Why Your Mortgage Application Could Be Declined - Avoid These Common Pitfalls!
Vložit
- čas přidán 29. 07. 2024
- This video aims to shed light on the typical factors leading to mortgage application rejections and declined agreements in principle. We'll also provide practical tips on avoiding such scenarios. Our expertise in property and mortgages equips us to guide you through these potential pitfalls.
If you are a first time buyer or thinking of moving home or have decided to move then get in touch - don’t delay, book your online consultation here now - arrange an appointment here via our website - dm.mortgage/
Not quite ready? Have some questions? That’s ok; we know it’s not every day that you get a mortgage or review an existing one. Get in Touch;
• Call us for a chat on 0330 175 7504
• Email our team at info@dm.mortgage
• Check out our website here - dm.mortgage/
Start your first property purchase, remortgage or home moving journey today. Get in touch with us now to find out how we can make moving home a breeze.
We have access to over 90 banks, building societies and specialists lenders and thousands of products to help you get the best deal. Once our expert has matched you to your mortgage, they will stay by your side the whole way, keeping you in the loop. It is only when you have found a property and are ready to apply for a mortgage that we charge a fee. Our typical administration fee is £495 (We charge between £0-£245 for a remortgage). This covers the time involved in dealing with your mortgage application and supporting you through the home buying process from start to finish. This also includes complimentary homebuyers protection insurance, organising any insurances, organising your Will and recommending any professional services such as surveyors, solicitors and conveyancers.
For Will Writing & Trust advice, head to;
W: www.dunham-mccarthy.co.uk/ (Detailed Estate Planning Advice)
W: www.mylastwill.co.uk/ (Online, quick, easy and convenient solution to draft your Will)
Wills & Estate planning are referred to a third party. Neither Dunham McCarthy Financial Services Ltd or PRIMIS are responsible for the service received. These services are not regulated by the Financial Conduct Authority and may have limited consumer protection.
**Your home may be repossessed if you do not keep up repayments on your mortgage**
Dunham McCarthy Financial Services Ltd is an appointed representative of Primis Mortgage Network, a trading name of First Complete Limited which is authorised and regulated by the Financial Conduct Authority.
Chapters;
00:00 Intro
03:10 Affordability
04:27 Debt to income ratio
06:33 Self employed or contract workers
08:49 Poor credit history
10:30 Not being registered on the electoral register
11:14 Mistakes on credit file
13:35 Property related issues
15:58 Visa applicants
16:49 Payday loans
17:47 Summary
#mortgageadvice #contactus #firsttimebuyer
Thank you Nicola. I’m planning on booking a appointment. Will be calling today or tomorrow . Thank you 😊
This was very very helpful. Thank you!
You're amazing, I like your professionalism.. top10👌
The same initials for the credit file part actually happened to me too, me and my dad have the same initials and there was a ccj on my account in his name. If I hadn’t got checkmyfile I would of never known.
Great video and very helpfull
Outstanding great job
What if I applied for cashback on credit card 2-3 days before completion. Would that affect y morgage offer
Can I use my credit card or not, I am looking for a property but in the meantime am I ok to use my credit card or shall I just cancel it, I use about £200 every month and pay it back on time,
How are you able to set up two monitors with 1 mouse and 1 Keyboard? I wanted to do a set up like this if you can let me know. Thanks
Great video! If your self employed and you have good accounts for for the last 2 years but due to covid 19 your profits dropped by 80% would this be a problem for the lenders or will they look at your best 2 years before covid?
Thanks! They usually look at the most recent years and that will vary amongst lenders how many they’ll look at - some lenders will also ask to see recent bank statements due to Covid to look at how income has dipped.
I would suggest you book in for a free of charge appointment so that we can help you to navigate through the lender options.
www.DM.mortgage
Would my husband changing employer due to it being a big jump in pay affect us getting a mortgage? The house is not predicted to be ready till November/December?
Hi
Useful video thank you.
If you are due to get a promotion which will end up improving your chances of getting a better more suitable mortgage, what are the likely requirements in terms of how long you have to be paid that salary for/how many payslips or employment contract terms etc.
Thanks
Hi Nicole! It depends on the lender they all vary, some will even take a future contract if your start date is within the next few months. If it’s a promotion with the same lender than many lenders won’t have an issue to take the higher salary once you are receiving it. My advice would be to get in touch and book a free of charge appointment for us to look at the details and let you know exactly what your options are.
Www.DM.mortgage
Hi
I am currently separated from my husband and he is still paying for council tax and water bill. So I did apply for a mortgage on my own as a self employed.
Do they fawn on me if they find I don't pay for those.
Great advice!
So if my mortgage application was declined due to the Property being downvalued (with no compromise being made), for instance. Would i then need to start the whole process again? And pay a second fee?
Yes that’s correct Rachel, you’d need to find an alternative property - unless you negotiate the price down or bridge the shortfall between the lower value and originally agreed price.
Although we offer many mortgage products that come with free valuations as an incentive.
Even where it doesn’t, we also point you in the right direction for a type of insurance to cover losses on valuation fees in this situation.
I had this happen to me initially, and had to go to another bank (who accepted it and now I have an actual mortgage offer). Rachel, I’d suggest you get a homebuyers report to give you some peace of mind that you’re not paying more than the house is worth. Mine came back fine, but just made me relax as I was worried (even though I offered and got accepted under the asking price) that I’d offered too much
EDIT: I know the basic valuation is adequate, but the home buyers report gave me piece of mind the property was sound inside, but a lot of the home buyers reports come with a valuation from an independent person… as someone who was worried as one bank down valued the property, and the other didn’t, not knowing how either of the banks actually valued it (e.g. did they both visit the property or just Google and make sure it was there), having someone independent go in and give another valuation just gave me that bit of peace of mind.
