There’s always going to be a chance that you’re going to come across some sort of problem when dealing with a mortgage. They can get quite complicated at times!
As a Mortgage Broker in Hull, we encounter all different kinds of mortgage hurdles. Having had over two decades of experience, we have faced most of these complex situations before and know exactly how to deal with them. However, if one that we haven’t come across before catches us off guard, we will still do everything within our power to get by it and help you along your mortgage journey. You may be unaware of the majority of these hurdles if you are a First Time Buyer in Hull, we hope that we can help!
Since there are so many different types of mortgage hurdles, it would be impossible to cover them all. Here is a breakdown of the top five mortgage hurdles that you may face during your mortgage application.
It’s uncommon for your mortgage application to be turned away due to you having children, however, your offer is likely to be a little higher than if you didn’t have children.
Lenders have to be 100% certain that you can afford all of your mortgage payments on top of your current expenditures. Childcare costs are considered a part of your expenditures each month. They have to compensate for these costs as they can sometimes run into hundreds of pounds per month. At the end of the day childcare costs don’t go down, they only really go up! They treat this financial commitment the same way as they would treat a car loan or hire purchase agent.
Even if you don’t have to pay nursery fees to pay, if you have children, you may still be offered less than other buyers who don’t have children. The good news is though that this type of family can often be in receipt of tax credits and some lenders will take these into account as well as child benefit.
It’s very sad when it happens, but if you decide to call it a day with your partner, you may come across some financially related problems, particularly your mortgage if you have one together.
Lenders may struggle to accept your application if you are still financially linked with someone else. They don’t want you to have two different sets of mortgage payments to meet each month, it could be too much for you to manage.
When people need help with their mortgage in this situation and they come to us for Specialist Mortgage Advice in Hull, we often get asked the same questions:
When facing mortgage hurdles like these, it can get very complicated, very quickly. More often than not, there is a solution to these scenarios, it’s just knowing how to get around them. With a Mortgage Broker in Hull by your side, you will have all of the stress taken off your back during these hard times.
Different lenders will have different viewpoints on benefit income, this includes how they are going to assess it. On the plus side, all benefit income such as child tax credit, working tax credits, disability benefits and pension can all be taken into account in one way or another. Therefore, it’s up to your lender to consider it or not.
If you need further advice about mortgages and benefit income, feel free to get in touch with our team. We will look over your situation for you and try to link you with a lender that will consider your benefit income, we aim to get it right the first time!
Usually, with a new job comes a bigger salary and this extra income is often put towards something like a new mortgage. Naturally, you would expect that this means that you are more likely to get a mortgage, however, this is sometimes not the case.
Normally, when you start a new job you’ll have a probationary period. Probationary periods are usually okay, however, there will no doubt be some uncertainty there. Some lenders may only accept you once you have job security, it’s just down to the lender and mortgage costs.
Lenders will also look at your previous places of employment to determine your work patterns. They need to be sure that you aren’t just dipping in and out of work. Gaps in employment can have a negative impact on your application.
There are lenders who will work from a newly signed employment contract though even in month one or if your new job is about to start.
For any purchase, all mortgage lenders and mortgage brokers legally have to evidence the source of the borrowers’ deposit funds. This is to battle money-laundering and prove that the applicant has raised funds legally. Your solicitor and estate agent may ask for evidence of your deposit also.
We believe, that this is the most complicated part of applying for a mortgage and could cause some slip-ups if not done correctly. Whether your deposit is from savings, premium bonds, the sale of another property, gifted from a family member or friend, from family overseas, or from a personal loan, you are required to have the paper audit trail for the accumulation of funds.