Thank you for this. Your pace is so steady and slow. We are just embarking on the journey to get in a position to apply for a mortgage loan and I’ll be watching all your stuff 👍🏽👍🏽 They slow pace really helps me to follow
Excellent presentation! What if I would like to rent my first house after a few years if I decide to buy another house, how do the lender take it? Should I inform this at the outset?
Alex you are a blessing!! My partner and i are about to start the whole process of buying our first home and it's so overwhelming Alex. Thankfully our credit is excellent for both of us and we are now living "vanilla" for the next 3 months making sure any loose ends are cleaned up and finances are good while we get all our documents together. Thank you Alex for this video it's a huge help. I look forward to returning to your channel and letting you know that we have achieved our dream!! I've taken so much notes down from your videos. I can't thank you enough 🙏🏼
Hi, Thanks for a nice video with tips. I live in rented accommodation where all bills and council tax are included. I don't have any utility bill. What shall I do?
Yes indeed, just check with your mortgage lender the percentage you can overpay (this is usually 10% of the mortgage balance without penalty). This means you can pay your mortgage payment plus an additional 10% of the balance year, assuming that your overpayment allowed was 10% of the balance per year. Just double check with the mortgage lender!
Thanks for doing this video, my gas and electricity are pay us you go, is the council tax bill alone will be accepted ? For prove of address Thanks again
Hi Alex ! Thank you for your useful videos ! Me and my partner are thinking to buy our first property here in Uk but we still don't have the money for full deposit. Would it be an issue if we apply for a credit to pay the deposit ? Would this affect our situation or decrease our chances of getting the mortgage? Thank you !
Hi Denisa, here is a video on no deposit mortgage... ! It is possible, but due to covid its on hold... It will likely come back. th-cam.com/video/5XI097qxg1M/w-d-xo.html
I was very annoyed with the "do not spend on your credit card" rule before applying to my mortgage. I use credit cards because I get literally 30 days free credit on all my purchases since I pay the balances on time so I avoid spending any penny on interest. It's also very easy to manage your cash flow since you only pay your credit card once a month and helps put aside the right amount to invest an ISA or something else. That should be added as a plus, not a minus but lenders do look at you as an average individual based on your profile, not at your specific case.
Hi Alex can you please let me know how to save deposit? I have money comes and goes very quickly at the end no real savings so please let me update how to save at least 24k within year. Thank you
Hi Alex you have great videos. I have a question. If i sell a flat outside the uk to use the money for deposit how its that work i still qualify as a first time buyer,how i explain those money? Thank you very much.
Hey Alex, another great vid! Your voice is incredibly relaxing . Anyway, do mortgage lenders look at how much money you have left over at the end of the month? I am a primary teacher and pay £850 and £220 for council tax. This is easily paid with my wage, but typically I don’t have loads left over at the end of the month. Last three months probs had 170 left over in august, 430 in September and 180 in October. I’m just getting so paranoid over everything going wrong and getting rejected! Any soothing words for me …. Hahaha
Thank you for your kind words! The lender would go through a budget planner with you during a mortgage application, as long as affordability fits when looking at the amount you can borrow you would normally find there’s enough surplus left in your income, as lenders stress test when calculating affordability. It’s always good to use the lenders affordability calculators to get a feel for how much you can borrow and your affordability.
Thanks a lot for this video. I have a question cause Im in a bit of a weird situation. Im going to graduate next summer and my and mympartner wan to buy a house before I do, so we can go love together. Here the issues: Im an international student so my credit score js quite low due to not having the account for long, as well as not having a full time job but only a part time one to finance myself. Would you said that would be a big problem? I have payslips and everything, just not much earning cause I will start a proper full time job after uni, so following the whole mortgage-house buying period. Thank you if youll take time to consider this!!!
That’s going to be a difficult one, if the income is low, then the mortgage lender will not lend you much and they will not lend you anything based on what your full-time income will be.
justin akinade awesome, we have a few going through at the minute. Definitely possible with a few lenders. What council ? If you can email me the market value and discount purchase price I can let you know if there is an option for you now. When is deadline ? email: alex@mortgagechain.co.uk
Hi Alex! First of all thanks for all the information; very effective personally. I’m looking for a property as a first buyer, and I wanna ask does it help on getting good deal mortgage; as partner have a account on the same bank ? And does it affect if I switch bank before 5 months, and provide clear 3 month statements, specially for mortgage ?
Thank you for watching. It’s no advantage to go to the bank that you have your bank account with the mortgage lender will make a decision based on your overall situation, but they will initially ask for three months, payslips and salary credited bank statements. I’m not sure what you mean about switching bank before five months.
Hey Deniz, a mortgage agreement in principle can be obtained quickley within an hour or so - However prior to this, we would need to be sure that everything fits into place, such as affordability. We conduct a "Strategy call" with our clients to go through this part before an agreement in principle. Run past me what you had in mind ? Feel free to email me as well on alex@mortgagechain.co.uk - Thank you!
With the 2 years for self employed, do they average the 2 incomes and then X 4.5 to get the affordability? Or will some look at 2 years, but favour the most recent year for a growing business?
I work full time and i transfer my saving/deposit in my partners account.And end of the month i just left few quids in my account.Would this have bad impact when i apply for mortgage?
