What affects my mortgage application?
If you’re filling out a mortgage application, there can be loads of different factors that are going to have an effect on whether your mortgage application is accepted or not. Read on to find out what they are!
What will a mortgage application involve?
A mortgage application is a tricky obstacle to overcome. But what do they involve and how can you make your application successful? When you’re working on a mortgage application, the lender that you are applying with will conduct an affordability assessment. This is basically to check whether you are going to be able to pay back the mortgage fee plus interest if you were to have your mortgage application accepted. While different lenders have different components within their affordability assessment, there are some factors that are taken into account by pretty much all lenders.
Make sure that you are on the electoral roll:
While this might come as a shock to those readers who consider themselves disinterested in politics or unlikely to vote in the future this is really important. Many lenders like to use information contained in the electoral register to check over your identity.
However, don’t be alarmed. Being on the electoral register doesn’t mean that you have to start looking at party manifestos or begin canvassing during the next general election. What we would suggest is that you contact your local council to find out if you are on the electoral register. If not, don’t panic. It’s easy to register online.
Make sure you’ve got a good credit record:
This one’s really important. Credit checks are going to be vital for lenders to see if you are a responsible borrower (by looking at your credit score) and thus enhance the likelihood that your mortgage application is accepted. This means that they’ll be looking to see if you’ve paid back any debts without any problems.
It’s important to realise that mistakes can also occur on your credit file. So, we recommend that you try and get hold of your credit file and try to amend any incorrect information should it appear. It could go a long way to getting your mortgage application accepted!
Check your incomings and outgoings are sustainable:
What do we mean by this? Well, lenders are going to want to make sure that you can afford to repay your mortgage for the entire mortgage term. Not just one month…
So, how can you show that you’re capable of paying your mortgage? Lenders normally allow you to borrow 4/5 times your income. But for many of you who are either self-employed or work freelance, it may be more difficult to forecast your monthly income.
What we’d recommend is that you speak to your prospective lender and talk through what your predicted earnings are going to be. Also, talk through any previous income you’ve had which could provide a good indicator of how much you are expecting to earn in the future.
With regards to your outgoings, lenders are going to really bear down on your expenditure. Shopaholics, this may make for grim reading. But, if you can cut back on any unnecessary expenditure then this could go a long way to having your mortgage application accepted!
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