Below are 3 of the most common mistakes people often make when applying for a new mortgage:
1) Regularly using an overdraft in the months leading up to making a new application. Many lenders will want to see at least 3 months bank statements to help them assess your application, in particular, they are looking to check the new mortgage is affordable. A potential new lender may question why an applicant is continually using an overdraft and this may affect their final lending decision.
2) Applying for additional credit after their application has been submitted to the lender. Many people think that once their mortgage has passed the initial credit check it won’t matter if they take out additional borrowing to purchase a new car, this simply isn’t the case. Whilst this might not always be noticed, some lenders will do additional checks nearer the completion date. If you have taken out additional credit this may affect their decision to lend.
3) Having multiple applications to lenders when you do not fit criteria. This is something we see constantly, clients approaching all of the high street lenders and having many credit searches carried out only to eventually realise they never meet their criteria. The main result is that all of these unnecessary searches will further reduce a credit score and can make it even more difficult to find a suitable lender, aside from all of the time wasted this can be very frustrating.
Using a whole of market mortgage broker is one of the easiest ways to avoid many of the potential pitfalls when applying for a new mortgage, by using a good adviser they should be able to help and guide you to find the best mortgage for your circumstances.
At Plus Financial Solutions our mission is to help all of our clients find the perfect mortgage for them, call us on 01604 328 091 to see how we can help you today.