These days we tend to find that in our day to day lives, whether we’re homeowners, home buyers or neither, we’re a lot more savvier when it comes to checking and improving our credit rating.
Consumer awareness of credit scoring is now much higher than it ever has been. If we were to throw out an estimate, we’d say at least half, arguably more so as time progresses, have already checked their credit report online, before they’ve even gotten in touch with us.
If you’re looking online, you’ll find that there are all kinds of credit reference agencies to choose from as a customer. The most popular of these are Experian or Equifax. We would personally recommend that new customers make use of a third party Check My File for a 30-day free trial, which is £14.99 a month thereafter and can be canceled at any time.
The reason why we would recommend Check My File, is that it gathers information from several of those reference agencies like Experian and Equifax, pulling them all into one consistent report. This means you won’t need to do multiple checks and can review any potential credit file errors in one place.
We are always hearing questions from customers, wondering if we will be doing any credit searches on them. This is because they are already aware that getting too many searches done can damage their credit score overall.
Lenders will always run their own credit checks, but we will always ask for a customers permission before one is done.
There are 2 different types of credit searches that can be run on customers: hard credit searches or soft credit searches.
A soft credit search is an increasingly more common type of credit search, that tends to involve someone obtaining less information from you, but means it is unlikely to leave a footprint on your credit report.
Many lenders are switching to this nowadays, though some may still do hard searches instead. Some may do a soft search first, before following up with a hard search.
These can typically be encountered when checking out price comparison websites, so that they can give you a good indication of the products that are available to you. They can also be used to verify your identity.
Although as said, they give a mortgage lender less information about you than they’d get from a hard search, if you get an Agreement in Principle from one of these lenders, it is still very likely that you are going to be accepted at full application stage.
The reason why soft credit searches are so widely used and well liked by credit score savvy individuals, is that whilst you can see that someone has carried out a search on you (yes, you are able to find out and may be surprised how many companies have done this) these searches will not be visible to other financial institutions.
What this means, is that providing a lender uses soft credit searches, you are able to apply for an Agreement in Principle ahead of a mortgage, and it is almost certain to leave your credit score unaffected, whether it is successful or not.
If you are hopeful about making an offer on a property, it is definitely important that you get an Agreement in Principle prior to making that offer, especially if you are a first time buyer in Sunderland.
Ideally, you want to give yourself the absolute best chance of purchasing your property at the lowest price you can, so showing your finances in a positive light can help you out massively.
Additionally, having an Agreement in Principle to hand shows the estate agent that you are a serious buyer already ahead in the process, and can often put them off from trying to cross-sell their own in-house mortgage services to you.
A hard credit search is a much more detailed look at your credit score and it does leave a credit footprint. As such, any financial institution that carries one of these out, should ask for your permission before they do so.
The positive to a hard search, is that because it is so in-depth, if you pass their checks and are agreed in principle, it is very likely you are going to succeed at full application.
From this point onwards, the only thing that could really go against your chances of mortgage success, is if you are unable to provide the required documentation to backup the information you have given. False information can also affect this.
If you fail the credit scoring process with a hard search, this can seriously harm your credit score and your chances of any credit applications in the future, especially if you have failed multiple in a short amount of time.
The footprint a hard search leaves can be viewed by other financial institutions. Whilst it does not clarify whether or not it was successful, let alone why it wasn’t, multiple hard searches on a file can leave a lender to question whether or not the applicant is a risk.
Logically, if you were in their shoes; Why would someone be having multiple credit searches carried out on them if they had already passed the first one? That indicates the person has probably failed each time, and as such, mortgage lenders may be less inclined to consider lending to them.
That isn’t to say that the occasional hard footprint every now and again is a bad thing, as it is not at all. You just need to be wary of having too many done. If you happen to be moving home in Sunderland or going through a remortgage in Sunderland, a hard search may have been carried out on you, depending on your situation.
When you’re an inexperienced First-Time Buyer in Sunderland who has never bought a property before, the process can be quite a stressful one. Fortunately for you, the home buyer, it doesn’t have to be that way.
