Step 1: Get Your Finances in Order

If you’re like most people, you’ll need a mortgage to buy your first home. To secure one, you’ll need to show lenders that you can:

• Afford the mortgage.
• Be trusted to make your repayments on time.
• Afford the mortgage, so it’s important to be mindful of your credit score and debt to income ratio,
• Be trusted to make your repayments on time.

Your Credit Score:

A mortgage is a significant financial commitment, so lenders will want to ensure you’re capable of repaying it. They’ll check your credit report, which outlines your financial history and is summarised in your credit score. Building, improving, and maintaining a good credit score takes time, so it’s best to start early. Here’s how to improve your credit score:

• Monitor your credit reports for free by signing up to Checkmyfile.
• Pay bills on time: Always pay your bills in full and on time. Setting up direct debits can help ensure you don’t miss payments.
• Use credit sparingly: Use your credit cards regularly but pay off the balance in full each month. This builds a positive borrowing history.
• Avoid maxing out your credit limit: Aim not to use more than 50% of your credit limit. For example, if your limit is £1,200, keep your balance below £600.
• Limit credit applications: Avoid making multiple credit applications in a short period, especially before applying for a mortgage, as each application can impact your credit score.

Your Debt-to-Income Ratio:

This ratio shows how much of your income is spent on existing debts. During your mortgage application, lenders will conduct an affordability assessment to ensure you can afford the monthly repayments without overstretching your finances.

• The lower your debt-to-income ratio, the more likely you are to qualify for a larger loan. To improve your ratio, consider:
• Paying down high-interest debts (e.g., credit cards or car loans).
• Cutting unnecessary expenses.
• Avoiding large credit purchases in the run-up to your mortgage application.

Step 2: Understand How Much You Can Borrow

Before you start viewing properties, it’s important to know how much you could borrow. This will help ensure you’re looking at homes within your budget and avoid disappointment later on. At Turtle Mortgages, we can guide you through the process of understanding how much you may be able to borrow. Here’s how we can help:

Personalised advice:

We’ll assess your financial situation and recommend the best mortgage options tailored to your needs, helping you avoid wasted time on properties that may be out of reach.

Expert mortgage brokers:

Our experienced brokers have access to a wide range of deals from lenders across the market. We’ll help you find the most suitable mortgage for you, whether you’re a first-time buyer or looking for a better deal.

Mortgage calculators:

If you prefer to get an early estimate, we provide easy-to-use mortgage calculators on our website to give you an idea of how much you can borrow, based on your income and financial commitments.

Affordability check:

We carry out detailed affordability assessments to ensure that the mortgage you’re considering is within your budget, considering all your current expenses. Once we’ve helped you understand your borrowing capacity, we can guide you through securing a Mortgage in Principle (MIP) or an Agreement in Principle (AIP).

Mortgage in Principle (MIP): A quick and easy way to get a basic idea of what you can afford without affecting your credit score.

Agreement in Principle (AIP): A more detailed estimate that involves a credit check and proof of income. This gives you a clearer picture of how much you can borrow and can help you stand out as a serious buyer when making offers on properties.

The Importance of Your Deposit:

Lenders use a formula to calculate your borrowing capacity, which usually involves multiplying your income by a certain factor. This multiplier is based on your financial profile and the current lending environment. While some lenders offer calculators, it’s important to get personalised advice, as every lender might have slightly different criteria.

Income and Affordability Checks:

Lenders use a formula to calculate your borrowing capacity, which usually involves multiplying your income by a certain factor. This multiplier is based on your financial profile and the current lending environment. While some lenders offer calculators, it’s important to get personalised advice, as every lender might have slightly different criteria.

Other Factors That Impact Your Borrowing Power:

Lenders use a formula to calculate your borrowing capacity, which usually involves multiplying your income by a certain factor. This multiplier is based on your financial profile and the current lending environment. We offer a mortgage calculator for an initial idea of how much you can borrow, but it’s important to get personalised advice from us, as every lender might have slightly different criteria.