Mortgage Protection Insurance is a term used to encompass various types of cover designed to protect borrowers from events that could severely impact their ability to maintain mortgage payments.
There are different variations but when connected to a mortgage they are all there to provide peace of mind and usually fall into the following categories:
As a rule, if the policyholder dies within the term, then the sum assured should be enough to pay off the outstanding mortgage balance and ensure the borrower’s dependents aren’t left with a debt they might not otherwise be able to manage.
Our Mortgage Advisors in London can run through all the different types of life cover and recommend the most suitable plan for you.
Critical Illness Insurance works in a similar way to Life Assurance, in that it is usually taken for a specific term of years and can have different options such as level/increasing etc.
It is designed to pay out a lump sum and, like Life cover, for borrowers, it is typically taken on a decreasing term basis in line with the reduction of your mortgage balance.
The key is that the benefit is paid if you fall victim to one of a number of specified critical illnesses and pays out whatever the long-term prognosis of that illness.
The type of illnesses covered vary from company to company, that’s why this type of insurance cannot be solely price-driven and advice is recommended.
In practice, many companies will offer Life and Critical Illness Critical cover as a combined policy and would usually payout on the “first event” i.e. whatever happens first | either death or a serious illness | the pay-out is made. They can also be written on a single or joint life basis.
Whereas Life and Critical Illness cover pay out a lump sum, Income Protection pays out a monthly sum designed to replace your wages in the event of you being unfit to work.
Unlike Critical Illness cover, there are no restrictions on the illnesses or injuries covered, the only factor being whether they make you unfit to work. There are however restrictions on how much you can cover and how quickly benefits would start to be paid.
Like Life and Critical Illness cover, these policies are underwritten based on your health and lifestyle at the time you apply. All income protection policies are written on a single life basis.
There’s an adage that says you can never have too much insurance. Certainly, many people have one or more of the different types of policy and it would be wrong to think of Mortgage Protection Insurance as just an “either/or” choice.
However, in the real world, affordability plays a massive part, so whilst it would be fantastic to cover yourself for every potential opportunity, our Mortgage Advisors in London will help you and tailor the type of cover to be the most suitable combination to your family’s priority and budget.
Being a first time buyer in London the process of buying a home, you will have no need to go to an Estate Agency Advisor. The Agent themselves may put forward the words implying that you will lose the property if you go with someone else but that isn’t the case. Estate Agents earn commission from when additional services are utilised by customers.
What they will not tell you is that there are several other ways you can arrange a mortgage without using the Estate Agent and in this article, we’ll help you decide who to use for your mortgage and how to make sure you are receiving the full value for your money.
Options are available online such as price comparison websites to let people know of available rates. Though it’s important to keep in mind that you will need advice at some point during the process because buying a house is a very big deal and it’s important that you get it right.
The option of arranging a mortgage with your bank is also an option. Many people do this but it is less common nowadays. The trust that people hold towards banks is less frequent than what it used to be.
Some homebuyers can be reluctant if they have to hand over their financial details to an Estate Agent and become dubious that the vendor may find out they are in a strong financial position and end up paying more than they should for the property.
Some Estate Agents might imply that their vendor would prefer you to go along and arrange a mortgage in-house. Although this won’t be entirely true, the vendor simply cares about the individual being in a financial position to proceed.
Make sure to see a Mortgage Broker in London which isn’t connected to the Estate Agent and ask for an Agreement In Principle. From this, you will then be able to provide this document to the Estate Agent to prove that you are in a ‘proceedable’ position. You will also be asked to evidence your deposit and ID.
A reliable Mortgage Broker in London will offer to guide you through the full process of buying a home to make sure that you are provided with transparent, open and honest Mortgage Advice in London. Be sure to take up the advantage of a free mortgage consultation and find a Mortgage Advisor in London you like and trust.
Nowadays there are well over a million people in the UK working in the ‘gig economy’ as contracted workers. Because this career is technically freelance and they’re working short term contracts, a lot of these people aren’t entitled to many benefits that permanent employees get e.g., sick pay or holiday pay.
We’re finding that most of these workers are either operating in some form of professional service, are both skilled and unskilled manual workers (e.g., carpenters, electricians etc.), and due to the increase of internet based shopping, many are now taking up careers as couriers and delivery drivers.
Unfortunately, gig economy workers will naturally find it a lot more difficult when trying to obtain a mortgage, because the mortgage lenders will be treating them as self-employed mortgage applicants.