To help you make the most of your next house viewing and be as prepared as possible, we’ve put together a helpful and comprehensive list of questions that you could ask when buying a house as a first-time buyer in Sunderland.
You may want to have time to sit around and have a good long think about whether or not you want to buy a property before you fully commit to making a purchase. This is something that we completely understand, as it is one of, if not the biggest financial commitments you will ever make.
By finding out the amount of people that have asked questions about or have gone to see the house, you’ll be able to more accurately gain an idea of how much time you have to think, before you make any concrete choices.
Bearing this information in mind, if the property is regularly receiving interest from viewers, you need to be prepared to give an answer to the seller as soon as you can.
If the property you’re looking at purchasing is a part of a chain, this can also have an impact on your mortgage process.
Without an onward chain, something that could arise from either a new home, bereavement or emigration, chances are you’ll be able to move quicker, especially if you’re not a part of that chain yourself.
You’ll give yourself a lot more leverage as a buyer if you’re not a part of any chain, as you seller will recognise that you aren’t going to hold up the home buying process.
Make sure that you utilise this during property price negotiations to give yourself the advantage.
If you’re not going to be purchasing a new build property, you might find that the previous owner has left some appliances or “white goods” behind for you to make use of.
White goods is a term that generally includes things like washing machines, fridges or a freezer. Sometimes a previous homeowner may leave something like a shed behind.
This works out fantastically for buyers as it can save them a lot of time and money, though if you don’t want or need these items, you will have to figure out a way to get rid of them yourself.
If you are looking to purchase a new build property, there might be some additional features that you could have the option of adding into your property ahead of moving in.
When moving into an area that you don’t particularly know that well, it would be worth your time finding out what the neighbours are like.
We often find that a good or bad neighbour experience can oftentimes be a crucial part of whether or not you enjoy living in your new home.
On the flip side, if you instead are looking to move into a new home development, you and your neighbours will be the ones that create this new community.
Initially this can be prove to be quite a risky endeavour, as you’re putting all your faith in someone you’re yet to meet and get to know.
Depending on the location you’re moving to and the type of property you are in, running costs can differ greatly. It is recommended that you conduct some research ahead of time and ask plenty of questions prior to the purchase.
Look up council tax costs, along with how much you’ll potentially have to spend on average for utilities. You ca do this by checking online or speaking to the seller. You will need all of this information in order to correctly budget.
The direction that the house is facing will make a very big difference for a lot of people, depending on if you like to relax in your garden late on a summers evening or prefer to maybe read a good book in natural light.
If you’ve been looking at a few different properties, you may have noticed that houses with a south-facing property often come with a more premium price pay a sizable, more premium price, thanks in part to the property receiving a lot of sunlight throughout the day.
Once again you’ll find that this can also have quite the impact on your budget for purchasing a home. Some key things worth looking into for more information on include;
At some point during the home buying process, you’re going to have to start making negotiations with the seller. With this in mind, it’s important to ensure that you are as prepared as possible for making an offer on your desired property.
You will be able to find a lot more information about the topic of making an offer in our How to Make an Offer article. Once you’ve gotten yourself in a position where you are ready, you’ll be able to go ahead and make some offers.
It will also definitely be worth your time to have a chat with the seller or estate agent in order for you to determine what the seller may consider to be an offer that is too high or too low.
You should check whether or not any other offers have been made, so you know how popular the property is and how much time you have to work something out with the seller.
By setting aside a specific date on your calendar, you can plan ahead for various other jobs in advance, such as instructing a conveyancing solicitor, packing up your furniture and belongings for moving, and arranging a removal van that can move everything into your new home.
If you’ve been thinking about taking that step onto the property ladder, you may be wondering whether or not to use the assistance of a mortgage broker in Sunderland. We of course believe that our service is incredibly beneficial, especially for first-time buyers in Sunderland.
Despite this, we felt it appropriate to give a balanced overview of the pros and cons of coming to a mortgage broker in Sunderland, compared to direct to a mortgage lender.
