Applying for a mortgage can be a daunting task, particularly if rising borrowing costs and the cost-of-living squeeze are impacting your budget. But whether you’re looking to buy or remortgage, there are steps you can take to improve your chances of getting approved on the best possible terms available to you. Read on for our top three tips on how to best prepare your application.

• 1. Speak to a broker earlier than usual

Get planning early. Lender criteria is becoming stricter, with the cost of living (including energy, food and inflation) now factoring into their affordability calculations, so bear this in mind when thinking about how much you are looking to borrow.

If you’re looking to buy, it’s crucial that you reach out to a mortgage advisor as soon as possible. They will be able to guide you on how much you can borrow and can also advise whether now is the right time to buy or whether waiting a little longer could prove more beneficial – this will vary depending on your circumstances.

If you’re remortgaging and are six months away from your deal coming to an end, then you should also speak to a broker as soon as possible. The market is very fluid now and a product that’s available today may not be tomorrow. Even if you’re outside of this window, it’s still worth being prepared and having a chat to assess what options could work for you.

• 2. Get your credit report in good shape

Make sure to search your credit report ahead of applying and get it in the best shape possible. The three credit reference agencies in the UK are Equifax, Experian and TransUnion.

They are free to use and show lenders information about your payment history and credit score. This will give you a chance to review whether the level of credit you are currently borrowing will help or hinder your application or whether you have any inactive accounts that could deter lenders, both of which you can discuss with your broker for peace of mind. If there are any errors on your report, you can contact the credit reference agency in advance to get the information corrected.

• 3. Get your paperwork in order

It’s always a good idea to get your paperwork in order, such as your current proof of address, identification, and proof of earnings. If you’re self-employed, you’ll need to show your accounts and tax returns for the last two years, so you should speak to your accountant about getting these together.

For remortgaging, if you’re within 3-4 months of your existing deal coming to an end and plan to stay with the same lender, you can opt for what’s called a product switch. This is quick, easy and requires no documentation or lengthy affordability checks. Your current lender will simply move you to the new rate once the existing one finishes. This is a good option if you’ve left it late or you’re self-employed and are struggling to collate all the necessary documentation required by a new lender, such as tax returns.

If you are looking to apply for a mortgage or to remortgage and would like to discuss your options, contact our expert team who would be happy to help. We have access to over 200 lenders, and can help find the most suitable and cost-effective mortgage for you.