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How to get a Mortgage if You’re Over 40

Open & Honest Mortgage Broker in Bristol

Jumping straight into it, we can say that yes, depending on the circumstances surrounding your application, you will be able to obtain a mortgage over 40 years old.

If the mortgage term is going to extend beyond the age of retirement, the mortgage lender may wish to see a projection of what your expected pension income is going to be.

Over the years we have noticed that a lot of the instances we face with customers in or over their 40s tend to be with First Time Buyers in Bristol. When speaking to these customers, we also heard from a large majority that they were previously declined due to their age.

Why are over 40s being declined mortgages and what can be done?

First of all, let’s take a look back at the past. Prior to the introduction of computerised credit scoring and the levels of regulation that are commonplace today, if you visited a building society in search of a mortgage, you’d probably speak to your branch manager.

From here they would take a look at your personal circumstances, including how well you have been able to manage your current account. Based on their findings, they would then decide whether or not to approve your application.

If you were accepted, you would then receive advice on the amount you could borrow, typically presented as multiple of your gross salary.

The issue here is that these income multiples didn’t account for the age of the applicant. Therefore, no matter if you were 30 years old or 50 years old, you could borrow the same mortgage amount either way.

Now at this point, you may be thinking “issue”? What issue, that seems fair? The truth is that if both applicants were due to retire at the age of 65, the outcome would be different for both individuals.

If we take a look at an example using a £70,000 (capital and interest combined) mortgage using a national interest rate of 5%:

  • First the 30 year old. If they had a 35 year mortgage term they would be paying £252pm approx.
  • Then let’s look at the 50 year old. If they had a 15 year mortgage term they would be paying £395pm approx.

In this example, we have two applicants who earn the same, set to retire at the same age, with the same mortgage interest rate and the same overall amount to pay back.

Where it differs, is that applicant two’s monthly payment is a lot higher. Because of this, if mortgage rates happened to rise, they would be at a much greater risk of arrears and repossession.

This is the reason why modern mortgage calculators now factor in the maximum term of the mortgage (i.e., how old you are) as well as the income you bring in and how much you have regularly going out.

Retirement Age

Even though it’s always made very clear that we will continue to work until an older age due to State Pensions, but the banks don’t seem to bear this in mind when it comes to giving out mortgages to applicants.

Lenders may potentially consider granting mortgages beyond the age of retirement, though this only tends to be if you can demonstrate your ability to afford the payments post-retirement. You are normally able to evidence this with a letter from your pension provider and a projection of your future income.

This does come with it’s own problems though, as the majority of people reading this article will likely take a reduction in income when they reach retirement. Because of this, lenders will need you to prove that even with a reduced income, you would still be able to afford your mortgage.

In practice, this hardly ever works unless you are only needing a smaller mortgage, though that would also mean you likely wouldn’t need to stretch the mortgage past your retirement age anyway as a shorter term could be affordable.

If you cast your minds back, you may recall that the default retirement age was scrapped in 2011 and you can no longer be forced to retire by your employer. As a result of this, fewer lenders are using the State Retirement age as the standard age they want mortgages to be paid off, with some even letting people self-declare their intended retirement age.

Preparing for a mortgage at over 40 years old

Regarding what you could be doing in order to obtain a mortgage over 40, you must prepare yourself for questions about how you will afford your mortgage later down the line.

Remember, the regulations have been put in place so they can protect consumers and encourage more careful lending from lenders.

If you need the mortgage term to run past the State Pension age, you will need to prove to the lender your expected income, so that they have confidence in your ability to maintain your monthly mortgage payments.

Please remember that the above information is purely for reference only and should not be viewed as personal financial or mortgage advice.

The Importance of Changing Your Address

Mortgage Advice in Bristol

When it comes to applying for a mortgage, it is important to keep an eye on your credit score. The higher your credit score, the more likely that it is that you will be successful when applying for a mortgage with a lender. There are a variety of different elements that can have some kind of effect on your credit score.

One that is quite simple in theory but does has a larger impact than you might expect, is your address. Generally, the fewer addresses you have on your record, the better it will be. In the past though, we’ve seen people try to get around this in the wrong way.

A lot of the applicants we have dealt with are first-time buyers in Bristol who have moved out of their parents address into rented accommodation, but are keeping their bank statements, credit card and electoral roll information registered at their previous home.

For some bizarre reason, people think that it is beneficial to them and their credit score to keep everything under one roof. Whilst theoretically that would lean into the statement of “the fewer, the better”, this actually causes a lot more harm than good. Almost without fail, if you have moved to a new address; whether you change it or not, there will be a record of you living there somewhere.

Anything from a general eBay or Amazon order, to an ASDA delivery, to something like your car, contents or home insurance are all linked to your credit history and will appear with your address on in some way.

