When applying for a mortgage, your lender will ask you for multiple different documents to support your application. One of the most important things that they will ask for are your bank statements.
Bank statements allow a lender to see exactly how an applicant spends their money. They will be able to analyse how often you spend your money, what you spend your money on and how much you have left each month.
Lenders want to see that someone is managing their money responsibly and will be able to maintain their mortgage payments each month. Lenders need to be confident when accepting an applicant, they will never accept an applicant that won’t be able to keep up-to-date with their payments.
One of the first things that a lender will notice on bank statements is gambling transactions. Whether it’s a common reoccurrence or a now again gesture, gambling rarely goes down well with lenders. Of course, the more that you do it, the harsher the impact on your chances of being accepted for a mortgage with them.
In fact, if you barely gamble, it won’t really make a difference to your application, your lender will be able to see a few transactions and probably allow it. There isn’t anything illegal about gambling, however, you should know that gambling agencies always say to “gamble responsibly”.
Neither us nor the lender can never tell you how to live your life but on the other hand, we can tell you to be responsible and be aware that you may struggle to get a mortgage if you are frequently gambling and losing monies in large sums.
You have to think as if you were in their shoes. Would you lend money to someone who gambles frequently or someone who never gambles? Lenders will only lend to a borrower that is reliable.
Lenders will not be impressed if you are consistently dipping into your overdraft. If you are only touching your overdraft now and again, your lender may not be too fussed by it, however, if it’s every single month, your chances of being accepted for a mortgage may be lowered. To make matters worse, if you are exceeding your overdraft limit every month, lenders will not take this lightly and could even be completely put off.
As you know, another thing that lenders look for on your bank statements are gambling transactions. If you are dipping into your overdraft because of gambling, lenders may have little interest in your application. Having a combination of the two leading factors to why lenders turn away applications on your bank statements unfortunately never ends well.
Showing that you are capable of repaying loans on time is a good indication that you are reliable. If you are managing to meet your payments easily, it will always look good on your application.
Furthermore, this can backfire though if you are taking out too many loans. Yes, it can be good to pay off loans to show that you can manage your finances to meet the payments, however, it also shows that you maybe didn’t have the money at the time that you applied for the loan and you hoped that you would be able to pay it off when the time came. Once again, as a Mortgage Broker in London, we advise that you be cautious with your finances and take a smart approach.
Bounced direct debits occur when pre-arranged fees are charged on your account and you don’t have the sufficient funds to pay the fee. For example, if you are on a mobile phone contract, you will have a recurring bill which is usually monthly. If you forget about this bill and end up spending the money that you needed to save, the provider will try and take the money from your account despite it have nothing in. This will show up as a bounced payment, and if it happens regularly, your lender may think that you are unreliable.
This doesn’t just apply for mobile phone bills, it also applies for credit card charges, memberships/subscriptions and basically anything that you’ve made a pre-arrangement to pay back.
To summarise bounced direct debits, make sure that you are keeping up-to-date with your ongoing financial commitments and that you are meeting bills and fees before their due dates.
Now that we’ve covered the things that lenders don’t want to see on your bank statements, let’s take a look at what they want to see.
Firstly, they want to see that you can manage your finances. This could mean clearly evidencing your savings and showing that for the past 3 months you’ve been putting money into a savings account and not taking any back out. It could simply be that you have lots of spare cash left at the end of the month, either way, this will look good and should impress your lender.
Tax payment planning, prudent spending and budgeting your expenditures are different ways to help you manage your money. The more cash that you have remaining at the end of the month, theoretically, the better mortgage deal you should be able to access.
A lender can be impressed by your bank statements, but where is all of the money coming from?
You’ll need to evidence where your money is coming from, e.g. your income and bank transfers. This does work both ways though, if there are large transfers going out of your account, you will need to back them up too. On another note, if you are Self Employed in London you will need to evidence your latest 2 years’ tax calculations and corresponding overviews.
