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If you are considering buying a house, don’t be spontaneous. Taking out a mortgage requires careful planning and preparation over a long period.
That said, you will be surprised at the number of people we deal with regularly, who are more accustomed to their buying behaviour and have therefore neglected to prepare for a mortgage in advance.
Many reasons why a first time buyer in Sheffield like yourself jump into such a significant financial commitment on a whim. Some of the most common including;
Disadvantages include leaving buyers open to various potential issues with their mortgage. Some common mortgage hurdles we have faced with customers include:
Savings can be pretty tricky. Especially if you are renting at the moment, balancing a constant income and significant outgoings and essential purchases each month limit what you can save in-between.
The good news is that family members can help via the use of a Gifted Deposit. Some first time buyers in Sheffield ask family members to try and help whenever they can. If a family member is looking to help. We recommend it’s best to give them as much notice as possible to get their finances in order!
Getting an up to date credit report is not an incredibly difficult task. You may have seen TV adverts for various credit reference agencies, but we recommend Check My File, as they can collate the data from these sources into one for you to compare.
Once you have downloaded your credit report, you can send it across to a mortgage advisor in Sheffield, who will look at this for you. We see these reports daily, and we know what sort of things the lenders like to see and what they do not want to see.
Try it FREE for 30 days, then £14.99 a month – cancel online anytime.
When a lender looks at your bank statements, lenders would rather not see lots of unnecessary bank charges or gambling transactions on your bank statements. You will need to provide the lender with a reasonable explanation as to what has been happening on your account and how you plan to resolve this going forward if any issues arise.
For customers who are self employed in Sheffield, we understand that Accountants try to minimise the tax liability for their customers. That said, if your year-end has come around, then there is nothing to stop you from submitting another set of accounts earlier than you might typically do.
Especially if you think your business has grown in the last 12 months. Some lenders consider ignoring previous years’ figures if the latest ones are favourable.
No matter your circumstances! If you are still facing one of the problems above, it’s possible that we may be able to help you get in touch. Our team of expert mortgage advisors in Sheffield are here to try and help.
So, you are now ready to take a further step up the property ladder and be one step closer to achieving your mortgage goals. Whether you are a first time buyer in Sheffield, new to the experience, or a home mover in Sheffield looking to sell your current home and live somewhere else, you will still need to start getting prepared for your mortgage.
As a open and honest mortgage broker in Sheffield, here are some expert tips:
As an experienced and well trusted mortgage broker in Sheffield, we always recommend taking advantage of mortgage advice as early on in the mortgage process as you can. This will allow you to get an idea of how much you could possibly borrow and what your estimated monthly costs may be.
You need to prioritise getting an up-to-date credit report, as you will need to know what your current credit score is and what you could potentially do to improve it, if necessary. The better your credit score is, the higher chance you have of your mortgage application being accepted.
There are a lot of different ways that you could potentially improve your credit score in Sheffield and to the surprise of many, it isn’t always too difficult to do so. In some cases, it is even possible to obtain a mortgage deal despite having a low credit score, though this ultimately depends on your lender and the way they look at your circumstances.
By ensuring you have both a mortgage advisor in Sheffield by your side and an up-to-date credit report to hand, you could increase your chances of being accepted for a mortgage in the future. A trusted mortgage advisor in Sheffield will be able to work through everything on your behalf, guiding you throughout the process.
Here at Sheffieldmoneyman, we have the ability to obtain a fully credit-checked agreement in principle for you, something we can turn around within 24 hours of your initial appointment. A dedicated mortgage advisor in Sheffield will help you to get prepared for everything prior to submitting your mortgage application.
In doing this, your mortgage lender will want to see some proof of identification, so that you can prove you are who you say you are, along with where you are living and the amount that you earn from your job. In knowing this, you can now prepare for all the necessary documents you’ll need. These are as follows;
In terms of proving who you are you’ll need to produce some photo ID. Acceptable types of ID include a driving license or valid passport.
In addition to the above, you’ll need to prove where you live. You’ll need to produce a utility bill or original bank statement dated within the last 3 months.