People tend to think that they are more likely to save money by not using the services of a mortgage broker. It can seem a lot more cost-effective to just do everything by yourself.
With that in mind, you may be one of those who prefer going directly to the high street mortgage lender. Another reason why people used to prefer going to the bank directly, was that people felt their bank manager knew their finances inside and out, although this changed when credit scoring was brought into the mix.
There is also truth to the claim that some lenders have additional exclusive mortgage products only for the people who directly obtain a mortgage. The main intention behind such ideas is to attract customers away from the services of a mortgage broker.
Ultimately, it is a good way for them to spread the business. The interesting part is that it is arguably just as enticing to speak with a mortgage broker in Sunderland as well. You’ll find that some mortgage offers can only be obtained through a mortgage broker.
From 2014 onward, lenders were no longer able to sell mortgages to anyone on a non-advised basis. At that time, it was a common occurrence for non-advisors to forcefully advise their bank customers, meaning they’ll have had no benefits from consumer protection. Speaking to a professional mortgage advisor in Sunderland will allow those benefits.
It is also important to remember that taking an appointment with a bank can sometimes take months to try and get yourself booked in for. A mortgage broker in Sunderland is often able to get you booked in within the same week, usually within that same day.
These kinds of issues is why the importance of mortgage brokers has grown and changed the public perception over time. More and more applicants rely on the mortgage brokers than before for help with their mortgage process.
There is now a lot more trust for the mortgage brokers in Sunderland, who are typically able to offer their mortgage advice services within the same day. Our dedicated team are always ready to help you, so Get in Touch and we will put you with an experienced mortgage advisor in Sunderland, as soon as possible.
You might be wondering what exactly causes some of the mortgage applications to be more difficult than many applicants expect them to be. Here are some of examples of this:
In years gone by, it was a lot easier for mortgage lenders to get ahead of their other competitors by laying out more enticing offers than the others have. Times have changed and it’s now more than the deals, it’s the criteria, that differentiates between the lenders.
To make everything easier for you, you should speak with an experienced mortgage broker in Sunderland and see if they have come across a similar situation in the past or not, as they may be able to utilise their knowledge from that to help you through yours.
After undertaking lots research and working very hard, a dedicated mortgage broker will hopefully be able to guide you through your journey and be able to recommend the most suitable mortgage for your personal circumstances.
Even if your mortgage application seems rather simple, it may still be beneficial to use the services of an experienced and knowledgeable mortgage broker, as we will work hard to get the best deal we can for you.
We have a professional and trusted mortgage advice team that will be able to provide guidance on other services such as solicitors. By getting in touch with us, you will also be updated you about the surveys and protection information that will be available to you.
A key feature of our service that we love to shout about, is how we’re more quicker and responsive compared to the other mortgage brokers.
One of the biggest reasons why customers tend to require help, is that everyone nowadays is very busy and needs someone to take the weight off their shoulders, doing the hard work for them.
Our dedicated and loyal mortgage advisors in Sunderland will do everything they can to make sure the process goes smoothly for you.
If you are ready to chat with a dedicated advisor about your mortgage plans, please Get in Touch with a mortgage broker in Sunderland. We are available from early until late, all throughout the week, to help you find the perfect mortgage deal.
To be able to recommend the most appropriate mortgage for you based on the circumstances you’re currently in, it is of vital importance that our mortgage advisors gain a complete understanding of your financial situation. As a mortgage broker in Sunderland, the primary way we believe this can be achieved is by obtaining an up to date copy of your credit report.
We personally would highly recommend using Check My File to do this, as they are able to bring in your data from 4 different credit reference agencies, giving you a more accurate and detailed look at your personal credit profile. It’s especially handy, as in some instances, the data that is held by one agency, may differ to the data from another.
When it comes to sending your credit report by email, the steps necessary will be a bit different depending on what device and email client you are using, e.g., Android, iPhone or Desktop & Gmail, Hotmail or Yahoo, etc.