For you to increase your chances of having a successful mortgage application, an applicant will need to demonstrate a strong history of employment. One year’s history is probably the minimum that will be required to qualify for a mortgage, unless you have an upcoming contract set to last for quite a long duration. If your contract is due to last a few years with the same company, you may not be seen as self-employed, depending on the lender.
If a lender opts instead to treat a mortgage applicant as a sole trader, then you will need to provide the lender with proof of your net profit. This is the amount that is earned in total, with expenses taken off. For this, you may find that you need the services of an accountant.
If the person applying for the mortgage has set up their own limited company, then the majority of lenders will be making their calculations based on the total of declared salary plus dividends.
The way that mortgage lenders are choosing to assess contract workers seems to be a lot more flexible now, likely due to the high number of them currently existing within the economy. If a person has been working this way for a while and currently holds a contract, then depending on the industry, some may have their incomes assessed through their ‘day rate’.
If day rate is assessed, they will take that amount and then times it by 5 and times that total by 46. The reason for this, is lenders know that a Contractor is unlikely to work 52 weeks a year, even if they are not paid for any holidays they take. As such, they work off a 46 week basis. This method of calculating works well for IT contractors especially, as they have the options to choose what contracts they take and when.
If an applicant is self-employed in London, it is advised to be organised as best as you can, collating what is needed in advance prior to applying for a mortgage in the same way that a contractor applicant would. It’s also important to remember that if you are wanting to apply for a mortgage, a potential lender will be wanting to see healthy levels of earnings that are sustainable. As such, you may end up paying a bit more tax.
Regarding the place of zero-hour contracts in all this, it is possible for someone with these who is applying for a mortgage to obtain one too. Once again, a mortgage lender will want to see 12 months’ earnings before it is possible to apply for a mortgage. They will consider taking an average of earnings, rather than a full year.
There are various different reasons why someone may want to move home, ranging from common to unique. For the purpose of this article, we are going to narrow them down to the most common reasons that we have come across throughout our time as a mortgage broker in London:
Over our years of service within the mortgage industry, we’ve heard of many borrowers that wanted to move home down the size of the property they currently live in.
This is something that we often foresee with customers, as first time buyers in London usually go for a smaller property to start with, only for circumstances change down the line and leave them needing a much bigger living space. An example of this is that they may be looking to start a family and are in need of some extra room. Alternatively they might just generally want a bigger home than they currently have.
Rather than moving home in London, some homeowners look to raise capital by taking out remortgage in order to fund home improvements, such as to build an extension/conversion. This is an increasingly popular option, especially with growing families and could give that extra bit of space you need, whilst retaining a place that no doubt has grown in sentiment over time.
It seems to be quite commonplace for parents to look at converting their loft into a bedroom for a child, leaving any available spare rooms free to be converted into something like a home gym or home office.
There are endless possibilities. People may also take out a remortgage for home improvements, in order to raise the value of the property, just in case they ever look to sell it. This creates opportunity for turning a larger profit from the sale.
In the occasional case, we hear that some homeowners simply wanted a change of scenery and were quite intrigued to try out completely different areas.
You’ll commonly find that this section of borrowers tend to once again be first-time buyers, who had a limited budget and stuck with a lower-end property for the time being, due to slightly more reasonable house prices. It’s likely that these borrowers now have a higher income than they used to and are wanting to live in a more affluent location.
People don’t really factor in the choice of schools on offer when moving into their first home, as at that point in time, the notion of starting a family might not have even been a thought. Homeowners who have started a family of their own or have definite plans to will always make sure they research accessible education within the area they’re interested in moving to.
When taking out their free initial mortgage consultation, some customers tell us that the reason they wanted to move is to be closer to both their friends and family. This sort of situation comes up when couples start their family.
If both parents have full time careers, then they will tend to ask their own parents to help them out with childcare, as a means of cutting costs. Private nurseries are rather expensive to factor into your regular outgoings, especially with a mortgage in tow, and sometimes parents find it hard to work around nurseries due to the travel times.
If you are thinking of moving home in London, you may be interested to know roughly how much moving home will cost. Get in touch with a mortgage advisor in London and they will help you calculate your maximum borrowing capacity, giving an estimated quote on what your monthly payments could be.
For those looking at remortgaging, potentially for home improvements, get in touch today and speak to a dedicated remortgage advisor in London.
For the most part, married applicants will choose to take out a joint mortgage, rather than one half of the couple taking out a sole name mortgage. The reason for this is because in a lot of cases, utilising two salaries together will allow for you to qualify for larger mortgages, which can be used for larger or more expensive property.