Lenders will always have a keen interest in what your spending habits are, compared to anything else.
They need to be absolutely sure that you will have the ability to regularly maintain your monthly mortgage payments on top of everything else you have going out. They will analyse your bank statements very carefully and take everything into consideration.
Lenders aren’t too fond of seeing gambling on your bank statements. It’s something we often see catching people out, as they haven’t realised that it can harm your chances of obtaining a mortgage down the line. They also don’t like seeing customers go over their overdraft limit, as this basically means your spending money that isn’t there.
It’s reasons like this why we always advise that you be careful and make sure that your statements are going to appeal to a mortgage lender, rather than put them off from lending to you.
You will have to prove you have the funds in place for the deposit and also be able to evidence this for anti-money laundering purposes. Try not to move money around your various accounts too much as it will make evidencing the audit trail a more complex process than it needs to be.
Lenders take a preference to applicants who are able to evidence that they have been saving for their deposit. It shows that you have a good understanding of how to put money aside every month and not spend money you don’t have. You’ll also need to factor in any large credits into your accounts.
Quite often we find that the money for a deposit has been gifted by family members. These funds will also need to be evidenced, with the “donor” being required to sign a letter for the lender. This will be to confirm that the funds are strictly a gift and not something they will be needing back from the mortgage applicant.
In terms of affordability, the most important thing is to be able to prove your income. If you are employed this tends to be done by providing the lender with your last 3 months’ payslips and most recent P60. Lenders often take into account regular overtime, commission, shift allowance and bonus.
Make sure that you do plenty of research ahead of time. Preparing for your mortgage and making a note of your anticipated outgoings after you move house puts you in a great position prior to starting the application process.
You can work out an estimate of how much the council tax and utility bills will be. In addition to that, you can also work out your regular expenditures, such as any food and drink you will be buying. This will demonstrate how much disposable income you have available to pay your mortgage from.
You need to accommodate lots of time to prepare for your mortgage application. It can sometimes be a lot quicker and much easier to approach a mortgage broker in Sheffield who can take the bulk of the process and do it on your behalf.
A mortgage advisor in Sheffield will be able to work out how much everything is potentially going to cost you and guide you through the entire mortgage process, doing their best to work hard and try to secure you a competitive mortgage deal.
Getting ahead and planning early will always impress your mortgage lender. Let an expert mortgage broker in Sheffield help you out. Get in touch to book your free mortgage appointment with a trusted mortgage advisor in Sheffield today.
For prospective first time buyers in Sheffield, as well as home movers in Sheffield, credit scoring often appears as an unfair way for mortgage lenders to evaluate their applications. Conversely, from the perspective of these lenders, credit scoring is perceived as a cost-effective and consistent to minimise their risk.
If you’re feeling apprehensive about the credit scoring system when applying for a mortgage, there’s no need to worry. The good news is that a multitude of mortgage lenders out there, each with their own unique scoring systems and criteria.
To alleviate your concerns and improve your chances of accepted, it’s a smart move to obtain a copy of your credit report when applying for a mortgage.
By providing your mortgage advisor in Sheffield with an up-to-date credit report right from the start, you offer them a clearer insight into your financial standing, thereby increasing the likelihood of a successful application.
Keep in mind that having this credit report in hand will also enable your mortgage advisor in Sheffield to identify any potential issues or areas that could benefit from improvement, allowing you to address them before applying for the mortgage.
This proactive approach not only bolsters your chances of approval but also grants you with more confidence and peace of mind throughout the entire mortgage process.
Always remember, each mortgage lender has its own set of criteria, so don’t feel disheartened if one lender turns down your application. Your mortgage advisor in Sheffield will work with you to find the best fit among the various options available in the market.
When it comes to checking your credit report for mortgage purposes, you’ll find various credit reference agencies, including well-known names like Experian and Equifax. Our top recommendation is to go with CheckMyFile, as it provides a comprehensive overview based on information from multiple credit agencies.
The good news is that CheckMyFile offers a 30-day free trial, giving you ample time to review your credit report without incurring any costs during this period. The best part? You have the flexibility to cancel the trial whenever you like, if you so choose.
