Once you’ve saved up for your money for a mortgage, the next step is preparation. You need to prepare for your mortgage application and get in a position where you are ready to start your process. If you are a First Time Buyer in Bristol, this guide will definitely help you progress with your mortgage application. Also, if you are Remortgaging or Moving Home in Bristol, you will still benefit from this article as it features some useful tips and tricks to help fast track your mortgage application.
One of the first things that you should obtain during the preparation process is an up-to-date credit report. Having an up-to-date credit report is essential for your mortgage application; ideally, you should try and get yours arranged prior to approaching a Mortgage Broker in Bristol. Your report will be reviewed by your Mortgage Advisor in Bristol before passing it onto the correct lender.
Another thing that you should get ready is an agreement in principle. You need one to make an offer on a property!
If you want a fully credit-checked agreement in principle within 24 hours of your application, you should get in touch with us. As an experienced Mortgage Broker in Bristol, we can often turn around an agreement in principle on the same day of your application.
In terms of proving who you are you’ll need to produce a photo ID. Most customers use a Driving license or passport for this element. You can’t use a Driving Licence for ID though if you are also using it for proof of address. If you are a non-UK national working over here on a Visa, you’ll need to produce that too.
When looking at proof of ID, the required documents will have to be photo identification such as a Driving Licence or Passport – though if you’re using one for proof of ID then it can’t be used as a proof of address. If you are a non-UK national working in England on a Visa then this will also need to be presented.
In addition to proof of identification, you will also be required to prove where you live. This is usually in the form of a utility bill or bank statement within the last 3 months.
Your bank statements should reflect your income and regular expenditures. It will be displeasure to Lenders if they see gambling transactions on your account and they will also not be happy if you are seen to have surpassed an agreed overdraft limit or your direct debits have bounced regularly. The key factor is to get ahead of the game and get prepared as best as you can.
Not all lenders will ask to see your Bank Statements but it is an option that is available to them if they choose to utilize it – regardless of whether they do ask for your bank statements, they want to be confident that you take your finances seriously. The bank statements which you produce should consist if your salary going in and your bills going out.
A vital step in the mortgage application is evidencing your deposit for Anti-Money Laundering purposes. To help the process it is best not to move finances around your accounts too much as this will make it a lot more difficult and may delay the process.
Lenders like to see that you are saving your money responsibly, but that doesn’t exempt you from having to account for any large recent deposits into your accounts.
If you have been gifted a deposit, then there will need to be written confirmation stating it’s a non-refundable gift.
The most pivotal point of the application is proving your income. If you’re in employment then sufficient evidence would be your last 3 months’ payslips, though some lenders will also ask for your most recent P60. Lenders will take into account regular overtime, commission, shift allowance and bonuses. Additionally, extra earnings may also be considered with some lenders such as part-time jobs or self-employment.
Many applicants are Self Employed in Bristol nowadays – if you are a self-employed applicant then you may mean you will need to acquire your Accounts’ help to request your last two or three years’ proof of earnings from the Revenue. If you submit your own accounts then feel free to get in touch and we will be happy to advise you on how to go about downloading from the Government Gateway.
By working out an estimate of your expected outgoings after you move house means you can gain an idea of how much disposable income will be available to you to pay your mortgage after such things as regular expenditures, council tax, and utility bills have been paid out from your account. To help you with this, we are happy to send you our version of a Budget Planner to get you started.
As seen, there are many steps you must take in order to prepare fully for your mortgage application deeming it not an easy feat but it doesn’t mean you should worry. If you approach the mortgage application with due timing and an organized matter along with a Mortgage Broker in Bristol, you will be in safe hands.
When you start out looking for a mortgage in Bristol you will soon realise that there are lots of different options available. Below you will see a list of the most popular types of mortgages available on the market and hopefully. If you have any questions regarding any of the below mortgage options, then please do not hesitate to contact us.
