You’ve done great so far. Most of the money for your mortgage has been saved, now it’s time to get prepared for a mortgage! We’ve compiled a list of some helpful advice for First Time Buyers in Manchester, in order 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 Manchester 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 really good tip is to make sure you’re on the voter’s roll, as that apparently has a positive effect on your credit score. Closing down old credit cards also seems to really help. Your Mortgage Advisor in Manchester will run through your credit report in the early stages, giving advice 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 out 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 3 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.
As a First Time Buyer in Manchester, 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 often gifted by family members and is the most popular way forward for First Time Buyers in Manchester. These need to be evidenced also, 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 3 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 and seeking fast and friendly Mortgage Advice in Manchester. 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 Manchester are able to talk you through what to download from the Government Gateway if you’re in control of your own 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. This helps 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 from. 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!