So you’ve been saving for years and months, and now it’s finally the moment to now put all that hard-earned savings down for a deposit on a flat / house and get mortgage ready!
Whether you are a First-Time Buyer in Leeds having your first taste into the mortgage world or an experienced home-owner planning on Moving Home in Leeds, we believe our service would prove highly valuable. Our top tips will help you understand the mortgage process and give you an idea of what you will need to get prepared for your mortgage application.
Getting Mortgage Advice in Leeds should be priority number one. An experienced Mortgage Advisor in Leeds will talk you through the process to suggest the best route for you and your personal and financial circumstances.
Getting Mortgage Advice in Leeds will also indicate how much you may be able to borrow for a mortgage and how much it will all cost. After affordability and a borrowing capacity assessment get carried out, your Mortgage Advisor in Leeds can start looking for competitive mortgage deals for you.
A Mortgage Broker in Leeds like us, will hold your hand through the whole process and help you get the basics prepared for your mortgage application. They will get an up-to-date credit report to know the precise position you are in from the very beginning.
An agreement in principle is one of the first things you should obtain when starting your mortgage journey; you will not be able to make an offer on a property without having one!
To get a fully credit-checked agreement in principle in place within 24 hours, you should get in touch with your Mortgage Broker in Leeds, and we do all of this on your behalf so that you have less pressure on your shoulders. You will be required to prove who you are to us, including your:
There is much paperwork for you to get together, so it’s good to open a file for yourself and start collecting everything in advance.
You’ll need to produce some form of Identification to start your mortgage process. It must be a photographic ID; this may be a Drivers’s Licence or a Passport.
In addition to the above, you’ll have to prove that you live at the address that you say that you do. You’ll need to produce a utility bill or original bank statement dated within the last three months.
Spending habits have gone on to become one of the most important determining factors in whether you’ll qualify for a mortgage or not. Lender’s love to take a look at your bank statements, they want to know what goes into your account and what goes out. They want to know that you’ll have the ability to meet your monthly mortgage payments on top of your other expenditures.
Gambling transactions are one of the main things that lenders look for on your bank statements. They will be cautious to see that you frequently gamble as it shows that it’s a habit that could potentially cause risk further down the line. They won’t take the chance with you if you are always gambling. Lenders may also get put off if you are regularly exceeding your overdraft limit or if your direct debits bounce consistently.
You will have to prove you have the funds in place for the deposit and evidence this for anti-money laundering purposes. Try not to move monies around your various accounts too much as it will make evidencing the audit trail more difficult. Lenders like to see your savings building up so you’ll need to account for any extensive credits into your accounts.
With the recent increase in popularity of gifted deposits, we often see that they make up most people’s 5%. These gifted deposits are most commonly from a family member or friend of the applicant. These funds cannot get handed over, and they need to get evidenced; meaning the “donor” will need to sign a letter to confirm that this is a gift and not a loan.
In terms of affordability, the most significant thing is to be able to prove your income. If you are employed this tends to be by way of your last three months’ payslips and most recent P60. Lenders can take into account regular overtime, commission, shift allowance, and bonus. If you are Self Employed, then you’ll need your accountant’s help. You will be to request your last 2 or 3 years’ SA302 documents from the Revenue. Following that, they will get the accompanying tax year overview.
It is always a good idea to do some research and make a note of an estimate of your anticipated outgoings after you move house. You can work out an idea of how much the council tax and utility bills will be. In addition to that, you can work out your regular expenditures, such as food and drink. All this will help demonstrate how much disposable income you have available to pay your mortgage.
When applying for a mortgage, things can get complicated very quickly when you do everything by yourself. That’s why having a Mortgage Advisor in Leeds on your side could prove highly beneficial. You won’t do your best to impress your lender and show them that you have done all you can within your power to get everything ready for your mortgage application. We can assist you with this, and depending on your circumstances, we could have everything arranged within 24 hours of your free mortgage consultation.