If you are looking at buying a house, choosing to do so is not something that should be decided in a day. It requires careful planning and preparation over a long stretch of time. Even with that in mind however, you’d be surprised at the amount of people we deal with on a regular basis, who are more instinctive in their buying behaviour and have therefore neglected planning for a mortgage ahead of time.
There are many different reasons why a First-Time Buyer in Manchester may choose to jump into such a large financial commitment on a whim, with some of the most common including; buying from a family member who is now moving home, a landlord deciding to sell their property but offering first refusal, or buyers see a ‘For Sale’ sign outside a house they’re interested in buying, despite never having the intention of buying in the past.
By not planning in advance for a mortgage, buyers are leaving themselves open to various potential issues with their mortgage. Some of the mortgage hurdles we find customers regularly come across are:
Saving up your deposit for a mortgage can be quite difficult, especially if you are renting at the moment from a local council or private landlord. This is because whilst you have a constant income, you also have large outgoings and essential purchases each month, limiting what you can save in-between.
The good news is that family members are able to help via the use of a Gifted Deposit. We find that this is a regular occurence with First-Time Buyers in Manchester, as family members will tend to try and help whenever they can. If a family member is looking to help, it’s best to give them as much notice as possible, so that they can get their own finances in order!
Getting an up to date credit report is not an incredibly difficult task. You may have seen TV adverts for various different credit reference agencies, but we personally would recommend Check My File, as they are able to collate the data from these sources into one, for you to compare.
Once you have downloaded your credit report, you can send it across to a mortgage advisor in Manchester, who will take a look at this for you. We see these reports every day and we know what sort of things the lenders like to see, as well as what they do not want to see.
When it comes to looking at your bank account, lenders would rather not see lots of unnecessary bank charges or gambling transactions on your bank statements. You will need to provide the lender with a good explanation as to what has been happening on your account and how you plan to resolve this going forward if any issues to happen to arise.
For the self-employed, we understand that Accountants try to minimise the tax liability for their customers. Having said that, if your year-end has come around, then there is nothing to stop you submitting another set of accounts earlier than you might normally do, especially if you think your business has grown in the last 12 months. There are some lenders that consider ignoring previous years’ figures if the latest ones are more favourable.
No matter your circumstances, if you are still facing one of the problems above, it’s possible that we may be able to help. Our team of mortgage advisors in Manchester love a challenge so do feel free to Get in Touch!