Buying a property with a mortgage, or remortgaging a property and raising additional capital is not a quick process, so here are the key points to consider…
The importance of your Credit Report
The most detailed credit report we find is provided by a company called Check my file, which provides data from both Equifax and Experian who are the two major credit files. It is important to be able to see what the lenders are going to see when checking for your creditworthiness.
You should check this document thoroughly as the data maybe wrong – sometimes the way credit is reported on Experian vs Equifax can differ and this could cause you problems when applying for a mortgage.
You should check your credit report regularly and also ensure that you are on the electoral roll at your current address.
Thinking of Changing Job?
Lenders want client’s to be in a stable form of employment or self employment and therefore if you change jobs during an application, lenders won’t like this, so give plenty of thought to what your long term employment plans are before making a mortgage application.
Set Your Goals Realistically – What can you afford? – Create a budget planner
Before looking for a property or considering capital raising on your home, a good exercise is to sit down, write down your net income, all your outgoings and have a good think about what you feel you can afford. Lenders will carefully consider your income and expenditure for an application – but what do you feel is comfortable both short and long term. If you have any debts such as loans &/or credit cards, do you feel you can afford to pay them alongside a mortgage or would it be best to wait until these are all paid up. If you have any bad credit registered would it be best to resolve this & delay any application to get a better rate? – Discussing this with a mortgage broker is always helpful.
Avoid Obtaining New Credit when applying for a Mortgage or Remortgage
This can especially affect your chances of borrowing for a new mortgage. If you are looking to take out further credit for a new car, loan or credit card, be aware that this may affect your affordability for a mortgage and the lender may deem any new mortgage now unaffordable with the new monthly commitment. Speak to your broker regarding this to ensure it will not cause any complications.
What documents will be needed to make an application for a Mortgage?
You will need:
- Current credit report for all applicants
- If employed – Payslips for the last three months and most recent P60.
- If Self-employed applicants may be asked for the last two/three years of SA302 ‘s (tax calculations & Tax Overviews) as well as other documentation to support your application, this may include any company accounts also.
- Proof of Identity in the form of UK Passport and/or Driving Licence (this must be in date)
- Bank Statements dated in the last three months
Further information may be requested, this is dependent on the lender’s assessment of your specific application.
How to explore your mortgage options with The Money Hub
Call the Money Hub Limited on 0203 725 5830 and speak to one of our highly specialised and dedicated Mortgage Advisors or you can complete an enquiry form on our website which will allow you to schedule a call time.