Wow thanks so much Alex.. Wanted to find out on the proof of deposit issue, what if the deposit is accumulated as a result of small scale trading (not registered, the kind of Facebook market or ebay thingy) wondering if this will be acceptable.
Sorry that’s a really difficult question to answer. This video may help though - How Much Can I Borrow for Mortgage UK as a First Time Buyer th-cam.com/video/U68_Jr7WzLo/w-d-xo.html
Sorry, impossible to know if this is the best decision without knowing your whole situation. But generally, you can borrow more, the less debt you have... This of course may impact on your deposit if you are paying debt off, which is why there's process which needs to be worked out.
Hi I have a question regarding savings , most of my money is investment isa and other investment, , I get statement via email each month us that Ok for proof of savings for deposits?
You need to be able to prove every single transaction from 0 to your current savings balance. If these statements do this, and show a trail of funds, you should be okay. If any of your deposit money does not show a trail, this may not satisfy money-laundering requirements.
Hi Alex, thank you for all the tips & insights provided. Just one question regarding the proof of deposit. . In the video, you are saying that if part of the deposit is coming overseas it is not seen as a reliable source for deposit purposes. What if my parents would like to help me with the deposit to buy a property in the UK. The money is coming from selling a property in Bulgaria and we have a legal document showing clearly that the money is coming from the sale. Are there any specific documents ( papers) that can be used to prove the source of the money from the sale of the property overseas which can be issued and be seen more favorably by the lenders? Thank you!
Bulgaria is okay and as long as you can prove the deposit likely say then you should be good… Just be aware that a minority of mortgage lenders would want the deposit in a UK bank account for a certain amount of time.
I have a question regarding deposit. For some years me and my wife have been saving some cash on side, we managed to save few tousends so far but it is all in cash. How does lenders treat savings like this ?
I’ve had a CCJ on a utility bill for a small amount. It’s now 4 years old. Can lenders be put off by this? We have most of items you’ve listed. Everything else you’ve explained is very helpful as we’re trying to put all these things together plus continue saving 😩Your tips are very useful thank you for sharing in a calm clear manner 🙌🏾
hy there sir can you explain the simple calculation steps to reach the final mortgage amount that the bank will lend you based on you incomes? thank you very much cheers
Great information Alex I'm currently saving up to buy a house. However, 2 years ago I had a DMP on my credit cards whilst in university. I have paid these off but its still showing on my report will this affects my mortgage application?
It will likely effect the lender we can use... you may need a bigger deposit or to use a scheme (help to buy) for example. When you are ready get in touch for a free chat and we can look at the options. Alex
Good day, I and my wife have a joint account and we credit it weekly from our individual salary accounts. Also we built up our savings from abroad and have been transferring it to the same joint account through foreign exchange. We intend to use that joint account as the source of deposit whenever we are going to apply for a mortgage loan. What issues do you foresee and how do you suggest we can resolve them?
Hi Alex! Such an informative video thanks. re Utility bills - What about if you and your partner have moved back in with your partner's parents to save additional money for a deposit? We won't be on any utility bills but of course have updated addresses on credit card, bank statement, registered to the local doctors etc. Thanks in advance!
Hi Alex,I’m doing TWO JOBS. One of them is part time.All my jobs I receives my payslips through my email inbox. Unfortunately,the part time job I have forgotten the password to open the payslips and print them. I have contacted my HR and all password given to cannot open the payslips to be printed. Are the mortgage lenders going to accept my bank statements without my part time payslips? Thanks,looking forward to hear from you.
Hi Alex. I'm planning to do the mortgage this year as joint applicant with my wife but all bills are in my name. She has only the credit card on her name. What do you suggest ? Thanks Carlos
Hi mate, great video. Im saving for a deposit, all my money is in my current account. Is that ok or does it have to be in my saving account? Cheers Alex, looking forward to hearing from you.
Hi Hussain, what I would do is put it into your savings account, and then transfer from your current account to your savings each time you want to save more. What the lenders want to understand is where has the deposit come from. If its obvious you have a trail starting from with a balance of zero, then its clear the savings are from you.
I'm looking into buying my first property. How important is it to have a vanilla bank statement for the last 3 months? I currently have a lot of disposable income, around £2-300 per week disposable but my statements are... well.... as wild as you'd expect with that much disposable income. Should I just spend 3 months being good? Or is it something that can be overlooked? A house is coming up for sale very soon and I wanted to buy before it's listed for sale. It's a recent inheritance. Any help would be appreciated
Lee AF hi Lee, thanks for the question. I would not adapt that as a tactic myself as lenders could ask for for statements going further back. Email me at alex@mortgagechain.co.uk your statements and I can provide a free check and advice accordingly 👍🏻
As long as you can prove all the transactions with statements, and how are you got from 0 to your overall deposit balance, without any confusion, you should be okay.
I’m struggling to get an official document from online banking of my savings in my ISA. I can only seem to get bank statements from my debit card account but my deposit money is in a cash ISA
Hi Sarah, you should get statements from an ISA. Maybe they are not set up for online ? I would definitely contact your bank and ask for the options! Alex
Probably a stupid question but I have been working part time for a long time now and only started a full time job. would I have a good chance to apply after 3 months, or would they ask for more pay slips etc?! Thank you for your great videos.
