Getting Ahead of the Mortgage Game

It’s essential to plan your mortgage journey, it’s that first step to take before starting the process. Doing so could give you the upper hand and put you in front of other buyers. Preparing a mortgage agreement in principle should be at the top of your list before you start viewing properties.

It’s always to consider every possibility. In this unfortunate situation, you may have planned a mortgage to the last detail but ended up separating. This will require you to take out a mortgage as the sole applicant with no time to plan.

As an expert Mortgage Broker in Leicester, when you are looking at moving house in Leicester. We do recommend that you start planning your mortgage six months prior.

Why Planning for a Mortgage is Important

In some circumstances, the mortgage process can throw many hurdles which is why planning is essential. By preparing for any hurdles you may encounter, you should be able to work out what to do to overcome them.

Having worked in the mortgage industry for over 20 years, we have witnessed a large variety of mortgage problems. Even in the final stages of the mortgage journey, some occurrences can negatively impact the process, however, they can sometimes be solved if you prepare enough, or have a Mortgage Advisor in Leicester by your side.

Below are some common problems we have found customers encounter during their mortgage process:

  • The applicant doesn’t have a decent deposit size. 
  • Your credit score is too low. 
  • You have been too related when it comes to conducting your bank account.
  • Being a self employed applicant whose latest accounts don’t look adequate.

By preparing six months before starting your mortgage journey, you may be able to avoid some of these problems.

Deposit

For some first time Buyers in Leicester, saving up for a deposit can be the most difficult part, especially for those who aim to achieve their mortgage goals while currently renting. Will understand that saving for a deposit is a timely goal.

In the circumstance where you are struggling to reach the initial deposit total, you may be able to get financial support from your family through a gifted deposit. This amount gifted can be either the entire amount or a contribution.

Maybe one of the schemes can help give you a small deposit boost. There are many schemes available that are designed for applicants needing support with deposits. These are usually popular with many first time buyers in Leicester as a way to get them on the property ladder. There could be a scheme out there that suits your circumstances.

Credit Score 

Credit scores are a huge benefactor when it comes to applying for a mortgage. If you have a poor credit score, this can lower your chances of a lender accepting you for a mortgage.

We recommend you use Check My File to see your insights into your credit score. By doing this, you will be able to obtain a copy of your credit report which our team will be able to look at free of charge.

Bank Accounts

On your mortgage application, you must look after your finances. Every lender will carry out a thorough analysis of your bank statement and will look at all your income and outgoings. Gambling transactions are something that will catch Lender’s eye especially if they are frequent and erratic outgoings.

In the fortunate case where you can receive a gifted deposit, make sure to keep that sum of money in the gifter’s account. That way, you will not have a large bank transfer in your account that lenders would question about.

Therefore, it’s wise to keep this gifted deposit inside of your family member’s or friend’s account. 

Self Employed Applicants

We tend to find some self employed applicants in Leicester, you may find the mortgage journey a little bit different compared to a regular full time employment applicant.

The evidence you will need to provide as self employed will include at least one year of accounts and three months of bank statements to show your income and affordability. In some cases, you may need to provide additional evidence, however, this just depends on the lender. 

Other mortgage hurdles 

Through the mortgage journey, you may come across a range of mortgage hurdles that could stall your purchase completely. One of these includes a break in the property chain. A mortgage broker in Leicester like us will be able to help you overcome these hurdles. We are here to support you 7 days a week. 
 
If you have a specialist or complex case, look at getting mortgage advice in Leicester. Our team can provide you with a helping hand through your mortgage journey. 

Date Last Edited: February 19, 2024