A fixed-rate mortgage means that your mortgage payments are going to stay the same for a set period of time. You can set the length of which you want to fix your payments for, typically this being 2, 3 or 5 years or longer. No matter what happens to inflation, interest rates or the economy you know that your mortgage payment, usually your biggest outgoing, will not change.
A tracker mortgage means that your interest rate will track the Bank of England’s base rate. So in other words, the lender that you are with does not actually set the rate themselves. You will be paying a percentage above the Bank of England base rate. In an example, if the base rate is 1% and you are tracking at 1% above base rate, that means you will be paying a rate of 2%.
When you take out a repayment mortgage this means that each month you are paying capital and interest combined. So as long as you keep your payments going for the full length of the mortgage term, the mortgage balance is guaranteed to be paid off at the end and the property becomes yours.
This is the most risk-free way to pay your capital back to the lender, in the early years it is mainly the interest that you are paying and your balance will reduce very slowly especially if you have taken out a 25, 30 or 35-year term. This situation switches in the last ten years or so of your mortgage, where your payments are paying off more capital than interest and the balance will come down much faster.
Whilst many Buy to Let Mortgages in Bristol are set up on an interest-only basis, it is much more difficult to get a residential property on an interest-only basis.
It is much less likely for lenders to offer an interest-only product now. However, there are certain circumstances where this can be an option. These include downsizing when you are older or have other investments that you will use to pay the capital back. Lenders are very strict when it comes to offering these products now and the loan to values is a lot lower than back in the day.
With an offset mortgage, the lender will set you up a savings account to go alongside your mortgage account. How this works is that let’s say you have a mortgage balance of £100,000 and £20,000 is deposited into your savings account, you only pay interest on the difference, so in this case, £80,000. This can be a very efficient way of managing your money, especially if you are a higher rate taxpayer.
An agreement in principle, known as an AIP, DIP, mortgage in principle and decision in principle (depending on where you look), is a document that shows a seller that you are ready to proceed with a purchase and mortgage. It also allows you to make an offer on the property in question, proving to be useful when negotiating on the asking price.
Once you have passed the lenders initial credit checks, you will be able to obtain your own agreement in principle. Many first-time buyers in Bristol aren’t too sure of how they work, however, so below we’re going to explain how they work, how they affect your credit score and the length of time they last for.
The effect an agreement in principle has on your credit score entirely depends on the type of credit search the lender decides to use. Generally you’ll find they will either perform a soft credit search or a hard credit search.
Understandably, especially for a first time buyer, you may not know the difference between the two. Allow us to explain;
For the most part, lenders these days will now carry out a soft credit search over a hard credit search. The reason for choosing this one is because they typically require less information and there is a lot less chance of your credit score being affected by a soft credit search.
Whilst whoever is undertaking the soft search will be gaining less information about you from it, than they otherwise would’ve gotten from a hard search, an agreement in principle from one of these lenders is usually still a very strong indication to the seller of the property you’re interested in, that your application is likely to be accepted.
Hard credit searches tend to be a lot more in-depth than soft searches are. The main difference between the two credit search types is that hard credit searches can have an effect on your credit score, by leaving what is known as a credit footprint. This means that previous credit searches will be visible to anyone else looking at your file in the future.
If you have a good credit score, this won’t really be a problem. Where it can be an issue, is if your score is lower and you have had multiple hard searches on your file. This is because, to a lender, it can look like you are trying to apply for lots of credit at the same time. It’s likely that this will put them off.
As much as we would like it to be so, nobody can ever be guaranteed a mortgage, but having an agreement in principle arranged in advance will definitely work in your favour.
Once you have given the lender with all your documents, an underwriter will review your case and proceed to make a final decision. Agreements in principle will often include small print that applicants can easily miss. It’s reasons like this why getting in touch with a mortgage broker in Bristol can be helpful to you.
We often find that in some cases when people get in touch, enquiring about an agreement in principle, they’ve been turned away at full mortgage application stage.