Evidencing your deposit is a huge part of your mortgage application and so is evidencing incoming and outgoing lump sums of money that appear on your bank statements. If you can evidence these with no hassle, your lender should gain more trust in you and your application, making you more likely to get an offer.
As a Specialist Mortgage Advisor in London, we always advise applicants to plan ahead and always be sensible. Think responsibly and make sure that you are making yourself look the best that you can.
Remember that your bank statements will show your salary credits, your regular bill payments and your bank transfers. With this in mind, it’s very important that you make sure that everything is evidenced and paid off. It may even be worth taking a break from gambling during the months leading up to your mortgage application in London; your bank statements will be put into the best light possible this way.
If you need help during the mortgage application process and want assistance in making your bank statements show your reliability, feel free to get in touch with our Mortgage Broker in London.
So you want to begin your mortgage journey, but do you know what you need to get ready for a mortgage application? Do you know how to make an offer on a property and what what you need to make one?
With these questions in mind and the competitive nature of the property market, perhaps it’s time to get mortgage ready!
Being prepared and ready for a mortgage could put you ahead of many other home buyers in London. If you have everything place and set to go, you will look confident and reliable, which a lender will like.
Whether you choose to go directly to a lender, through a Mortgage Broker in London like us or an online switch, you will always need certain documents to evidence who you are and how you are going to pay for a mortgage. Here are the documents that you will need for your mortgage application, you can either watch our helpful YouTube video for a detailed overview or read our list below:
A mortgage agreement in principle is certificate or statement from a lender to confirm that you can borrow from them for a mortgage. You will need one of these in order to make an offer on a property and in some cases you will also need one to take property viewings.
If you choose to come to your Mortgage Broker in London, once you have provided us with your details for your mortgage application, we can arrange a mortgage agreement in principle. We aim to turn around a mortgage agreement in principle for you within 24 hours of your application.
If you are feeling a little unprepared and want some help from an expert Mortgage Advisor in London, you should consider getting in touch with us. We have years of valuable mortgage experience and we know exactly what you need for a great mortgage application!
Whether you’re looking for First Time Buyer Mortgage Advice in London, Remortgage Advice in London, or something completely different, just know that we are here to help. Get mortgage ready and gain that special home buyer’s confidence with Londonmoneyman.
Home offices are constantly becoming more and more popular. Whether it’s down to the increase of Self-Employed workers or reworked business models, we are seeing a great amount of interest in them. With businesses having to adhere to the latest government guidelines, most employers have had to let their staff work from home. Whether this is going to be a permanent thing or not, we don’t really know; it also depends on your company’s business model.
If it’s looking like you’re going to be working from home for the foreseeable future, you may want to consider the idea of investing in a home office. You can’t work from a kitchen counter forever… can you?
There are a few different ways to get a home office, you can straight-up pay for one to get decorated and combine all of the costs, do it all by yourself or remortgage for home improvements. In this article, we are going to talk about the advantage of choosing to remortgage other the other options.
This is our remortgage for a home office video that is featured on our YouTube channel ‘MoneymanTV’. We hope that it helps you understand how you can remortgage for a home office:
First of all, what is a remortgage? A remortgage is a renewal of your current mortgage deal or a switch over to a new deal.
There are lots of different reasons why someone may want to remortgage, it’s entirely on the individual’s situation. You may want to remortgage to get a better deal and rate, your term may be approaching its end and you need another deal to roll on to or you might want to remortgage for home improvements.
As a Mortgage Broker in London, we would say that when you want to make big home improvements, going down the remortgage route is a very safe option. Extending your mortgage term for a little while longer to invest in home improvements could prove beneficial both short and long term.
Remortgaging for home improvements will slightly increase your mortgage payments each month, however, it will balance itself out in the long run. Your payments will increase as you are paying for the home improvements on top of your current mortgage deal; you will hardly notice the extra amounts though.
We would say that the average price for a home office is between £5,000 – £10,000. So, for example, if you were to go down the remortgage route, you may find that you have to only have to pay back as little as £20 – £60 a month over a 25-year term. Yes, your term will increase, however, you will get a brand new home office to enjoy at a small extra cost each month. You will also have equity built up in your property, and this will be used to fund the work on your home.
