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
Hi, I am comfortable with all the aspects mentioned in the video. However, I am getting my deposit as a gift from my parents who live outside the UK. My UK passport clearly states their name as my parents, and they are okay to provide information such as the letter of gift and their bank local statements (solicitor stamped). My questions are, firstly, will it be a bad point in my application, also, how many months bank statements do they need to include. Thank you in advance.
@@hifive6715 £350,000 = £2,500 and £375,000 = £3,750. Here is our stamp duty calculator so you can easily calculate it for any property price - mortgagechain.co.uk/stamp-duty-calculator/ Any further questions let me know! Alex
I had a poor credit report I needed to pay bills and make changes in my apartment as things where getting Shabby, I paid various hacker to help boost my credit score and clear the bad stuffs on my credit but they couldn’t change a thing. I have been scammed several times I really needed to fix my credit report, I came across a lady at the store by name Mariela as she was telling to her friend about her hacker, I had to stop and ask her a few questions we where getting to know each other, as she shared with me a testimony of a great hacker Roy, how he fixed her credit and gave her a Good score. I decided to give a try on the hacker, I had a strong hope he would put a smile on my face. I contacted Credit MasterFix Hacks LLC explained to him my situation, he explained the process and requested for my information. In less than 72 hours my score was raised from 465 to 789 and in exactly 5 days my credit got in good shape, all late payment and negative items was pulled out i can tell you with all sincerity that my life is back to normal and things are actually working out for me and my family, all thanks to Credit MasterFix Hacks LLC you can get to him via creditmasterfix▪com God bless him
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.
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 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
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?
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?
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’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 🙌🏾
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.
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!
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 👍🏻
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.
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?
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
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 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.
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.
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! I am in a bit of a complex situation. Would love your advice. I’m a first time buyer who has a limited company. I have had one for 5 years but was also employed for 3 of those years (up until nov 2019) and still worked for my limited company on the side. My employed income was my main source of income (for 3 years) and a lot of lenders don’t look at this. Also covid hasn’t helped! Any advice would be awesome!
Hi Kam, we have lenders that will look at both forms of income... The best thing to do is to book a free chat with me (analysis call) so we can discuss... This is quite complex and cant answer in a comment. link here! outlook.office365.com/owa/calendar/MortgageChainLtd@mortgagechain.co.uk/bookings/
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
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
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
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 Alex, Thank you for doing these videos' they're extremely helpful :) My husband and I are in the process of buying our first home but we are having an issue with one of the things on the list. I guess it would fall under the 3 years of address' category. Our mortgage broker is telling us that most lenders won't lend to anyone who's been in the country less than 2 years. We moved back to the uk after spending 7 years in Canada 21 months ago. Normally we would just wait the extra few months but we already have a winning bid on a house we love. Do you have any suggestions on how to get around this so we can complete the mortgage?
Thank you for watching! I am afraid to the best of my knowledge It’s 2 years and then I would be recommending Barclays… I don’t know of any other lenders who will allow it quicker…
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, Thanks for making such a good informative video. I have a question, i currently do not have utility bill as i am renting with friend who is the house owner and there is no way for him to add in the bill as well. Is there any other way? Are utility bills mandatory?
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.
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
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 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 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 😊
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 ?
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!
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 Im looking to get my first property within the year. I have a help to buy ISA, but my main questions is where do i start? 1. Would i find the property i would like to purchase first on Zoopla, Right move etc 2. Then would i contact the property seller or the bank for a mortgage? this is my main question. What are the exact steps in order please? Ps at what stage does the help to buy ISA come in? Thanks T.
T Hi T, the best place to start is a free, no obligation analysis call with me! Book here and choose a time and day suitable to you. Link here - outlook.office365.com/owa/calendar/MortgageChainLtd@mortgagechain.co.uk/bookings/ I look forward to speaking with you! 🤜🏻 Alex
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.
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.
Hello alex, I'm a non-EU resident in the uk, just been staying here for 2yrs. I work for the nhs as a nurse. Just wondering if how can I get round registering for the electoral roll, since I am not a UK/EU national...but I want to increase my credit score for a better chance for a mortgage loan with my boyfriend. Thanks!
Hi Abby, thank you for your question. There are ways we can help you improve your credit score, other than going on the voters roll, in order to get a mortgage. Please book a free no obligation "Analysis call" with me so we can discuss further. Link here - outlook.office365.com/owa/calendar/MortgageChainLtd@mortgagechain.co.uk/bookings/
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.
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 made an application for an AIP with a building society as the estate agent was asking for this before viewing of a property could be arranged , this was rejected to my great surprise, only to find out that a telecom provider wrongly reported a default payment to credit agencies resulting in an adverse report , which after a lot of chasing up was corrected as settled . Will this still harm my credit score ? And will the record of a failed AIP application be damaging future mortgage applications with the same or other lenders ? Your advice is appreciated
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.
