This section has the questions I get asked a lot by my customers. This is not an extensive list and I fully recommend you call me or arrange a meeting to discuss your individual needs.
I’m self-employed, can I get a mortgage?
Yes! Most lenders like you to have 2 years of self-employed income proof in the form of business accounts for Limited Companies and also your SA302s (The online summary of your filed tax return). There are some lenders who are happy with one years and an accountant’s letter to confirm their professional view on the likelihood of your income being mainitained or increased. If you have been working in an employed capacity within that industry and you have recently taken the step to become self-employed, there are lenders who allow for that within their criteria as you have previous knowledge and experience within the field.
I am on benefits, can I get a mortgage?
There are lenders out there who will not allow you to be in receipt of government benefits such as Universal Credit / Child Tax Credit / Working Tax Credit / Pension Credit, when you are working out your income. There are lots of lenders though who are happy to use all or part of these benefits if you are also working. It is possible, and we have completed mortgages for people who are in receipt of these with mainstream lenders.
I have a CCJ / default / IVA on my credit file, can I get a mortgage?
Yes! There are lenders out there who are willing to lend to individuals and firms with adverse credit, or blips as we prefer, such as a CCJ, IVA or default on their record. The criteria varies from lender to lender and as with all mortgages, there are multiple factors within a lenders criteria, but it is not out of the realms of possibilities. There are some mortgage lenders who do not credit check their customers and these can be a good option for those who have had some blips in the past. I recommend you sign up to Check My File to view your full credit profile and check what information the credit referencing agencies hold about you. Once you have that information, you can speak to us here at Youngs Mortgages and we will be able to advise you on the best plan of action to get you your mortgage.
How much can I borrow?
The million dollar question! This depends on many factors such as your age, credit commitments, dependents and your income levels. What one lender will be prepared to lend you may be less than another lender but generally you can borrow between 4.5 times and 6 times your annual basic salary. If you are using a lender’s affordability calulator, always go for the worst case scenario for your income – i.e. if you receive bonus, commission and overtime, leave them out and base the calculation on just your contracted annual salary. Working with YOungs Mortgages will save you the stress of finding a lender that will provide you with the funds you require based on your income and outgoings.
Why do I have to provide so many documents? Isn’t everything done online?
Getting a mortgage is the biggest financial commitment most people are likely to have in their lives. Following the banking crisis in 2007 – 2009, regulations have been tightened a lot and lenders require a lot of information. They need documentation to confirm the information being provided to them is correct. In order for us to remain compliant with our regulator – the Financial Conduct Authority, we need to make sure we have all the information a lender may ask for. This also helps us understand your needs better as we have a full view of your current financial situation and we will then be able to place you with the right lender quickly and get your mortgage offer issued quickly.
How long will it take for my mortgage to complete?
For a standard remortgage it can be completed fairly quickly, providing all the documents are received promptly and the lender has short assessment times. The complexity of the legal work that is required for any mortgage can increase the length of time it takes for completion to take place. I would expect a normal remortgage, that does not have any Early Repayment Charges on the current mortgage, to be able to complete within 4 – 6 weeks from application. However, this is subject to change depending on the complexity of your application. These are details that will be discussed in more depth at your initial consultation.
For purchases, there is a lot more involved from a legal point of view and can take, on average, 2 – 3 months for your solicitor and the rest of the solicitors in the chain to carry out all the necessary legal work required. If you require a quick completion, it is normally advisable to speak to your solicitor and have them discuss this with the rest of the chain.
My credit score is perfect, why can’t I get a mortgage?
There are many factors involved when a lender is making their decision as to whether they will lend you the funds to purchase or remortgage your home. Your credit score isn’t an issue. It’s your credit profile that lenders are interested in. In other words, how well you have managed your accounts over the last 6 years. If you have a high utilisation of credit cards you can be viewed as a bad risk. If you have several accounts with overdrafts in use, you can be seen as a bad risk. There are 3 credit referencing agencies in the UK – Experian, Equifax and TransUnion – and not all lenders use the same ones when assessing your application. To get the best indication of your credit history, I fully recommend using Check My File as this shows your credit history with all three agencies in one place. By signing up to their site, you get a 30-day free trial. After the 30-day free trial, there will be a £14.99 a month charge, but this can be cancelled at any time, even during the trial period.
Should I make a Will before buying property?
You should make a Will as soon as you can. People believe a Will is only for those with property or vast sums of money. In fact though, it is a legal document that expresses your wishes upon death. You ma not think you have much to sort out, but if you die intestate, it can cause a big headache for your loved ones. Our partner Beyond are experts are online Will writing.