So you get to save money down the line and get a home office, it’s a win win scenario.
Whether you have been told by your company that you will be working from home from now on or have started your own company and are now Self Employed in London, there are many reasons to why investing in a home office could be very beneficial for your new working from home life
Yes, Moving Home in London is an option, you could move into a bigger place with an office already built-in if you want to. On the other hand, you need to weigh up the costs of this option. On top of the property price, you will have to consider the costs of Moving Home in London, these include removal fees, property survey fees, mortgage arrangement fees etc.
It will be more expensive, however, it’s a viable option if you are looking at Moving Home in London anyway. You could consider Moving Home in London to secure a place that already has an office space, however, you must know that this option will be much more costly than remortgaging.
Considering how little extra you will be paying per month, in the long run, remortgaging for home improvements could be your best option over moving home. If you are wanting to go ahead with a remortgage for a home office and don’t want to move home, now is your best opportunity to get Remortgage Advice in London.
If you are looking for Remortgage Advice in London, you should get the ball rolling with Londonmoneyman. We offer a free remortgage consultation to every customer, so feel free to get in touch with us and claim it.
If you are tired of working from your kitchen table or a make-shift desk, now is the time to consider getting a home office. Whether you choose to fund it all at once or over a longer period of time through a remortgage, it’s entirely up to you.
It’s never planned and it’s always devastating when it happens, however, when it comes to divorce or separation, there are a lot of legal and financial matters that will you’ll need to resolve before you go your separate ways. Unfortunately, things don’t always go as smoothly as anticipated and that’s why it’s better to know what’s to come rather than be unprepared.
Your Specialist Mortgage Broker in London has put together a list of the three most common questions that we get from customers going through a divorce or separation and need our help. We hope that this puts you at ease knowing that you aren’t the only one who has searched for advice in these hard times.
Buying a home together is a huge financial commitment, so as you can imagine, getting a name removed from a mortgage is not always easy. In fact, making any sort of changes to your mortgage can be hard unless you’re coming to the end of your mortgage term.
If there are children involved, things can get a little more complicated. In most cases, we see that the mum stays in the property, but either way, it may come down to whoever is “in situ” takes on the responsibility of the mortgage.
When you are trying to remove an ex-partner’s name from a mortgage, you’ll need to supply evidence that you’re going to be able to meet your mortgage payments on your own. Lenders will study your salary and your disposable income and then work out whether or not it’s realistic that you’ll be able to hold your own weight.
Your lender will also measure your ex-partner’s affordability and check whether they will be able to afford a mortgage on their own going forward. They will perform a full affordability assignment on both you regardless of whether you have kept up-to-date with your mortgage payments in the past or not.
You must know that since you joint bought the property with your ex-partner, your lender can pursue either of you in the event of mortgage arrears.
If you want to remove your name from a mortgage it’s a similar process to how you remove your ex-partner’s name. Although, in this situation, you are the one that is trying to vacate the property and move on which can sometimes cause some difficulties.
This may cause difficulties as you will need consent off your partner that you can take your name off the mortgage. Your lender will also perform a full affordability check on your ex-partner to check whether they’ll be able to afford their mortgage payments or not.
If you are given consent to remove your name off the mortgage and your partner is able to afford the mortgage payments on their own, it’s in no doubt that you’ll eventually start looking for your own place. If or when you do, you should know that your lender will take the mortgage payments from your old property into consideration. Some lenders will be generous, some will be strict. Finding the most suitable lender for you can be hard and that’s why we recommend in getting Specialist Mortgage Advice in London, especially when going through a divorce or separation.
In some scenarios, there may be someone there to offer a helping hand with the mortgage payments. More often than not, family members may help out or in other cases, there may be a new partner that is willing to step in.
