After you’ve done the hard part of saving up the money for a deposit, the next step for first time buyers in Middlesbrough is to get prepared for their mortgage application. Included are a few tips and tricks in terms of what documents are needed and how best to get them organised.
An up-to-date credit report should be at the top of your list, even before you approach a mortgage broker in Middlesbrough. You will not want hang-ups such as a late payment for a mobile phone contract consisting of a small fee of something like £50 to be holding you back from progressing with your mortgage.
When your mortgage advisor in Middlesbrough looks at your credit report, this will be a deciding factor as to which lender they fit you with. Another factor that will be a drastic advantage is making sure you’re on the voters roll as it will help in terms of your credit score, along with closing down old credit card accounts.
You’ll need to produce a photo ID to prove who you are, most customers use a driving license or passport for this. However, if you are using a photo ID such as a Driving Licence for a proof of address, then you can’t use this for a Photo ID.
If you are a non-UK national working in England on a Visa, it will be necessary to bring this along too.
Your bank statements should correlate with your income and regular expenditures. It is important that you plan ahead with your bank statements as lenders will not be pleased if; they see gambling transactions present; if you’ve gone over on an agreed overdraft limit; or direct debits bounce frequently.
Not all lenders will ask to see your bank statements, but most reserve the right to ask and want to be confident that you are not a financial risk to them and that you’re able to take your finances seriously.
An ideal Bank Statement is one where your salary goes in and your bills come out.
You have your deposit saved up which is a great milestone accomplished but that isn’t where the involvement of the deposit ends. You may have the funds in place but these will need to be audited for anti-money laundering purposes. The best advice for this is to not move finances around too often which will speed up the audit process.
The way to help convince a lender that you’re the best fit is to make a show that you’re able to build your finances up such as finances, though any large deposits will have to be accounted for.
If the deposit is gifted perhaps from a family member or friend then these funds will need to be evidenced as such and the ‘donor’ will need to sign a letter to confirm that it’s ‘non-refundable’ – in other words, not a loan.
The most important thing when it comes to affordability is to be able to prove your income. If you’re employed this comes in the form of three months payslips and some may want your most recent P60.
Lenders can also take into consideration regular overtime, commission, shift allowance and bonuses, and others may accept wages from more than one employer if you have more than one job.
Though nowadays a lot more applicants tend to be self employed in Middlesbrough. If you’re a self employed applicant then you’ll need your Accountants’ help to request your last two or three year’s proof of earnings. If by chance you submit your own earnings then one of our mortgage advisors in Middlesbrough can advise you on what to download from the Government Gateway.
One of the best ways to prepare for your mortgage is to put pen to paper and start writing down an estimate of your anticipated outgoings before you plan to be moving home in Middlesbrough. From doing this, you are able to work out an idea of how much the council tax and utility bills will be whilst also adding on regular expenditures e.g. food and drink. By planning your budget, you should be able to gain a rough estimate on how much disposable income you will be left with.
Before one of our mortgage advisors in Middlesbrough carries out an appointment with you, our mortgage broker in Middlesbrough team is able to send over a budget planner to help you in advance.
It can be seen that preparing for a mortgage is not an easy task but our mortgage advisors in Middlesbrough are able to help guide you. Feel free to book your free mortgage appointment today to speak with one of our mortgage advisors in Middlesbrough today to see how we can help you today.
Date Last Edited: January 20, 2023