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.
First Time Buyers in Scunthorpe stepping into the mortgage world for the first time may find the experience a bit overwhelming. This is why it’s good to be prepared in order to make the most out of your house buying experience. Below are 9 questions to ask yourself as a First Time Buyer in Scunthorpe who’s looking to purchase a property.
Before committing to any property, it’s a good idea to ask how many people have looked and enquired about the property. Because a mortgage will be one of the biggest financial commitments in your life, you need to know how you have left to make a final decision. If the property is getting a lot of attraction, you’ll need to make that final verdict sooner, rather than later.
A property chain is when several transactions are occurring at the same time for the sale and purchase to go through. If the property is a part of a chain, this will have a significant effect on your mortgage process. When it comes to a new home, there is no onward chain.
All this can increase the chance of you moving in quickly especially if you are not part of a chain yourself. You can have more of an advantage as a buyer if you don’t need to sell your own property first because you won’t be interrupting the home buying process. It’s good to utilise this benefit when negotiating the property price.
In some circumstances, previous owners tend to leave some items behind. These items can include electronic goods like washing machines, fridges, freezers, or things like sheds that have been left for the next occupant. This doesn’t apply to new build properties as they come as standard or agreed upon before being built.
The downside is for those who don’t want these items you’ll have to find a way to dispose of them. In the circumstance where you buying a new build property, there might be items you can buy that can be fitted and ready on moving in day.
Knowing whether or not your neighbours are good people can be the final factor in making that decision if you want to live on the property or not. After all, you and your neighbours will be the ones building a community, so it’s always best that everyone gets along with each other.
Depending on the house and the location will factor in the costs. This is why it’s important to do your research and ask the right questions. Even things like how much the Council Tax is as well as the average spending on utilities. All this can be checked online by researching online or asking the seller.
The direction the house faces can be an important factor too. If you enjoy relaxing in the garden in late summer evenings or reading books in natural light. You may find that having a south-facing garden is an ideal choice, but sometimes it comes with a larger expensive.
Below are some things you may want to look into.
The house buying process starts with negotiating a property price. If you are wanting to build your skills on this, check out our how to make an offer on a property in Scunthorpe article. As soon as you are prepared, you can then begin negotiating.
To find out if your offer is too high or too low, it’s best to have a chat with the seller of the home or estate agent. From this, you can find out any other offers that have been made and rejected before your offer.
Having a date set in the diary can allow you to plan the other tasks you need to do in advance. These tasks could include instructing a conveyancing solicitor, packing your belongings and sorting out a removal van to bring your belongings to the new property.
Our devoted team of Mortgage Advisors in Scunthorpe can search 1000’s of deal. Before viewing any properties, we reccomend that you speak to a Mortgage Broker in Scunthorpe like ourselves. We can give you an idea of the maximum amount you can borrow for a mortgage as well as get you sorted with an Agreement in Principle, which can help you when making any offers on a property.
To speak to a Mortgage Advisor in Scunthrope today, book your free mortgage appointment today. Our team can get you in the best position of being ‘mortgage ready’. As well as this, you will be early on in the home buying process and could put you ahead of any other home movers who may not be as organised when offering on your property.
Once you are all ready to make your first offer on a property, it is important that the seller or the estate agent knows all about your personal and financial circumstances. Telling them all of your details give you a higher chance of being accepted.
99% of the times, you will never beat a cash buyer, lenders love less paperwork and a quick home buying process, which wouldn’t be the case if they had accepted someone wanting a mortgage. If you can’t afford to go down this route, to improve your chances of being accepted for a mortgage, you should get a mortgage agreement in principle prepared before you make your offer.
Having a mortgage agreement in principle at the ready shows that you have planned ahead and really want to secure this property. Whereas, if you don’t have one, your lender will know that you weren’t prepared and that you aren’t fully aware of how to apply, which could go against you.
This is why approaching a Mortgage Broker in Scunthorpe could really benefit you during the home buying process. Once you find a property that you are interested in making an offer on, Scunthorpemoneyman can quickly get you together with a mortgage agreement in principle. Depending on your situation, we can sometimes offer the same day service.
Buying a property is a negotiation process. If your first offer gets rejected, don’t worry, it’s perfectly normal to not be accepted first time round, you will get another chance to increase your original offer.
If your increased offer is also rejected, you may have to raise your offer again to match the asking price. If the property has just been listed on the property market, it’s unlikely that the seller is going to budge from their asking price. If you aren’t prepared to match their asking price, you may have to walk away and start looking for more properties.