The documents that you’ll need to give the lender include, but are not limited to, forms of ID, payslips and bank statements. As a dedicated and experienced mortgage broker in Bristol, we take a lot of pride in helping you be prepared for your mortgage process. Once you start your mortgage process, it may be worth looking at how to get prepared for a mortgage in Bristol.
Making sure you have your agreement in principle in place when you’re ready to make an offer is a necessary step. Any estate agent with an ounce of credibility will ask for evidence that you are able to proceed with the purchase of a property.
Your agreement in principle will typically expire around 30-90 days. When this happens, your mortgage advisor can renew it for you. We are usually able to obtain one an agreement in principle within 24 hours of your initial mortgage appointment.
As an experienced mortgage broker in Bristol, we would suggest that you obtain one of these as early as you can. We say this so that you can try to avoid being told you aren’t eligible for a mortgage on your dream home.
The good thing about having your agreement in principle and it lasting a good length of time, is that you don’t just need to apply for the first home you see. You have time to look around and find one that suits you best.
If you are a first time buyer in Bristol or are looking at moving home in Bristol, please get in touch and take advantage of our mortgage advice service. We offer a free initial mortgage consultation, where you will get to speak with one of our expert mortgage advisors.
So you are looking at moving home in Bristol and you want to take another step up the property ladder, however, before you take the leap, you need to think about getting your existing home put up onto the market and sold.
When you have finally sold your current home, the equity in it (the amount at which you sell for minus your current mortgage balance) will be used for your deposit for your next purchase. You can top up this total as much as you want from savings or a family gift.
A seller will always have a minimum asking price for their property, however, most of the time they are willing to hear out other offers. The way that a home is marketed and presented will play a big factor in terms of how easily it sells. So, from a buyer and sellers viewpoint, you’re going to need to do some research about moving home. Let’s start with how to how to sell your home quickly:
When choosing your asking price, you need to pick a price that is reasonable for the local area. Don’t start it at an unreasonable price; just because the estate agent has told you the property’s highest potential sale price doesn’t mean that it will get sold at that price.
Within the first couple of weeks of your listing, you want to attract as much attention off potential buyers as you can. If you are struggling to gain interest in your property, it is probably because your asking price is too high.
If you have already found a home that you are interested in making an offer on but you are still living within your current house, you will need to try and get a quick sale. That’s exactly why a fair asking price is a great way to start your home moving journey.
We have been working as a mortgage broker in Bristol for over 20 years now, and when we look at a property, one of the first things that we see is how the property looks from the outside. Making your home look appealing from the outside is your best way to engage buyers. Remember, this is your first impression, so you need to be aware of how your home looks from the outside.
Sometimes, it’s as simple as having a freshly jet-washed drive and a neatly cut front lawn. This shows that you really look after your home and you want people to be impressed by it. This may also get people to think that the interior of your home will also provide that “feel-good factor”.
You never get a second chance to make a first impression. So, to improve your chances of selling your home quickly, you should try and make your house have a great “kerbside appeal”.
Before you open your house up for viewings, you need to do the one thing that everyone hates… Tidying! In order for the viewer to feel welcome and comfortable inside your home, you need to make sure that your house is clean and tidy.
Remove any clutter that is lying around, especially from the front of the property. When your viewer walks in, you want them to feel like the place has been looked after. This could be from making sure that your doorbell works to buying a new doormat.
Once your hallway has been sorted, you need to go around your house room by room. You should pay extra attention to your kitchen and bathroom as these are some of the most important parts of a house. Cupboards and wardrobes should be neatly stacked and free of clutter. If you are a smoker sometimes the smell of smoke can linger, so it may be an idea to give the house a good airing before your potential buyer arrives. Remove anything that you think has a smokey smell about it.
All interior doors should be painted and their brass fixtures should be checked and polished to ensure that they can open and close smoothly.
Make sure that each room is well lit too, make sure to open all curtains and blinds in darker rooms. Your home should feel nice and warm but not too hot. All lightbulbs should be tested before the viewing to see if they are working. Despite what people claim about “baking bread” smells, this is corny and old-fashioned, ensure there are no cooking smells lingering whatsoever.