A basic valuation is adequate to determine what a house is worth. Whilst a homebuyer report is useful, it’s purpose is to highlight issues to do with the condition of the property - the purpose of a homebuyers report is not for a valuation (this is what the valuation is for).
@@dm.mortgage If one is interested in the property then would this homebuyer report helps them to decide to buy or not before proceeding further to mortgage step?
Hi Nicola, do voluntary additional pension contributions get taken into account for lending criteria?
Generally not if they are private voluntary contributions
My partner had quite a few payday loans back in 2017 due to unfortunate circumstances and have explained this to our broker. We have been clean with our credit history for the last 2 years as we have both really good payed earning jobs. Will this really affect us with Agreement in principle and getting a mortgage?
Hi There! Which of our brokers are you using and I can check the details with them? If you mean your broker is not DM Mortgages then you would need to your broker the the question as this would depend on the circumstances around the loans (i.e - when they were, how many of them and who the lender is etc).
Should you want further advice from us then please get in touch.
I have a satisfied CCJ in 2016. It comes off in June. I have been declined. I have no loans or cards and earn £47k. Why am I being held back for something that happened years ago 😢. The house I want will not be ready until Jan 23 and have lost it now
In a situation like this I would say book in for an appointment as you need specialists advice. Ever bank has different eligibility criteria, some are fine with CCJs, some not at all - you just need the help of a specialist to guide you to a lender that will accept your situation.
Mortgages are not a one size fits all and are very much based on individual circumstances. I hope this helps.
Don’t lose hope / we can likely help you get a mortgage.
www.DM.Mortgage
Hi Nicola, Do lenders look at crypto purchases or stock market purchases negatively when looking at your file? Regards
Hi, not necessarily at all and unlikely - though it depends on your overall income and outgoings and situation.
@@dm.mortgage Thanks for taking the time to reply. Have a great evening
How much deposit do I need for a first-time buyer without any government help?
Hi A S there are a small handful of lenders participating in 5% deposits without government help so this is the minimum you need although the more deposit you have the more options and better rates you’re eligible for
@@dm.mortgage OK I will come back to you in the meantime I need your work email address just in case
Info@dm.mortgage
We told them we had 5k on credit card. Despite the fact that we have 25k savings, they have put on the offer that they want us to pay the 5k off by completion.! Do we need to bother? Will they even check? We have the money. Why can't we just pay it monthly. Easily affordable giving that the savings are right there to instantly pay it off at any time. But why do this? We would rather keep the liquid cash. They did not tell us they were doing this when they asked us the amount. They only asked us... not checked.... so here is us being punished for being honest. They say to change it now means a re offer etc that is a re application.
Hi Fine, depends on the lender as to how they will go about ensuring you have paid it off. You may be able to pay it off monthly but it depends on how the lender assessed your affordability.
It’s difficult to really shed more light without knowing the facts, however it’s always best to be honest with these things to ensure your mortgage goes through smoothly.
Hi, if i purchase a property at current market value but then after 1 year the value goes down which means im paying a mortgage for a property which has gone down in value, is there anything out there to protect me regarding this?
Hi Sayed, this is what we call negative equity and I have a video on this but there is nothing to protect against it - a bigger deposit, buying at the right price and buying property as a long term investment should help to avoid.
@@dm.mortgage whats your opinion on the housing market right now? Im in the middle of purchasing a property in london but i just feel like prices are inflated due to stamp duty holiday and property prices will drop
@@sayedali883 yes I agree too.
Maybe it’s best to wait until early October. That’s when stamp duty goes back to normal.
No one knows what house prices will do - although if long term investment you have to bear in mind house prices go up and go down. If you are buying as a long term investment then your investment should (if you look at historical house prices) go up Over time.
Being on the property ladder in many cases is better than paying rent which is not giving you any investment at all.
If you are flipping houses then you need to pay much more attention to house cries rising and falling otherwise it shouldn’t be a dealbreaker IMO
As stated I don’t think it matters if it is a long term investment - if you see your dream home now what’s to say it would be there in six months.
Perhaps you could continue viewing but not put pressure on yourself if you don’t find and see what happens. If you buy and are not looking to sell, then what your house price says on paper isn’t going to affect you.
That said, house prices may continue to rise for some time - we are coming out of the pandemic and resuming normality so assuming this goes to plan I don’t see an issue.
Also don’t forget to book in for your free of charge assessment before viewing if you have already - www.DM.mortgage
why do they care so much if they have a charge of the property?
I mean if I dint pay they take the Property no ?
That can be difficult of the property is in negative equity - the bank would still lose out in this situation hence why they do they their due diligence on the value of the property when you buy it.
www.DM.Mortgage
My application is declined yesterday. I don't know why. My application is with Barclays. I am a nurse and working in nhs and care home. My main job is with nhs but I am working there as a part time two days a week but I also working in care home and working three days in week. I am contract with those two. As the Barclays say they can't varify second job income. My mortgage advisor says that my application may rejected because my second job income is higher than first job because I am sponsorship with my first job employer. So , please help what I need to do now.
In nhs I am working from last 1 year and 10 months. And in care home I am working from last 1 yr and 2 months.
I am sorry to hear you have had your application rejected. We would need to source a lender that is more familiar and comfortable with your secondary income. For us to help, you would need to book an appointment with us. We do not charge fees for initial advice - you can book directly via the website using the link below;
dm.mortgage
What are your fees for a mortgage
We do not charge for initial advice, we only an admin fee upon application for a mortgage - £495 is our typical fee for a property purchase.
and at my knowledge all banks look at electoral check
Steer clear of mortgages, rent for life.
Reason being?
Having had section 21 given to me ( no fault eviction due to landlord selling) and no property to go to .... renting for life seems ridiculous where theres the chance of buying
Iki