That being said, you may find that there are situations where one salary is more than enough to justify the amount you’re looking to borrow. There may also be other reasons as to why one applicant doesn’t want to go on the application.
A common occurrence that we find pops up during these circumstances, is that one applicant has a previous credit problem, such as bankruptcy or a CCJ. This can unfortunately stop some applicants getting a mortgage. In these cases, taking out a sole name mortgage could be necessary to purchase a home, though this would mean that the spouse or partner would not be connected financially.
It is important to note that creating a financial association with your partner is risky, as if they handle their finances poorly, your credit score could be affected.
Another example of where it may be beneficial to make a sole name mortgage application might be when one person is out of work. Generally speaking, the maximum amount a couple will be allowed to take out (borrowing capacity) is lower than it would be if the working applicant happened to take out the mortgage in their sole name.
Age can also become a factor of the calculation, especially if one of the applicants is over the age of 50. An example of this, is let’s say you are a first-time buyer in London who is planning to buy with a younger partner.
If your partner is earning a substantial amount, being tied to someone who is a bit older may limit the amount they could earn, thus leading them to apply in their own name.
You may find that there are stamp duty or other tax implications which could lead to an applicant having the preference to apply on their own.
Some lenders may have stricter criteria when it comes to married applicants having to apply for mortgages in joint names. The reason for this is because they are very likely to be concerned that this could in some way affect their future security, especially if the couple were to ever unfortunately split up.
Luckily not all lenders share this view, as it is a little prejudicial. If you would like to discuss your circumstances and get the ball rolling on your mortgage, please get in touch. Our experienced mortgage advice team are here to help all customers, whether you be moving house in London or a first-time buyer in London, 7 days a week.
If you are looking to figure out roughly how much you are able to borrow for a mortgage based on your household income, it may be worth your time taking a look at our free mortgage calculator.
If you would prefer to have a more accurately estimated mortgage affordability figure, please get in touch and we’ll book you in for a free mortgage consultation to speak with one of our mortgage advisors in London.
As an experienced mortgage broker in London, the two most common questions we find that first-time buyers in London and home movers in London ask us are, “can I get a mortgage in my situation?” and “how much can I borrow?” In this mortgage guide, we will be taking a closer look at the latter of the two, in which we will take a look at how things were historically, followed by what happens now.
To skip past the historic rules and just see where we are today, please click here.
Taking a look back to the 80s and 90s, pretty much all mortgage applications were manually underwritten. What this means is that the process of approving mortgages was very much left to real people and not just machines. You would call up your local building society, book in for an appointment with your building society manager, and they would interview you to discuss the case you have presented them with.
From there you could probably guarantee that this would inevitably turn into a sales pitch, where they would encourage you to start saving with them for a while until you can prove to them that you are creditworthy. The manager would then grant you what was a past equivalent of today’s Agreement in Principle. Following this, the customer would then be given some advice on the amount that they may be able to borrow.
Whilst from the outside looking in this sounds very much like a highly personalised process with a simple and common-sense approach, it had a habit of leading to rather inconsistent decision-making. The manager had the discretion to interpret the lending manual in the way that they wanted to. In other words, it was realistic for you to approach the same building society in a different location altogether and leave, having obtained an entirely different outcome than the more local branch you had gotten in touch with.
To make sure this was prevented and more importantly, to cut any costs that weren’t necessary, lenders moved to automated affordability calculations. We saw caps introduced, which were applied as a means of allowing to lend customers sometimes 3 or even 4 times their annual income.
As we headed towards the 2000s, lenders relaxed themselves even more, becoming arguably even too generous in how much they would be willing to lend their customers. Some lenders would offer out self-certified mortgages, a process that meant no background checks would take place and the customer could self-certify their own income, even if the amount they were declaring was falsely inflated.
The market fell apart and these kinds of practices brought about the infamous Credit Crunch of 2008. The years that followed, between then and 2010, were incredibly challenging times. This was especially the case if you were trying to get onto the property ladder for the first time. It was at this point lenders had to change and much stricter lending criteria had to be put in place.
Through lots of dedication and perseverance, the market recovered. In 2014 the regulator launched the Mortgage Market Review (MMR), a brand new and completely revised set of guidelines for lenders to follow in order to prevent the Credit Crunch from happening again. No longer were the old-style income multipliers available, which took little account of household spending habits.