It could be hard, but you will need to try and avoid having your children or pets getting in the way whilst your viewers are walking around your house. You want them to feel as relaxed as possible.
Another good way to help them feel at home is to put out some family pictures or paintings to decorate the house a little bit. It’s just another friendly reminder that this is a family home.
You should also let them explore on their own, don’t crowd them too much as they will want to discuss between themselves too.
As mentioned before, your kitchen and bathroom should be completely spotless. Anything that isn’t in daily use should be put away. Your towels should be neatly stacked away and not left on hooks of the floor.
Make sure that you double-check everything too, your whole house needs to be cleaned from top to bottom. Make sure clothes are not lying around and the bedrooms have been dusted etc.
You should think about washing your curtains, blinds, wiping your walls and cleaning your floors and windows. All repairs should be up to date too and clean bedding on the beds. Windows should be sparkling clean inside and out.
Investing in carpets for smaller rooms can be an inexpensive way of impressing your viewer. Carpets make rooms welcoming and can show your viewer that the house is well looked after.
People who are selling their home often don’t realise that having empty space is sometimes good. This is because it allows your potential buyer to personalise their home a bit more. For example, an empty wall in a bedroom could actually benefit you, the buyer now knows that they will be able to do whatever they want to it.
Anything that you are storing outside of cupboards should be put away or thrown away if not needed. This can save you a job anyway for when you move! Make lots of room on your kitchen worktops too and ensure that there are no pots lying about.
A garden can be the deciding factor for many property viewers as it’s normally the last thing that the viewer sees. You need to make sure that there is no rubbish left outside or things clattered about. It’s important not to pile everything into your shed as more often than not, the viewer will request to see inside it.
Ensure that your fences have all of their slats properly in place and are freshly painted or creosoted. People love seeing colourful gardens, so even flowers could do the trick. Anything to liven up your garden could really help your out. Removing weeds and dead flowers, cutting the grass, removing grass clippings are all must-dos.
People buy from people and your viewer also has a first impression on you so remember to be welcoming, honest and most importantly yourself. They are just one set of potential buyers at the end of the day, there will be plenty more.
Here’s a tip from us, create a balanced view on every problem that you have encountered with the house, for example, if you had a problem with a leak, say how you easily fixed it and that it’s very unlikely to happen in the future again.
Estate agents will want to earn their commission by talking to the property viewers as much as possible, however, you need to remember that no one knows as much about the house as you do, so don’t be afraid to jump in and tell them more.
Finally, remember the emotions attached to buying a home, as you could very well be selling to a first-time buyer in Bristol. If you have a family it helps to accentuate it has been a happy home for you, this is sure to rub off on the viewers if they are thinking of raising a family also.
Every mortgage lender works differently, using various ways of deciding who gets accepted for a mortgage and who unfortunately doesn’t.
Some lenders criteria are more challenging to match up against than others. To succeed, it all depends on how stringent the lender is and, most importantly, how good your credit score is. We have often found that mortgage applications are declined because the customer does not meet the criteria for that particular deal.
This highlight the importance on why it’s always worth ringing up and seeking the right advice from a dedicated mortgage broker in Bristol. Our team of experienced and dependable advisors in Bristol will search the market to find you the most suitable lender for you and your circumstances.
The first thing you should always do is look at your credit file to see whether or not it is of a high standard. If it needs improving, you will need to look at various ways to improve your credit score. Speaking with a knowledgeable mortgage broker in Bristol, to learn what to prioritise when improving your credit score.
Nowadays, very few people are eligible for every available deal on the market. Remember, just because you have seen a cheap and eye-catching deal doesn’t mean that you will pass the lenders’ criteria and qualify for that particular deal.
As Mortgage Broker in Bristol, we have industry knowledge of all the various types of mortgages available. Get in touch, speak with one of our teams, and benefit from the free initial mortgage consultation that we offer to new customers.