If this is not your situation and you are planning to pay for your mortgage payments by yourself, don’t be ashamed of getting advice from an expert! Our Mortgage Advisors in London are experienced in this specialist field and know exactly how to help. Getting help with your finances or with removing your/ex-partner’s name off a mortgage could take a heap of the stress of your back. We want the best for you at the end of the day.
Yes, in fact, you can own multiple mortgages, however, before getting accepted for another mortgage, your lender will take a look at many different factors. When they are checking your file, they will be able to see that you are still linked to another mortgage.
They will check how much you are contributing to these mortgage payments and check whether or not you’ll be able to manage additional mortgage payments on top of them. Lenders will also factor in any other credit commitments that you have.
Lenders will also account the risk factor, for example, how likely is it that your home is repossessed because you couldn’t afford your mortgage payments. They won’t take any risks either.
If you’d rather get an affordability check before you directly approach a mortgage lender, you can approach a Mortgage Broker in London like us. We will perform our own credit check and affordability measures to find out whether it’s realistic that you’ll be able to afford another mortgage.
We have Mortgage Advisors in London that specialise in this field, so don’t hesitate to get in touch with us. We are more than happy to help.
Is your mortgage deal coming to an end? Are you looking for a replacement deal to switch over too? If so, your Remortgage Advisor in London is here to help!
Whether you’re looking to Remortgage in London to save money or to raise capital for one reason or another, then you’ve come to the right Mortgage Broker in London. We have been helping customers find outstanding remortgage deals for 11 years now, we know exactly what to do to find you an amazing deal.
For some borrowers, remortgaging can be a great way to improve your financial situation as it may give you the option to consolidate any short-term debts.
Getting Remortgage Advice in London could be within your best interests as you will receive full guidance and support from an expert Remortgage Advisor rather than doing it by yourself. A Mortgage Broker in London like us, will not only help you secure a deal they will try and help you save money in areas you didn’t think you could.
Having worked within the mortgage industry for over 11 years, we have come across almost every single remortgage scenario. Here are some that we regularly come across:
With the introduction of the new mortgage market regulations in 2014, it became much harder to Remortgage without the help from a Mortgage Broker in London. People find it hard because of the sheer amount of mortgage types out there and it’s often hard to qualify for every single one of them. Also, people don’t really know the differences between the mortgage types whereas a Mortgage Advisor will and can tell you the difference between each of them and which one will suit you the best.
We also work for you, we are not tied to any particular estate agents or lenders. We always have your best interests at heart, our aim is to try and find you a great mortgage deal based on your personal and financial situation.
Your experienced Mortgage Broker in London is not just here to get you a remortgage deal, we are here to support you through your remortgage journey, taking all of the stress off your back and making the process run as smooth as possible. We want the best for you and for you to come out smiling, knowing that you’ve received an excellent mortgage advice service that ended with you securing an amazing remortgage deal.
As your Remortgage Advisor in London, we are here for you from 8am-10pm, 7 days a week. You can get in touch whenever you want, we work around you. We also offer a free initial mortgage consultation, so make sure to get in touch as soon as you can!
Over our past 11 years of working within the mortgage industry, we have helped thousands of First-Time Buyers in London secure excellent mortgage deals. It could be you next!
As your Mortgage Broker in London, we will search through 1000’s of First Time Buyer mortgage deals for you until we find one that’s perfect for you. We will take both your financial and personal situation into account when trying to find you a mortgage, this way the deal will benefit you in both ways.
Due to a highly competitive market, First Time Buyers often struggle to secure competitive mortgage deals. However, this could also be down to not knowing where to look. As a Mortgage Broker in London, we have access to a panel of 38 different lenders each with their own unique deals that we can search through for you.
There are lots of different types of mortgages available on the market and sometimes the choice can be overwhelming. We hate seeing struggling First Time Buyers stressing about their mortgage and struggling to find a deal, and that’s exactly why we want to offer a helping hand.
We consider all situations at Londonmoneyman and we will try to get over any mortgage hurdles that we are faced with.