To get a rough idea of what you may have to pay for your property, you should check out Zoopla and Rightmove and take a look “sold” prices of houses that are similar to the one that you are looking at. These prices are pulled from the Land Registry so they are reliable and can be used as a comparison.
You will sometimes see that some houses end up selling for less than their actual worth and this is because they could’ve been repossessed, sold to a tenant at a discounted price or an inter-family sale.
If you are still unsure about how to make an offer on a property and need help getting on the property ladder as a First Time Buyer in Scunthorpe, you should get the help off an expert Mortgage Advisor in Scunthorpe. They will do all they can in order to try and get that dream home of yours secured.
We are available 7 days a week, so if you ever have any mortgage questions, you know who to call. Receive a free mortgage consultation today with your expert Mortgage Broker in Scunthorpe.
A 95% mortgage is as simple as the name would suggest; you are borrowing against 95% of the price of a property, and then you are covering the remaining 5% with your deposit. An example of this is if you looked at buying a property that was worth £150,000 with a 95% mortgage, you would be putting down £7,500 as your deposit and borrow the remaining £142,500 from the lender.
Off the back of the March 2021 Budget, Boris Johnson announced a Mortgage Guarantee Scheme for mortgage lenders, making 95% mortgages more readily available from the bigger high street banks.
This is fantastic news for First-Time Buyers and Home Movers alike, as this scheme will continue running until December 2022. Certain terms and conditions will apply though, which is something your Mortgage Advisor in Scunthorpe will be able to look at, to see if you qualify.
All our customers who opt to Get in Touch will receive a free, no-obligation mortgage consultation where one of our dedicated mortgage advisors will be able to make a recommendation on the best possible route for you to take.
95% mortgages are usually accessible by both First-Time Buyers in Scunthorpe & those who are Moving Home in Scunthorpe. Whilst saving for a 5% deposit sounds like a pretty straightforward concept, you’ll still need to have an acceptable credit score and prove that you are able to afford your monthly mortgage repayments, in order to access a 95% mortgage.
A good credit score is essential in the process of obtaining any mortgage, especially a 95% mortgage. Things like paying any current credit commitments on time, ensuring your addresses are updated and checking that you’re on the voters roll, can all help with your credit score.
Affordability is another one that is important to take note of. By giving the lender details of your income and monthly outgoings (things like your bank statements will be necessary for this) and any pre-existing credit commitments, your lender will be able to get a general overview of whether or not you are able to afford this type of mortgage.
Nowadays we see lots of family members helping each other get onto the property ladder, especially parents looking to further their children’s lives. The way this usually happens is by gifting the person looking to find their home, the deposit required. Known through the industry as the “Bank of Mum & Dad, Gifted Deposits are only intended to be a gift, and not as a loan. The lender will need proof that this has been agreed, before it can be used towards your mortgage.
When looking for a 95% mortgage, you want to make sure you have the right type of mortgage. Each mortgage type works differently, with that choice allowing you to find one that is most appropriate for your personal and financial situation.
Some homeowners and home buyers prefer Fixed Rate or Tracker Mortgages, mortgage types which mean you either keep interest rates at a set amount for the term given or have your interest rates tracking the Bank of England base rates.
Alternatively, you might find that Interest-Only or a Repayment Mortgages are more your style. Interest-Only allows cheaper payments until you need to pay a lump sum at the end (mostly now used for Buy-to-Lets), whereas a Repayment mortgage (a normal mortgage if you’d like) means you’ll be paying interest and capital combined per month.
Seeing as a mortgage is such a large financial outgoing, you need to be prepared and need to be aware. You might find things like higher interest rates, remortgaging difficulties due to less equity and then negative equity all cropping up if you’re not.
There is no need to worry though, as all these can be avoided if you’re savvy enough with your process to begin with. The more deposit you put down for a property, the less risk the lender will see you as.
A larger deposit, of say 10-15%, would not only reduce the rates of interest by a noticeable amount, but would also give the property more equity and reduce the risk of negative equity, thanks in part to you borrowing less against the property.
So, whilst the risks may seem intimidating, planning ahead and saving for a bigger deposit to access something like a 90% or even an 85% mortgage will be a massive help in your mortgage journey and something you’ll be able to reap the rewards from in the future.
