You my think of buying a house as something that would require planning over a long stretch of time. That being said, a considerable amount of people we deal with are more instinctive in their buying behaviour and have therefore neglected planning for a mortgage in advance.
Common circumstances where this might frequently occur include; 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 mortgage hurdles. Here are some of those hurdles:
Saving up for a deposit can be quite the challenge, especially if you are currently renting from a local council or landlord. The good news is that family members tend to try and help when 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 a difficult task. You may have seen TV adverts for credit reference agencies, but we recommend Check My File. Once you have downloaded your credit report, send it across to a mortgage advisor in Manchester and we’ll look at it free of charge. 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 your bank account, lenders would rather not see lots of unnecessary bank charges or gambling transactions on your statements. Luckily, you will find that not all lenders are bothered about seeing Bank Statements, but you will still 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 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.
Having said all of that, 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 get in touch!