This approach allows you to make well-informed decisions regarding your creditworthiness, ensuring that your mortgage application rests on a solid foundation.
By using the link below, you’ll enjoy the added benefit of receiving a free, instant PDF download of your credit report. Take advantage of this opportunity to pave the way towards a successful mortgage journey!
Try it FREE for 30 days, then £14.99 a month – cancel online anytime.
Improving your credit score is a cricial step when applying for a mortgage, and there are several steps you can take to boost your creditworthiness. First and foremost, be cautious when using price comparison websites, as they may trigger credit searches that could have a negative impact on your score.
To avoid any potential red flags for mortgage lenders, it’s best to refrain from applying for other types of credit in the immediate future.
One effective method to positively impact your credit score is by registering on the electoral roll. Ensuring that your name and address are accurate and up-to-date can have a positive impact on your score. Address errors can inadvertently give the impression of multiple residencies, potentially affecting your creditworthiness.
Moreover, handling your credit card usage wisely can significantly impact your credit score. Maxing out your credit card every month may lead to a reduction in your score, so it’s advisable to use it responsibly and pay the balance in full each month.
Though closing unused store or credit card accounts might cause a short-term dip in your score, it can be beneficial in the long run and reduce your vulnerability to fraud.
Furthermore, financial ties to family members, friends, or ex-partners can affect your credit score, especially if their credit history is poor. If you no longer have active financial connections with these individuals, you can request that credit reference agencies remove these links.
When seeking mortgage advice in Sheffield, providing our trusted and experienced mortgage advisors with comprehensive information about your finances will enable them to offer the best possible guidance and support throughout the mortgage application process.
With their expertise and your improved credit score, you’ll be well-positioned to secure the ideal mortgage that suits your needs and financial situation. It’s a step towards achieving your homeownership goals with confidence!
Introduced off the back of the credit crunch in 2012, the Shared Ownership scheme gives first time buyers and home movers the opportunity to buy a share of and rent a property.
Utilising the Shared Ownership scheme will allow you to take out a mortgage on/purchase a percentage of a property and then pay the remainder back on rent. The percentage that you take out will usually be between 10%-75%. Although, in some cases, you may be allowed to take out a 10% share.
As a result of taking out a mortgage in this fashion, you’ll be able to put down a smaller deposit. This makes your task of getting onto the property ladder a whole lot easier!
Perhaps partial homeownership is the route that you need to take.
Since it’s likely that you’ll only be purchasing a 25%-75% share in the property, the minimum required deposit should be lower; although, this can still differ depending on your credit history.
You’ll be accessing Shared Ownership through the ways of a mortgage, meaning that you’ll only need to take out a mortgage on the percentage that you’re buying. For example, if you’re buying a share of 50% on a £250,000 house, you’ll only need to take out a £125,000 mortgage. Plus, rather than producing a deposit that’s based on the full property price, you’ll only have to supply a deposit based on the percentage that you’ve taken out; in this example, if you were required to put down 5% or more, you’d only have to supply £6,250.
After you’ve put down your deposit and your offer is accepted, you’ll start paying back your mortgage month on month; just like any other mortgage. As an additional cost, you’ll also be paying rent to the housing association. Your rent plus your mortgage payments shouldn’t be as expensive as had you taken out a 100% mortgage.
There are lots of different costs to consider when taking out any type of mortgage. In terms of Shared Ownership costs, you will have the obvious set-up/arrangement fees and maybe some booking fees. Also, you are likely to receive stamp duty tax if your property is above the stamp duty threshold and you’ll have to consider legal solicitor fees too.
Costs will vary depending on the property that you’re buying. Factors such as deposit size, monthly payments, arrangement fees will differ from property to property.
To qualify for Shared Ownership, you will have to meet certain requirements:
We have been working within the mortgage industry for over 20 years now and have successfully helped many applicants get through their Shared Ownership journey.
We offer a free Shared Ownership mortgage consultation to all customers; take advantage of this 7 days a week! We hope to hear from you soon.
Moving home has built up a reputation of being stressful and daunting, however, it isn’t like that at all!