A regular occurrence over our years of mortgage advice is customers using price comparison websites to find a mortgage in Bristol. Whilst there may be nothing wrong with this, you need to remember that the price comparison websites can only analyse the different costs of mortgage deals instead of matching you to all the various nuances of a lenders criteria.
This process can end up wasting time, as the mortgage lender may decline your case weeks down the line. Because of this, you may end up losing the property you were hoping to buy or breaking down a property chain that you were a part of.
You may also find yourself getting declined because you picked the wrong mortgage, an act that could damage your credit score due to a failed application.
It doesn’t matter if you’re a first time buyer in Bristol or looking at moving home in Bristol; we always believe that getting in touch for some expert mortgage advice will help you out during your mortgage process. Our dedicated team will support you throughout your journey and try to find you the most appropriate mortgage deal for your circumstances.
Over the years, we have worked alongside thousands of customers, assisting with specialist mortgage cases to help them find a level of success with mortgages that they otherwise thought they’d never achieve.
By approaching a trusted and dedicated Mortgage Broker in Bristol, you’ll also be able to learn how best to improve your credit score in the event of any unfortunate financial circumstances.
If you need help with a Specialist Mortgage situation, get in touch today with a Mortgage Broker in Bristol for your free initial mortgage consultation.
As a dedicated mortgage broker in Bristol, our job is to support you through your mortgage process from beginning to end, making it a stress-free and easy-going experience. We aim to find you the most suitable mortgage product tailored to your specific financial and personal circumstances.
We feel the customer should know exactly how our service works and what different order parts of the process come in. So, to give you an insight into our process and how it works, we have put together a handy guide that we think you will find helpful.
First of all, once you have contact and speak to one of our responsive teams, they will take some details from you. This is to help build a profile to get a picture of who you are and what you’re looking to do. All this information will help us, partner, you up with a suitable mortgage advisor in Bristol.
Following the chat, we will get you booked in for your free mortgage consultation with your dedicated mortgage advisor in Bristol.
During your free consultation with your dedicated advisor, they will ask you a few more questions. This will give them a closer look into your mortgage needs. From here on out, this advisor will help you find the ideal mortgage deal for you!
If they manage to find you a great deal that benefits both your personal and financial situation and you’re happy to take it up, we are ready to continue to step 3.
This step continues right after your consultation. Your advisor will arrange a mortgage agreement in principle (AIP) for you within 24-hours of your consultation.
Having an agreement in principle in place early on in the process is crucial. It shows a seller that a lender is willing to let you borrow from them. Of course, this can provide evidential documents to back up your income and credit score.
During this part of the process, if you haven’t already found a home to make an offer on. You can start hunting for houses with your agreement in principle to back up any offers.
After your agreement in principle is in place, we’ll begin collecting evidential documents from you to back up your mortgage application. This will include things like payslips, bank statements, photographic ID. These documents and the amount that you need to supply do vary if you are a self-employed applicant.
As soon as everything looks good on our end, we can move to the mortgage application submission stage!
We will only submit your mortgage application if we know that you’ll pass your lender’s credit scoring criteria; we don’t want it to be declined. Once your application is with your potential lender, it’s just a waiting game now. During this time, we’ll be regularly informing you on the progress of your mortgage application.
As soon as we get the green light, we will be in touch straight away to give you the confirmation that you’ve had your mortgage application accepted. Congratulations, you’re now on the road to moving into your new home!
At Bristolmoneyman, we want you to have the most straightforward mortgage process possible and come out with a great mortgage deal. However, we also deal with complex cases, so if you are struggling to get a mortgage through the traditional mortgage route, our service is in place to offer help when needed.
Our mortgage advisors in Bristol have been helping customers overcome complex cases for over 20 years now. We have had customers in the past who been turned away from their bank, and we’ve still been able to get them a mortgage offer. We love a good challenge, and our team would love to help anyone struggling with a complicated mortgage situation.
Now that you’ve learnt more about our service, it’s your job to get in touch. We are available 7 days a week. Therefore, you can choose when to contact us.
