The mortgage process can come with its highs and lows with many people encountering challenges on the way. You may find that people fail to match the lending criteria in situations like failing to match lending criteria or going through a divorce/separation.
Mortgages can be complex! You can’t get a mortgage instantly. First of all, you will be required to pass lender credit checks and affordability assessments to show that you’re eligible for a mortgage. In the case that you come across a hurdle around this time, we do recommend that you seek the assistance of a mortgage specialist to progress your application. As a First Time Buyer in Scunthorpe, the issue may be complicated but we can explain these problems and direct you towards the best solution.
Below is a list of the most popular mortgage hurdles that home buyers may encounter through the mortgage process.
You may find that applicants are turned away because you have children, however, it is an unlikely case. If you are in this situation, your overall offer may be a little higher than if you didn’t have them.
Lenders will account for childcare costs in your expenditures when they are assessing your affordability. The reason why they do this is to be sure that you can afford a mortgage so they need to consider all your outgoings. When it comes to childcare costs, (depending on the number of children you have) they can go into the hundreds each month and they don’t go down! They’ll see these costs as recurring payments and will treat them as they treat a car loan or hire a purchasing agent.
Regardless if you don’t pay for childcare, like a nursery, you still may be offered less than other buyers who don’t have children.
It’s a sad case when this happens, however, when you and your partner go your separate ways and you’re both linked to a mortgage, you may need to solve your financial situation first. Keep in mind that the longer you leave it, the more complicated it can get.
If you’re still financially linked to someone else, lenders may find it difficult to carry on your application, especially if you’re linked through a mortgage. Because of this, you will be managing two sets of mortgage payments each month, which could be difficult to take on.
For those in this situation, it’s best to approach us for Specialist Mortgage Advice in Scunthorpe. This is something many customers have approached us for and below is the most common questions we get:
Speak to a professional advisor if these are the type of topics you are wondering about because they may be able to help you with these problems. Going through a divorce is stressful enough so adding extra stress of your mortgage can make it worse. Get in touch with our team if you are looking to obtain Divorce & Separation Mortgage Advice in Scunthorpe.
A variety of lenders will have different perspectives on benefit income and will assess it differently. Additional benefits that could be assessed include child tax credit, working tax credit, disability benefit or pension. Every lender will differ in what they choose to assess.
We have a variety of different specialist lenders that all have their own unique lending criteria and will measure a range of income. This type of lender may benefit your case.
Starting a new job, generally, will mean you are on a higher salary. Having more money will mean you can afford finances like a new mortgage. Because of your new higher salary, you may feel like getting a mortgage will be easier, but this isn’t always the case.
Probation periods may not work in your favour when it comes to the lenders and will depend on the likelihood of you staying on. On the flip side, others may not be bothered by this. To fully get an idea of how committed you are to a job, lenders may look into your work history to see how long you were employed in the previous workplace, making sure that you are not the type to jump between workplaces.
Lenders want to be sure that you are an applicant who will not be employed within months so gaps in employment can have a negative effect on a successful mortgage application.
Depending on the lender, you may be qualified for a mortgage before even starting the job. This will be no more than a month in advance.
When you’re applying for a mortgage in Scunthorpe, you will need to make sure you evidence your deposit and be able to prove where you obtained it from. In the circumstance where you’ve simply built it over time, you will need to show this through your bank statements. We do find customers are given a gifted deposit meaning the person gifting you the money will need to prove where they have got the money from.
By doing this you are keeping in line with the anti-money laundering regulations which will show a lender that the funds have been legally raised. As well as the lender, your solicitor and estate agent may also ask for this evidence.
We do find many applicants can easily slip up on this part of their mortgage application. Not evidencing your funds correctly can put you at risk for the lender to begin questioning where the money actually came from. Having a Mortgage Broker in Scunthorpe by your side will guide you through how to evidence your deposit correctly. We can provide support through this step with you so you are in the best position for mortgage success.
When lenders look at your bank statements they will be highlighting various factors. They do this to establish whether you are the best applicant to lend to. Generally, an ideal applicant will be able to show how well they manage their finances and prove that they can keep up to date with their monthly payments.
If you are wondering what lenders look for on your bank statements, check out below how one aspect of your bank statement can impact your ability to get a mortgage in Scunthorpe.
If you enjoy gambling once every couple of months or it’s a daily occurrence, be aware that gambling in a massive amount usually impacts your mortgage application. Being a frequent gambler, regardless of losing money or not, you may be declined because of your gambling habits.
Obviously, no one can dictate how you live your life, however, the media does advise that you ‘gamble responsibly’. Keep in mind that a lender needs an applicant that doesn’t oppose risk to them. They want to lend to someone who will keep up with their mortgage payments so there is less risk of repossession.
