Fixed: How to finance a new home

As many of you will know this month Miller Homes are pledging to try and “fix it” for buyers struggling to move. A range of incentives are on the table to be snapped up by buyers nationwide meaning that whatever your obstacle Miller Homes has the solution to make your dream move a reality.

With such an impressive array of incentives on offer it may be tempting for buyers to forget the basics when it comes to financing that big move. The key thing to remember is that the banks aren’t exactly splashing the cash when it comes to mortgage lending at the moment which means that buyers need to be in the best possible position when making a mortgage application.

It goes without saying that the best deals out there favour those who can lay down the largest deposits. Saving for a deposit can be a tough task in itself and regular readers of this blog may have seen some useful saving tips posted last summer.

Deposit aside though a strong credit rating should be the number one goal if funding a new home is on the agenda. Your credit rating is in a nutshell an indication of how likely you and your finances are likely to behave. Achieving a positive credit rating is your way of telling the lender that you offer them an attractive investment.

The following simple tips should be considered if you happen to be looking to improve your credit rating:

  • Try to avoid unnecessary credit checks in the run-up to your application. Don’t forget getting a new credit card bank account or even a new mobile phone contract means that your credit will be monitored closely.

  • Show an ability to save into a current account. Many people forget that a savings account is not a credit product so any savings that happen to be tucked away and saved for a rainy day will not have the desired positive affect on a credit rating.

  • Leave cash available at the bank. Make sure that you don’t spend every penny of that monthly pay packet as a lender will want to see that you aren’t in the habit of spending every penny you earn.

  • Try to avoid significant job changes particularly if they mean becoming self-employed. Those who are newly self-employed are seen as having finances which are more volatile meaning that the lender will see this as a high-risk investment.


 

As uninspiring as it may sound discipline is the key and is certainly what’s required in order to achieve a strong credit rating which will in turn secure the package that will finance that shiny new home.

Miller Homes have made life a lot easier by offering two shared equity schemes as well as deposit match and home exchange packages. All that’s left for you to do is keep your finances in tip-top shape and get on with choosing your dream home.

By one of Miller Homes’ recommended Independent Financial Advisors
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