Check before you apply

Before you perform a credit search and apply for a mortgage, you have to be absolutely certain that as far as you’re aware, nothing will affect your credit score. You will need to make sure your current residential address is the one present on all accounts, be that electoral register, credit and debit cards, etc.

This only really applies to you if you have already moved out of your parents home, as up until that point you will be still only have your previous address to go off. Once you’re moved in, that’s when you should start moving everything over as soon as possible.

Regardless, when it comes to the point of applying for a mortgage, this all needs to be double and triple checked. We always find that people have a tendency to forget to update their address on their credit file and electoral roll. Please do your best to remember, it really does make a big difference!

Make sure that you definitely get the dates right too, knowing the exact date you moved into your rented property and the day that you moved out. Any mistakes made with these dates can sometimes give the lender the impression that you are occupying two properties at once.

Impress the lender

By keeping your credit file super up-to-date, you are giving the lender the proof they need that you really know what you are doing and you are completely serious about what it is you’re looking to do.

It’s a more open and honest way of handling the mortgage application process. Your goal should be to impress the mortgage lender in any way you possibly can and keeping up to date with your address is a good starting point for doing so.

If you are in need of any further help or are just looking for some handy tips from a professional mortgage advisor in Bristol, please do get in touch and take advantage of our free initial mortgage consultation.

We know that being a first time buyer in Bristol with no mortgage experience can difficult and stressful, which is why we’re here to help. Get in touch with a dedicated and trustworthy mortgage broker in Bristol today and we’ll see what we can do for you.

A Guide to Remortgages in Bristol: Top Reasons to Consider

Remortgage Broker in Bristol

You’ll likely have both your highs and your lows throughout your mortgage process, but when all is said and done, it will all result in one of the following outcomes: either a possible future home for your family, a property that will shift you along the property ladder or a purchase you can use as an investment to boost your income.

No matter which route you find yourself going down, you will eventually start getting near the end of your mortgage term. Some look to sell their home and move into a new property. Others maybe look to sell parts of their property portfolio with an aim to look at other areas to invest in.

More popular than these though, is taking up the route of a remortgage in Bristol.

What is a Remortgage?

Before anything else, let’s take a look at what a remortgage is.

A remortgage is where you use the loan that you gain from a new mortgage to pay off your existing mortgage. There are lots of different options that are available to customers when taking out a remortgage, with these options varying in scale of importance.

In utilising the experience of our director and twenty year mortgage expert, the “Moneyman” Malcolm Davidson (host of our YouTube channel MoneymanTV), we have compiled a helpful remortgage guide, reflecting on all of the options that may be available towards the end of your mortgage term.

Remortgage For Better Interest Rates

In the case of most mortgages, the deal that you are initially set up on will last somewhere around two to five years, featuring low fixed rates or rates that are possibly discounted. Depending on your personal situation, you may even be placed on a tracker mortgage, which is a mortgage type that will follow the Bank of England’s base rate.

Once your term has ended, the chances are that you will be moving onto the lenders Standard Variable Rate (you may see this shortened to SVR). To explain what this is; an SVR is a mortgage with an interest rate that can potentially change, depending simply on what the lender is looking to charge you.

This does not work the same as a tracker mortgage as it will not be following the base rate of the Bank of England. Because of this, these types of mortgages usually cost a much larger amount to take, leaving many to just prefer looking at remortgaging for better rates, something that would hopefully save you a lot of money in the long term.

Remortgage For Home Improvements

Once you have reached the point of being 2-5 years into occupying your home, you may feel like something is off and it needs to change. You may need to create an extra room or improve upon the size of your living space for your kids or personal belongings.

Some people would like to build a new kitchen or office. We actually hear of customers looking to build some kind of loft conversion. Instead of just packing up and moving home, lot’s of homeowners instead opt to remortgage as a means of releasing equity to fund these new projects.

Of course, obtaining planning permission and funding or managing your own project does sound big and scary, lots of homeowners would argue it’s a lot less stressful and more rewarding than it would be to just sell your home, and find somewhere else to live.

In the future this may prove to be quite beneficial to you as an investment. This is because creating more space and having good quality craftsmanship has a chance to increase the value of your home, which in term would come in very handy for if you do look to sell your home in the future.

Remortgage for Changes to Your Term

In a lot of cases, homeowners may just want to remortgage in Bristol for a better mortgage term, either by reducing the length of the term they are on at the current moment in time or by switching to a different product that is a bit more flexible.

By reducing the length of your term, you will not be paying back your mortgage for as long, so you aren’t completely stuck there, but this does mean that your monthly mortgage repayments could be higher than anticipated. The longer your term, the lower your monthly payments will be.

