You may be here because built up a large amount of savings for a deposit on your first property and are wondering what’s the next stepping stone to take on your homeowning journey. The amount of deposit you need to put down to buy a property in Beverley will be determined by your mortgage goals and your current financial circumstance.
As a First Time Buyer in Beverley taking the first step onto the property ladder or this is your second time and are looking at Moving Home in Beverley, our expert term could help you. Below we have created a helpful guide that will hopefully help you put yourself in the best position to be mortgage ready when it comes to starting your application.
To start, you need to get an up-to-date credit report. By having this with you, you can provide a financial landscape to your designated Mortgage Advisor in Beverley. We do recommend that you pay off any outstanding amounts like mobile phone bills and instalments before you get a copy.
Don’t worry if you struggle to get an up-to-date credit report on time, your advisor will be able to help you with this.
Before you begin your mortgage journey. it’s key to obtain an Agreement in Principle. This document is important when it comes to making an offer on a property. With an AIP by your side, you are demonstrating to the estate agent that a lender will agree to lend you a certain amount from them in principle by showing them ample evidence of your income, credit history etc.
Remember that AIPs can expire normally within 30-90 days. In the case that your AIP does expire or you need support getting one, our friendly team can organise this for you usually within 24 hours of your mortgage application. Our team are here to provide you with the expert Mortgage Advice in Beverley that you need.
Prior to beginning the mortgage process, many applicants usually have a rough estimate of their expected outgoing after they move house. By working out this estimate, you can be able to have a rough idea of the amount of disposable income you have to pay your mortgage. It’s likely that you will have expenditures and regular outgoings such as credit agreements and bills to your weekly food shop. In the case where you are finding it difficult to balance out all these financial outgoings, we will happily send you our version of a Budget Planner to help you out.
It’s best to keep an organised folder with the documents you need when you are starting your mortgage application in Beverley.
Providing a form of ID will prove that you are who you say you are. This can be shown through a driving license or a passport. Keep in mind that you are not able to use the same form of ID twice so, if you use your passport for this proof of ID, you will not be allowed to use it for another proof of ID evidence and vice versa.
If you are an applicant who is a non-UK national working over here on a visa, you will need to provide that too.
Along with this, you will need to prove where you live. This may require you to provide ID and a utility bill/bank statement. It’s important that you put your current address on all of your accounts and memberships in order for them to be up to date. By doing this, you are reducing the risk of your application being harmed as incorrect or previous addresses linked with your name can cause this.
Having this document with you is crucial as it can be a big determining factor to whether or not you qualify for a mortgage. You will be required to provide and will need to be at least three months’ worth. From a lender’s perspective, they will be able to have an insight in the way you manage your money as well as what goes in and out of your account.
When it comes to outgoings, lenders do not favour regular gambling transactions along with general bad spending habits. If you are in your overdraft on a daily basis or direct debits have bounced consistently will also not put you in the best view in the lender’s eyes.
To keep in line with Anti-Money Laundering regulations, it is important that you provide evidence of where your deposit has come from. It’s best to have your savings kept in one account and try not to move them around. This is still the case with gifted deposits you would leave the money inside of the gifter’s account instead of transferring it into your own.
Lenders like to see that you have accumulated savings over time in a savings account. Help to Buy and Lifetime ISA are helpful for this. For those getting a Gifted Deposit in Beverley, the individual who is gifting you the deposit will have to prove where they have got the funds from as well.
Proving your income plays a big role in the process. If you are employed, you will need to provide the last three months’ payslips along with your P60. Furthermore, overtime, bonuses. commission and shift allowance are normally factored in and taken into consideration too. For part-time employees, they will need to provide more evidence of their income. This does depend on the lender though.
If you are Self Employed in Beverley, assessing your income will work a bit differently. First, you will need to show a minimum of 2/3 years’ accounts and earnings from the revenue. We have a team of Mortage Advisors in Beverley who have rich knowledge of this.