Hey Alex, thanks for info - very valuable. Quick question. i have an interest-free overdraft which I literally LIVE in, as I take full advantage of that bank's £1k and invest my own funds elsewhere. I can afford to pay it off fully if I need to but just wanted to ask if this reflects negatively to the lenders? do I need to show 3 months of clear statements with no overdraft even if i have emergency funds etc elsewhere?
If the mortgage lender sees that you are always in the overdraft, they will deduct this as a credit commitment… They usually would take 3% of the common debt balance which will likely be the overdraft limit, and times that by 12 and then take that from your income… If you have three months clear bank statements this could solve the problem, unless they need bank statements to go further back at any point in the mortgage application process.
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 jump on the property ladder as a first time buyer. Looking to switch jobs as I have been offered another job with a better pay, will this affect my mortgage application ?
If its in the same industry, without any breaks between employment, and there isn't any probation, you should be good. Most lenders will need to wait until probation is over...
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!
![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
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 calm you are it’s a breath of fresh air watching your videos x
Thank you very much!
I love how calming your voice is well done 👍 Alex.
*UPDATED* 7 Mortgage Application Tips for First Time Buyers - How to Prepare Properly (2022) th-cam.com/video/RHz2_lNkA9A/w-d-xo.html
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
⚡QUESTION OF THE DAY: Are you having any problems with obtaining any of the documentation required for a mortgage ? Let me know! 👇👇👇
Hi, I am comfortable with all the aspects mentioned in the video. However, I am getting my deposit as a gift from my parents who live outside the UK. My UK passport clearly states their name as my parents, and they are okay to provide information such as the letter of gift and their bank local statements (solicitor stamped). My questions are, firstly, will it be a bad point in my application, also, how many months bank statements do they need to include. Thank you in advance.
Hello, what is the stamp duty for a first time buyer if the property is £350.000 to £375.000?
Thank you
@@hifive6715 £350,000 = £2,500 and £375,000 = £3,750.
Here is our stamp duty calculator so you can easily calculate it for any property price - mortgagechain.co.uk/stamp-duty-calculator/
Any further questions let me know! Alex
I had a poor credit report I needed to pay bills and make changes in my apartment as things where getting Shabby, I paid various hacker to help boost my credit score and clear the bad stuffs on my credit but they couldn’t change a thing. I have been scammed several times I really needed to fix my credit report, I came across a lady at the store by name Mariela as she was telling to her friend about her hacker, I had to stop and ask her a few questions we where getting to know each other, as she shared with me a testimony of a great hacker Roy, how he fixed her credit and gave her a Good score. I decided to give a try on the hacker, I had a strong hope he would put a smile on my face. I contacted Credit MasterFix Hacks LLC explained to him my situation, he explained the process and requested for my information. In less than 72 hours my score was raised from 465 to 789 and in exactly 5 days my credit got in good shape, all late payment and negative items was pulled out i can tell you with all sincerity that my life is back to normal and things are actually working out for me and my family, all thanks to Credit MasterFix Hacks LLC you can get to him via creditmasterfix▪com God bless him
amit kaushik did you get this sorted out? If so how did you resolve this?
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.
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!
It's amazing how fucked up the system actually is so basically live how they want you to live 😂👌
I’m going to live out of my car and actually save my checks from work
Awesome. Speed up to 1.75 and you are golden!
Thank you!
ok I will practice on getting quicker :-)
@@alexkerrmortgage no shade meant at all!! You still did a really good job at helping me learn!!!
@@lucaschristian135 Its ok I know exactly what you mean! A video flows better when its quicker!
You have provided extremely useful advice. I have already implemented some of them.
Glad it was helpful!
this video was extremely useful. thank you for posting these tips!!!
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 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 :-)
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, 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!
Good video. No background music noise. Speak slowly & clearly you 👍
Thanks for the kind words!
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
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.
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 ?
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!
Amazing and useful infos given step by step.
very informative, video explained everything in easy and comprehensive way. Thank you for making the video.
Really its an informative content
Thanks for info....waiting for your next video...
Hi Limbuhang1, no worries! Alex
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!
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
You literally explain perfectly well! Thanks very much for you time that you share for us.
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?
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?
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.
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 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!
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 👍🏻
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.
Thanks Alex really useful stuff here.
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?
@@MrGangaboba they're gone they don't go back to anyone
Thank you so much for the drilling I needed it
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
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 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. 😈😂
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 👍🏻
Any videos now during coronavirus as lots have changed?