Hi and thanks! Ok so if your repossessed the lender will likely make a quick sale below market value to obtain their funds back... any remaining equity will go back to the owner. (if there is any)
alexkerrmortgage great thanks but what I meant was what about all the money that has been paid by the homeowner? Are all previous mortgage payments towards to property lost?
Hi fantastic video could I please ask if I have a deposit saved there is a certain amount that was from me selling personal belongings which i do not have receipts for which I saved over time and put in the bank all at once £3000 will i have a problem when it comes to proving or do i need to say it was personal belongings, thankyou
What if I am not a British citizen? I can't register on the poll. What do I do? I know a few people who are not registered but was able to get mortgage. Unfortunately, for my case that is one of my problem.
I have a question with credit cards and credit score. So use credit cards to build up my credit score. But 3 months before applying for mortgage don't use them at all is that correct?
@@alexkerrmortgage thank you so much for your help! I'm one of those people who had no credit score at all 1 year ago(never borrowed money in my life,I'm 22) used my credit card every month and now I've got a score of 458 on clearscore. I will be applying for mortgage at the end of the year 😊
Does lenders make their decision based on income from last three months, or do they look at the up to date earnings on these 3 months payslips? In other words, if I started working today, would they calculate the amount they are willing to lend me on the three month statement basis?
Most lenders would require you to be in your new job for longer than one day… It may be okay if you are in the same line of work, and the lender was willing to accept a contract of work. However this is one which wouldn’t require quite a lot of research on Lenders criteria to understand properly.
Hi, I saw your videos first time. I am self employed. My company is limited and it has 42 months history. Actually i didnt pay my last year company tax and my personal income tax. Can this gonna be an issue for lenders? Thanks
In regards to proof of deposit. What if you have been saving into something like plum for a while and then transferred a lump amount in to your bank. How far back with statements would you have to go?
You need to show statements that have transactions on... So if for one year, there were no transactions, you would not need to show the statements over that year.
Thank you for your video. You say not to take out a credit card if looking at property. I'm currently not eligible for a mortgage due to my fixed term work contract but hope to be soon and so am researching, have contacted brokers and looking at property. So I took out a credit card so I could spend a bit on and and pay it off so there is proof of repaying credit. That may have been a mistake according to your advice. I already applied for it, haven't spent on it yet. What should I do in light of that? My credit score is high but my affordability is low due to working for a charity.
Hi Carla, so I would advise not to take a credit card out during an application or just before you apply for a mortgage. The fact you have already applied for the credit card should be fine, you can spend on it and repay it back before interest kicks in, and at some point in the future this should provide a track record of repaying some credit and should therefore benefit you. The time it takes to get to this point can differ.
If you have paid off your credit cards, is it better to close the accounts as you have no use for them during the house buying process? Will banks view multiple credit cards as a negative even if they are 0 balance? thanks.
Techytech hi and Thanks for your question! Having a zero balance is absolutely fine, and will not be viewed as negatively by the banks. Just make sure not to pay off credit just before a mortgage application, as it takes a little while to update on your credit file, and it’s really important you provide accurate balances in a mortgage application. I hope this helps! Any more questions let me know, Alex.
Hi Alex, Question: What about a person in the military who has no "permanent address" as you move every 2 years. And due to the nature of the accommodation the military stay in, you do not pay Bills either? What would you suggest
Hi and thanks for your questions. Lenders understand this situation. Bank statements can also provide proof of address and you likely have some history at a previous address, parents etc ? Your past addresses should connect it all together when it comes to a mortgage application!
Hi, I can’t register on the voters roll as I’m not an UK nor EU citizen. Any advice on what’s acceptable to replace that? I can provide PoA for 3 years.
As long as your bank account, mobile phone contract, and any other credit commitments have the correct address on and show correctly on your credit files then you will be okay. Use a check my file credit report to see your credit and addresses across all the credit agencies the mortgage lenders use. Let me know if you need the link.
Hi Julian, by using and repaying a card each month will help your credit score for sure and improve chances of a successful application. However try not to use credit during a mortgage application. Any more questions please let me know!
Me and my partner are looking become first time buyers sometime next year *fingers crossed* However, we live at two separate address currently. And I don’t have any utility bills in my name as I’m living with my parents. How do I go about this? Is my drivers license okay ? I know you mentioned phone bill will not be accountable. I hope you can answer my question, thank you
Hi Tasnim, thanks for the question! if you have a driving license and a bank statement with your address then that will be all good... One of them will probably be ok but always good to have both if possible ? Alex
i need about 50K deposit for my property and i have that in my account already which has been in there for over 6 months i also have the proof of savings when i transfer x amount from my accounts every week and every month would that all be ok?
Hi Yusuf, thanks for your question. A lender will require evidence of savings and they like to see a build up of funds from the original source, so it looks like you are doing the right thing, well done! Exciting stuff, when do you plan on buying ?
