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The mortgage application these days especially with the recent changes are very strict. They pick apart your finances to the tiniest detail. They want a breakdown of where every last penny is going. Edited by addyb at 11:59:04 29-07-2014 |
Advice on house hunting
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elstoof 28,125 posts
Seen 3 hours ago
Registered 16 years agoHave you checked your credit report mowgli? If you've been consistently meeting your debt payments for a few years then your credit rating probably won't be as bad as you think, plus being married has a very positive effect on your rating (spreads the risk). -
mrpon 37,366 posts
Seen 2 hours ago
Registered 15 years agoThey'll wonder why you keep buying things and returning them. -
elstoof 28,125 posts
Seen 3 hours ago
Registered 16 years agoAlso get your wife a credit card and use it for things you'd normally buy anyway, even if it's just for online shopping and pay it off straight after you spend it. You'll be better protected by using a credit card rather than debit if anything happens anyway. -
Also make sure you don't have too much available credit. If say for example you have 3 credit cards but one isn't being used and has a zero balance get that account closed. Lenders don't like people having a lot of credit at their disposal. -
mikew1985 15,598 posts
Seen 2 weeks ago
Registered 14 years agoThey are very strict on the origin and trace of all money when it comes to getting a mortgage approval. My normal banking institution could not offer me as attractive a mortgage (interest rate, deposit required etc.) as their main competitor so we had to choose to go with the other big Irish player.
Now all my accounts are in our non mortgage providing bank which can create extra work - more documentation and proof of funding required. However due to the incompetence of my normal day to day bank I had to bring a large cash sum to the bank providing the mortgage (also our solicitors account) because any other method would have delayed us being able tot get the keys in time for our move out day.
I was asked a number of questions on the origin of the nigh on 20k cash I had on me before they allowed me to lodge it. They also ask you where and how every other sum of money you have has come from - they need statements going back several months to see that the origin is genuine, rather than lump sums being laundered.
There is just so many checks and balances that they have to do. -
elstoof 28,125 posts
Seen 3 hours ago
Registered 16 years agoBanks are fuckers for dealing with actual cash, last time I took out a few grand to pay the builder they tried to deny me because I didn't have an invoice to prove what the money was for. -
Khanivor 44,800 posts
Seen 2 days ago
Registered 20 years agoTypical lawyer, having to be told why something is dishonest. -
Dougs 100,414 posts
Seen 18 hours ago
Registered 18 years agoaddyb wrote:
I need to do that really. I have a couple that I use regularly (one I use for pretty much all purchases and clear every month, and one has my football ST on, paid off over the year). But I also have 2 dormant ones that I no longer use. One of these did say they would close it in May, but haven't had any confirmation...
Also make sure you don't have too much available credit. If say for example you have 3 credit cards but one isn't being used and has a zero balance get that account closed. Lenders don't like people having a lot of credit at their disposal. -
@Dougs
Yeah definitely close the dormant ones mate. I closed one of mine. It had a £6500 limit as well.
When we applied for a mortgage with our advisor (from reeds rains) the best deals at the time were with Leeds Building society and Virgin. We didn't meet the criteria for those 2 so didn't even get the full application done. Next up was Natwest. We got told off various family and friends we had no chance with them as they knew people that had been knocked back.
We got accepted no problem at all and also sorted out a good life insurance package.
That takes me to my next bit of advice. Try not to apply for many mortgage deals in a set time frame as knock backs will leave a footprint on your credit file which is a negative. -
elstoof 28,125 posts
Seen 3 hours ago
Registered 16 years agoMowgli, because your married I suspect the bank will want to take a look at your finances anyway. They'll certainly be suspicious about a married woman wanting to buy her own place to live alone at, at least. You'll probably be better off laying your cards as they are - sure you had bad debt that you're paying off but the crucial part is that you're paying it off and have been for X amount of time. -
Dougs 100,414 posts
Seen 18 hours ago
Registered 18 years agoHa, yeah mine are the same. Will do that ASAP. -
MMMarmite 1,659 posts
Seen 1 day ago
Registered 15 years ago@DiddlerDo rather than supplementing your wife's income can you not use that to pay off your debts earlier or put it towards building a deposit? -
Buying a house ain't all that. The 'gains' are all pretend, you'll sink more and more money into them updating the place and then, when you've paid off the mortgage, you'll likely be near retirement and your house worth is a massive gamble.
I'd never advise against property purchase if there's a known end game - ie you've seen the house of your dreams, or seen an opportunity for an investment. Just getting on the ladder is a sure fire reason to getting yourself in a compromise which could restrict your options.
Renting seems like throwing money down the drain, but at least it's a known amount of it. -
Salaman 24,162 posts
Seen 6 days ago
Registered 17 years agoGood advice on getting the mrs a credit card that gets cleared monthly.
I would only add one small additional one.
Stop buying tat you don't really need for the next two years! -
@PES_Fanboy
Mmmm not sure I agree with any of that. How are all the gains pretend? I also certainly wouldn't recommending renting over purchasing a property. -
BurnoutJunkie 1,222 posts
Seen 3 days ago
Registered 16 years agoHi guys, quick question I'm hoping someone can help with. I'm on a bit of a career break, have a decent amount of savings and want to buy my first house soon. However, I'm not currently employed (left work due to burnout/stress and I am thankfully financially secure). I'm taking 2-3 months out, will probably be working again next month or at the beginning of September. I'm not sure what % of deposit I'm going to put down, 5 or 10% depending on the price of the house I buy. Am I basically screwed as I won't have 6 months worth of consecutive payslips?
I've checked my credit rating, currently have 5/5. I don't have any debts, loans, money owned to credit cards (pay in full every month) except for a student loan.
Will organise a chat with my bank in the mean time. -
@addyb fair enough, and I didn't specifically write it like that, what I wrote (perhaps badly) is that I don't personally believe 'just getting on the property ladder' is a wise reason to buy a place. I've done it in the past, fortunately I managed to get out with a speculative market. You potentially lose a LOT of freedom in terms of where to live, and moving house (not rented) is hugely expensive at all ends of the market. If you're buying knowing you'll move again in a few years, you are speculating that the delta between your new home and current home can swallow the £10k or so moving costs, right?
The gains are pretend unless you're downsizing or moving to a different economic area. -
I totally understand that Mowgs, that was my driving reason. Just be careful to pick the right one, and know in advance that decorating is fucking horseshit once you've done it once or twice -
Welp, we've made an offer on this place - http://www.zillow.com/homedetails/3462-W-Moon-Lake-St-Meridian-ID-83646/79629590_zpid/
Offered $230 to see where they'll negotiate to. If we can get something arranged we should be in there by the end of August. Yee. -
Your own private Idaho
/gets coat -
nickthegun 87,711 posts
Seen 2 hours ago
Registered 16 years agoTo be fair, its not that different over there as it is here. In NY that would be a few million, whereas thats in the american equivalent of hull. -
I like to think we're the US equivalent of the West Country. Cows and horses as far as the eye can see. We have a neighbourhood donkey where we are at the moment.
Edited by poot at 15:52:42 29-07-2014
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