It’s very important that you plan your mortgage journey in advance. There are various steps to take before jumping into offers and full mortgage applications to put you ahead of other first time buyers in Bristol.
One of these that should be at the top of your list is getting a mortgage agreement in principle, before searching for properties. Sometimes your plans might not go to plan. Unfortunately, even the most meticulous planners have a challenging process.
Some of these include poor credit, banks not lending enough, or even couples separating mid-process. The latter is not something that people can always prepare for, and it can cause you to take out a mortgage as a sole applicant, with very little time to plan again.
As mentioned earlier, planning is important because you can often find that your mortgage process will face many different obstacles. Having worked in the industry for over 20 years we have encountered many mortgage scenarios.
Below are some common problems we have found customers encounter:
By preparing yourself in enough time for all eventualities, you can potentially avoid as many of them as possible, ensuring a much smoother service. There are some inevitable cases, that’s where a mortgage broker in Bristol can often lend a helping hand.
Saving for a deposit can be quite difficult for some, especially when you try to make sure you achieve all your mortgage goals. This is even more so for first time buyers in Bristol who are renting and trying to save for their deposit simultaneously.
To get on the property ladder, you usually need at least 5% deposit, although this may be higher depending on circumstances. The question is, while this seems small, that can actually be a large amount of money, depending on the property price. You generally will not know the exact amount until you find a property.
Sometimes, when you have trouble making up for this percentage, you can get financial support from your family or friends through a gifted deposit in Bristol. Also, you might be able to use one of the various Help to Buy Schemes in Bristol.
These are usually popular with many first time buyers in Bristol to get them onto the property ladder. There could be a mortgage scheme out there that is perfect for you and your circumstances.
Credit scores are a major factor in your mortgage application. If your credit score is in poor condition, you will be less likely to get a mortgage, perhaps even not being able to get one with decent interest rates and repayments, depending on how low it is and your situation.
Obviously, it all depends on why your score is so low. Having bad credit due to something like a CCJ or bankruptcy will reduce your chances greatly, with the length of time that has since passed being a factor in this too.
Check My File is a fantastic website we would recommend you use if you are wanting insight into your credit score. This allows you to get a copy of your credit report that our team can view completely free of charge.
When it comes to applying for a mortgage, it is important to look at how well you manage your finances. This is because mortgage lenders will conduct a thorough analysis of these, checking your bank statement, income and outgoings.
Gambling transactions are something that they will be searching for. Large and frequent expenses can make you look unreliable with your money and have a significant impact on your chances of getting a mortgage. We recommend holding back for a couple of months, to paint yourself in the best light.
If you find yourself lucky to get a gifted deposit for your mortgage. We also suggest that the gifter keeps the money in his account so that you don’t have big bank transfers that would otherwise look suspicious to a mortgage lender.
If you are self employed in Bristol, you may find that your process will be different, then an employed applicant. This is because you will need to provide different evidence.
The evidence you need to provide as a self employed applicant includes your review of the tax year and the last 2/3 years of accounts, to name a few. This depends on the mortgage lender you are going with, but more evidence may be required.
Through your mortgage journey, you may find a range of hurdles that could limit the quickness of your process or even stop it. Preparing for them in advance can put you in the best position if they happen.
A mortgage broker in Bristol like us will work hard to help you overcome these hurdles. We are here to support you 7 days a week, from early until late. Book online and benefit from expert mortgage advice in Bristol, today.