Posts contain affiliate links, see disclosure for more details.
If you’re looking to purchase a high-value property, the mortgage application and acceptance process may take longer compared to buying a home of an average value. And with the risk to lenders higher when borrowing a large mortgage for a high-value home, taking steps to ensure that you’re in with a higher chance of being accepted for the mortgage that you need has never been more important. If you are looking to invest in a high-value property, here are some key strategies to keep in mind to improve your chance of mortgage acceptance.
Work with a Specialist Broker
The truth is that due to the high amount, it’s often harder to get a high-value mortgage from a bank or other conventional lender. To be in with the best chance of finding the right lender and mortgage product for your needs, it’s worth working with a specialist lender like Enness Global. Enness Global work with a network of hundreds of lenders around the world and can help you find the right financial product for your needs from a lender who is willing to accept your application.
Get a Large Deposit
The larger your deposit, the easier it’s going to be for you to access high-value finance for a property. When it comes to high-value mortgages, larger deposits are often expected as standard and you will struggle to find a mortgage that asks for a deposit any lower than 10% of the property’s value. More often than not, you will be expected to put a 25% deposit down, but you can save even more and get access to some of the cheapest mortgage deals by getting a 40% deposit or more together.
Know Your Credit Score
A high salary and a lot of savings do not necessarily mean that you are going to have a good credit score, and knowing this information can make it easier for you to determine the types of mortgages and the lenders that are more likely to accept you. While it is not impossible to get a mortgage if your credit score is not perfect, you can usually expect to be required to put down a higher deposit amount and potentially pay higher interest on your mortgage. Checking your credit score helps you avoid any surprises throughout the house buying process and gives you a chance to contest any discrepancies on your credit report.
Have All Documents Ready
No mortgage lender is going to accept you unless you can prove who you are, so make sure that you have an updated passport, or if you’re using your driving license as ID, ensure that the address on it is up-to-date. You will also need to provide a recent official letter from your bank or a utility company to prove your address. If you’re employed, you’ll need proof of income for the past three months and two years’ worth of P60s. If you are self-employed, you’ll need to provide proof of your income for the past five years. Having this information readily available can speed the process up.
Even if you have money available, getting accepted for a high-value mortgage is not always easy. Keep these tips in mind to help the process run smoothly.