As the property market gains momentum in early 2025 and mortgage deals improve, it’s the perfect time to get ready if you’re planning to buy a home. Whether you’re a first-time buyer or moving, preparing in advance can help ensure a smoother mortgage process. At David James, we offer expert mortgage advice through our partners at Your Mortgage Shop, with a free consultation to help you every step of the way. Here’s what you need to prepare:
Check your credit score
Your credit score impacts the mortgage deals you can access. A good score can help secure a better offer. Check your credit report for errors and improve your score by paying bills on time and avoiding unnecessary credit applications.
Organise proof of income and employment
Lenders need proof of stable income to ensure you can repay the mortgage. If employed, have recent payslips and a P60 ready. Self-employed? Provide two years of tax returns, business accounts, and bank statements showing your income.
Calculate your deposit and budget
Know how much you can afford for a deposit. A larger deposit opens up more mortgage options. Government schemes like the mortgage guarantee scheme may help if you have a smaller deposit. Don’t forget additional costs like stamp duty and legal fees.
Prepare bank statements and outgoings
Lenders will review your spending habits. Have several months’ worth of bank statements showing your income and regular expenses. Reducing unnecessary spending beforehand can improve your chances of approval.
Get an agreement in principle
An agreement in principle (AIP) shows how much a lender is willing to lend based on an initial assessment. While not a formal offer, an AIP helps you act quickly when you find the right property and reassures estate agents.
Research your mortgage options
Explore different mortgage types, such as fixed-rate and variable-rate options. At David James, we work closely with our expert mortgage adviser at Your Mortgage Shop, who can guide you through the options available and help you find the best deal for your needs.
Consider future financial plans
Think about your long-term financial plans before committing to a mortgage. Choose a loan that fits your lifestyle and future goals, whether you need flexibility or fixed monthly repayments.
Be ready to move quickly
With increased market activity expected, being prepared allows you to act fast when you find the right home. Having your documents in place and securing an agreement in principle gives you a competitive edge.
At David James, we’re here to help you every step of the way, offering independent mortgage advice through Your Mortgage Shop and expert estate agency services.
Ready to start your home-buying journey? Get in touch with our team to get started!
Initial mortgage advice with Your Mortgage Shop is free of charge. Should you choose to apply for a mortgage with Your Mortgage Shop we will charge an application fee of £249.00.
Your home may be repossessed if you do not keep up repayments on your mortgage.