Customer service means everything to us, and we want to ensure that you’re delighted with every part of our service. But, of course, it would help if you took advantage of our free consultation. So whether you’re a first time buyer or moving home in Bristol, we recommend getting in touch now.
The act of moving house in Bristol can often become quite a difficult task for some homeowners, as it often results in them suffering large amounts of personal and financial stress. Despite the worries and concerns around this process, there are still many reasons why people choose to go forward with it anyway. Their reasoning can range from needing more space, to relocating to a new location for the sake of a career change.
Nowadays we find that the majority of people would rather buy than rent in Bristol. The reason for this is partly due to the monthly costs potentially being a lot less than they would be for someone who is renting. Moving house in Bristol can prove to be difficult for those that have developed an emotional attachment to that property and have made many fond memories with their family and friends there.
The pros and cons of moving house to a larger space, versus staying in your home for longer and altering your property can vary, though it’s mostly down to the personal preference of the individual in question.
If you are exploring your options for taking out a remortgage for home improvements, then it may be worth your while to get in touch with our dedicated team of mortgage experts to take advantage of our free initial mortgage consultation. We’ll book you in at a time that suits you best, to speak with a trusted mortgage advisor in Bristol.
Our team will do their best to help you compare the potential costs of raising money to improve your home, compared to how much it would cost you to move into a new home. They are also able to help calculate approximately what the maximum borrowing capacity will be. You’ll also receive a quote on your monthly payments, so you have enough information to make a decision about what you’d like to do next.
Sometimes in life you decide it’s time for a change. This could be anything from a big career change, to a small hairstyle change. In some cases, people decide that they wish to Move House in Bristol, be it from a rented home to a first bought home, or from a currently owned home to a new home, rather than Remortgaging. Here are the top ten factors to take into account when deciding where to live in and around Bristol.
When it comes to choosing where to live, first of all it’s important to understand what sort of location you prefer. Do you enjoy the busy atmosphere of the city, with all the hustle and bustle? Maybe your preference is to have a more scenic, quiet location, living in the countryside? There are pros and cons to both of these types of lifestyle and it’s something you’ll need to take into consideration.
Whether you regularly make a commute to work or enjoy spending your weekends adventuring into new places, transport links can be something that is very important for many people. If you’re in the big city or a large town, chances are you’ll be surrounded by plenty of transport.
If you are further afield and in “the middle of nowhere”, you might find there to be less transport available to you. Make sure to do some research into the local transport links available and the cost of getting to where you want to go.
If you have children of your own or plan to have any at some point in the future, then being within the catchment zone of a high school, or a choice of schools is something that might be of a higher priority than many other factors.
Local authority websites and school league tables are a great source of information for if you wish to look at a list of the schools and see which ones are the best.
It’s also very important to figure out which facilities are a must-have, those that would be nice to have, and finally, those that aren’t really needed. Doing this will help you filter which properties are worth actively looking into and those that would not.
Maybe you would prefer a nearby park for the kids to play at, or a gym on your route home from work? Some are simply content with somewhere that has a bank within walking distance. It’s really up to personal preference but you need to plan ahead as to what you would like to have closely situated to your new home.
The distance between yourself and both friends and/or family can play a crucial role in determining where you may wish to settle down.
Would you rather be close enough to help them or receive help back? Do you have the sort of relationship where they are going to be popping by every night to see how you are, or would you rather keep your distance and see them once every blue moon? These are questions you need to give some thought to.
Value for money differs from one place to another. If you’re looking to get the most of the money you are willing to put forward for a property, then it could be worth looking somewhere that’s a little cheaper and has plenty of potential for further work.
The issue with doing this is that it might mean you have to compromise on other essentials you were looking to have, like the aforementioned transport links, schools and so on. It’s not to say you definitely will, but you’ll be hard pressed to find a property that cheap, that has everything you want nearby.
The state of the local community can sometimes make or break your experience of living in a property. If you want a small, close-knit neighborhood, then you should definitely research the area and speak to local Estate Agents.
