EXPERTS
Agony agent Readers put their property questions to our guest panel of experts: solicitors, mortgage advisers, property gurus and Help to Buy providers
THIS MONTH’S PA N E L O F E X P E R T S Rupi Hunjan, MD, Censeo Financial
Marilyn DiCara, Independent Housing Consultant
Mortgage application Andrew Theoff, Managing Partner, Direction Law
T E S T T H E PA N E L
We need your questions... If you have any queries, or difficulties in understanding the property buying process, our panel of experts is waiting to help. Send our team your questions on buying property, Help to Buy, legal issues, or your financial problems and we’ll find the best person from the panel to give the advice you need. Email your questions to: lynda@firsttimebuyermag.co.uk
Q
I am a teacher and I’m looking for a shared ownership property at the moment, for which I will need a mortgage – how should I prepare for a mortgage application? Felicity Wilson, Rochester
A
Buying a property is a big decision, so it’s vital that you do your homework. A mortgage is likely to be one of the largest financial commitments that you make in your life, so you want to get it right, having spent years to save for the deposit, legal costs, and household furnishings – often costing more than you think. Lenders will need to see evidence of your income to check regular overtime and bonuses, they will review your bank statements to help establish your lifestyle and to check that your outgoings, such as credit/store cards and loans, including buy-now-pay-later arrangements, are accurate. Generally, a lender will need to see three months of payslips, six months of bank statements, proof of residency, and copies of your passport. You must make sure you have them to hand. Many lenders offer mortgages up to 95% of the share, so you may only need a 5% deposit, but this could still be several thousand pounds. Much will then depend on two key factors – your employment status and your credit score. Most lenders will require a credit check to make sure your credit score is sufficiently high
for them to lend to you. Therefore, make sure that you don’t miss any payments, you aren’t carrying too much debt (unsecured loans and credit cards) and you have a good credit history. It’s easy to check your score – just go online and register on a website such as Experian. Censeo-financial.com has lots of useful information to help you on your homebuying journey, including our easy-to-use online portal (portal.censeo-financial.com) which will assess your shared ownership eligibility and your ability to afford and sustain the mortgage, rent and service charge alongside your existing financial commitments. Once you have been offered a home, you will usually have 28 days to gain a mortgage offer. The best way is through a specialist mortgage broker such as Censeo, as you need sound financial advice. Censeo has access to all the different lenders, and its experience saves you time and money as it knows the lenders’ criteria. The process of securing a mortgage is in two stages, first an agreement in principle and then the full mortgage application. While you are waiting, many people make the mistake of buying furniture for their home using credit. Although this is natural, taking out loans or maximising credit cards can invalidate mortgage offers, so be careful. Finally, when buying a home, you will need to protect you and your property with insurance. Rupi Hunjan
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