BENEFITS BOTH NOW AND IN THE FUTURE.

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Your home is at risk if you fail to keep up payments on your mortgage or any other loans secured against it.
 
Equity release may involve a lifetime mortgage which is secured against your property or a home reversion plan which requires the sale of property for a discounted price. To understand the features and risks, ask for a personalised illustration. You only continue to own your own home with a lifetime mortgage.
 
Our services relate to certain investments whose prices are dependent on fluctuations in the financial markets beyond our control. Investments and the income from them may go down as well as up and you may get back less than the amount invested. Past performance cannot be used as a reliable prediction of future performance.
 
Will Writing and advice on Lasting Powers of Attorney are not regulated by the Financial Conduct Authority
 
Buy to Let mortgages and Commercial Lending are not usually regulated by the Financial Conduct Authority
 
Omni Finance is an appointed representative of New Leaf Distribution Ltd who are authorised and regulated by the Financial Conduct Authority (FCA). FCA number is 460421. Registered Address: 165-167 High Street, Rayleigh, Essex, SS6 7QA. This website is aimed at UK residents
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