It may come as quite the surprise, but prior to 2014, whether their credit histories were good or bad, two applicants that were earning the same income could more or less be able to borrow the same as each other. This was also not factoring in how much they were regularly spending. From that point came all-new affordability models, taking a much more forensic view of how exactly those who are applying for a mortgage handle their finances.
As well as this new cap, typically the majority of mortgage lenders will no longer go past 4.75 times your annual income, and they prefer to have an in-depth analysis of your spending habits. Your habits may entirely depend on your individual situation, such as having high childcare costs, a potentially large amount of credit commitments, and in some cases, any student loans to pay off. In cases like these, a mortgage lender will most probably offer you less than say your work-colleague who has far less outgoings.
We are always surprised by the large differences between lenders in how much, or little they will lend to some customers. From time to time, some lenders have been known to penalise low-earners. It could just be that they are not looking for that type of applicant. Some take pension contributions as a fixed outgoing so may lend, for example, a public sector worker with a significant pension deduction, less than a private sector worker.
Each of these different lenders have their own unique lending criteria, and each customer has their own situation unique to them. If you need to maximise your borrowing capacity to have a chance at buying your dream home, then you’ll definitely benefit from the expert advice of a dedicated and experienced mortgage broker in London. Our team will be able to search the market on your behalf, to try and match a you to various lenders criteria.
If you find yourself wanting to know exactly how much you should borrow for a mortgage and are ready to go, please do get in touch and speak to one of our mortgage advisors in London today. We’ll sit and work out your finances with you, to ensure you are comfortable with the amount you’ll be paying back each month.
A 95% mortgage is as simple as the name would suggest; you are borrowing against 95% of the price of a property, and then you are covering the remaining 5% with your deposit. An example of this is if you looked at buying a property that was worth £150,000 with a 95% mortgage, you would be putting down £7,500 as your deposit and borrow the remaining £142,500 from the lender.
Off the back of the March 2021 Budget, Boris Johnson announced a Mortgage Guarantee Scheme for mortgage lenders, making 95% mortgages more readily available from the bigger high street banks.
This is fantastic news for First-Time Buyers and Home Movers alike, as this scheme will continue running until December 2022. Certain terms and conditions will apply though, which is something your Mortgage Advisor in London will be able to look at, to see if you qualify.
All our customers who opt to Get in Touch will receive a free, no-obligation mortgage consultation where one of our dedicated mortgage advisors will be able to make a recommendation on the best possible route for you to take.
95% mortgages are usually accessible by both First-Time Buyers in London & those who are Moving Home in London. Whilst saving for a 5% deposit sounds like a pretty straightforward concept, you’ll still need to have an acceptable credit score and prove that you are able to afford your monthly mortgage repayments, in order to access a 95% mortgage.
A good credit score is essential in the process of obtaining any mortgage, especially a 95% mortgage. Things like paying any current credit commitments on time, ensuring your addresses are updated and checking that you’re on the voters roll, can all help with your credit score.
Affordability is another one that is important to take note of. By giving the lender details of your income and monthly outgoings (things like your bank statements will be necessary for this) and any pre-existing credit commitments, your lender will be able to get a general overview of whether or not you are able to afford this type of mortgage.
Nowadays we see lots of family members helping each other get onto the property ladder, especially parents looking to further their children’s lives. The way this usually happens is by gifting the person looking to find their home, the deposit required. Known through the industry as the “Bank of Mum & Dad, Gifted Deposits are only intended to be a gift, and not as a loan. The lender will need proof that this has been agreed, before it can be used towards your mortgage.
When looking for a 95% mortgage, you want to make sure you have the right type of mortgage. Each mortgage type works differently, with that choice allowing you to find one that is most appropriate for your personal and financial situation.
Some homeowners and home buyers prefer Fixed Rate or Tracker Mortgages, mortgage types which mean you either keep interest rates at a set amount for the term given or have your interest rates tracking the Bank of England base rates.
Alternatively, you might find that Interest-Only or a Repayment Mortgages are more your style. Interest-Only allows cheaper payments until you need to pay a lump sum at the end (mostly now used for Buy-to-Lets), whereas a Repayment mortgage (a normal mortgage if you’d like) means you’ll be paying interest and capital combined per month.
Seeing as a mortgage is such a large financial outgoing, you need to be prepared and need to be aware. You might find things like higher interest rates, remortgaging difficulties due to less equity and then negative equity all cropping up if you’re not.
There is no need to worry though, as all these can be avoided if you’re savvy enough with your process to begin with. The more deposit you put down for a property, the less risk the lender will see you as.