Looking at the perspective of the lender, would you want to lend some money to someone who frequently gambles with a large amount of money or someone who’s always on top of their payments and doesn’t gamble?
Gambling is not an illegal act, however, the one-off gambling transaction on your bank statements will not mean that you’ll get automatically declined. They will assess the gambling transactions to if they are reasonable and responsible. The things they will look out for are how frequently you gamble, the number of transactions and how they relate to your income.
For those who are infrequently gambling in small amounts, this shouldn’t impact significantly to if you get accepted or not. On the flip side, if you are a regular gambler, this could affect your application. Going into your overdraft because of gambling can reflect badly on your application.
Lenders will take a thorough approach to your bank statements. There are a variety of things they will look into, however, generally, they want to look at your bank statements and be confident that you are a reliable applicant to lend to.
In the case where you exceed your overdraft limit every month, your lender might conclude that you are finding it difficult to manage your finances. We would always advise that you are always aware of this even though it’s likely that you will be okay doing so. As well as this, they will look at additional credit commitments that you have like like credit card or loan payments, etc. This is a key point as you will need to put aside a set amount every month to pay back the loan just like you would a mortgage payment.
We strongly recommend that you look out for credit transactions from pay-day loan companies or known as ‘undisclosed’ loan repayments. This can raise issues if you told them that you had no additional loans to account for but it is evident on your bank statements. With this in mind, you need to be fully honest with your lender and tell them everything before they view your bank statements.
As a Mortgage Broker in Scunthorpe, our team always suggest that the best way to improve things is to be rational and organised.
First of all, plan ahead! Normally, your lender will ask for a minimum of three months’ bank statements.
Therefore, before you apply, put yourself in a position where you are financially able and slow down on things like gambling and dipping into your overdraft. Little changes in your finances can help.
Approaching a Mortgage Broker in Scunthorpe, like ourselves, our team will help you with this process and find you the product that will help you the most. We do find there is some specialist lenders out there who will request fewer bank statements than others, a mortgage might be able to access one of these deals.
As a first time buyer in Scunthorpe and you are stepping into the mortgage world for the first time, we strongly recommend that you seek specialist mortgage advice from a mortgage advisor in Scunthorpe.
If you are a homeowner with a mortgage to your name, you may notice that a certain amount of high street mortgages that are on the market are portable.
A portable mortgage in Scunthorpe works by taking your mortgage from one property to another if you decide to move home and want to avoid the penalty charge for doing so.
For those looking to move into a new home and are already going through your fixed rate mortgage deal, a portable mortgage could be helpful as you will have the potential to avoid having an Early Repayments Charge (ERC) for moving.
Remember, not every mortgage deal that is available on the market is portable. This is even less likely if you are on a mortgage with a specialist mortgage lender because their mortgage is probably more complex to qualify initially and they would discourage you to port it.
In order to find out if porting a mortgage will be available to you, we would highly suggest that get in contact with your mortgage regarding this.
In some cases, a homeowner may decide that option is not fit for them and choose not to even if their mortgage is flexible enough to achieve this.
There is a range of reasons why customers may not look to port their mortgage. For instance, the mortgage lender may not be willing to provide the additional funds or the different interest rate in those funds.
With this in mind, it may be best to accept the Early Repayment Charge (ERC) and move to a different mortgage lender altogether, however, this only applies if it works out cheaper to go to that new deal.
This is when an account will be attached to your mortgage when you look to port it and the extra funds will move onto a deal different from your original mortgage.
Due to this, each of these will be on two different rates of interest that are applied on both the mortgage and the direct debit.
Keep in mind that because products can overlap, it can become an issue further down the line which means it might need looking into in the future so they are realigned. With this, it may mean one of the sub-accounts falls onto a lender’s variable rate briefly.
For those looking to Move Home in Scunthorpe or are looking for a Buy to Let in Scunthorpe, contact and speak to a mortgage expert.
Through our 20-plus years of experience as a Mortgage Broker in Scunthorpe, we take pride in helping thousands of mortgage applicants in circumstances like this and will work hard in supporting you towards achieving your mortgage goals.
There are plenty of different reasons why a homeowner may look to move home. Here, we look into the most common reasons that we have seen through our time as a reputable Mortgage Broker in Scunthorpe.
Homeowners will sometimes look to move home as they are in need of more living space. This is especially the case if you are a First Time Buyer in Scunthorpe as it’s likely you bought a much smaller home initially.
From this, you may find your circumstances change further down the line which could lead to you looking for a larger one because you are looking to start a family for example or you generally might want more space.
