Generally speaking, house hunting and home buying isn’t something decided on a whim, it is something planned over a long period of time. People need to think about the type of home you would like, they need to search for said home and then they need to look at their mortgage options. That being said, it can quite frequently be undertaken on short notice, without initial planning.
An example of this can be receiving a call from your landlord, stating their consideration to sell your property and giving you first refusal to buy it. Alternatively, you may find that a family member is moving and asks if you would like to buy their home. Lastly, you might just see a house for sale that you really like on your way home from work and decide that you like the sound of purchasing it.
There can be some obstacles for people who haven’t initially planned, including but not limited to:
Saving for a deposit can be difficult, especially if you are renting. Often people can get help from their family members, though it’s best to let them know in advance if this could be the case, so that they can get their finances in order.
Credit referencing agencies advertise on the TV all the time now, so many people are aware of how to access an up to date credit report. For this, we recommend Check My File (you can find a step by step guide on how to use this here).
Once you have obtained your credit report, feel free to send it to us and we’ll take a look at it free of charge. We analyse credit reports every day and are up to date with the different lender criteria, so we know what to look for!
You may (or may not) find that lenders want to see bank statements, though you will still need to be prepared to answer any questions about your spending habits and how you plan to resolve any issues that are currently present. If a lender is going to look at granting you a mortgage, they don’t want to see lots of unnecessary bank charges or gambling transactions on your bank statements.
For the self-employed, we do understand that accountants try to reduce the tax liability for their customers. However, if your year-end has come around then there is nothing to stop you submitting another set of accounts earlier than you might normally do, if you firmly believe that your business has grown in the last 12 months. Some lenders consider ignoring previous years’ figures if the latest ones are looking more appealing to them.
With all this in mind, if you find yourself facing one of the problems mentioned above, do not worry. It’s still possible to plan to get a mortgage, we can help with your mortgage arrangements. Our team of mortgage advisors love a challenge, so please get in touch!