Buying your first home has been out of reach for many people over the last 5-7 years. Now the dream has become a possibility if not quite a reality for many people, especially over the last 12-18 months.
Easier but not less complicated.
There is a considerable amount of information gathering at the beginning of the mortgage approval process. However, we have found that by helping you gather it all together at the start of proceedings, and to understand why it is needed, actually makes the whole experience smoother and somewhat less stressful.
Major Factors you need to consider and know before applying for a mortgage.
4: How much will I pay per month? The time it takes for you to repay the mortgage can also have an impact on the amount you can borrow. The longer the repayment term the lower the per calendar month (p.c.m) payment. Some lenders will now consider 35-40 years repayment, depending on age at application.
Obviously, the older you are the shorter the repayment term available to you. This can have a negative impact on the more mature borrower, but if you have strong pension forecasts available, or a job that can be kept after state retirement age, there are still options available to you. Sympathetic lenders are trying to accommodate this whilst staying responsible within their lending practises.
5: How do I prove it? Along with the MMR requirements for responsible affordability lending there has also been significant changes in what is acceptable as proof of income.
Almost all lenders will now only accept the latest 3 Payslips for employment plus the bank statements which correspond to this submitted proof of income. This is mainly to combat fraudulent payslips being submitted.
For self-employed people, audited business accounts by a Chartered Accountant, a HMRC issued Tax Return, Tax Overview and SA302’s for each financial year (an SA302 is essentially a P60 for self employed people)
For Tax Credits & State Benefits or Court Ordered Maintenance to be used, a letter or annual statement from the relevant government department is required.
For Proof of Pension, although usually paid monthly, often only a quarterly or annual statement will be given by the pension provider. This is acceptable along with the 3 months’ bank statements showing receipt of the pension monies. If you are not yet receiving a pension income but it will be needed for assessment, then usually you will get an annual statement/forecast from the provider or one can be obtained on your request.
Other documents relevant to your own circumstances can also be requested & submitted to support the application.
So as you can see, there is quite a considerably bit of information gathering and various aspects to considers before you even decide on what product you are going to need let alone what lender to apply to and all before you even start the mortgage approval process.
Rest assured that you are in safe hands with an experienced, reliable firm who have your best interest at the very heart of everything we do. We will hold your hand through the whole process and make the experience almost bearable.
If you would like the burden halved and be allowed to focus on the exciting elements of buying a home then get in touch with me to have a chat and see what can be achieved.
Daniel Hulme CeMAP
07743 357 419
This information is given as a guide. Lenders affordability calculations require proof of income and criteria can vary. All aspects of an individual’s circumstances will be considered before making a recommendation.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
We normally charge a fee for mortgage advice, however this will be dependent on your circumstances. Our typical fee is £350 payable upon receipt of offer of mortgage.
J&M Green Mortgage Services Ltd is an appointed representative of Personal Touch Financial Services Ltd which is authorised and regulated by the Financial Conduct Authority