It may be complicated when you want to divorce or separate and have a joint mortgage, you are both tied into a huge financial commitment. The divorce and separation process is one thing that nobody would wish to undergo, for it is very daunting. Your mortgage commitments may end up being very complicated with your ex-partner.
Our mortgage experts in Scunthorpe are here to ensure you do not struggle to manage everything alone. They have handled so many specialist cases for longer periods of working within the mortgage industry. Some of the cases they have handled involve assisting customers to do away with their doubts about mortgage by divorcing or separating and assist them in removing their ex-partners or their names off their mortgage.
As a Mortgage Broker in Scunthorpe, when people contact us, they will always ask these questions regarding a divorce or separation and their mortgage: how to remove their ex-husband or wife from the mortgage, ways of removing their name from an ex-partner’s mortgage, and whether or not you can possess two mortgages.
It is not that easy to make some changes to your mortgage after a divorce or separation as both your names are included on the mortgage. You cannot just go ahead and write off one of the names. This may be more difficult when children are involved too. In most cases, mothers are usually the ones to remain with the children, but it can be different sometimes. So as long as your partner’s name is in the mortgage together with yours, it will never matter if you were paying for it alone without his or her help.
Dealing with this involves two ways; first, you can head directly to your lender to question about removing a name on your own, or secondly, you may get some assistance from an expert Mortgage Broker in Scunthorpe. Nevertheless, they have to be sure that the applicant left on the mortgage will be in a position to afford a mortgage independently in the coming days.
This can be carefully confirmed through an affordability assessment. This assessment is mandatory even if you have always been maintaining your mortgage payments or not. Sometimes, there is a replacement to step in for your ex-partner at this point, who can be a member of the family or a different partner.
You should have it in mind that all lenders usually have their own ways of assessing your affordability, and therefore, you should not be worried or surprised if you get declined as there is still chance to get accepted elsewhere. This is where a Mortgage Broker in Scunthorpe will be of great help to you.
The basic rules used in removing your name and removing a different person’s name is equally the same. Both names are included in the mortgage in that when you decide to leave the family home; you remain answerable for any joint financial commitment you performed with your ex-partner.
A Mortgage Broker in Scunthorpe will play a big role in helping you remove your name. Once your name is removed, the payment of your mortgage will be considered in the future if you are planning to purchase a new property. Therefore, it is very key to consider this before making an offer.
This is the point where a professional Mortgage Advisor from Scunthorpe is highly recommended. You should always have in mind that your current property’s mortgage payment will be considered before making an offer in the future. This is why it is very important to get Specialist Mortgage Advice in Scunthorpe. Sometimes, you may encounter lenders that are very strict compared to others, having a helping hand could benefit you greatly.
It is possible to have two and in some cases more mortgages. After the lenders and their credit scoring tools have considered various factors during your application for your second mortgage, they ill choose whether to let you have another one or not.
One of the main things that will contribute to the lender’s decision is your current financial commitments. In a case where you have other ongoing credit commitments, and you fail the lender’s affordability assessment, this may end up damaging your credit score. So be wary of your other commitments before rushing into it and applying.
You can always consult the Mortgage Broker in Scunthorpe like us before you take the step of applying directly with a lender for your safety. Scunthorpemoneyman can search for you without interfering with your credit score to confirm if you will be in a position to afford a mortgage or not.
We can calculate your maximum borrowing capacity and can give you a rough estimation on your budget. The total cost of your monthly mortgage payment will be added to your current financial commitments.
To conclude, it is very important to always have an expert Mortgage Advisor in Scunthorpe by you in every process when you have separated or divorced, and you have a mortgage together with your ex-partner.
Our Mortgage Broker in Scunthorpe offers you a free mortgage consultation. A divorce or a separation is very stressful, and hard to tell what will happen to your finances; you do not have to be stressed anymore about how you will split the mortgage you built together with your ex-partner. Contact us today, our Specialist Mortgage Advisor in Scunthorpe have got you covered.
So, you’ve saved up for your initial mortgage deposit, whether it be from your own savings or a gifted deposit from your parents. What’s the next step for you to take? It’s time for you to get prepared for your mortgage journey!
I’d recommend speaking to an experienced mortgage broker in Scunthorpe as early on in the process as possible, so you know how much you can borrow for a mortgage and how much it will all cost.
Obtaining an up to date credit report should also be at the top of your list, you don’t want a meaningless squabble with your mobile phone provider holding you back from buying a home.