A member of our dedicated mortgage advice team in Sunderland will review your credit report, before they give you a call to discuss your mortgage plans in further detail.
As a mortgage broker in Sunderland with lots of experience across the industry, we have in-depth knowledge of lenders various criteria. Some of the lenders we work with are specialist lenders. Please take a look at our specialist mortgage advice in Sunderland page for more information on complex cases.
No matter if you are a first time buyer in Sunderland or looking to move home in Sunderland, we will use our knowledge and the information displayed in your credit report to work hard in finding the most appropriate mortgage deal for needs and personal circumstances.
In simple terms, a Mortgage Agreement in Principle (seen sometimes as AIP, DIP, Decision in Principle & Mortgage in Principle) is a document provided by a mortgage to prove to the vendor of a home, that the lender has agreed in advance (prior to credit checking, which of course can change things) that you will be able to borrow from them ahead of finalising a sale. It is important to remember, however, that it is not a guarantee of a definite mortgage, as a full application will still be requiring further background checks.
Having your mortgage agreed at the outset can be massively helpful in negotiating on an asking price with a vendor. This is because it sets you ahead of other buyers, who maybe aren’t as prepared as you are. In the eyes of the vendor, a potential buyer who is maybe only one step away from obtaining a mortgage is a lot more appealing than someone who hasn’t even approached a lender or broker yet.
When you are ready to make an offer on a new home most Estate Agents will undertake due diligence and ask for proof that you have funds available to complete the purchase. The evidence required will typically be in the form of bank statements and also an Agreement in Principle certificate, something that we can help you obtain within 24 hours of your initial free mortgage consultation. Once you have provided the Estate Agent with all this documentation, normally this is where they would stop marketing the property and put a “Sold” or “Sale Agreed” board up.
Another perk to the Agreement in Principle is that having it prior to making any offers might persuade a seller to accept an offer you put forward on their property underneath the asking price, even if someone who is less prepared is willing to pay exactly what the asking price is.
When it comes to buying a house, many customers, especially First-Time Buyers in Sunderland go in full steam ahead, making an offer on a property without first checking that they can actually go forward with the sale and a mortgage. This can and often does lead to possible disappointment if the mortgage application happens to fail.
Once they’ve reached that point in time, they have really got their heart set on their new family home. Any form of disappointment can usually be avoided if you Get in Touch for Mortgage Advice in Sunderland early on in the process. Sometimes there are underlying issues that can cause a mortgage to decline. Given some time and with the help of an advisor, these can possibly be overcome.
An example of this is that there may be a recurrent issue on your credit report, perhaps a mobile phone bill that has been disputed. This is something that can be easily rectified. Other issues might include finding out you weren’t on the voters roll when you thought you were. Once again that can be sorted out within a few weeks.
In some cases, you may not be able to get a mortgage at all. If that’s the case it’s better than you know ahead of time, as opposed to getting the process so far underway, only to find out you can’t and everything comes to a screeching halt. Our mortgage advice team will be able to tell you what steps you need to take in order to improve your credit-worthiness for the future.
If you’ve never been turned down for credit it’s highly likely that you do have a good credit score. You’re even registered on the Voter’s role and you’ve always paid your credit commitments on time. Sounds pretty flawless, except it may still not go to plan.
It’s important to note that realistically, you could approach 10 different lenders these days and get 10 different maximum mortgage amounts! They all calculate affordability in their own unique ways and it depends on individual criteria. If you’re Self-Employed in Sunderland you may also find that it really is a minefield. Some lenders take your net profit, whereas others will opt to use your salary and divided. Some even use your latest year, whilst others use an average over 3 years.
Being aware of your borrowing limits is important, as then you know for sure what your price range will be. One of our mortgage advisors in Sunderland will be able to advise you of the maximum mortgage available to you. Also, more importantly, together we’ll work out how much you will roughly be able to borrow each month.