Many homeowners take preference to more flexible mortgage terms when they take out a remortgage. There happens to be a few positives with this route that homeowners prefer. Some of these include having the chance to overpay, meaning you may be able to pay your mortgage off a lot quicker, as well as being able to carry the same mortgage and rates over to another property, if that ever becomes a need for you down the line.

Though a flexible mortgage sounds like it’s the most ideal situation to be in as a homeowner, they are usually found as tracker mortgages. As mentioned earlier on, tracker mortgages follow the Bank of England base rate, meaning one month your payments could change both positively and negatively, depending on the current level of interest rates. Some homeowners feel like this mortgage type is a little too unreliable.

Equity Release

Every homeowner will have some form of equity existing within their home. Equity is worked out by calculating the difference between what you still have left to pay on the mortgage and how much the property is currently worth. Further onto another previously mentioned topic of discussion, this can be used for home improvements, however there are still so many different options people can take.

Some will use the equity in their home to cover any necessary long-term care costs, to provide themselves with an income boost, to treat themselves to a much needed holiday, to pay off an interest-only mortgage or to have some spare cash laying around to do whatever they’d like with.

We often find that buy-to-let landlords will use equity release as a means of covering their deposit for buying any future property portfolio additions.

Remortgage to Consolidate Debt

Another topic relating to the aforementioned topic of equity release, is utilising the existing equity in the property to pay off any unsecured debts that may have been building up in your name over time.

Though it sounds like a fairly straightforward concept, debt consolidation not only bases the amount on how much you’re owed and the value of the property, but also the current status of your credit score and history. This unfortunately means that if your score is bad (which is likely to be the case if you’re needing to consolidate debts), the lender may limit how much they are willing to let you borrow.

In addition to this, in order to pay off your previous mortgage and your debts, you will need to borrow a much higher amount than the mortgage amount you’re already paying off. This will likely cost more than you wanted it to. Though not an ideal situation, at least you can rest assured that if you find yourself in hot water, a mortgage broker in Bristol may be able to lend a hand.

If you have a particularly damaged credit rating, there are still options out there that you can take, though these tend to be quite challenging and require very specialist remortgage advice in Bristol to lend both their knowledge and care, before proceeding with your mortgage process. Even with our help, there’s never a guarantee you’ll be successful.

You should always look to gain mortgage advice prior to consolidating any debts and secure any debts against your home.

Experienced Mortgage Advisors in Bristol – Get in Touch

If you are on your way towards the end of your current mortgage term and are wondering what kind of remortgaging options you may have, please do get in touch with one of our fast and friendly mortgage advisors in Bristol.

A dedicated and experienced member of our mortgage advice team will be available to discuss your circumstances and future goals, helping you create a strong plan of the next steps you would like to take in your home owning and mortgage journey. When dealing with remortgages, we always aim to make the process simpler and quicker than it went the first time around.

Agreement in Principle and Soft Credit Searches

Agreement in Principle Mortgage Advice in Bristol

What is an Agreement in Principle? | MoneymanTV

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.

How does your agreement in principle affect your credit score?

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;

Soft credit searches

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

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.

Does an AIP guarantee a mortgage in Bristol?

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.

How long will my agreement in principle last for?

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.

Why Use Our Mortgage Advice Service in Bristol

We Specialists in Different Types of Mortgages

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.

How does our process work?

Step 1 – Get in touch

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.

Step 2 – Free mortgage consultation

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.

Step 3 – Agreement in principle

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.

Step 4 – submission 

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!

Specialist situations

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.

Speak to a Mortgage Advisor in Bristol

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.

Top 5 Mortgage Hurdles You May Come Across

Mortgage Hurdles for First Time Buyers in Bristol

Now and again, our team come across applicants with various mortgage hurdles. They’re not entirely impossible to work around but can often drag out the process. There’s always going to be a chance that first time buyers in Bristol like yourself will come across some problem(s) that’s stopping you from getting a mortgage. 

Below we have compiled the top 5 common hurdles customers have encountered in their time as a mortgage advisor in Bristol.

Don’t hesitate, get in touch and book your free mortgage consultation today!

Childcare fees

We have found that families don’t get turned down for a mortgage because of childcare fees through our encounter. That said, it is prevalent for a lower mortgage amount to be offered.

This becomes more apparent when parents go back to work and pay out for childcare costs, as sometimes these can be costly every month. Lenders will treat these as the same regular outgoing as they would with vehicle repayments.

Even if you pay no nursery fees, parents on lower incomes might get offered less than those who do not have children. The good news, though, is that families using this service can often receive tax credits. Again, some lenders will also take these into account and child benefits.

