Top 5 Mortgage Hurdles You May Come Across in Bristol

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.

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:

• How can I remove my ex’s name from my mortgage?
• Can I have two mortgages?
• 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.

Date Last Edited - 29/06/2021