A 95% mortgage is as simple as the name would suggest; you are borrowing against 95% of the price of a property, and then you are covering the remaining 5% with your deposit. An example of this is if you looked at buying a property that was worth £150,000 with a 95% mortgage, you would be putting down £7,500 as your deposit and borrow the remaining £142,500 from the lender.
Off the back of the March 2021 Budget, Boris Johnson announced a Mortgage Guarantee Scheme for mortgage lenders, making 95% mortgages more readily available from the bigger high street banks.
This is fantastic news for First-Time Buyers and Home Movers alike, as this scheme will continue running until December 2022. Certain terms and conditions will apply though, which is something your Mortgage Advisor in Sunderland will be able to look at, to see if you qualify.
All our customers who opt to Get in Touch will receive a free, no-obligation mortgage consultation where one of our dedicated mortgage advisors will be able to make a recommendation on the best possible route for you to take.
95% mortgages are usually accessible by both First-Time Buyers in Sunderland & those who are Moving Home in Sunderland. Whilst saving for a 5% deposit sounds like a pretty straightforward concept, you’ll still need to have an acceptable credit score and prove that you are able to afford your monthly mortgage repayments, in order to access a 95% mortgage.
A good credit score is essential in the process of obtaining any mortgage, especially a 95% mortgage. Things like paying any current credit commitments on time, ensuring your addresses are updated and checking that you’re on the voters roll, can all help with your credit score.
Affordability is another one that is important to take note of. By giving the lender details of your income and monthly outgoings (things like your bank statements will be necessary for this) and any pre-existing credit commitments, your lender will be able to get a general overview of whether or not you are able to afford this type of mortgage.
Nowadays we see lots of family members helping each other get onto the property ladder, especially parents looking to further their children’s lives. The way this usually happens is by gifting the person looking to find their home, the deposit required. Known through the industry as the “Bank of Mum & Dad, Gifted Deposits are only intended to be a gift, and not as a loan. The lender will need proof that this has been agreed, before it can be used towards your mortgage.
When looking for a 95% mortgage, you want to make sure you have the right type of mortgage. Each mortgage type works differently, with that choice allowing you to find one that is most appropriate for your personal and financial situation.
Some homeowners and home buyers prefer Fixed Rate or Tracker Mortgages, mortgage types which mean you either keep interest rates at a set amount for the term given or have your interest rates tracking the Bank of England base rates.
Alternatively, you might find that Interest-Only or a Repayment Mortgages are more your style. Interest-Only allows cheaper payments until you need to pay a lump sum at the end (mostly now used for Buy-to-Lets), whereas a Repayment mortgage (a normal mortgage if you’d like) means you’ll be paying interest and capital combined per month.
Seeing as a mortgage is such a large financial outgoing, you need to be prepared and need to be aware. You might find things like higher interest rates, remortgaging difficulties due to less equity and then negative equity all cropping up if you’re not.
There is no need to worry though, as all these can be avoided if you’re savvy enough with your process to begin with. The more deposit you put down for a property, the less risk the lender will see you as.
A larger deposit, of say 10-15%, would not only reduce the rates of interest by a noticeable amount, but would also give the property more equity and reduce the risk of negative equity, thanks in part to you borrowing less against the property.
So, whilst the risks may seem intimidating, planning ahead and saving for a bigger deposit to access something like a 90% or even an 85% mortgage will be a massive help in your mortgage journey and something you’ll be able to reap the rewards from in the future.
Any applicants like first-time buyers in Sunderland with a “good” credit score are more likely to get accepted a mortgage. Lenders study your application with a fine-tooth comb to ensure that you can afford to keep up your monthly mortgage payments.
Bear in mind; there’s no guarantee that you can obtain a mortgage. You see every lender has their own different lending criteria, and it’s not very confident that you will match every single one of them.
Each lender has devolved their way of deciding whether you match their criteria or not. You could compare the majority of them, but you also may not. It is your Mortgage Advisors’ job to try and find you a lender who has criteria matches.