After working with thousands of First-Time Buyers in London, we came across a lot of similar mortgage situations:
We have also encountered a lot of similar mortgage problems when starting the First Time Buyer mortgage process. Usually, the applicant has been turned away from their bank and we are faced with the same reason to why you were turned away. However, we aren’t letting it get in the way, a Mortgage Advisor in London will try their best to overcome these hurdles. Here are a few:
If this is your situation, it is important that you don’t keep applying to different lenders. This is because each time you get declined, a negative print is being left on your credit file. If you get declined too much, you could potentially lose all chances of getting a mortgage altogether.
Throughout the year we are always helping out charities where we can. This involves making donations, sharing images, educating the workplace and those who follow us online. When we saw that the 18th October 2019 was going to be a charity day bringing awareness to another great cause, we just couldn’t resist taking part.
The occasion was to raise money and awareness for Breast Cancer Now, a charity that aims to help fund a future where everyone who develops breast cancer survives, living a long and fulfilled life.
Merging with Breast Cancer Care earlier this year, they’re supporting nearly 450 of the world’s best researchers across the UK and Ireland, to try and make a better life for anyone affected by this awful disease.
We started our charity day, by arriving in our pink t-shirts (Compliance Manager Paula also opted for big pink heels) and getting everyone “glittered up” with pink glitter on their faces, hands, arms and beards. Then as the day went on, things got wilder! We had photoshoots with all the staff, a quiz was passed around (it was a lot harder than it looked), there were a variety of cakes dotted around, and we even had a raffle – Everyone loves a good raffle!
Overall the day was fun and full of excitement, finishing off with the fantastic news that we’d raised £161 for Breast Cancer Now. We’re incredibly grateful for all involved and their willingness to shed light on a cause that desperately needs more attention. In particular, we want to say thank you to our very own Mortgage Administrator Kayleigh Steward, whom without we wouldn’t have had this brilliant day.
When your current mortgage term is approaching its end, your lender may offer you a new deal to switch over to, this is known as a product transfer. You aren’t switching lender; you are just switching to another one of their deals.
You are under no obligation to stay with your lender, you can search around elsewhere for as many deals as you want. In fact, most people shop around, you may end up finding a better deal by doing so.
Unfortunately, the answer is no. Lenders will not reward you for loyalty, and that’s why, as a Mortgage Advisor in London, we always advise that you look elsewhere for a deal first. Most lenders prefer to offer better deals to First Time Buyers and new customers before their existing ones.
As a Mortgage Broker in London, we would recommend that you don’t be loyal to them and try searching for more competitive deals that could save you some money. We often find that there is a better deal out there, you just need to find it.
This is where we come in, we will search through 1000s of mortgage deals for you until we find the perfect one for your personal and financial situation. We have over 38 different lenders on panel and we can individually look through each one until we find a competitive deal for you. 90% of the time, we will find you an amazing deal that will save you both time and money.
We know that it is extremely easy to switch over to a new deal online, we sometimes don’t blame people it’s that easy! However, it’s also very easy to make a mistake online and it could end up getting you on the wrong deal. If this happens to you, you are in a sticky situation as you chose to take no sort of financial advice, which lenders will have no sympathy for. Lenders like customers that switch over online as they end up making more money from you.
If you want the same fast service along with expert financial advice, you should approach a Mortgage Broker in London. For example, at Londonmoneyman, we always have your best interests at heart, we will always try to find the best deal for you and not for us. We aren’t tied to any lenders so we are free to choose any mortgage product that we think will benefit you the most.
As soon as you choose an online switch, you are waving goodbye to your consumer rights and protection that you would’ve got had you gone the Mortgage Broker route. It’s perfectly normal to conduct a mortgage switch online, we are just asking to be careful as we have seen customers fall into these traps before. Just because a deal is cheaper than your current one, doesn’t mean that you will match its criteria.
At the end of the day, we want the best for you, we want you to come out with the best remortgage deal/ product transfer possible. If you have any further questions or concerns about your remortgage, feel free to get in touch as we would love to try and help you. We know that remortgaging can be stressful and that’s why we are here to offer a helping hand through your remortgage journey.