If you are looking at having that extra but would prefer to stay in your home instead of Moving Home in Scunthorpe, you may have the option to raise capital through a remortgage as a way to build the space you need.
This is usually popular with homeowners who are looking to grow their families but want to build up the family home that they already love.
Many parents decide to convert their loft into a bedroom for one of their children which could result in further free space for them to use for a home office, gym and whatever they fancy!
By remortgaging for home improvements, you are potentially increasing the value of your home which is helpful if you ever decide to sell your home. Contact our team today for Remortgage Advice in Scunthorpe if you are interest in this option.
As a Mortgage Broker in Scunthorpe, we often have customers contact us regarding moving home in Scunthorpe as they are looking for a change of scenery instead of looking at different areas altogether. Again, this is common in homeowners who previously had first time buyer mortgages in Scunthorpe.
They may be looking into this option as they had a limited budget at the time so decided to settle for a cheaper property in order to get that first step onto the property ladder. From this, they may have more money coming in and are looking to move to a more prosperous neighbourhood.
Choice in schools is not in the forefront of people’s mind when they moving into their first home because they may not want to start a family at this point. With this in mind, those who have started or are planning to start a family, will consider this when they are looking at where to move.
A number of home movers usually decide to move home in Scunthorpe cause they want to be slower to their friends and family. We do find this situation usually crops up when a couple looks at starting their own family or after a significant loss.
In the situation where both parents are working full time and are looking to start a family, it is likely that they will ask their family to help them out with childcare. This can be helpful as nurseries can be pricey and working this into your schedule be challenging.
If you are considering Moving Home in Scunthorpe, you may benefit from the help and support of an expert Mortgage Broker in Scunthorpe. Our team will be able give you a rundown of the costs that come with the moving home process.
Here at Scunthorpemoneyman, we have access to a large panel of lenders which allows us to search through 1000s of mortgage deals to find you the most appropriate one for your financial situation. Book your free mortgage appointment today!
As mentioned, there is the alternative of remortagaing for home improvements instead of Moving Home in Scunthorpe. This is something we have rich knowledge and experience in. Simply book yourself in for a free remortgage review by contacting our team or booking online.
It’s common for First Time Buyers in Scunthorpe to find it difficult to get their footing on the property ladder on their own so will look at the easier option of moving in with a partner or friend. There are plenty of benefits from going down this route. For instance, it won’t take a long time to save for a deposit, and lenders favour two or more people to buy a property together, splitting the equity in it and being responsible for the mortgage payments.
It’s likely to find that some mortgage lenders will allow up to four people to co-own property together. Due to multiple parties being involved, this will involve some discussion if something changed in circumstances. Be aware that if one borrower ends up not putting forward their contributions to the mortgage payments, the lender will go to the rest of the group for payment.
Each joint owner will still hold a legal right to live within their home unless a court rules otherwise. This still applies if an individual withholds their contribution, they still own part of the property.
This is why you need to be selective when it comes to who you are buying with.
In the circumstance where one of the co-owners would like to increase the mortgage in the future, all borrowers need to consent. It’s good to plan for down the line in case someone ends up with a different plan in mind or a change in circumstance.
Joint tenancy is an option that is popular amongst couples who are married, in civil partnerships or just cohabiting. Usually, tenants are relatives or friends that are interested in buying a house together. This does involve needing the applicant’s consent if you decide to sell or remortgage the property in the future.
When it comes to a tenancy in common, both co-owners will jointly own the property, however, there isn’t any legal requirement to do so in equal shares regardless of whether one party earn a lot more per month than the other.
For those that you a tenant in common, they have the freedom to sell or give away their share of the property t someone else if they decide to remove themself from the situation.
In the unfortunate event that one of you were to pass away, the property will be owned by the other owner on the mortgage. As a Mortgage Broker in Scunthorpe, we always recommend taking out Life Insurance in Scunthorpe within the mortgage process. By taking this out, it’s possible to use life insurance to pay off a mortgage.
Each mortgage borrower is jointly and equally responsible for paying their mortgage payments on time. Therefore, if one party stops paying, the parties left have to make up for the remaining to prevent possible mortgage arrears.
It’s important to keep up to date on each payment in order to prevent the risk of falling into arrears which could stop you from getting a mortgage in the future. Go into this deal with the idea that you don’t own 50%, you own 100% jointly.
In the case where it doesn’t all go to plan, due to maybe being in a disagreement with your co-owners or the breakdown of a marriage/relationship, you may be exploring the option of removing others from your mortgage or removing yourself from their mortgage.
If you are in this situation, it’s best to speak to an expert Specialist Mortgage Advisor in Scunthorpe who can look at your options. Check out our article about ‘divorce & separation mortgage advice‘ for more information on divorce and mortgages.