Second question do i need to provide the bank statements that my wages goes into and the bank statement of the account that has proof of deposit in there or do i need to provide bank statements of all my bank accounts that i have? Thanks
![7 MUST Do Mortgage Application Tips for First Time Buyers - How to Prepare Properly - [UPDATED]](http://i.ytimg.com/vi/RHz2_lNkA9A/mqdefault.jpg)
Book a free chat with Alex: link.coursecreator360.com/widget/appointment/mortgage-chain
Just bought my first house, just had to come back to say thank you for this video it helped massively
Glad it helped! Thank you for your kind words! Alex
I love how calm you are it’s a breath of fresh air watching your videos x
Thank you very much!
Thank you for this. Your pace is so steady and slow. We are just embarking on the journey to get in a position to apply for a mortgage loan and I’ll be watching all your stuff 👍🏽👍🏽 They slow pace really helps me to follow
Glad you are getting value! :-)
I love how calming your voice is well done 👍 Alex.
I've just applied for a mortgage and everything is going through at the moment. I wish I found your channel sooner
Thank you for your kind words! And good luck with your purchase. Alex
Awesome. Speed up to 1.75 and you are golden!
ok I will practice on getting quicker :-)
@Lucas Christian Its ok I know exactly what you mean! A video flows better when its quicker!
Excellent presentation! What if I would like to rent my first house after a few years if I decide to buy another house, how do the lender take it? Should I inform this at the outset?
@@Jkris1439 thank you! Do you mean if you buy a house to live in and then want to rent it out, how will the lender view it ?
You have provided extremely useful advice. I have already implemented some of them.
Glad it was helpful!
Yes, you are right. Do i need to lender in advance about this plan?
The first thing to do is become “mortgage ready” - just download our free pack here to help you - mortgagechain.co.uk/#section-60hEMFeny
Good video. No background music noise. Speak slowly & clearly you 👍
Thanks for the kind words!
Alex you are a blessing!! My partner and i are about to start the whole process of buying our first home and it's so overwhelming Alex. Thankfully our credit is excellent for both of us and we are now living "vanilla" for the next 3 months making sure any loose ends are cleaned up and finances are good while we get all our documents together. Thank you Alex for this video it's a huge help. I look forward to returning to your channel and letting you know that we have achieved our dream!! I've taken so much notes down from your videos. I can't thank you enough 🙏🏼
Hi Bella, thanks for watching and I would love to know when you achieve your dream. Please drop in and let us know!
Thank You, Alex. This video helped me a lot to understand how to do a plan before buying a property. Hopefully to get it mine soon.
Thanks for your comments, really glad it has helped you!
Great video and good advice. Looking at buying my first property and this really helps! Thanks!
Hey James, thanks for the comment! That sounds awesome, good luck! if you need any help with that, just let me know. Alex
Hi, Thanks for a nice video with tips. I live in rented accommodation where all bills and council tax are included. I don't have any utility bill. What shall I do?
Hey! So in this instance, a bank statement can double up proof of address as well. Lovely!
Thank you so much for the drilling I needed it
this video was extremely useful. thank you for posting these tips!!!
Hi Alex,
I am wondering is this pointers for when the solicitor gets involved or does this occur before seeking a solicitor?
Hi Nufa, sorry I haven't completely understood your question, can you expand on that a bit please ? Thank you, Alex
Is there any way to increase the mortgage payment to clear the mortgage early?
Yes indeed, just check with your mortgage lender the percentage you can overpay (this is usually 10% of the mortgage balance without penalty). This means you can pay your mortgage payment plus an additional 10% of the balance year, assuming that your overpayment allowed was 10% of the balance per year. Just double check with the mortgage lender!
Thanks for doing this video, my gas and electricity are pay us you go, is the council tax bill alone will be accepted ? For prove of address Thanks again
As long as the council tax is in the current year, then that will be fine or a bank statement with your address on it.
Hi Alex ! Thank you for your useful videos ! Me and my partner are thinking to buy our first property here in Uk but we still don't have the money for full deposit. Would it be an issue if we apply for a credit to pay the deposit ? Would this affect our situation or decrease our chances of getting the mortgage?
Thank you !
Hi Denisa, here is a video on no deposit mortgage... ! It is possible, but due to covid its on hold... It will likely come back. th-cam.com/video/5XI097qxg1M/w-d-xo.html
Thank you Alex I've watched all your video took your advice I've been offered a proper mortgage during this pandemic I'm buzzing thank you
Thanks Danny! And good luck with your nee home :-)
I was very annoyed with the "do not spend on your credit card" rule before applying to my mortgage. I use credit cards because I get literally 30 days free credit on all my purchases since I pay the balances on time so I avoid spending any penny on interest. It's also very easy to manage your cash flow since you only pay your credit card once a month and helps put aside the right amount to invest an ISA or something else. That should be added as a plus, not a minus but lenders do look at you as an average individual based on your profile, not at your specific case.
I understand your frustration but this process would be too difficult to manage on every single application.
Driving licence vs provisional license any different in ids
@@summaada6980 you would need a full uk license, they won’t take provisional.
very informative, video explained everything in easy and comprehensive way. Thank you for making the video.
Really its an informative content
Will my online shopping on my bank statements affect us getting a mortgage? What kind of spending so I need to avoid (what is a vanilla statement) ?
Spending is ok for most things, just as long as you don't have excessive spending patterns, the lender will not be concerned.
Living in shared accommodation. bill is included in rent i pay so how am i supposed to get utility bill ?
k driving license or bank statement will be ok
It is like the whole information for getting the mortgage done. thank you
Glad it was helpful!