Again, they will try and find the best deal for your circumstances. Whether your advisor is from your bank, the lender or a Mortgage Broker in Sunderland like us, they will try their best to match your mortgage needs
Going to a Mortgage Broker will allow you to Speak to a Mortgage Advisor in Sunderland who will try and find you the best deal possible based on your situation. You will always know what is going on and will continually be updated if anything changes or something comes up.
We are a devoted mortgage broker who’s here to help improve your credit score and help secure that perfect mortgage deal.
There are a handful of different credit reference agencies in Sunderland that you can go to; however, the most popular are Experian and Equifax. Before you make a decision. Research each agency as it is a possibility that some of them could be holding incorrect data and it could help you discover any inconsistencies.
Improving your credit score can be challenging, but here are a few more straightforward ways of going about it:
Making multiple credit searches could harm your credit score. Price comparison websites will also damage your score, so be extra careful. We also advise you to not apply for credit during the mortgage process as a lender may look at this and think that you are struggling financially.
It is a good thing in the long term though as it shows that you can pay recurring payments.
Another way to improve your credit score is by registering for the Electoral Roll. In the lender’s eyes, it shows stability which they want to see. When enrolling, you must spell your name correctly and set your address to your current one and not an old one.
If you are not registered, then you definitely should as it’s quick and easy to set up and it could help improve your credit score. Make sure everything is correct.
Maxing out your card each month is bound to reduce your credit score. The lender looks at your credit card statements to check whether you have paid off balances by the due date or not. If you are meeting due dates and have never exceeded overdraft limits.
Then a lender will see that you can manage your finances quite well and it could prove beneficial towards your application.
However, if you don’t manage your finances carefully, then the lender will believe that you don’t take payments seriously, hence making your chances of being accepted by them low.
We sometimes find that people who have moved house have not told their previous credit provider. It means that on their records, you still live in the other property.
So there are two separate addresses/properties linked with your name. Again, make sure you are on top of this as lenders don’t like to see your address history all mixed up.
Do you have a family member or ex-partner connected to your financial commitments?
You might not even know if you do, but it’s worth checking to be sure because you can’t get the economic association removed if the account is still live. If you are trying to remove any of these links. Then you should contact the credit reference agencies and make a request.
Applicants see credit scoring as being an unfair approach to accessing whether they can get a mortgage or not. Lenders disagree as this method provides a faster, fresher approach to the credit scoring system. It’s also a lot cheaper for them, and it gives always provides a result that they can trust.
If you want to get ahead of the game. You should send an up-to-date copy of your credit report to your Mortgage Advisor in Sunderland. Starting in advance will increase your chances of being accepted the first time. The more that your advisor knows about your financial situation, the better.
Also, there are still some lenders that will want to do the process the old-fashioned way and will prefer a manual approach. They will have specific rules that they stick by about the number of defaults and CCJ’s that they will allow.
A gifted deposit can either be a portion of the full amount of the deposit that is gifted to you, with an agreement that it is not a loan and you don’t need to repay the money.
Gifted Deposits are useful when you can afford your monthly repayments but can’t afford the initial deposit. The more gifted deposit available, the better the rates you could possibly get from a lender.
This can also be helpful if you’re on a lower salary and can afford the monthly mortgage repayments but are having trouble saving your initial deposit.
Generally speaking, it is your parents who can gift you the deposit. This includes both birth and adopted parents, as well as carers (dependent on the lender). You may see this referred to online as the “bank of Mum & Dad”.
There are other potential family members who could also be considered when looking at utilising a gifted deposit. The options here vary between lenders so require a lot of care when trying to find the right mortgage lender.
We find that clients often don’t have a clue that they can actually have help with a mortgage from their parents, or don’t feel like they can go to them for help. In truth, most parents are more than happy to help their children find their footing on the property ladder.
Statistically, taking out a mortgage is more beneficial than renting, due to the potential of paying less per month. The deposit can regularly come from inheritance, although parents have been known to gift it earlier on in life if they already have a substantial amount saved or have released a certain amount of equity from their home.
