It’s key that you plan your mortgage journey, it’s that initial step that you should take prior to beginning the process. If you start the process early, there is a chance you are put in front of other buyers. Preparing a mortgage agreement in principle should be at the top of your list before you start viewing properties.
In some cases, you may have planned a mortgage to the last detail but the overall mortgage has not gone to plan. This is common in the circumstance amongst couples who have decided to separate. In this unfortunate situation, you may need to take out a mortgage as a sole applicant with no time to plan.
As an expert Mortgage Broker in Hull, we do recommend that you begin planning your mortgage six months prior to looking to Move House in Hull.
Sometimes, the mortgage process can throw many obstacles which is why planning is important. By preparing for any hurdles you may encounter, you should be able to work out what to do to overcome it.
Through our 20 plus years working in the mortgage industry, we have been exposed to a large variety of mortgage problems. Even in the final stages of the mortgage journey, some occurrences can negatively impact the process, however, they can sometimes be solved if you prepare enough.
Below are some common problems we have found customers encounter towards the end:
By preparing six months prior to starting the mortgage journey, you may be able to avoid some of these problems.
Saving up for a deposit can be a difficult factor when you are aiming to achieve your mortgage goals, particularly for those who are renting. You may find saving a deposit as a timely goal with it often taking years, especially for first time buyers.
For a ‘5% deposit’, saving up can be difficult. This is because you don’t know the exact amount that you need until you find a property that you want to make an offer on. The 5% total differs from property to property.
In the circumstance where you are struggling to reach the initial deposit total, you may be able to get financial support from your family through a gifted deposit. This amount gifted does not have to be the full 5%, it could only be a small portion of it; this additional cash may give you the amount you need to get to the minimum deposit.
Another option is to look into applying for one of the Help to Buy schemes for that deposit boost. This is just one of many schemes available that are designed for applicants needing support with deposits. These are usually popular with many First Time Buyers in Hull as a way to get them on the property ladder. There could be a scheme out there that is perfect for you.
Credit scores are one of the big contributing factors when it comes to applying for a mortgage. If you have a poor credit score, this can lower your chances of getting accepted for a mortgage. Obviously, this all depends on the reasoning behind your low credit score. You may have a poor credit score because of a CCJ or bankruptcy, which can consequently lower your chances of being accepted, depending on how long ago these issues occured.
Check My File is a brilliant website to use if you are wanting an insight into your credit score. By doing this, you will be able to obtain a copy of your credit report which our team will be able to look at free of charge.
When it comes to your mortgage application, it’s important that look at how well you managed your finances. This is because lenders will carry out a thorough analysis of your bank statement and will be able to look at your income and outgoings. Gambling transactions is something that will catch Lender’s eye especially if they are frequent and erratic outgoings. They will gambling with large sums of money unreliable and could turn you away.
In the fortunate case where you are able to receive a gifted deposit, we would suggest that you keep that sum of money in the gifter’s account. By doing this, you will not have a large bank transfer in your account which lenders would question about. Therefore, it’s wise to keep this gifted deposit inside of your family member’s or friend’s account.
If you are a self employed applicant, you may find the mortgage journey a bit more challenging to a regular applicant. You will need to provide a lot more evidence which a usual mortgage applicant would need to.
The evidence you will need to provide as a self employed applicant includes at least one year of accounts’ and three months of bank statements to show your income and affordability. In some cases, you may need to provide additional evidence, however, this just depends on the lender.
Through the mortgage journey, you may come across a range of mortgage hurdles that could stall your purchase completely. One of these include a break in the property chain. A Mortgage Broker in Hull like us will be able to help you overcome these hurdles. We are here to support you 7 days a week.
If you have a specialist or complex case, look at getting Mortgage Advice in Hull. Our team can provide you with a helping hand through your mortgage journey.