Hi Alex can you please let me know how to save deposit? I have money comes and goes very quickly at the end no real savings so please let me update how to save at least 24k within year.
Thank you
Hiya, you need to reduce your outgoings. Can you live at home for example ?
Hi Alex you have great videos.
I have a question.
If i sell a flat outside the uk to use the money for deposit how its that work i still qualify as a first time buyer,how i explain those money?
Thank you very much.
Hi Cornel, thanks for watching! You would not be classed as a first time buyer if you own a property in another country. Alex
Mai degraba nu intrebai, coaie. 😂😂😂. Zi și tu ca ți i a dat o Mătușa. 😈😂
5:03 Payslips now days are all send by emails. No paper payslips anymore.
Can downloadable emailed payslips used for proof of income?
Yes downloading them as a PDF would be absolutely fine.
Does “being on the voter roll” mean you have to be “open register”? Or can you opt out of it?
You can opt out of the open register…
Hey Alex, another great vid! Your voice is incredibly relaxing . Anyway, do mortgage lenders look at how much money you have left over at the end of the month? I am a primary teacher and pay £850 and £220 for council tax. This is easily paid with my wage, but typically I don’t have loads left over at the end of the month. Last three months probs had 170 left over in august, 430 in September and 180 in October. I’m just getting so paranoid over everything going wrong and getting rejected! Any soothing words for me …. Hahaha
Thank you for your kind words! The lender would go through a budget planner with you during a mortgage application, as long as affordability fits when looking at the amount you can borrow you would normally find there’s enough surplus left in your income, as lenders stress test when calculating affordability. It’s always good to use the lenders affordability calculators to get a feel for how much you can borrow and your affordability.
How can i get a proof of utility bill if I've always rented a room with all bills included?
Bank statement!
Thanks a lot for this video. I have a question cause Im in a bit of a weird situation. Im going to graduate next summer and my and mympartner wan to buy a house before I do, so we can go love together. Here the issues: Im an international student so my credit score js quite low due to not having the account for long, as well as not having a full time job but only a part time one to finance myself. Would you said that would be a big problem? I have payslips and everything, just not much earning cause I will start a proper full time job after uni, so following the whole mortgage-house buying period. Thank you if youll take time to consider this!!!
That’s going to be a difficult one, if the income is low, then the mortgage lender will not lend you much and they will not lend you anything based on what your full-time income will be.
Looking to buy council property via right to buy with max discount. Also want to use discount as deposit. How possible is this?
justin akinade awesome, we have a few going through at the minute. Definitely
possible with a few lenders. What council ? If you can email me the market value and discount purchase price I can let you know if there is an option for you now. When is deadline ? email: alex@mortgagechain.co.uk
also with people gifting money is there a limit on how much and how many gifts ?
Hi, I am not aware of any limits, however it would all need to be provable, where the money came from to satisfy money-laundering regulations.
Hi Alex! First of all thanks for all the information; very effective personally. I’m looking for a property as a first buyer, and I wanna ask does it help on getting good deal mortgage; as partner have a account on the same bank ? And does it affect if I switch bank before 5 months, and provide clear 3 month statements, specially for mortgage ?
Thank you for watching. It’s no advantage to go to the bank that you have your bank account with the mortgage lender will make a decision based on your overall situation, but they will initially ask for three months, payslips and salary credited bank statements. I’m not sure what you mean about switching bank before five months.
Hi great video just wanted to ask how long it will take to get a mortgage in principle?
Hey Deniz, a mortgage agreement in principle can be obtained quickley within an hour or so - However prior to this, we would need to be sure that everything fits into place, such as affordability. We conduct a "Strategy call" with our clients to go through this part before an agreement in principle.
Run past me what you had in mind ?
Feel free to email me as well on alex@mortgagechain.co.uk - Thank you!
With the 2 years for self employed, do they average the 2 incomes and then X 4.5 to get the affordability?
Or will some look at 2 years, but favour the most recent year for a growing business?
Most high st lenders will average 2 years... some specialist self employed lenders will take latest years, but rate higher when compared to high st.
@@alexkerrmortgage Thanks Alex!
@@JakeM218 any time!
I was gifted a deposit and wanted to buy a property though a ltd company but I have no history of income, or credit history.
Sounds like a buy to let... might be possible... please call us a book a free consultation with myself or Andrew on 03333446869
how to get in to voters list if you have a international passport and serving in hm forces
Hi Bibek its not possible unless you like in the UK and are a citizen. Is that the case ?
I have a question l am register to vote in but not in the open registration is that ok
Hi Sotoni, yes that is fine!
I work full time and i transfer my saving/deposit in my partners account.And end of the month i just left few quids in my account.Would this have bad impact when i apply for mortgage?
Not if you do a joint mortgage ?
You literally explain perfectly well! Thanks very much for you time that you share for us.
Wow thanks so much Alex.. Wanted to find out on the proof of deposit issue, what if the deposit is accumulated as a result of small scale trading (not registered, the kind of Facebook market or ebay thingy) wondering if this will be acceptable.
As long as you submit a self assessment return, you will be fine as that is evidence of your income 👍🏻
Please how much must be my annual income before I can apply for a Mortgage.