Taking the above two steps will give you a meaningful expectation of how possible this is going to be and what your budget is.
Your mortgage broker in Scunthorpe will obtain a fully credit-checked agreement in principle on your behalf but you’ll have to prove who you are, where you live and how much you earn.
There really is loads of paperwork for you to get together so it’s a good idea to open a file for yourself and start collecting everything in advance.
In terms of proving who you are you’ll need to produce some photo ID such as a driving license or passport, if you’re a non-UK national working over here on a Visa you’ll need that too.
In addition to the above, you’ll need to prove where you live. You’ll need to produce a utility bill or original bank statement dated within the last 3 months.
The analysis of your spending habits has become one of the most important determining factors in whether you’ll qualify for a mortgage or not. Your bank statements should evidence your income and regular expenditures.
Mortgage lenders will not be happy to see gambling transactions on your account and nor will they like it if you go over an agreed overdraft limit or if your direct debits bounce regularly.
You will have to prove you have the funds in place for the deposit and also evidence this for anti-money laundering purposes.
Try not to move money around your various accounts too much as it will make evidencing the audit trail more difficult. Mortgage lenders like to see your savings building up so you’ll need to account for any large credits into your accounts.
Quite often money for deposits has been gifted by family members. These funds need to be evidenced also and the “donor” will need to sign a letter to confirm it’s a non-refundable gift, not a loan.
In terms of affordability, the most important thing is to be able to prove your income. If you are employed this tends to be by way of your last 3 months’ payslips and most recent P60.
Mortgage lenders can take into account regular overtime, commission, shift allowance and bonus.
It’s a good idea to do your homework and write down an estimate of your anticipated outgoings after you move house.
You can work out an idea of how much the council tax and utility bills will be plus your regular expenditures such as food and drink and demonstrate how much disposable income you have available to pay your mortgage from.
As you can see from the above, it’s a real paper trail when you are applying for a mortgage but if you want your application to run like clockwork you’ll need to put the time aside to get everything together.
Our view is that it’s better to get all this at the outset and collate everything that the Lender could possibly ask for. As this saves time and frustration later down the line if you’re subsequently asked for paperwork you could have had ready at the outset.
When it’s time to apply for a mortgage, you need to make sure that you have the best chance of being accepted without needing Specialist mortgage advice in Scunthorpe. This means that you need to be wary of credit file and make sure that it’s going to impress your lender. Remember, the higher your credit score is, the greater chance you have of being accepted for a mortgage. Improving your credit score can sometimes be easy, it’s just knowing how to go about it.
Did you know that keeping your address up to date actually increases your credit score? It’s true that having fewer addresses on your file improves your credit score but people take this the wrong way. We see that some people leave their living address as their parent’s address after they move into rented accommodation. This actually has a negative impact on your score as you are basically saying that you live somewhere that you don’t.
You need to make sure that everything has been switched over to your new address. This includes all current/old accounts (credit cards) and electoral roll information registered to your previous address. There is always some way of finding out that you don’t live where you say you do, this could be something like a delivery address from online shopping or from car/home insurance search, etc.
The number one rule before anything though is to double-check your address is up to date. People seem to always seem to forget to change their address and lenders pick up on it very quickly.
When changing your address, it’s important that you get the dates right too. You need to know the exact date you moved into your rented apartment/new home and the day that you left it. If you do happen to make a mistake with these dates it can appear that you are living in two places at the same time.
As an experienced Mortgage Broker in Scunthorpe, we will provide our full help and support through the whole mortgage application process. Part of being a Mortgage Broker in Scunthorpe also allows us to perform a credit search for you without it affecting your file. We want you to try and have the best chances of being accepted for a mortgage so we sort everything for you with your best interests at heart at all times.
You always want to impress your lender and show that you are doing your best to improve your chances of being accepted. Whether this is making sure that you are on the electoral roll or changing your address, etc. Having every bit of information on your file updated is essential to the home buying process. Even if you are a First Time Buyer in Scunthorpe, by now you should be aware of this.
If you are still confused and just need a little more help or insight from a Mortgage Advisor in Scunthorpe, feel free to get in touch. We do offer a free mortgage consultation to every customer, no matter how complex their mortgage situation is.
Our Mortgage Advisors in Scunthorpe know that Moving Home can be stressful, especially in a competitive area like Scunthorpe. We want the best for you and for you to move into your perfect home with a smile on your face. We hope that you contact your Mortgage Broker in Scunthorpe today.