Bristol, a vibrant and culturally rich city, has become a popular destination for both residents and newcomers looking to settle down. As the demand for housing in Bristol continues to rise, first time buyers in Bristol often encounter various challenges when navigating the mortgage market. From financial considerations to personal circumstances, there are several hurdles that can make the journey to moving home in Bristol a bit more complex. Here we will explore five common mortgage hurdles faced by first time buyers in Bristol and provide insights on how to overcome them.

1. Childcare Fees

For many young families in Bristol, childcare fees can be a significant financial burden. Mortgage lenders assess your affordability based on your income and expenditure, and high childcare costs can impact the amount you can borrow.

Since the cost of living in Bristol is relatively high, factoring in childcare expenses can reduce your borrowing capacity and potentially limit the range of properties you can afford.

To address this hurdle, consider researching affordable childcare options and adjusting your budget accordingly. You might also explore government support programs aimed at helping families manage childcare costs.

2. Divorce / separation

Divorce or separation can bring about emotional and financial challenges, which may affect your ability to secure a mortgage. When a relationship ends, joint financial commitments and assets are often divided, which can impact your credit rating and overall financial stability.

Lenders rely on your credit score and financial stability to assess your eligibility for a mortgage. If you’re going through a divorce or separation, it’s crucial to maintain open communication with your ex-partner and work toward a fair resolution that allows you to maintain a strong financial profile.

Seeking expert mortgage advice in Bristol, such as that of a mortgage advisor or mortgage broker in Bristol like ourselves, can provide valuable insights on navigating this complex situation.

3. Benefit Income

Reliant on benefit income can pose a challenge when applying for a mortgage in Bristol. While some lenders are becoming more open to considering benefit income as part of the affordability assessment, there can still be misconceptions and biases around this type of income.

It’s essential to research lenders who are more accommodating toward benefit income and work with a mortgage broker in Bristol who can connect you with the right lending options. Providing thorough documentation and evidence of your benefit income can help improve your chances of securing a mortgage.

4. New Job

Bristol’s thriving job market attracts individuals from various locations, but starting a new job can complicate the mortgage application process. Lenders often prefer borrowers who have a stable employment history, which can be difficult to demonstrate with a recent job change.

If you’ve recently begun a new job, it’s advisable to wait until you’ve completed your probationary period before applying for a mortgage. This shows lenders that you’ve successfully transitioned into your new role and are likely to have a stable income.

5. Evidencing The Deposit for a Mortgage in Bristol

Saving for a deposit is one of the most significant challenges for first time buyers in Bristol. Property prices in the city can be relatively high, requiring a substantial deposit to secure a mortgage with favorable terms. Lenders want assurance that the source of your deposit is legitimate and not borrowed, which means you’ll need to provide detailed evidence of its origin.

To address this hurdle, ensure you keep clear records of your savings, any gifts from family members, or other sources contributing to your deposit. Having a well-documented trail of your deposit funds will streamline the mortgage application process.

Date Last Edited: October 4, 2024