It’s quite common these days to find that some areas even have a dedicated website or Facebook group that you can look at for a good general overview of the area. If a community’s not a big thing to you, but you still want somewhere quiet, then your time may be better spent looking for an area with a lower crime rate.
If you’re looking to move home because of work commitments, then you will need to think about where your job is located and whereabouts you would prefer to station your home base. This goes back to transport links. If you’re willing to commute and you have the means to do so, being further afield might be okay, but some might prefer to stay close by, allowing for work to be within walking distance.
If you’re going to be job hunting post-move, you’ll need to do some basic research beforehand. Look if there are any business parks nearby or who some of the bigger employers in the area will be. This can give you a good idea of what opportunities may be present once you’ve settled in.
There are all kinds of different types of property in the market these days. You could find yourself with an end terrace that has a lovely garden, or a modern, urban apartment with views over a vast city. It’s important to make sure that you look at the different options available to you and see which best fits your needs and style of living.
If you have goals of remaining within the same house for years on end, then it’s worth researching if there is any proposed investment in the area. If there is, say planned development works on a local high street or park, make sure this is going to benefit you and the lifestyle you want.
If you’re after quiet village life and something new pops up that’s designed to bring life to the area, will that bring noise, traffic, really anything that would disrupt the quiet life, to that area? It’s also worth checking if any new housing is planned to be built nearby, as an influx in newer, more up-to-date properties in the same area has the possibility to alter the value of your home.
Once you have made up your mind and decided where you wish to move, all that’s left is the matter of making an offer and then obtaining a mortgage. It’s worth getting ahead of the curve by obtaining a Mortgage Agreement in Principle prior to this stage, in order to show the seller that you are in fact serious about buying that property.
Get in Touch and one of our dedicated Mortgage Advisors in Bristol will be able to obtain an Agreement in Principle for you within 24 hours of your initial free mortgage consultation.
When lenders ask for your bank statements, you can expect them to look for a variety of things. In any case, their main objective is to assess whether you can balance money responsibly and keep up to date with your monthly mortgage payments. One question we find ourselves being asked by applicants often: “Do gambling transactions look bad on my bank statements”.
Many people can see gambling as a mainstream hobby. However, don’t forget that even gambling advertisers urge customers to play responsibly, and this is something you should absolutely bear in mind when applying for a mortgage.
Whilst it is not up to the lender to tell you how you should live your life, how you should spend your money, or to even decide the ethical rights and wrongs of gambling, they do have a duty to lend responsibly to their customers.
If lenders need to prove to the regulators that they are wisely making their lending decisions, it isn’t entirely unreasonable of them to wish that those who they lend to, to adopt a similar approach when it comes to managing their finances.
Look at it from the lenders perspective; If you were lending your own money, would you lend it to the applicant who gambles or the one who does not?
There’s no law against gambling and no harm in having the odd gambling transaction on your bank statements. These being present doesn’t automatically mean you will find yourself declined for a mortgage.
That being said, the lender will decide on whether these transactions are reasonable and responsible. Additionally, they will mainly look at how often these transactions take place, how large these transactions are, and the impact on the customer’s account balance.
If these transactions are small amounts and don’t happen often, making no significant impact on a regular credit bank balance, then they are not likely to flag up in the eyes of the lender. On the other hand, if you make bets frequently or you get overdrawn continuously, the lender will most likely see that as being irresponsible and decline your application.
From our experience Lenders are looking at your bank statements to gain an understanding of how you manage your finances and to give them either the confidence that you are financially capable of paying back a mortgage, or the evidence that you aren’t.
Having an overdraft facility and occasionally using it, whilst not necessarily a bad thing, can cause trouble if you are regularly exceeding the overdraft limit. Lenders will look for excess overdraft fees or returned direct debits, as this would demonstrate that you are not so good with your finances.
Some other factors to be mindful of include credit transactions from payday loan companies and undisclosed loan repayments. If there appear to be regular loan payments that you failed to mention at the point of application, this could be a problem.
