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Urgent mortgage advice required!!

4 replies

Fatty12 · 21/03/2015 22:55

I have recently put an offer in for a house which has been accepted. I now have a mortgage appointment with a few banks on monday but have no idea what to expect. How much detail do they now go through your incomings and outgoings?

Is it as strict as people make it out to be?

Why do they ask for bank statements? For evidence of incomings? Or outgoings?

OP posts:
clairecasta · 21/03/2015 23:12

They are strict... They want to know how much you spend on pretty much everything. Exactly how much you earn. Everything written on your payslips must be accounted for (pension, student loans, tax breaks for company cars, etc). Every ounce of debt you have.

My advice is to go through your bank accounts and record exactly how much you spend on each individual bill.

rent, gas, electric, tv licence, contents insurance, council tax, phone, internet, mobile phones, gym memberships, pension contributions, total monthly petrol costs, if it costs you money each month you add it to the list and write it down.

You will need to estimate how much each of these will be at your new home (if it all goes to plan). Mostly it will be the same, but if you think you can live without a few extras (like sky tv with all the trimmings, etc) then feel free to remove it from the list of expenses

You may also need to give a figure for how much you spend on groceries each month. I'd recommend giving the minimum amount you can manage on every month.

Then you will need to find a website with a affordability calculator (most banks and building societies that do mortgages have these, some are much better than others!) such as Nationwide and Money Saving Expert and put all the figures into the calculator. It will then give you an amount that they would consider lending you.

I would also advise signing up for the 1 month free trial (and cancelling it before the free month ends!) with Experian and Equifax to see your credit report and try to improve it before you apply.

Massively essential thing to do is get yourself on the electoral roll. It gives a huge boost to your credit score and many banks are really strict about this and won't give you a mortgage, or won't give you the best rates if you aren't on the electoral roll.

1981fkr · 23/03/2015 13:35

We just remortgaged to Halifax, I was a little apprehensive as all the talk is how strict lenders are now... They sure have tightened the belt but not as bad as I expected.

We needed to provide last 3 wage slips, proof of child benefit and tax credits.

We only had 2 credit cards which were both within 50% of their limits ( ideally this should be 75% or lower)

We were asked about childcare costs, catalogues, store cards and any past debt including if we have had any pay day loans within a year.

All very straight forward and money was released within 17 days

I personally would NOT recommend a bank/ building society as they are limited, use a broker all way as they can check around 50 lenders including banks in one go plus it limits the searches under the credit file and I found they had a wealth of info as Halifax are one of a few lenders who consider child benefit and tax credits as income. We used London and country... No issues and no fees and they get paid from the mortgage lender.

Good luck.

MissMartin1992 · 25/03/2015 22:09

Hey fatty... i never met with anyone atall face to face in my house buying process .. i just got myself a recommended mortgage advisor from easylife alliance and they do all the work for you and they ask what your looking for how much you can afford ect ... i really recommend getting a mortage advisor they help so much. .. i put the offer in on my house end of november and it does take a while but i competed in feb .. is this the first home you have bought? Smile

MissMartin1992 · 25/03/2015 22:15

i went with natwest. .. or should i say nat'yes' .... Haha. . i gave all the required info but i never felt like it was very strict.. the solicitors ask for everything though! That's the hardest part plus it all has to be certified by a professional which can be hard work getting it all together like passport/driving license copies ect

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