A larger deposit, of say 10-15%, would not only reduce the rates of interest by a noticeable amount, but would also give the property more equity and reduce the risk of negative equity, thanks in part to you borrowing less against the property.
So, whilst the risks may seem intimidating, planning ahead and saving for a bigger deposit to access something like a 90% or even an 85% mortgage will be a massive help in your mortgage journey and something you’ll be able to reap the rewards from in the future.
Each mortgage lender works differently, using their own different ways of deciding who gets accepted for a mortgage and who unfortunately doesn’t. Some lenders criteria are harder to match up against than others may be. The key to success all depends on how strict they are and how good your credit score is.
Through our many years of service, we’ve often found that mortgage applications are declined for no other reason because the customer does not meet the right criteria for that particular deal. It’s reasons like this why it’s always worth your time seeking the advice of a dedicated mortgage broker in London. Our team of experienced and loyal advisors will work hard to get you the most appropriate lender for you and your personal circumstances.
The first thing you should always do before you apply, is take a look at your credit file to see whether or not it is of a high standard. If it isn’t looking so good, then you will need to look at various ways to improve your credit score. Speaking with an open & honest mortgage broker in London, you’ll be able to learn what to prioritise when improving your credit score.
You must always remember that very few people indeed are realistically eligible for every deal that is available to them. This means that for the most part, homebuyers and home movers are just searching for the wrong mortgage deals. Just because you have seen a deal that is cheap and eye-catching, it doesn’t mean that you will pass the lenders criteria and qualify for that particular deal.
As an experienced and dedicated Mortgage Broker in London, we would always recommend that you properly research into the different types of mortgages available or Get in Touch to benefit from a free initial mortgage consultation.
A regular occurance over our years of mortgage advice is customers using price comparison websites to find a mortgage in London. Whilst there may be nothing wrong with this, you need to remember that the price comparison websites are only able to analyse the different costs of mortgage deals, as opposed to matching you to all the different nuances of a lenders criteria.
This process can end up wasting a lot of time, as the mortgage lender may finally declines your case weeks down the line. It’s because of this that you may end up losing the property you were hoping to buy or breaking down a property chain that you were a part of. You may also find yourself getting declined because you picked the wrong mortgage, an act which could actually damage your credit score due to a failed application.
Customers may find themselves being eligible for a wide variety of mortgage deals, but in order to match the criteria for those deals, the lenders may end up only offering you a reduced deal. This seems to happen on a regular basis, with lenders first having a tendency to say that you can borrow a set amount, only to later change their mind and find a way to reduce the previously available mortgage.
As we’ve touched upon, all lenders have their own unique way of handling the mortgage process. You will often find that there is a big difference between mortgage lenders and it’s very unlikely that you are going to match up against all of their individual criteria. You need to narrow down your options and work out what the most appropriate option will be.
It doesn’t matter if you’re a First-Time Buyer in London or looking at Moving Home in London, we always believe that getting in touch for some expert mortgage advice will help you out during your mortgage process. Our dedicated team will support you throughout your journey, and try to find you the most appropriate mortgage deal for your personal circumstances.
Over the years we have worked alongside thousands of customers, assisting with specialist mortgage cases to help them find a level of success with mortgages that they otherwise thought they’d never achieve.
By approaching a trusted and dedicated Mortgage Broker in London, you’ll also be able to learn how best to improve your personal credit score, in the event of any unfortunate financial circumstances.
If you need help with a Specialist Mortgage situation, Get in Touch today with a Mortgage Broker in London for your free initial mortgage consultation.
In the time period that followed the credit crunch, during 2013, the UK Government introduced a new mortgage scheme with the intention of strapping a rocket to the property market and hoping to see it soar once again. This new scheme was called Help to Buy and its mission was to assist First-Time Buyers in London in finding their footing on the property ladder.
At long last, thanks to Help to Buy, there was confidence in the market once again. Things were not completely normal, however, as homeowners and lenders alike were still left a little cautious. Mortgage lenders were being very careful with who they lent to and how much they gave out to borrow.
There are multiple different Help to Buy schemes, with some going strong since 2013, and others that have not. One of most popular Help to Buy schemes is called the Help to Buy Equity Loan, a scheme that is still available to this day for customers to take advantage of if they need to.