Sorry that’s a really difficult question to answer. This video may help though - How Much Can I Borrow for Mortgage UK as a First Time Buyer
th-cam.com/video/U68_Jr7WzLo/w-d-xo.html
Should I pay off one of my loans car one before I wait for 3 months good bank statements before applying for a mortgage
Sorry, impossible to know if this is the best decision without knowing your whole situation. But generally, you can borrow more, the less debt you have... This of course may impact on your deposit if you are paying debt off, which is why there's process which needs to be worked out.
Any videos now during coronavirus as lots have changed?
Here you go! th-cam.com/video/PGzF5-Jn_uQ/w-d-xo.html
Thanks for the info Alex. Definitely helped!
I was wondering what bearings a high credit limit would do to my application?
Do you mean from a credit card ?
@@alexkerrmortgage that's right
@@alexkerrmortgage Is £2k too much on a cc?
@@sephrah_precious is that total debt ? What is annual income (approximately) ?
@@alexkerrmortgage no this is cc limit. I spend little on it then pay it back. Wondering if I should reduce it before applying?
Hi
I have a question regarding savings , most of my money is investment isa and other investment, , I get statement via email each month us that Ok for proof of savings for deposits?
You need to be able to prove every single transaction from 0 to your current savings balance. If these statements do this, and show a trail of funds, you should be okay. If any of your deposit money does not show a trail, this may not satisfy money-laundering requirements.
Hi, I am set employed, first time buyer, have a huge HMRC bill I am paying it monthly, will that effect my application?
Yes it will if they see it on bank statements... They may take it as a expense or at worse case may not lend.
Hi Alex, thank you for all the tips & insights provided. Just one question regarding the proof of deposit.
. In the video, you are saying that if part of the deposit is coming overseas it is not seen as a reliable source for deposit purposes. What if my parents would like to help me with the deposit to buy a property in the UK. The money is coming from selling a property in Bulgaria and we have a legal document showing clearly that the money is coming from the sale. Are there any specific documents ( papers) that can be used to prove the source of the money from the sale of the property overseas which can be issued and be seen more favorably by the lenders? Thank you!
Bulgaria is okay and as long as you can prove the deposit likely say then you should be good… Just be aware that a minority of mortgage lenders would want the deposit in a UK bank account for a certain amount of time.
I have a question regarding deposit. For some years me and my wife have been saving some cash on side, we managed to save few tousends so far but it is all in cash. How does lenders treat savings like this ?
You can’t use cash I am afraid. Here is a recent video on the subject - th-cam.com/video/35iTMSTCrEI/w-d-xo.html
Your links in the description for the paperwork doesn't seem to be working, Alex
Thanks for letting me know, let me get this checked out!
I’ve had a CCJ on a utility bill for a small amount. It’s now 4 years old. Can lenders be put off by this? We have most of items you’ve listed. Everything else you’ve explained is very helpful as we’re trying to put all these things together plus continue saving 😩Your tips are very useful thank you for sharing in a calm clear manner 🙌🏾
There will likely be lenders that will have criteria, that would ignore this.
you're in the same boat as me, me and my partner have been refused ☹️ have you had any luck?
hy there sir can you explain the simple calculation steps to reach the final mortgage amount that the bank will lend you based on you incomes? thank you very much cheers
Are you employed or self employed ? Alex
Great information Alex
I'm currently saving up to buy a house. However, 2 years ago I had a DMP on my credit cards whilst in university. I have paid these off but its still showing on my report will this affects my mortgage application?
It will likely effect the lender we can use... you may need a bigger deposit or to use a scheme (help to buy) for example. When you are ready get in touch for a free chat and we can look at the options. Alex
Good day, I and my wife have a joint account and we credit it weekly from our individual salary accounts. Also we built up our savings from abroad and have been transferring it to the same joint account through foreign exchange. We intend to use that joint account as the source of deposit whenever we are going to apply for a mortgage loan. What issues do you foresee and how do you suggest we can resolve them?
If you can prove all your savings from abroad was saved from your income then you shouldn’t have any issues…
Hi Alex! Such an informative video thanks. re Utility bills - What about if you and your partner have moved back in with your partner's parents to save additional money for a deposit? We won't be on any utility bills but of course have updated addresses on credit card, bank statement, registered to the local doctors etc. Thanks in advance!
Hi Jessica, thanks for watching! You can use a bank statement for proof of address :-)
This is a fantastic video, thank you for the tips, your page is amazing and extremely informative.
Glad it was helpful!
Hi alex, i dont have a utility bill as moved in with my dad to save money, can i use a drivers licence or bank statement? Great vid as always 👍
Bank statement is the one!
Do u need life insurance or critical illness cyber to get mortgage please let me know?
@@Amanthegoat it’s not compulsory but I would certainly recommend taking it out to protect you / and your family.
Hi Alex,I’m doing TWO JOBS. One of them is part time.All my jobs I receives my payslips through my email inbox. Unfortunately,the part time job I have forgotten the password to open the payslips and print them. I have contacted my HR and all password given to cannot open the payslips to be printed. Are the mortgage lenders going to accept my bank statements without my part time payslips? Thanks,looking forward to hear from you.
