How likely are you to get accepted for a mortgage? New tool reveals your chances
BUYING a home is one of the biggest stresses you can go through - but a new tool is aiming to make it easier.
Experian's new eligibility tool will help buyers find out which mortgages they are likely to be accepted for.
How does the mortgage tool work?
You'll find the service in Experian's CreditMatcher website, which gives you access to your credit-score for free.
As it's only just been launched, it's only available to 50 per cent of users of the site - and you won't get the choice if you're given the option or not.
If you can use the service, it will ask you for some personal details, including the size of your deposit, your annual income, how much you want to borrow and what debts you have.
It'll then flag what mortgages you are likely to be accepted for and say if you've got a "good" or "excellent" chance of getting the deal.
It will also show you how much extra you'll need if your deposit is too small.
Helpfully, it will carry out a "soft-search" on your credit file, meaning your credit score won't be impacted if you try the service.
Amir Goshtai, of Experian, said: "We are working with lenders to simplify this process and are delighted to offer a service that can help customers see the mortgages they are eligible for, before they make a full application.
"Our focus is to help people be more confident with their finances and this represents a strong step in that direction, through one of life’s most stressful purchases."
Payback time Can't afford to buy a property? You can now borrow your deposit
The new service could be real help, especially for first-time buyers who may be confused by the world of mortgages.
But its still early days and hasn't been rolled-out to all users yet.
And only six lenders are signed-up so far - Aldermore, Barclays, Leeds Building Society, West Bromwich Building Society, Platform and Family Building Society.
So even if you don't get a suitable deal via the tool, you may still be accepted by the various other lenders in the market.
How to get help buying a house
THERE are several government schemes available to help you get on the housing ladder.
- Help to Buy loan: This scheme is for those who have a 5 per cent deposit, and is only available on new-build properties that are worth less than £600,000. The government lends you up to 20 per cent of the property value (interest-free for the first five years) which gives you access to cheaper mortgages. You will need to pay this back at the end of the mortgage or when you sell.
- Starter Homes: First-time buyers under the age of 40 can access this new scheme. You’ll get a 20 per cent discount on the market value of the property (new-build only) but you cannot sell or let the property for five years after you buy it.
- Shared ownership: This scheme is available to non-homeowners who earn £80,000 a year or less (£90,000 in London). People can buy a share of a home from a housing association and continue to rent the remainder. Buyers will need a ten per cent deposit as well as money to cover stamp duty and other fees. You’ll also need to find a mortgage lender that is willing to lend on shared ownership properties
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