Applying for a Mortgage? Be Prepared

If you applied for a mortgage in 2020 you faced an even longer wait than usual to get a decision thanks to an unprecedented backlog after the initial lockdown. That may slowly return to normal this year but it’s still worth taking every possible step to speed up the process. These are some of the best ways to avoid unnecessary delay.

Your Finances

Be ready to answer questions about your income and your fixed or regular outgoings. Lenders need to know how much you are committed to spending each month outside of your mortgage and if you’d manage if interest rates rose. Make sure you know the dates of any time you were under the coronavirus furlough scheme. If you’re still on furlough, check if you have a confirmed return-towork date. Check your credit reports at all three UK agencies: Equifax, Experian and Transunion. Look for any errors, for example if you have a closed credit account listed as still active.

Paperwork at the Ready

If you use self-assessment, make sure your tax filings are up to date. You may be required to prove that your latest filing has been submitted and accepted before the lender will accept the relevant figures. If you applied for any government assistance such as the Self Employment Income Support Scheme, make sure you have up-to-date business accounts showing whether or not you are back to sustained profitable trading. Have proof that you have the funds for your entire

deposit. If the money isn’t simply savings, you’ll likely have to provide bank statements showing it arriving in your account to fulfil money-laundering regulations. If it’s a gift, for example from a family member, they’ll usually have to provide bank statements showing they’ve either had it for a certain period or that it came from a legitimate source. They may also have to sign a form confirming it is a gift rather than a loan and that they disclaim any right to ownership of your property. Make sure they are happy to do both of these and have any documentation in place. Double-check all paperwork, including names, addresses and dates of birth. In particular, make sure the spelling of names is correct, hyphenated names are listed correctly and middle names are either included or excluded consistently. Any mismatches can throw a spanner in the works and cause annoying delays. For all documentation you need to supply, check whether you need originals or if a photocopy or scan is acceptable. Check also whether any copies need to be certified as genuine and if so, where you can get certification.

Using a Broker

One of the best things you can do is consider using a mortgage broker. They’ll be able to suggest specific mortgages where you stand the best chance of acceptance, removing the wasted time of an unsuccessful application. They’ll also save time by completing the application using their professional experience to avoid any errors or omissions. To advertise in The Villager and Town Life please call 01767 261122