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LOOK GOOD TO A LENDER

How best to prepare yourself to get the mortgage that’s right for you -

  • Make sure you manage your finances well - Good conduct of your bank account is a major factor in whether a lender will agree or decline your application
  • Don’t go over your overdraft limit - Another big red flag to lenders
  • Don’t apply for any more credit - i.e. loans, credit cards, car finance/lease, store cards, interest free. Doing this can have a major impact on any application from both an affordability and credit score point of view
  • Avoid pay day loans at all costs - Simply seeing these on your bank statements or credit file can lead to an automatic decline from a lot of lenders
  • Regular and frequent online gambling transactions are another thing lenders don’t like to see on your bank statements
  • Running quotes for insurance on one of the numerous online comparison sites can also have an impact on your credit rating so should be avoided
  • Obtain a copy of your credit report from https://www.checkmyfile.com/?ref=mortgage1st&cbap=1&tap_s=253629-156973 You get a free 30 day trail and this won’t impact your credit rating. Checking your credit file in advance can be vital to ensuring you get the right mortgage deal
  • Get on the voters role - Not being registered at your property can have a major impact on your credit rating and could lead to you being declined
  • Lenders also don’t like it if you have numerous credit cards that are up to or very near their credit limits
  • Don’t miss any payments - Banks & Card/loan providers will sometimes agree for you to pay something a few days late but often this will lead to them recording a missed payment on your credit file which may mean you are declined for a mortgage
  • Having no credit can sometimes be as problematic as having bad credit – If you have never had any credit lenders have nothing to gauge how well you pay it back. Getting a small credit card and paying for things such as shopping or petrol and then paying it straight off will help improve your rating

GET YOUR DOCUMENTS READY

As a minimum we will need:

  • Proof of ID and address (Ideally passport and driving license)
  • Last 4 months bank statements - These must cover the full month and show all regular expenditure and income. If you have more than one account showing these, we will need 4 months’ worth for all accounts
  • Proof of income – Last 4 months pay slips for all jobs and 3 years SA302s & tax year overviews if self employed
  • Proof of deposit (if you are buying a property)

These are the very minimum you will need, depending on your situation there could be more needed but your broker will confirm that

OTHER USEFUL BITS

  • We will need a full 3 year address history. Make sure this is as accurate as possible and includes all your previous addresses during that period and you provide the post code for each
  • We will also need a full 12 month employment history (Where applicable), again as accurate as possible with the correct dates and explanations for any gaps
  • We will need details of any credit commitments you have i.e. loans, credit cards, car finance/lease, store cards, interest free. For each we will need to know exact balances, monthly payments and who the provider is - If you don’t know this information you can either ask the debt provider or get it from your credit report
  • If you want to consolidate any debts within your remortgage we will need an up to date statement for each showing the interest rate

https://www.newoakestates.co.uk/mortgages