The five mistakes we see most often, and the simple checks that help your application go through first time.
When you apply for a mortgage you not only want to be able to borrow the amount you need, you also want the application accepted first time. Delays and declines cost time, and in a competitive market they can cost you the property.
As a mortgage broker, we know what lenders look out for, so we can review your situation and recommend the most suitable product for your circumstances. There are also a number of things you can do yourself, before you apply, to make the process go as smoothly as possible. Here are five of our top tips.
This is an important point that is overlooked by more people than you might realise, particularly if you are renting, where it is all too easy to forget to register to vote at a new address.
Being on the electoral roll helps because it gives lenders proof of address and supports your credit file. It also widens the pool of options available to you, as some lenders will not accept applicants who are not registered. Registering is free and quick to do online.
Checking your credit score is good practice to do on a semi-regular basis, and it becomes especially important when you are preparing to apply for a mortgage.
The stronger your score, the better your chances of being approved, and the more likely you are to access a lower rate. There are lenders who will consider applicants with a poor credit history, but you will generally pay a higher interest rate as a result.
Checking your score is free, and Equifax, Experian, Credit Karma and TransUnion are all good places to start. If you rent, some schemes now let your rent payments count towards your credit history. Lenders also want to see that debt has been managed well over time and that you do not currently hold unsustainable levels of debt, so keep an eye on this too.
A decline is not the end of the road. Read our guide on what to do if you have been declined for a mortgage, and use our calculator to see how much you could borrow before you apply again.
As with the electoral roll, this is a more common stumbling block than people expect. Making sure your identification is in date and shows the correct details is crucial.
Have you changed your name? Do you have a middle name that does not appear on your legal documents? Have you moved without updating the address on your driving licence? These are all worth checking off before you apply.
Documents such as marriage certificates can be used to confirm a name change, but it is far smoother to have everything correct and consistent in the first place.
This is a question we always ask before discussing your options, and it is becoming more important over time.
The reason is straightforward: because of anti-money-laundering rules, your lender needs to know that your deposit comes from a legitimate source. If it is from savings, you will need to show evidence such as bank statements. If it is from inheritance or a gift, you will need supporting documentation, such as a gifted deposit letter, to confirm everything is in order.
This is usually simple to put together, but it helps to know from the outset so your broker can recommend the most appropriate product without delays later.
It is essential to be upfront and honest throughout your application. A lender will go through your documentation with a fine-tooth comb, and inconsistencies are quickly spotted.
For example, if you have any adverse credit it is best to disclose it from the start rather than hope it goes unnoticed. Do not overstate your income or bend the truth about where your deposit has come from.
Not only could this lead to your application being rejected, it could also make it harder to obtain a mortgage in future. This is another reason to use a broker: we know most of the questions a lender will ask, so we can gather and review your documentation before the application is submitted.
If you have any questions about your mortgage, our team is always on hand to help. Speak to an adviser and we will make sure everything is in order before you apply.