Specialist Mortgage Advice in Derby
When you are going through the mortgage journey, you may find that you encounter some obstacles along the way. In some cases, this can get complicated!
Through our experience as a Mortage Broker in Derby, we have dealt with a range of mortgage hurdles. With over 20 years in the industry under our belt, we have encountered many complex situations both common and unique and can provide you with the solutions. In the rare case that we are confronted with a situation, we haven’t seen before, our team will work hard in overcoming it and provide support through the process. These hurdles may not be familiar to you, in particular as a First Time Buyer in Derby, we hope that we can help!
Common mortgage hurdles
Child Care Costs
Having your mortgage application turned away because of having children is unusual, but not having children can increase your chance of an offer acceptance.
From a lenders point of view, they want to make sure an applicant can manage all of your mortgage payments along with current expenditures. With this in mind, childcare costs are classed as expenditures each month. They have to take these costs into account as these costs can run into the hundreds per month. It is known for childcare costs to go down, they always increase! It’s always seen as a financial commitment and is treated the same way as a car loan or hire purchase agent.
Regardless of if you don’t have to pay nursery fees to pay, having children could mean you are offered less than other buyers who don’t have children. The one positive of this is that families can often be in receipt of tax credits and many lenders will take these into account and child benefit.
Mortgages following Divorce/Separation
It’s unfortunate when divorce or separation occurs, however, if you decide to end things with your partner, financially related issues can happen. In particular, mortgages.
It can be challenging for lenders to accept your application when you are financially linked to someone else. This is because they would prefer that applicants not to have two different sets of mortgage payments to meet each month, it could be difficult to manage.
In this situation, many people have approached us looking for Specialist Mortgage Advice in Derby and have sometimes asked these questions:
- How can I remove my ex’s name from my mortgage?
- How do I remove my name from my ex’s mortgage?
- Can I have two mortgages?
We find that mortgage hurdles like these can get difficult, very quickly. Most of the time, there is a way around these scenarios, it’s just knowing how. Having a Mortgage Broker in Derby by your side, like Derbymoneyman, can help relieve any stress you may have during these difficult times.
Benefit income
When it comes to benefit income, lenders have varying opinions on this, including the assessing aspect of it. The good news is that benefit income like a child tax credit, working tax credit, disability benefit and pension can all be included one way or another.
Please don’t hesitate to get in contact with us if you want additional information regarding mortgages and benefit income. Here at Derbymoneyman, our team will look at your situation and find you a lender that will consider your benefit income.
Starting a New Job – Can I get a Mortgage?
When you get a new job, normally you will be getting a larger salary which in turn can be used towards something like a new mortgage. Because of this, you may assume that you are more likely to get a mortgage but, this is not always the case.
At the beginning of your new job, you will normally have a probationary period. These are normally fine but there is still some uncertainty there. Therefore, lenders may only accept you when you have job security, this all depends on the lender and the mortgage costs.
In order for the lender to know your work patterns, they will look into your employment history. This is so lenders can see if you are the type to dip in and out of work. Having gaps in employment can have a negative effect on your application.
Some lenders will work from a newly signed employment contract even in month one or if you are about to start your new job.
Evidencing Your Deposit
With any purchase, all mortgage lenders and mortgage broker are legally required to evidence the source of the borrowers’ deposit funds. Evidence of the deposit may be required from your estate agent and your solicitor.
As an expert Mortgage Broker in Derby, we feel this is the most challenging part of applying for a mortgage and could cause issues if not done correctly. You are required to have the part audit trail for the funds if your deposit was from savings, premium bonds, the sale of another property, gifted from a family member or friend, from family overseas or from a personal loan.
Date Last Edited: December 6, 2023
