Some problems people have in getting a mortgage to seem to crop up again and again. Here are some of the one we hear about regularly:
You will not usually get turned down for a mortgage due to childcare costs. However, childcare is costly so you will get granted a lower mortgage amount than other applicants with the same income but no kids.
Childcare costs get assessed as if they are a loan or credit commitment. Even without childcare costs, parents may be granted a lower mortgage than applicants without children. The Lender’s affordability calculators automatically factor in some of the additional expense that children bring.
Some Lenders will take things like child benefit and other state benefits into account; however, and this can squeeze up the maximum mortgage allowable sometimes.
No one buys a home with a partner with the expectation of divorce or separation. All too often it happens though, and when it does, the family finances have to get re-organised.
Some of the popular questions we get asked include:
The answer to all of the above can be yes, but you will need expert Mortgage Advice. If you end up receiving maintenance, this can sometimes get used as part of the assessable income for a mortgage.
This one comes up a lot, but it is usually easy enough. Some Lenders need you to have been in work continuously for a certain period, but others don’t. You can even get a mortgage if this is your first job. If you are due to start a new career soon, then you may be able to get a mortgage if you have a signed contract and job offer letter.
Gaps in employment can be a problem with some Lenders. Probationary periods tend to be ok, in any case.
Anti-Money Laundering precautions are pretty strict these days. All Lenders will need you to evidence your deposit, and you will get asked to prove where the money originated. Your Solicitor and the Estate Agent you are buying from may ask you for this too.
Cash is a big no-no. Any significant cash deposits into your Bank will get questioned, and your application may get rejected.
It is possible, in fact regular, for some or all of the deposit to come from a gift. The person gifting you the money will need to confirm in writing that it is a gift, not a loan.