You've seen your dream house.
"Right, I'll speak to www.themoneybee.com and they can get our mortgage sorted out."
This is one of the most exciting, yet stressful times for anyone. The dream home is within grasp, you just need to sort out the mortgage.
I speak to customers on a regular basis, who have spoken to us months before they begin searching for their dream home and we are ultimately successful in arranging their mortgage for them. It's so easy, because we've prepared them well in advance.
Getting a mortgage is not as easy as it used to be. We should not forget the credit crunch which resulted, in part, because it was far too easy to get a mortgage. When tough times came along many customers were unable to meet their financial commitments. Many loans went in to arrears. As result, lenders introduced tougher underwriting criteria and new affordability assessments which led to the mortgage market being much more stable.
I explain this, simply, to highlight that you have to be prepared and ready to be able to borrow. Let's face it, its probably the single most expensive item you will ever buy. It's a serious decision and you could loose your home if you're not ready. You've probably seen the warning "Your home is at risk if you do not keep up payments on your mortgage or loan that is secured against your home." This warning is there for a reason. Lenders have to make sure that you not only meet their lending criteria, but also that the loan is affordable.
Many customers say, "well I'm paying over that in rent every month, so I can easily afford the mortgage payment". It doesn't work like that anymore. Interest rates are at their lowest. General opinion is that they will go up in the future (we've started to see them rising already). Responsible lending must ensure the loan is affordable if interest rates do rise. Not just now.
As a mortgage adviser firm, we have a responsibility to make sure the loan is affordable also. We generally ask for bank statements to validate your typical outgoings together with your income. This assessment looks at your spending habits and we have to make sure that all regular outgoings are included in your budget. We have to see how your bank account is conducted. What I am actually saying is that you need to be in shape.
I recently wrote a post on TheMoneyBee's facebook page, which discussed one of those spending habits - the GeeGees.
"Bumblebee's tip of the day - A safe bet!
Most of us have a flutter on the football or the Gee Gee's and online betting accounts make it easy to place a bet. The problem is, they are linked to your bank accounts and show as an online betting transaction. Some mortgage lenders have to take into account these type of transactions, if they consider those outgoings to be a regular monthly commitment. It can make a difference to how much the lender calculates you can afford. Bumblebee's tip - "those odd bets are a bit of fun - but they shouldn't look like a regular commitment".
So, it's more complicated to get a mortgage than ever before. Simply, walking down the high street and strolling in to the first bank or building society will limit your options.
Surfing the internet will not provide you with a decision. At the end of the day, they are simple comparison sites that do not map your individual circumstances to the lenders criteria. The Money Bee use a sophisticated underwriting system, together with years of experience to find you the most suitable solution. We are not swayed, because we are impartial and we work for you and not the lender.
Our video, presented by Steve Bull (ex Wolves and England player) explains more. My message is simple, speak to us. We will give you the advice you need well before you are ready to start searching for your perfect home. By doing this earlier, you wont be disappointed.
We will guide you through getting prepared. What's the saying "fail to prepare, prepare to fail!"
If you would like to talk to one of the Bee Team, then book an appointment. We offer a Beespoke, tailored service. We are not a call centre and we will treat you like the individual that you are - not just a number.
We look forward to speaking with you.
We are here to guide you, so call us on 01785 878 555, or Book a Bee