If you are an inexperienced First-Time Buyer in London, the Help to Buy Equity Loan scheme could be an incredibly helpful way to get yourself onto the UK property ladder. There are requirements, but they are quite straightforward;
It’s at this point that the Government will loan you up to 20% to make up the total of a 25% deposit. For example, if you have a 10% deposit, the Government will loan you 15%; you have 7% they loan 18%, and so the pattern continues.
It is very important to remember that this Equity Loan is a loan and not just free money. This means that the loan will have to be paid back on top of your 75% mortgage. You get a period of 5 years to pay back this loan interest-free, though after these 5 years, you will start gaining interest on the remaining loan amount, starting at 1.75%.
You may have already accessed the scheme and have reached the 5 year period for your interest-free loan, unable to pay off the remaining balance before interest accrues. You may find the help from an expert Help to Buy Mortgage Advisor in London extremely useful as you may need to organise your repayments via the route of a Remortgage.
In taking out a Remortgage in London, it may be possible to combine your remaining mortgage amount and your equity loan amount into one set of monthly repayments. Once again, if you are struggling to meet your repayments, it may be worth your time speaking to a professional Remortgage and Help to Buy expert in London.
The Help to Buy Shared Ownership scheme was introduced as a means of allowing homebuyers to purchase a percentage of a mortgage and then pay the rest back with monthly rent repayments. The share percentage of the home that you buy will likely be between 25-75%. The remaining percentage on the property belongs to the housing association.
This means that you share the property and you don’t own every bit of it. The percentage of the property that you own can be increased further down the line. As an experienced Mortgage Broker in London, we usually find that people increase their share in the home once they have settled in or when they have more money spare to do so.
If you are in need of Help to Buy Mortgage Advisor in London, our team are here to help. As a company we have been helping struggling customers secure Help to Buy mortgages for many years now and know how to guide First-Time Buyers through the mortgage process.
Our advisors are available from 8am – 10pm, 7 days a week, so don’t hesitate to Get in Touch with us for expert Help to Buy Mortgage Advice in London.
Every now and again, we come across various mortgage hurdles. They’re not completely impossible to work around, but can often prolong the process. Below we have compiled a list of the top 5 hurdles we’ve come across in our time as a mortgage broker in London.
Through our experience of providing first time buyer mortgage advice in London, we’ve found that families are not normally turned down for a mortgage because of childcare fees. That being said, it is extremely common for a lower mortgage amount to be offered.
This becomes more apparent when parents have gone back to work and are paying out for childcare costs, as sometimes these can cost hundreds of pounds per month. These costs are considered by lenders as regular outgoings, the same as they would treat something like car repayments.
Even if there are no nursery fees to pay, parents on lower-income still generally get offered less than those who do not have children. The good news though is that the amount that families using this service can often be in receipt of tax credits and some lenders will also take these into account as well as child benefit.
There are lenders out there that have their own unique approach and don’t treat the nursery costs as a specific outgoing, opting to rely more upon Office of National statistics data for typical outgoings. This as you may expect, can often lead to a higher maximum mortgage amount.
It’s always a shame when a partnership ends, but often it’s for the better. Where it can cause problems, however, is when you have made joint financial commitments. Trying to fix that side of things does not always run as smoothly as you maybe would like.
Here are the three main questions we get asked regularly;
More often than not, there are ways around these and is somewhere we may be able to help, providing that you have enough income available and also are young enough for the mortgage payments to be affordable.
All lenders have their own views on benefit income and how much of it can be assessed. You may be pleased to find that all benefit income such as child tax credit, working tax credits, disability benefits, pension income can be taken into account in some form, when it comes to a mortgage. This is where the help of an experienced mortgage advisor in London can prove invaluable, helping you throughout the process.
Usually with a new job comes a bigger salary and the extra income to put towards a mortgage. Any gaps in employment and a new job can cause some problems for various mortgage lenders.
There are lenders who will work from a newly signed employment contract though, even if you’ve only just started or are soon to start a new job. They’re also usually okay with probationary periods.
For any purchase, all mortgage lenders require you to prove your deposit, as a means of showing you can in fact proceed. This is to satisfy UK Anti-Money Laundering Legislation. Your solicitor and estate agent may ask you to provide evidence of your deposit also.
We believe, that evidencing your deposit can often be the most complicated part of applying for a mortgage. Whether your deposit is from savings, premium bonds, the sale of another property, gifted from a family member or friend, from overseas family, or is from a personal loan, you are required to show exactly where your funds came from before you can go forward with a mortgage.
Please remember that the above information is for reference purposes only and is not to be viewed as personal financial or mortgage advice.