Hi Douglas, you have to obtain your payslips, there is absolutely no way around that.
Great video thank you. Would a lender ever ask for more than 3 months bank statements to see outgoings?
Hi Nick, yes the lender could ask for more than three months bank statements at any time. Alex
Would they ask for information from another bank account i have?
Thanks for sharing your knowledge with us.
No problem, any time, and thank you very much for watching!
Hi Alex. I'm planning to do the mortgage this year as joint applicant with my wife but all bills are in my name. She has only the credit card on her name. What do you suggest ? Thanks Carlos
Me too
Just use the credit card statement to prove her address.
I’ve only been self employed for 6 months is that a problem? Beforehand I was fully employed for 5 years
Jason Williams Hi Jason, we need 12 months trading minimum. Not too long to go!!
Hi mate, great video.
Im saving for a deposit, all my money is in my current account. Is that ok or does it have to be in my saving account?
Cheers Alex, looking forward to hearing from you.
Hi Hussain, what I would do is put it into your savings account, and then transfer from your current account to your savings each time you want to save more. What the lenders want to understand is where has the deposit come from. If its obvious you have a trail starting from with a balance of zero, then its clear the savings are from you.
I'm looking into buying my first property. How important is it to have a vanilla bank statement for the last 3 months? I currently have a lot of disposable income, around £2-300 per week disposable but my statements are... well.... as wild as you'd expect with that much disposable income.
Should I just spend 3 months being good? Or is it something that can be overlooked?
A house is coming up for sale very soon and I wanted to buy before it's listed for sale. It's a recent inheritance. Any help would be appreciated
Lee AF hi Lee, thanks for the question. I would not adapt that as a tactic myself as lenders could ask for for statements going further back. Email me at alex@mortgagechain.co.uk your statements and I can provide a free check and advice accordingly 👍🏻
Maybe a stupid question but what could taint a bank statement? Would takeaways, clothes orders etc put the bank off?
Hi Rachel, excessive gambling would be an example. As long as you don't spend £1000 per month on takeaway's you should be fine!
I have money in stocks and shares. Do I need to sell it to show as proof of deposit?
As long as you can prove all the transactions with statements, and how are you got from 0 to your overall deposit balance, without any confusion, you should be okay.
I’m struggling to get an official document from online banking of my savings in my ISA. I can only seem to get bank statements from my debit card account but my deposit money is in a cash ISA
Hi Sarah, you should get statements from an ISA. Maybe they are not set up for online ? I would definitely contact your bank and ask for the options! Alex
@@alexkerrmortgage Thankyou!
Probably a stupid question but I have been working part time for a long time now and only started a full time job. would I have a good chance to apply after 3 months, or would they ask for more pay slips etc?! Thank you for your great videos.
You only need 3 months mate
Is this in the same line of work ? Going from part-time to full-time, or are they different industries ?
Hi Alex! Great video! I had a question, what actually happens to all the payments you’ve made if your house gets repossessed?
Hi and thanks! Ok so if your repossessed the lender will likely make a quick sale below market value to obtain their funds back... any remaining equity will go back to the owner. (if there is any)
alexkerrmortgage great thanks but what I meant was what about all the money that has been paid by the homeowner? Are all previous mortgage payments towards to property lost?
Thanks for the help! Would an accountant typically charge for providing and signing accounts?
Hi Bradley, thanks for watching ! An accountant would charge for submitting accounts.
Once you get on the electrol register how long does it take to reflect this or enhance your score. At this moment my score is only fair
Hi Roxy! it’s 4-6 weeks until reflected on your credit file 👍🏻
Hi fantastic video could I please ask if I have a deposit saved there is a certain amount that was from me selling personal belongings which i do not have receipts for which I saved over time and put in the bank all at once £3000 will i have a problem when it comes to proving or do i need to say it was personal belongings, thankyou
Hi, you will likely have issues as money-laundering regulations require that deposit funds are provable. Alex
What if I am not a British citizen? I can't register on the poll. What do I do? I know a few people who are not registered but was able to get mortgage. Unfortunately, for my case that is one of my problem.
Hi Michelle, are you an EU citizen or a non-EU citizen?
Good advice. This is amazing alex ! keep posting
Thank you! Will do!
Amazing and useful infos given step by step.
I have a question with credit cards and credit score. So use credit cards to build up my credit score. But 3 months before applying for mortgage don't use them at all is that correct?
Correct! Its a nightmare using them before or during an application as the balances must match, and lenders systems can take a while to update.
@@alexkerrmortgage thank you so much for your help! I'm one of those people who had no credit score at all 1 year ago(never borrowed money in my life,I'm 22) used my credit card every month and now I've got a score of 458 on clearscore. I will be applying for mortgage at the end of the year 😊
slazenger98 happy days!!
Thanks Alex really useful stuff here.
Does lenders make their decision based on income from last three months, or do they look at the up to date earnings on these 3 months payslips? In other words, if I started working today, would they calculate the amount they are willing to lend me on the three month statement basis?
Most lenders would require you to be in your new job for longer than one day… It may be okay if you are in the same line of work, and the lender was willing to accept a contract of work. However this is one which wouldn’t require quite a lot of research on Lenders criteria to understand properly.