The majority of lenders won’t accept a loan as a means of paying your deposit. This is because it leaves the lender uncertain that you’d have enough disposable income to pay back both the loan and the mortgage at the same time.
There is no maximum limit on the amount of gift you can receive although there have been known lenders that insist you put in at least 5% deposit from your own funds.
Those who would benefit the most from this tend to be First Time Buyers and Home Movers. It can also be handy when in conjunction with the Help to Buy Scheme, as the required 5% deposit, depending on the lender, can be paid via gifted deposit.
For the most part, all lenders will require a gifted deposit form. Depending on the lender, you may be asked to provide additional proof and ID (things like donor ID or bank statements).
So now you’ve saved up for your deposit, and now it’s time to get prepared for a mortgage! We’ve compiled a list of some helpful Mortgage Advice in Sunderland, to ensure you’re as mortgage ready as possible.
The first thing you should always aim to do is get an up-to-date credit report, even before you come to a Mortgage Broker in Sunderland for mortgage advice. It’s a good idea to pay off any outstanding payments you have, even if you’re holding off based on matters of principle. This way, you’ll have less going against you, increasing your chances of getting a mortgage!
A good tip is to make sure you’re on the voter’s roll, as that has a positive effect on your credit score. Closing down old credit cards also seems to help. Your Mortgage Advisor in Sunderland will run through your credit report in the early stages, advising on what you could do to make sure your credit score looks great!
At the start of your home buying process, you’ll be asked to provide some photo ID. Our customers usually bring a driving license or passport to help with this. Your driving license can be quite handy for your address, too, although you can only use it for one of the options, so if you’re using it for photo ID, you’ll need something else to assist with proof of address. Any non-UK nationals now residing in the UK will need to show us a copy of their Visa also.
You’ll also need some documents that evidence where you live. The normal go-to for these is a utility bill or original bank statement that has a date of the last three months. Alternatively, as mentioned above, if you’re using a passport for photo ID, you can use your driving license as proof of address too.
Your bank statements should evidence your income and regular expenditures. It’s preferable if you don’t gamble leading up to this, as the lender may hold this against you. The same goes for going past overdraft limits and letting direct debits bounce – This is all about getting prepared.
Most lenders will ask to see your bank statements, as they like to be confident that you take your finances seriously. The bank statements usually needed are the ones that show your salary going in and your bills going out.
You will have to prove you have the funds in place for the deposit and evidence this for anti-money laundering purposes. It’s always best practice to limit moving money around your various accounts, as it makes evidencing the audit trail more difficult. Lenders prefer to see your savings building up, so you’ll need to account for any large amounts that have been transferred into your accounts recently.
Nowadays, deposits are gifted by family members and are the most popular way forward for First Time Buyer in Sunderland. These need to be also evidenced, with the “donor” needing to sign a letter confirming it’s non-refundable.
The most important thing when it comes to affordability is proving your income. This is often your last three months of payslips if you’re employed, with some lenders needing to see your most recent P60. Lenders may also consider regular overtime, shift allowance, bonuses, and commission. If you have more than one employer (maybe you have a part-time job or are self-employed), lenders will also accept earnings from those.
These days, many applicants are Self-Employed in Sunderland and seeking fast and friendly Mortgage Advice in Sunderland. Self-employed applicants will need help from their accountants to request their last 2-3 years’ proof of earnings from the Revenue. Our Mortgage Advisors in Sunderland can talk you through what to download from the Government Gateway if you’re in control of your accounts.
It’s always a good idea to do your homework and write down an estimate of what your outgoings might be after you move to your new home. It can help you work out how much your council tax and utility bills will be, plus regular expenditures like food and drink. It’s also able to show how much disposable income you’ll have available to pay your mortgage. We’ll send you our version of a budget planner before we go forward with our appointment, which hopefully can help you with this.
As you can see from all of the above, it’s not easy to get prepared for a mortgage, although it’s still achievable! If you put in the hard work from the start, staying patient, and being careful, things are a lot more likely to go your way!