by Lisa Burton, Independent Financial Adviser
A
year on from the Mortgage Market Review and the landscape for mortgages has
evidently changed.
Our
suggestions for mortgage and remortgage applicants would be as
follows:
With lenders checking applications even more thoroughly, it saves time if you tell us about all of your financial commitments initially rather than the lenders finding out and returning with queries.
Close old or inactive accounts and credit cards.
Even a zero balance can affect your credit store so make sure you have closed all accounts and cards that you no longer use before the start of the application, again this will make things quicker for you.
It's still all about affordability.
Ultimately lenders want to know "can you afford this mortgage?" Be prepared for in-depth questions about your finances. For example, how much do you spend at the hairdressers? How much do you spend on gifts, meals out etc. Keep close track of your cash flow, so you’ll be able to answer the lender’s questions quickly when they arise.
Don’t assume you will speed through the system regardless of your circumstances. Be prepared to wait, and don’t make commitments until you have your mortgage confirmed.
Interest only.
The number of interest only mortgages continues to decrease and we will be able to guide you and advise you on the best mortgages available if the interest only mortgage is no longer an option for you.
Where you have been gifted the deposit by a family member a letter is required outlining that it is a gift. It would be wise to have this in place before the application, again to make sure things run as smoothly as possible.
The Help To Buy scheme continues to be popular with first-time buyers and re-mortgage clients alike. There are competitive rates available that we can explore for you.
Regardless of your circumstances we would love to talk through your situation and advise you on the best products available.
With lenders checking applications even more thoroughly, it saves time if you tell us about all of your financial commitments initially rather than the lenders finding out and returning with queries.
Close old or inactive accounts and credit cards.
Even a zero balance can affect your credit store so make sure you have closed all accounts and cards that you no longer use before the start of the application, again this will make things quicker for you.
It's still all about affordability.
Ultimately lenders want to know "can you afford this mortgage?" Be prepared for in-depth questions about your finances. For example, how much do you spend at the hairdressers? How much do you spend on gifts, meals out etc. Keep close track of your cash flow, so you’ll be able to answer the lender’s questions quickly when they arise.
Don’t assume you will speed through the system regardless of your circumstances. Be prepared to wait, and don’t make commitments until you have your mortgage confirmed.
Interest only.
The number of interest only mortgages continues to decrease and we will be able to guide you and advise you on the best mortgages available if the interest only mortgage is no longer an option for you.
Where you have been gifted the deposit by a family member a letter is required outlining that it is a gift. It would be wise to have this in place before the application, again to make sure things run as smoothly as possible.
The Help To Buy scheme continues to be popular with first-time buyers and re-mortgage clients alike. There are competitive rates available that we can explore for you.
Regardless of your circumstances we would love to talk through your situation and advise you on the best products available.
You need plenty of
time.
Mortgage
applications are taking considerably longer to process then they did before the
review, mainly due to the amount of paperwork involved and the depth of questions
that are being asked. Therefore to speed
this process up as much as possible...
Don’t commit to a time frame.
Don’t assume you will speed through the system regardless of you circumstances. Be prepared to wait, and don’t make commitments until you have your mortgage confirmed.
Don’t assume you will speed through the system regardless of you circumstances. Be prepared to wait, and don’t make commitments until you have your mortgage confirmed.
Interest only.
The number of interest only mortages continues to decrease and we will be able to guide you and advise you of the best mortgage available if the interest only mortgage is no longer an option for you.
Gifted
deposits.
Where you have been gifted the deposit by a family member a letter is required outlining that it is a gift. It would be wise to have this in place before the application again to make sure things run as smoothly as possible.
Where you have been gifted the deposit by a family member a letter is required outlining that it is a gift. It would be wise to have this in place before the application again to make sure things run as smoothly as possible.
Help to buy.
The help to buy scheme continues to be popular with first time buyers and re mortgage clients alike. There are competitive rates available that we can explore for you.
Regardless of you circumstances we can talk through your situation with you and advise you of the best products available.
The help to buy scheme continues to be popular with first time buyers and re mortgage clients alike. There are competitive rates available that we can explore for you.
Regardless of you circumstances we can talk through your situation with you and advise you of the best products available.
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