Plan to Get a Mortgage
Although many people spend time planning for a mortgage, it’s not unusual to see customers who are purchasing a home instinctively. Examples of times when this might occur include being contacted out of the blue by your landlord who is looking to sell and offering you first refusal, a family member is moving and you’d like to keep the property in the family, or you simply see a house up for sale that you like the look of even though you’re not looking to move.
Why planning for a mortgage is important.
Customers who have not planned for a mortgage application can come unstuck in several ways. The key issues we come across include…
- Not having saved up enough for a deposit (first call: Bank of Mum and Dad!)
- Previously ignoring your credit score because it wasn’t important
- Being too relaxed with the way you conduct your bank account
- You are self-employed and your latest Accounts don’t look too healthy
With some forward planning, all the above problems can be negated.
We appreciate saving up for a deposit is very hard, especially if you are renting and even more so if you’re buying instinctively. Family members tend to try and help when they can. However, if this is the case then it’s best to give them notice so they can get their own finances in order!
You may have seen credit referencing agencies advertising on TV, so accessing an up to date credit report is fairly easy. We recommend Check My File. Once you have a copy of your credit report, you can send it over to us and we’ll take a look free of charge. We look at these reports every day and we know what lenders are looking (and not looking for!).
Lenders won’t always ask to see Bank Statements, but you will need to provide a good explanation as to what has been happening on your account if there are any issues. They will also want to know how you plan to resolve these issues going forward. When lenders look at your bank account, they’re seeing if you have lots of unnecessary bank charges or gambling transactions on your statements.
We understand Accountants try to minimise the tax liability for their customers. That said, if your year-end has come around then there is nothing to stop you submitting another set of accounts earlier than you might normally 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 find yourself facing one of the problems above it’s still possible we could help you get a mortgage. We love a challenge so please get in touch!