With the help of a mortgage broker in Sheffield, your moving home journey can be made stress-free. It’s our job to handle the mortgage side of the process, trying to find you a great mortgage deal while you search for your dream home.
Whether you’re thinking about moving home, taking up property viewings or are ready to make an offer on a house, we can help you get your mortgage process started.
How can a mortgage broker in Sheffield help? How can we help you through your moving home journey?
It’s our job to search through mortgage deals on your behalf. You won’t have to shop around for thousands of mortgage products, trying to find one that matches your financial situation and the property that you’re making an offer on… that’s our job!
We only need some documents from you to evidence your income, who are you etc. Then we can search for the perfect deal for you. If we find one that matches your personal and financial situation that comes with a competitive rate and you want to continue with it, we can get ready to submit your mortgage application for you.
We have been in the mortgage industry for over 20 years now, we know what we are doing. If you’ve already a property that you want to make an offer on, we can quickly help you find a mortgage offer that matches your situation so that you can continue with your purchase.
Our mortgage advisors in Sheffield are experienced in finding a quick but competitive mortgage product. Once you’re in contact with our team, we’ll pass your straight onto your dedicated mortgage advisor so that they can arrange your free mortgage consultation and get some information from you.
We can also arrange an agreement in principle for you within 24-hours of your application. Potentially, this can aid your property offer as it shows that a lender is willing to let you borrow for them.
You may be a first time buyer in Sheffield or moving home in Sheffield, and want your journey to completion to be a little slower, and that’s completely fine!
If you want a simple, easy-going process, your mortgage advisor can slow things down for you. Don’t be afraid of asking lots of questions and taking your time during the process. Your mortgage advisor in Sheffield will be open and honest with you at all times, they will tell you exactly what’s going during every step of the process.
Our team work during out of office hours so that you can speak to us at a time that suits you best.
We want you to be able to communicate with us when you feel most comfortable. Whether this is early or late, we’ll be available. This doesn’t just apply to our customer care team, your mortgage advisor in Sheffield will be able to book an appointment during the same working hours.
It’s all about taking the stress out of the mortgage process. We feel that we can help take away the stress from the process if you can contact your mortgage advisor in Sheffield at a time that is best for you.
Our superb mortgage advice team can help you through the whole moving home process – from start to finish.
We offer a free mortgage consultation to every single customer, no matter their mortgage situation, so feel free to get in touch today.
Remember, as a mortgage broker in Sheffield, it’s our job to take away the stress from the whole moving home process. We work 7 days to ensure this!
When buying a home, you can choose one of two options: to buy it upfront or take out a mortgage on the property and pay it off over a fixed term.
Both ways are costly, however, buying a house with cash is the obvious most expensive option. Paying upfront requires you to pay the price that’s on the tag, whereas, taking out a mortgage allows you to pay off the property over a long period of time.
If you have the funds in place to do so, buying a property with cash could be a great investment. Whether it’s to live in yourself or to use as a buy to let in Sheffield, it can put you ahead of people on the property ladder who have taken out a mortgage.
9 times out of ten, when making an offer on a property, if you’re a cash buyer you’ll have an advantage over other applicants who are taking out a mortgage. One of the reasons is due to your reliability.
A property seller who is looking for a quick purchase will love a cash buyer. Having a cash offer eliminates the probability of getting caught up in the property chain. This is where a property is being sold to a buyer, however, they can’t move in yet as they’re still trying to sell their current home and sort out their mortgage. This can go on and on, ending in repeated homeowners struggling to move out as they’re waiting on their buyer to move out.
This shows your reliability. You don’t have to wait around for your buyer, they can proceed straight away. Also, you won’t have to pass any affordability checks as you already have the funds in place and you won’t need a valuation to be carried out on the property.
Everyone wants a quick and simple process when moving home in Sheffield. It’s more than likely that if you were to make a cash offer, you’ll see the process through within no time at all as opposed to having you taken out a mortgage.
You won’t have to take out a mortgage if you choose the cash route. However, as a mortgage broker in Sheffield, we can say that sometimes it’s just as quick to take the mortgage route. It’s our job to provide a fast and friendly service in Sheffield.
