Surprising Things That Could Affect Your Mortgage Application

Getting a mortgage can be hard. It’s even harder when small or unexpected things can affect your application.

To prevent any disappointment, you’ll want to have an application that’s as strong as possible.You may be doing most things right, but there could be things you’ve overlooked or didn’t realise.

To help you make sure this doesn’t happen, we’ve put together a list of surprising things that could botch your chance of a mortgage.

Be Careful What You Put on Bank Transfers

When transferring money to friends via online banking, it might be tempting to put down something funny or an inside joke on the payment reference section, but try to resist this temptation as it could backfire and affect your mortgage application.

A lender may notice the joke reference on your statements and ask you about it. Depending on what it is, they may or may not believe you. Best case scenario, a joke could lead to embarrassment, worst case, it could ruin your mortgage application.

Play it safe and name a payment what it actually is, doing so can also help you when looking back at your finances. Do this when you send a friend money and ask them to do the same when they send you any.

Not Speaking to An Online Mortgage Advisor

Perhaps you’re asking the wrong people for a mortgage? Try speaking to an online mortgage advisor, they can search a wider market than an advisor at a bank, making it more likely you’ll get a lender that is accepting of your circumstances rather than struggling to be perfect for a mortgage out of reach.

Bad credit? Mortgage with IVA or bankruptcy?It could be possible, you just need to look for a mortgage advisor that specialises in these things.

Betting and Gambling

It’s generally safe to place a small bet on something like the lottery or go to the casino now and then, but when it’s a frequent occurrence, especially when large sums of money are involved, it canbe a red flag to lenders.

If gambling transactions are found to have any effecton your finances, then it will certainly affect your mortgage application. It might be wise to take a break from this activity whilst applying for a mortgage.

Either way, make sure you gamble sensibly and for fun, seeking help and advice if it starts to become a negative impact on your life.

Partying a Little Too Hard

You should feel free to go out and socialise, but try to be responsible with your spendingwhilst after a mortgage. Withdrawing a big wad of cash to spend on drinks or a taxi during a night out could come back to haunt you worse than a hangover.

Regularly splurging £100, drunk or otherwise, can cause lenders to get anxious, as this kind of behaviour could make you look unreliable.

It doesn’t mean you can’t still have fun, just stay sensible and scale it back a bit whilst you’re making that mortgage application. You can celebrate a successful application afterwards.

Autofill

Although autofill is a handy feature, don’t assume it will fill in the correct information in the correct place. Drop down menus and automatically completed information can lead to mistakes, such as entering your address incorrectly or getting other numbers wrong.

Mortgage applications can be tough, with administrative errors causing rejections, so don’t allow features designed to make life easier end up having the opposite effect instead, double check everything before you submit.

Positive Life Changes

Whilst applying for a mortgage, you want everything else in your life to be as stable as possible. Sudden changes, even if they are positive, could affect your application.

Whilst many would see getting a new job, especially one that pays more, as a good thing, lenders may question your stability. After all, you will at least need to pass a probation periodof several months at your new role to know that you’ll be staying in the job long term.

For things like a new job, you may need to stay in the role a while before you apply for a mortgage, to prove that it’s permanent and you’ll be earning regular income for the foreseeable future.

Your Age

Some people may be surprised to learn that there are sometimes age limits when it comes to getting a mortgage and some lenders will deem a person too old to borrow. It makes sense however, as mortgages can take years to pay off, with typical ones lasting around 25 years. This means a person in their 60s may find it more difficult to get approved.

There are shorter term mortgages though, so the key is finding the right mortgage with the right lender.

Get it Right

Stay aware of the above when working on your applicationand you’ll increase your chances of getting your mortgage approved.The four main things you need are a strong application, a good mortgage advisor, the right lender and a mortgage that fits you.