Applying for a mortgage can be stressful. Time is typically of the essence and there is a fine line between your hopes and dreams being realised, or shattered. The mortgage application used to be more straightforward with lenders mainly focusing on the ability to prove your income. However, in more recent years, there has been an added pressure on lenders, by industry regulators, to review affordability. How can you help yourself and avoid certain common pitfalls?
(1) Avoid not being up-to-date
When applying for a mortgage these days there is a whole host of information that is required from you.
Proof of income is the first thing, which, if salaried is easier to obtain, as this can come from your payslips, or your P60 form. However, if you are self-employed, 2 years financial accounts are typically requested, which need to have been signed off by an Accountant and / or submitted to HMRC with a confirmation that the calculation is correct.
Read more – HMRC help self-employed with mortgage requirements
Directors of limited companies can sometimes hve difficulty in proving their income via dividends and it is not uncommon for there to be some additional dividend planning to take care of extracting money for deposits, fees or the like.
If you are behind with your record keeping you may end up facing many sleepless nights updating your records to meet tight deadlines, or a failure to do so can result in delays with your application.
(2) Avoid going solo
Whilst you may have done your research online, a mortgage adviser will have a broader understanding of all mortgage products available, and which would best suit your needs.
Applying for a mortgage yourself can result in a limitation to your full range of options, and some people miss a trick.
A mortgage adviser will also have built relationships with reputable lenders, many who are specialists in providing mortgages for doctors and dentists.
An accountant too will be able to assist with your application, as depending on the lender’s requirements, a financial forecast for the year ahead may be required, which is something an accountant can certainly help provide. Lenders also often request documents from your accountant to help support their case to lend you the funds you require, so it is best to involve them from the start of the process.
(3) Avoid not planning ahead
Disappointment can be avoided by ensuring to plan ahead regarding your mortgage.
If you are thinking of a mortgage or remortgage in 2016, but you are not sure when exactly, then get the right professionals on-board early, even if your dates and circumstances change.
They can manage your expectations and keep you abreast with market news, as well as fluctuations in mortgage interest rates, meaning you are more likely to end up meeting your goals and objectives.
Dental & Medical Financial Services help doctors and dentists obtain the mortgage they require at the best rate. We deal with excellent lenders, many of whom will be signing up to this new process. Call Chris today to discuss further.