Taking out a mortgage is the same as taking out a loan. You’re committing to around 25+ years of potential mortgage payments. If you buy a property with cash, you won’t be making this commitment.
You also won’t receive any interest. Your mortgage payments may increase each month due to interest, whereas if you’re buying with cash this can never happen as you’ve already paid it all off.
If you don’t have the funds in place to make a cash payment, you’ll have to take out a mortgage on the property you’re looking to buy.
Rather than using all of your life savings to purchase a property upfront, you could save money short term by taking out a mortgage instead. Usually, depending on your credit score, getting a mortgage will only require a minimum of a 5% deposit (5% of the property’s value).
A mortgage allows you to pay off your home in monthly payments. Monthly payments allow you to pay little back each month not the whole of it in one go.
If you’re looking at a property and the listing says “cash buyers only”, it’s likely that the property needs lots of repairs doing on it. If this is the case, you are unlikely to be able to get a mortgage on this property. You may be dodging a bullet if you are choosing a mortgage over cash here.
Even though it’s not required, we’d always recommend getting a property survey carried out just in case. This applies to both cash buyers and mortgage applicants.
Going into a cash purchase blind may put you at a slight disadvantage to someone who has a mortgage advisor in Sheffield by their side. Things are as simple as possible when you have your own mortgage advisor in Sheffield.
As a mortgage broker in Sheffield, it’s our job to deliver a fast and friendly mortgage advice service. Get in touch today and we can help you through the moving home process. We can help you make an offer on a property, arrange an AIP within 24-hours and perform a free affordability assessment on you.
Applying for a mortgage as a single applicant whilst married is not uncommon. There are, several reasons that can justify applying for a mortgage in just one name, and some lenders will consider this arrangement.
Reasons why a single application can be more fitting than a joint mortgage include:
There are many more reasons to get a sole mortgage when you’re married. Our mortgage advisors in Sheffield are available seven days a week to book you in for a free mortgage consultation and help you get started.
Some lenders will only accept a joint mortgage if you’re married. However, there are lenders out there that will allow for sole applicants whilst married to get a mortgage.
If you are looking to take out a mortgage in your sole name, you should contact a mortgage broker in Sheffield. We have been in the mortgage business for over two decades now, making us knowledgeable mortgage experts in the field. We can search through thousands of deals on your behalf, hopefully finding a mortgage to suit your circumstances.
Our mortgage advisors in Sheffield will need to ask you specific questions about your reason for wanting a sole-named mortgage. For example, if you do not wish to apply for a joint mortgage because your partner has bad credit, you both may be able to get a joint mortgage, as there may be lenders willing to put both names on the mortgage.
Other reasons can include if you are looking to purchase a sole name mortgage for personal reasons, our advisors might be able to find lenders who are likely to approve. Most lenders are not comfortable with this arrangement because you’re purchasing a property for you and your partner. Lenders favour both applicants to be on the mortgage. This is to avoid possible conflicts in the future, especially if the couple were to divorce.
If you’re separating from your partner or going through a divorce and looking at your mortgage options. You will find useful information here, divorce and separation mortgage advice in Sheffield.
The best decision is to speak to a mortgage advisor in Sheffield, who can provide you with a more tailored answer regarding your circumstances.
Again, we highlight the importance of always seeking mortgage advice in Sheffield before applying for a mortgage, particularly if you’re married but want to get a mortgage in one name.
Our mortgage advisors in Sheffield specialise in complex mortgage applications. If you are looking to purchase a property in your sole name whilst married, please don’t hesitate to contact us. Our specialist mortgage advisors in Sheffield have a wealth of knowledge and there is rarely a situation that they haven’t come across before.
Once you’ve had your offer accepted on a property, you are going to move onto the next stage of the mortgage process… getting the property surveyed.
A property survey is carried out to determine whether the true value of a home correlates to the amount that a buyer has offered for it. The survey will also show the overall condition of a property, highlighting defects and damages (if there is any).