Divorce/separation

It’s always sad to hear when a partnership ends. As the situation is already difficult, it can get much more complex when you have both made joint financial commitments. These sort of situations does not always run as smoothly as you maybe would like.

Here are the common mortgage questions we get asked regularly;

  1. How can I remove my ex’s name from my mortgage?
  2. Can I have two mortgages?
  3. How do I remove my name from my partner’s mortgage?

More often than not, there are ways around these and are somewhere we may be able to help, providing that you have enough income available and are young enough for the mortgage payments to be affordable. 

Benefit income

All lenders have their views on benefit income and how much of it can be assessed. You may be pleased to find that all benefit income such as:

  • Child tax credit
  • Working tax credits
  • Disability benefits
  • Pension income

All this can be taken into account in some form when it comes to a mortgage. This is where the help of an expert mortgage advisor in Bristol can prove beneficial in helping you throughout the process.

New job

Usually, a new job comes with a higher salary or/and a change of location, and the extra income helps contribute towards the mortgage. However, having any gaps in employment may cause some dilemmas with various mortgage lenders. 

Some lenders will work from a newly signed employment contract, even if you’ve only just started or are soon starting a new job. They are also okay with probationary periods.

Evidencing the deposit for a mortgage in Bristol

For any purchase, all mortgage lenders require you to prove your deposit as a means of showing you can proceed. This is to satisfy UK Anti-Money Laundering Legislation. Your solicitor and estate agent may ask you to provide evidence of your deposit also.

We believe that evidencing your deposit can often be the most complicated part of applying for a mortgage. Whether your deposit is from savings, premium bonds, the sale of another property, gifted from a family member or friend, from an overseas family, or is from a personal loan, you are required to show exactly where your funds came from before you can go forward with a mortgage.

Specialist Mortgage Advice in Bristol

Do Gambling Transactions Look Bad on My Bank Statements?

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”.

What Do Lenders Look For On My Bank Statements? | MoneymanTV

Mortgage Questions to Consider

What has it got to do with the lender whether I gamble or not?

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?

Is it still possible to get a mortgage if I’ve got gambling transactions on my recent bank statements?

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.

Anything else Lenders wouldn’t want to see on my bank statements?

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.

What can I do to improve things?

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!

Get in Touch With a Mortgage Broker in Hull

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.

What do Lenders Look for When Assessing my Bank Statements?

What Do Lenders Look For On My Bank Statements? | MoneymanTV

Why does the lender need my bank statements and how do I obtain them? 

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.

What will lenders be looking for on my bank statement? 

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.

Will gambling affect my chances of getting a mortgage? 

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?” 

What can I do to show the lender I am reliable? 

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.

Speak to a Dedicated Mortgage Advisor in Bristol

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.

Can I Have Two Mortgages in Bristol?

Yes, there is most likely an option where you can have two mortgages as there are many situations that require a person to have more than one mortgage. Our Mortgage Advisors in Bristol can typically help with this.

Can I have a Second Mortgage | MoneymanTV

Some of the reasons for wanting a Second Mortgage could be:

  • Do you want a second mortgage to raise money on your existing home?
  • Are you looking to rent out your existing home and purchase a new one?
  • Are you looking to help your children out with a second mortgage?
  • Do you require a second mortgage to purchase a Buy to Let property?
  • Is your name on an existing mortgage and you are looking to buy a new property?

Second mortgage to raise money

If you have equity in your home and are looking for a second mortgage to release some of this to fund a purchase, then we may be able to help. Quite often at this time if you are currently on a lenders standard variable rate, our advisors will be able to shop around and find a more competitive deal at the same time as releasing capital. A further advance with your current Lender is also an option.

Second mortgage to rent out existing home to purchase a new one

If you are looking to move house but keep hold of your existing property with the view to let it out, we may be able to help. Your second mortgage will be a new residential one.

Second mortgage to purchase a home for your children

If you are exploring the options available to you of helping your children or grandchildren with getting on the property ladder, there are now many products that we can run through to achieve this.

Second Mortgage for a Buy to Let

If you are looking to purchase a Buy to Let our Mortgage Advisors in Bristol will advise you on the best way to go about this. You will get asked to produce a higher deposit for this than a residential mortgage.

Named on your existing mortgage and want to buy a new home?

Are you currently named on another mortgage and would like to purchase a new property? In any case, this is a situation that our Mortgage Advisors in Bristol come across regularly, mainly due to divorce or separation and we are often able to help.

Whatever your situation is to get a second mortgage. As an Experienced Mortgage Broker in Bristol, we can search 1000’s of mortgage deals on your behalf. Additionally, recommend the most suitable product for you based on your situation.

Bristolmoneyman.com & Bristolmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited registered in England, registered number 6789312 and registered office 10 Consort Court, Hull, HU9 1PU.

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