Acquiring a mortgage is not something to be taken lightly. After all, it’s basically a loan that you will have to pay for the next decade or so of your life. But for most of us, a mortgage is the only way to go if we want to buy the property of our dreams. In the UK (as in anywhere else), mortgage applications entail a bit of time and effort on your part. You have to understand from the beginning that it can be quite a complex process, and you need to come up with all the requirements of the lender.
What you should expect
First of all, remember that the application process for a mortgage will generally vary – it will depend on your chosen mortgage lender as well as your own situation and circumstances. However, most lenders will want the same kind of basic information, and they will also perform the same kind of background and financial capability checks.
What you need to present when trying to apply for a mortgage
Your income details are very important when you are thinking of getting a mortgage – and this will not just include how much you are earning per month, but how you are earning it. For instance, if your salary or income varies from month to month, the lender may compute the average of your income over a certain period of time, depending on their discretion. Additionally, if you are a self-employed individual, you may also need to present proof of your capacity to pay (in other words, your income) from three years in the past or less. If you have income coming in from another source, this may also be assessed by the lender. This would include income such as benefits, investment income, income from rent, or pensions.
Other data needed by the lender
Mortgage specialists such as www.seacco.co.uk also recommend that you should remember to present other pieces of information that may be required by the lender, such as the details of the home or piece of property you would like to buy (where it is, how old it is, the type of structure, etc.); your timeframe for retirement so they will know if your mortgage exceeds your retirement age; your usual monthly expenses (including food, transport, and utilities); and other existing payments or financial responsibilities such as payments for loans, credit cards, and hire-purchase agreements.
Remember also to present all of this, if you can, in written form and properly documented – bank account statements, payslips, and more. The more documents and paperwork – namely, evidence – you can present, the better it will be for your mortgage application. And of course, the higher the deposit you can come up with, the better your chances for a better mortgage deal as well.