There are lots of different types of property surveys, however, three stand out as the most popular amongst the crowd:
A property survey may be carried out free of charge depending on the lender that you use. If you are offered a free survey, you may be limited to what you can see on the report, or sometimes the lender may not give you a copy.
Each survey differs, some will provide great detail and tell you everything that you need to know about your property, whereas others will not. Usually, the more that you pay for a survey, the more in-depth the report will be.
If your survey shows something about the property that you weren’t told about, by law you are allowed to approach the seller and work out a price reduction is necessary.
A Mortgage Valuation is the simplest property survey and usually the cheapest. They are carried out to find out the true value of a property.
Before committing to lending to you, your lender will need to find out whether the property’s value matches how much you are set to borrow from them. If you put in an offer above the property’s value and it gets accepted by your seller, it’s good for them but not for your lender, therefore it’s unlikely that your lender will accept your application. This is because they will have to lend more than the property is actually worth; this is called a down valuation. If you can make up the difference between what you said you’d pay and the mortgage amount, you’ll be able to go ahead with your lender, although, if you can’t then the lender will pull out of the deal.
Unfortunately, a Mortgage Valuation survey will not point out minor damages or repairs, it will just show clear structural defects that will require attention as soon as possible. If you want a report that goes further in-depth, you will have to pay more to upgrade to a different survey.
A Homebuyers Report focuses on the safety of the property and how safe it is to live inside of it. The report will include problems such as mould, dampness or something that does not pass the current building laws.
This survey will be carried out by an expert. They will thoroughly examine the property from top to bottom so that they know exactly how safe it is to live in.
As a Mortgage Broker in Sheffield, we usually recommend a Full Structural Survey, especially to those who are purchasing an older building. You sometimes need to be aware of everything.
This survey is the most expensive of the three and usually them all. This is because your surveyor will look at the whole property, often spending a whole day to determine its worth and to find out what’s wrong with it.
If the purchase goes through and you now know everything about the property, you may have saved yourself a lot of money in the long run as if you didn’t know about the damages, you couldn’t act on them meaning that they could worsen overtime.
New builds usually requires a different type of survey called a snagging survey. This will highlight both minor and major issues. It could be from a missing door hinge to cracks in the ceiling.
If the new build has already been built, it would be wise to have a property survey carried out on it before you move into it. Just because the property is a new build doesn’t mean that there is nothing wrong with it. As a Mortgage Broker in Sheffield, we would always advise that you have some sort of survey carried out on a property.
Whether you are a first time buyer in Sheffield or moving home in Sheffield, if you are struggling to choose the right property survey or just need general mortgage advice, feel free to get in touch with our team. Sometimes, it can be difficult to get the ball rolling when it comes to moving home, so make sure to get in touch if you need any help!
You can obtain the services of a surveyor to carry out a Homebuyers report or building survey through the Royal Institution of Chartered Surveyors.
An Agreement in Principle (AIP) is a statement or certificate from a lender to say that, in principle, they would lend you a certain amount and proves a First Time Buyer in Sheffield like yourself that you are credit-worthy.
If you are looking to get one, you need to get in touch and provide us with information about your mortgage needs and situation. Then, once we have processed your details, we can suggest how much you may be able to borrow.
As a devoted mortgage broker in Sheffield, we can usually turn around an agreement in principle for you within 24 hours of your enquiry. Your Agreement in Principle can last anywhere between 30 and 90 days, depending on the lender. If your Agreement in Principle expires before you use it, it can be easily refreshed by speaking to your mortgage advisor in Sheffield.
When applying for an Agreement in Principle, the lender will run a credit check to evaluate your eligibility. You will need to ask what level of credit survey they do. If the lender runs a hard credit search, it will leave a ‘footprint’ on your credit file visible to other lenders.
A search footprint is a record left by a credit reference agency every time your credit report gets searched, either by yourself or by others. If there are a high number of hard searches in a short period, it can harm your credit score as it could signal that you’re struggling to get accepted by other lenders.
However, if the lender has chosen to run a soft search, it won’t leave a footprint, and it won’t impact your credit score.
An AIP cannot guarantee that you will get a mortgage offer – you will still need to go through the entire mortgage application process when you find a property you want to buy, but this will help strengthen your chances.
