TR Financial Mortgage Guide

MORTGAGE GUIDE Five key tips to consider before starting to look for a mortgage

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LOOKING FOR A MORTGAGE BUT DON’T KNOW WHERE TO START?

his bitesize guide will point you in the right direction when you start to look for a mortgage.

Whether you’re looking to purchase a new residential home, an investment property or remortgaging a property you currently own, this handy guide will help you get ahead of the game and give you some key tips for the future.

We are Sam & Gideon, and we are the co-founders of TR FINANCIAL. Our job is to help and advise you based on your mortgage requirements and ultimately make sure you save money at every stage. At TR FINANCIAL our focus is on providing our clients with quality, hands-on advice using our wealth of experience and knowledge.

We know that financial transactions are hugely important and not to be taken lightly. In fact, a mortgage is likely to be the largest debt you’ll ever have. We’re here to assist, guide and advise our clients at every stage. Value for money is key; we thoroughly research what is the best product for our clients based on their circumstance.

SAM ROSE Co-founder TR Financial

GIDEON TIANO Co-founder TR Financial

We are going to give you five key tips before you start any mortgage journey, which will be key for now and in the future. This will help to make sure the process is quicker, will ensure you can secure a rate and will help to obtain a mortgage without the normal stress involved.

WHAT PAPERWORK DO I NEED TO GET READY? Whether you use a mortgage broker or go to a lender directly, there will always be a requirement to submit documentation. This will vary from lender to lender as different lenders have different critera.

But you can be certain that the following documents will be required and will be dependent on whether you are employed or self employed: • • • • • • •

Proof of identification Proof of address Payslips Self Assessment Tax Calculations Bank Statements (to verify income and day to day expenditure) Proof of deposit (for purchase applications) Rental income proof (for a buy to let transaction)

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VIEW YOUR FULL CREDIT REPORT. Generally speaking, were you to have an issue with something on your credit file, you would know about it. At the same time plenty of people make the mistake of thinking that the ‘credit score’ is what paints the whole picture in terms of what is important to a lender. At the same time plenty of people make the mistake of thinking that a ‘credit score’ is what paints the whole picture in terms of what is important to a lender.

But sometimes people aren’t aware that, for example, one late credit card payment 18 months ago or even a mistake on your credit file can affect your chances of potentially obtaining a mortgage.

Best practice is to have a look at your credit file in its entirety. There are plenty of free sites such as checkmyfile.com (probably the most comprehensive credit report) who will allow you to access this full report for free.

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VIEW YOUR FULL CREDIT REPORT.

They normally give a month’s free trial and a monthly subscription is payable following the month.

These sites will let you know immediately if there is anything ‘adverse’ on your file which could impact the lenders’ who would be happy to potentially lend you the required mortgage amount.

Knowing this yourself or providing the report to a broker or lender will save time running credit checks and trying to obtain a mortgage with the wrong lender, in the event there is something amiss.

It will also be helpful to understand your credit commitments as these are normally noted down on the credit report, and it is typically the credit commitments the lender pick up on too.

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YOUR CREDIT COMMITMENTS. Knowing exactly what credit commitments you have in place will help save time and effort during the mortgage application process.

Any time a credit search is performed on you (which will happen on every mortgage application) payments towards any outstanding loans and/or credit cards will impact a lenders borrowing decision.

Sometimes people are not aware, that a car lease with a monthly payment, is the same as having borrowed money using a personal loan; so it is best to know all of your loan and credit card balances with the subsequent monthly payments.

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DON’T GET BOGGED DOWN IN ALL THE INFORMATION. We live in the age of information. But there is also a lot of information which may, unintentionally, be misleading to the person in the street.

For example, most lenders have an ‘affordability calculator’ on their websites or in branch – but knowing exactly what information is required in each field (such as income and credit commitments) will ensure more accurate outcomes.

Income can be used differently by different lenders.

For example bonuses, commission and overtime is considered as variable income and lenders will only take a certain percentage of the figure into account to use as income.

Therefore it’s important to speak to the right person to ensure there is a complete understanding of which lenders to approach to make sure the right mortgage is obtained for you.

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USE A MORTGAGE BROKER. Booking an appointment with a lender or a bank directly is like holding water in your cupped hands – unnecessary and time consuming.

Instructing a qualified, knowledgeable, and independent mortgage broker will allow you to approach multiple lenders, options, and rates simultaneously.

A mortgage broker’s (or adviser’s) role is to source and apply for the best mortgage available to you based on your circumstances.

This will save you time and aggravation when it comes to your mortgage application.

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SUMMARY. Hopefully now you will have a little more of an understanding of what to look out for before speaking to a broker.

Our key tips are just a little insight into how you can be completely prepared for what’s to come. This means that the process will become streamlined, and this could be the difference between being able to apply for a lower rate or a higher rate with the right lender in this volatile market.

TO BOOK A FREE 15 MINUTE CONSULTATION CLICK HERE

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