Generally speaking, a bank would ask for up to three months of your most recent bank statements, which will show your monthly income and all your regular bill payments. If you know you’re likely to want to apply for a mortgage in the future at all, try to make sure that you are in the best possible position financially.
Stop gambling for a short while and work on presenting your bank account in the best way you can. Remember, if you do decide to gamble at all leading up to and during your process, please gamble responsibly!
If you are a First-Time Buyer in Bristol, you will benefit greatly from Specialist Mortgage Advice in Bristol. Your dedicated advisor will be able to guide you through the whole mortgage process and help you with your application, hopefully ensuring a favourable outcome down the line. To learn more about the mortgage process or to get the ball rolling on one of your own, please feel free to Get in Touch and take advantage of a free mortgage consultation.
The main reason a mortgage lender will need to see your bank statements is to gain a better understanding of you as a person and what your regular spending habits tend to be like. The way you have been conducting your finances lately and the presentation of this on your bank statements can make a big difference in the amount a lender will let you borrow, if they’ll even lend at all.
This is because of the risk presented to lenders by a poor financial history. A lender needs to have complete confidence that you are responsible with your income and can be trusted to handle finances in the appropriate manner. Let’s be honest, taking out a mortgage is going to be one of, if not the biggest financial commitment you will ever make in your life and is not something you should just rush headfirst into.
You are able to easily obtain bank statements either in the post from your bank, over the counter from your local bank, or as is a common occurrence nowadays, as a printable version from your bank’s online website or application.
Now for the big question. What will the lender actually be looking for? What factors may flag up in their checks?
Well as we touched upon, they need to know you are responsible and reliable with your income. Something they will take a look at is if there are any overdrafts. Using an overdraft occasionally is not necessarily a bad thing, but if you are exceeding your limit quite often, this is going to make the lender question whether or not they can trust you.
Additional factors to look out for are potential returned Direct Debits, which could possibly indicate to a lender you are not consistently reliable, as well as not disclosing loans at application stage, something that will reflect on you rather poorly if the lender finds outgoings on your bank statements that you neglected to tell them about. Going back to before, they have to trust you.
Some other things to be wary of are any missed payments for personal loans or any credit cards you may have. If you are able to demonstrate that you can handle your money well and can consistently meet monthly payment deadlines, you will be more likely to borrow the amount you would like from the lender.
We find ourselves being asked this question quite a lot. Unfortunately we regularly find that customers end up stuck due to a history of gambling behind them. Having some fun once every blue moon is relatively harmless, but if you are constantly throwing large amounts of money at casinos or high street gambling establishments, whether you’re making the money you put into it back or not, a lender will look at your case less than favourably.
To learn more, please take a look at our article on “Do Gambling Transactions Look Bad on My Bank Statements?”
From our experience of helping out a lot of different First-Time Buyers in Bristol & Home Movers in Bristol, we have found that the majority of lenders prefer to have at least three months bank statements from a mortgage applicant.
Bearing this in mind, it’s time to think to the future and leave the past in the past. You have at the very least, three months to improve your handling of finances. The first thing we’d recommend to customers, is if you make frequent trips to the local bookmakers or attend the online gambling scene, you should look at taking a break for a while. This not only benefits you financially, but also can massively help your mental health too.
The next steps we would recommend taking is to do your best to pay off any current debts you have, without the use of an additional credit card. Also, eating in rather than eating out, reducing unnecessary purchases and cancelling any subscriptions you don’t need, are all really useful ways of freeing up additional cash to ensure you can pay all your bills on time.
The basics of all this is that you be sensible and create a plan for yourself with plenty of time ahead of what you’re looking to achieve. The further away you go from debt and financial troubles, the better your chances with a lender will be.
No matter if you’re a First-Time Buyer, Moving Home or Self-Employed, it’s always important to manage your finances well. If you have a bad credit history and aren’t sure of what your options are, you can always take Specialist Mortgage Advice in Bristol by Getting in Touch with us today. We’ll advise you as well as we can, working hard to further you through the mortgage process.