An AIP usually is valid for up to 30 – 90 days, and our mortgage adviser in Sheffield will be able to use the information as part of your mortgage application process. However, they will want to make sure the details are still correct.
Some factors may affect the lender’s decision when making a complete application, such as their lending criteria or personal circumstances that have changed.
You may be a First Time Buyer in Sheffield, or you might be thinking of moving to the area and are looking for excellent mortgage advice. If this is your situation, we believe that you will benefit from our dedicated mortgage advice service in Sheffield.
We offer a free initial mortgage consultation with one of our expert mortgage advisors in Sheffield, so please get in touch today and let us get the ball rolling on your mortgage application so that we can secure you an agreement in principle.
Lenders will look at various aspects when it comes to your bank statements. Their main job is to decide whether or not you are the kind of person that they are going to want to lend to. They want an applicant who can manage their finances responsibly and is going to be able to keep up-to-date with their mortgage payments.
Regarding your bank statements and what lenders look for on them, let’s take a look at gambling transactions and how they can sometimes affect your ability to get a mortgage in Sheffield.
Whether it’s a once every couple of months or a regular occurrence, gambling in large amounts can often trip your mortgage application up. This also applies to you if you are frequently gambling. Whether you are losing money or not, you may be declined due to your gambling habits.
At the end of the day, no one can tell you how to live your life, although, it is always advised that you ‘gamble responsibly’. Remember that a lender needs an applicant that doesn’t oppose risk to them. They need someone who’s going to meet their mortgage payments month on end; they want no risk of repossession.
Put yourself in your lender’s shoes, would you lend money to someone who has the tendency to gamble frequently with large sums of money or someone who’s always on top of their payments and doesn’t gamble their money?
It is in no way illegal to gamble, therefore, the occasional gambling transaction on your bank statements will not mean that you’ll get automatically declined. They will assess the gambling transactions though, looking at whether they are reasonable and responsible. They will look at how frequent you gamble, the size of the transactions and how they relate to your income.
If you are infrequently gambling in small amounts, it should make no significant difference to whether you get accepted or not. Lenders may even just brush it under the rug. On the other hand, if you are a regular gambler, their viewpoint may be the opposite. You can’t be eating into your overdraft due to gambling either, it will reflect badly on your application.
Lenders will examine your bank statements carefully. They will be looking for lots of different things, but ultimately, they want to see your bank statements and get the confidence that you are a reliable applicant that they’d be willing to lend to.
If you are exceeding your overdraft limit month on month, your lender may begin to think that you struggle to take care of your finances. It’s likely that they’ll be okay with you doing so, however, we always advise that you be wary. They will also look for any other existing credit commitments that you have; it could be a credit card or a loan, etc. This is an important factor as you need to compensate a set amount each month to pay back the loan – the same as mortgage payments.
You should also look out for credit transactions from pay-day loan companies or otherwise known as “undisclosed” loan repayments. These can cause problems if you told them that you had no further loans to account for but then they appear on your bank statements. You need to be transparent with your lender and tell them everything prior to them viewing your bank statements.
As a mortgage broker in Sheffield, we will always say that the easiest way to improve things is to be sensible and if it’s possible, plan ahead.
Usually, your lender will ask for a minimum of three months bank statements. So, in theory, before you apply, you can get yourself prepared and maybe tone down on things such as gambling and dipping into your overdraft. All the little things can sometimes help.
If you use a mortgage broker in Sheffield like ourselves, they will help you with this whole process and recommend the option that will benefit you the most. There are some specialist lenders out there that will ask for fewer bank statements than others, a mortgage broker may be able to help you access one of these deals.
At the end of the day, the message to remember is to gamble responsibly and take care of your finances!
If you are a first time buyer in Sheffield and this is your first hands-on experience with the mortgage world, you should definitely get specialist mortgage advice from a mortgage advisor in Sheffield. They will guide you throughout the whole mortgage process and help you with your application and get you on track.
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Sheffieldmoneyman.com & Sheffieldmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
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7 Days a Week, 8am – 10pm