Hi,
I saw your videos first time. I am self employed. My company is limited and it has 42 months history. Actually i didnt pay my last year company tax and my personal income tax. Can this gonna be an issue for lenders?
Thanks
Yes that is going to be an issue for the lenders... So I would get on top of that situation first before you apply.
@@alexkerrmortgage thank you very much
Hi how fast does my credit file improve if I pay of my debts? Many thanks
Hi Jakkies! Very hard to know without seeing your file, but usually reducing debts should have a positive impact in a few months. Alex
Hi Alex iv been transferring my savings to my partner account for the last few years will this look bad for proof of Deposit to the mortgage lender.
If she is not on the mortgage then this could be an issue. Will you do a joint mortgage ?
In regards to proof of deposit. What if you have been saving into something like plum for a while and then transferred a lump amount in to your bank. How far back with statements would you have to go?
You need to show statements that have transactions on... So if for one year, there were no transactions, you would not need to show the statements over that year.
What can be used as a utility bill?
Bank statements can prove address or driving license as long as using passport for ID
Thank you for your video. You say not to take out a credit card if looking at property. I'm currently not eligible for a mortgage due to my fixed term work contract but hope to be soon and so am researching, have contacted brokers and looking at property. So I took out a credit card so I could spend a bit on and and pay it off so there is proof of repaying credit. That may have been a mistake according to your advice. I already applied for it, haven't spent on it yet. What should I do in light of that? My credit score is high but my affordability is low due to working for a charity.
Hi Carla, so I would advise not to take a credit card out during an application or just before you apply for a mortgage. The fact you have already applied for the credit card should be fine, you can spend on it and repay it back before interest kicks in, and at some point in the future this should provide a track record of repaying some credit and should therefore benefit you. The time it takes to get to this point can differ.
If you have paid off your credit cards, is it better to close the accounts as you have no use for them during the house buying process? Will banks view multiple credit cards as a negative even if they are 0 balance? thanks.
Techytech hi and Thanks for your question! Having a zero balance is absolutely fine, and will not be viewed as negatively by the banks. Just make sure not to pay off credit just before a mortgage application, as it takes a little while to update on your credit file, and it’s really important you provide accurate balances in a mortgage application. I hope this helps! Any more questions let me know, Alex.
Hi Alex
One direct debit bounced, is that gonna affect the mortgage application?
You should be okay with that… Personally I would properly avoid nationwide who would be the strictest!
Hi Alex,
Question:
What about a person in the military who has no "permanent address" as you move every 2 years. And due to the nature of the accommodation the military stay in, you do not pay Bills either? What would you suggest
Hi and thanks for your questions. Lenders understand this situation. Bank statements can also provide proof of address and you likely have some history at a previous address, parents etc ? Your past addresses should connect it all together when it comes to a mortgage application!
Hi, I can’t register on the voters roll as I’m not an UK nor EU citizen. Any advice on what’s acceptable to replace that? I can provide PoA for 3 years.
As long as your bank account, mobile phone contract, and any other credit commitments have the correct address on and show correctly on your credit files then you will be okay. Use a check my file credit report to see your credit and addresses across all the credit agencies the mortgage lenders use. Let me know if you need the link.
@@alexkerrmortgage yes Experian is aligned with everything. Will check checkmyfile as per your suggestion
most council will not accept you on the voters roll if you are a resident in the UK but not an European citizen or British? what is your view that?
You need permanent rights to reside.
Great video. Do most of these apply for pulling equity out of your home?
MrWhoAmI57 this is a bit different! What is the capital for ? Alex
@@alexkerrmortgage It would be to invest into buy to let property
MrWhoAmI57 that would be a remortgage with a capital raise. Quite straight forward. Would this be your first Buy to Let ?
@@alexkerrmortgage Great. Yes, this would be my 1st buy to let property
MrWhoAmI57 awesome! If you would like to know your options, please email me - alex@mortgagechain.co.uk and we can discuss further 👍🏻
Very helpful, thanks so much. Just subscribed.
Thanks for the sub!
Will using credit card below utilization ratio and paying full each month, still affect my application/score?
Hi Julian, by using and repaying a card each month will help your credit score for sure and improve chances of a successful application. However try not to use credit during a mortgage application. Any more questions please let me know!
Me and my partner are looking become first time buyers sometime next year *fingers crossed* However, we live at two separate address currently. And I don’t have any utility bills in my name as I’m living with my parents. How do I go about this? Is my drivers license okay ? I know you mentioned phone bill will not be accountable. I hope you can answer my question, thank you
Hi Tasnim, thanks for the question! if you have a driving license and a bank statement with your address then that will be all good... One of them will probably be ok but always good to have both if possible ? Alex
i need about 50K deposit for my property and i have that in my account already which has been in there for over 6 months i also have the proof of savings when i transfer x amount from my accounts every week and every month would that all be ok?
Hi Yusuf, thanks for your question. A lender will require evidence of savings and they like to see a build up of funds from the original source, so it looks like you are doing the right thing, well done! Exciting stuff, when do you plan on buying ?
Thanks looking to get the ball rolling in Jan of feb 2021
Second question do i need to provide the bank statements that my wages goes into and the bank statement of the account that has proof of deposit in there or do i need to provide bank statements of all my bank accounts that i have?
Thanks