There’s always going to be a chance that you will come across some problem(s) that’s stopping you from getting a mortgage. A mortgage can sometimes be complicated, especially if you are in a complex situation!
As a Mortgage Broker in Birmingham, we encounter all different kinds of mortgage hurdles. Having had over two decades of experience, we have faced most of these complex situations before and know precisely how to deal with them. However, if we haven’t come across a situation before, we will still do everything within our power to help you along your mortgage journey. You may be unaware of the majority of these hurdles if you are a First Time Buyer in Birmingham. We hope to help!
Since there are many hurdles that people have encountered, it would be an endless list if we covered them all. Here is a breakdown of the top five mortgage hurdles that you may face during your mortgage application.
It’s uncommon for your mortgage application to be turned away due to you having children. However, your offer is likely to be a little lower than if you didn’t have children.
Lenders have to be 100% certain that you can afford all of your mortgage payments on top of your current expenditures. Childcare costs play a part in your expenses each month. They have to compensate for these costs as they can sometimes run into hundreds of pounds per month. Childcare costs don’t go down. They only really go up! They treat this financial commitment the same way they would treat a car loan or hire purchase.
Even if you don’t have nursery fees to pay, in some cases you may still get offered less than buyers who don’t have children. The good news is, though, if you do have children and are in receipt of tax credits, some lenders will take these into account as well as child benefit.
It’s unfortunate when it happens, but if you and your partner decide it’s best to split, you may have come across some financially related problems, particularly if you have a joint mortgage.
Lenders may struggle to accept your application if you are still financially linked with someone else. They don’t want you to have two different sets of mortgage payments to meet each month; it could be too much for you to maintain.
When people need guidance with their mortgage in this situation, and they come to us for Specialist Mortgage Advice in Birmingham, we often get asked the same sort of questions:
???? How can I remove my ex’s name from my mortgage?
???? How do I remove my name from my ex’s mortgage?
???? Can I have two mortgages?
When facing mortgage hurdles like these, it can get very complicated, very quickly. More often than not, there is a solution to these scenarios, and we may be able to help around them. With an expert Mortgage Broker in Birmingham by your side, we will take as much stress away as possible during these challenging times.
Lenders will have different viewpoints on benefit income; Benefits such as: child tax credit, working tax credits and disability allowances could be taken as income with some lenders.
If you need further advice about mortgages and benefit income, feel free to get in touch with our team. We will look over your situation for you and try to match you with a lender that will consider your benefit income, and we aim to get it right the first time!
Usually, a new job comes to a bigger salary, and this extra income goes towards something like a new mortgage. Naturally, you would expect that this means that you are more likely to get a mortgage. However, this is sometimes not the case.
Usually, when you start a new job, you’ll have a probationary period. Probationary periods are generally okay. However, there will no doubt be some uncertainty there. Some lenders may only accept you once you have job security. It’s just down to the lender and mortgage costs.
Lenders will also look at your previous places of employment to determine your work patterns. They need to be sure that you aren’t just dipping in and out of work. Gaps in employment can harm your application.
Some lenders will work from a newly signed employment contract even in your first month.
All mortgage lenders and mortgage brokers legally have to evidence the source of the borrowers’ deposit funds for any purchase. They use this to battle money-laundering and prove that the applicant has raised funds legally. Your solicitor and estate agent may ask for evidence of your deposit also.
Whether your deposit is from savings, premium bonds, the sale of another property, gifted from a family member or friend, from family overseas, or a personal loan, you are required to have the paper audit trail for the accumulation of funds.