An action plan on how to get a Mortgage in 2020?


Why we have a question about 2020 only????
Yes, you are right!! We all know the reason. The year is quite difficult for the world, and the international economy is facing a huge loss. The significant issues like Brexit affected the big names, Europe and the United Kingdom. Now the covid-19 fear is prevalent, and people across the planet are in a fix.
Attaining a mortgage in 2020 is a big question, and only with the right approach, one can manage to win the goal. Here are some of the tactics and suggestions on how to get a mortgage.

Do not apply for fixed-rate, it is difficult to qualify 

Go for the variable rate deals

Yes, it is true. The fixed-rate is usually in demand due to its friendliness to the repayment capacity of the borrower. Fixed and manageable instalments lighten the burden on the shoulders of the mortgage holder.
 However, you know very well the current situations of the market. It is pathetic, yes, revival efforts are there, but they may take some more time to push the situation towards normalcy. Variable-rate mortgage deals are more comfortable to achieve. Already the rate of interest is not high nowadays, and thus you can quickly get the approval. 

Swollen deposit is your saviour

Most of the brokers and lenders have pulled back their high LTV products. The rest of the lower LTV mortgage deals demand huge deposit. The minimum limit has reached to 20% to 25%, isn’t that a huge change? 
Deposit conditions in 2020 in January and May
                    February (5%)…………………………………………………………………………………………….May (25%) 
This considerable transformation is unbearable for most of the mortgage seekers. But those who want the funds at any cost, have to work hard on the deposit size.
After all, not everything is going against you. A significant down payment also lessens the overall burden. It also helps in getting a lower rate. Hard work of today gives its fruit tomorrow. 

As of now compromise a bit on the rates LATER 

Remortgage will help you get a cheaper deal 

This suggestion for the credit hungry people, are you among those? Then consider this point which may sound a bit weird, but it is practicable. Currently, most of the available mortgage options are higher in rate, and until the normalcy does not happen again, you have no choice. 

Either you drop the idea and postpone the plans of property buying for some time, or if you want it now only, then this option is vital. When things get routine, you can apply for a remortgage to get a mortgage deal on lower rates. 

Hire a professional support 

With already a confusing mortgage market, it is difficult for the fund seekers to get a mortgage quickly. When lenders are not clear about what to do, and how to tackle the enormous loss and move on, how you can be sure. But a part of the industry is always aware of every detail of the bigger picture.

The mortgage brokers act as the eye of an eagle; they give you an aerial view of whatever is happening around.  Also, they can tell about every lender individually. There are many online brokers out there that can facilitate a deep insight into the available mortgage deals. They can find you the best suitable choices and can also help to know the harmony level better your affordability and mortgage conditions.  

Keep the credit score performance impressive 

There is no need to describe the importance of credit score in a mortgage approval. Come to the point directly. Keep your financial behaviour tailored and make the payments on time. The debt payments, bill payments, everything should be at the right place and at the right time. 

In case you are in poor credit situation here are the suggestions – 

  • Do  not max out credit cards
  • Make the payments on time
  • Do not make ‘buy now pay later’ purchases
  • Keep the debt-to-income ratio in control as a larger size  of debt cause delay in payments

Employment factors

As you know, employment stability is a significant factor. You need to work on the basic requirements of the lenders on this part. 
  • Do not leave your current job. The mortgage company wants you to show at least one year salary slips from the current employer. Those with experience of 2 years are even more promising on the property ladder. 
  • Try to get a salary increment. If you achieve a promotion or salary hike or any perk from the company, it becomes smoother to get a mortgage. The finance companies not only look into your personal finances but also in your job life. They are always happy to see an applicant who is smart, desirable for the employers and competent because such people usually earn well. This fact, in return, gives a feel of the surety of strong repayment capacity to the mortgage company. 


The above points present the vitality of consideration of some critical aspects that cannot go unnoticed. 2020 is under the impression of significant challenges, and the revival process is slow due to the vigorous-intensity of financial destruction. The change is sure to take some time, and by that time, you need to carry on with a struggle. But you know what, if you try in the right direction, it is not impossible to get approval.  Just keep working and the most important thing, stay organized in your finances as nothing is more important than this.

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