Here you go! th-cam.com/video/PGzF5-Jn_uQ/w-d-xo.html
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
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
Hi! I am in a bit of a complex situation. Would love your advice. I’m a first time buyer who has a limited company. I have had one for 5 years but was also employed for 3 of those years (up until nov 2019) and still worked for my limited company on the side. My employed income was my main source of income (for 3 years) and a lot of lenders don’t look at this. Also covid hasn’t helped! Any advice would be awesome!
Hi Kam, we have lenders that will look at both forms of income... The best thing to do is to book a free chat with me (analysis call) so we can discuss... This is quite complex and cant answer in a comment. link here! outlook.office365.com/owa/calendar/MortgageChainLtd@mortgagechain.co.uk/bookings/
Buy a tent instead that’s how I feel when I checked how much I can borrow versus how much I need
Sorry to hear that, have you considered shared ownership?
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 ?
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.
Good advice. This is amazing alex ! keep posting
Thank you! Will do!
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!
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?
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
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
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.
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 Alex, Thank you for doing these videos' they're extremely helpful :) My husband and I are in the process of buying our first home but we are having an issue with one of the things on the list. I guess it would fall under the 3 years of address' category. Our mortgage broker is telling us that most lenders won't lend to anyone who's been in the country less than 2 years. We moved back to the uk after spending 7 years in Canada 21 months ago. Normally we would just wait the extra few months but we already have a winning bid on a house we love. Do you have any suggestions on how to get around this so we can complete the mortgage?
Thank you for watching! I am afraid to the best of my knowledge It’s 2 years and then I would be recommending Barclays… I don’t know of any other lenders who will allow it quicker…
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…
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.
How can i get a proof of utility bill if I've always rented a room with all bills included?
Bank statement!
Very helpful, thanks so much. Just subscribed.
Thanks for the sub!
HI Alex, Thanks for making such a good informative video. I have a question, i currently do not have utility bill as i am renting with friend who is the house owner and there is no way for him to add in the bill as well. Is there any other way? Are utility bills mandatory?
Do you have a bank statement and/or a driving license with the address on ? Alex
@@alexkerrmortgage yes we do.
Tenzin Dhargyal ok job done!
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 👍🏻
This is good guidance and advice. Thanks!
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.
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
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 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 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!!
Tomorrow I apply fro my mortgage. Fingers crossed. 🤞
Good luck!
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
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!
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
Im looking to get my first property within the year. I have a help to buy ISA, but my main questions is where do i start?
1. Would i find the property i would like to purchase first on Zoopla, Right move etc
2. Then would i contact the property seller or the bank for a mortgage? this is my main question.
What are the exact steps in order please?
Ps at what stage does the help to buy ISA come in?
Thanks T.
T Hi T, the best place to start is a free, no obligation analysis call with me! Book here and choose a time and day suitable to you. Link here - outlook.office365.com/owa/calendar/MortgageChainLtd@mortgagechain.co.uk/bookings/ I look forward to speaking with you! 🤜🏻 Alex
alexkerrmortgage Thanks Alex! I’ll get that booked in 👍🏼
Great video. Very helpful. Thank you
Vicky Harrison thanks Vicky!
Love watching your videos, learn something every time.
Awesome, thank you!
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.
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.
Hello alex, I'm a non-EU resident in the uk, just been staying here for 2yrs. I work for the nhs as a nurse. Just wondering if how can I get round registering for the electoral roll, since I am not a UK/EU national...but I want to increase my credit score for a better chance for a mortgage loan with my boyfriend. Thanks!
If you are non eu resident in the uk, the only way to get into electoral roll is that you must be the citizen from one of the commonwealth countries.
Hi Abby, thank you for your question. There are ways we can help you improve your credit score, other than going on the voters roll, in order to get a mortgage. Please book a free no obligation "Analysis call" with me so we can discuss further. Link here - outlook.office365.com/owa/calendar/MortgageChainLtd@mortgagechain.co.uk/bookings/
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…
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.
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.
Thanks for sharing your knowledge with us.
No problem, any time, and thank you very much for watching!
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.
Very clear advice
I made an application for an AIP with a building society as the estate agent was asking for this before viewing of a property could be arranged , this was rejected to my great surprise, only to find out that a telecom provider wrongly reported a default payment to credit agencies resulting in an adverse report , which after a lot of chasing up was corrected as settled . Will this still harm my credit score ? And will the record of a failed AIP application be damaging future mortgage applications with the same or other lenders ?
Your advice is appreciated
It all depends on how much the default was, when it was registered and in regards to the AIP, it depends if it was a soft search or a hard search?
Great video very informative thanks Alex
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.
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.
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.
Hey Alex, thanks for info - very valuable. Quick question. i have an interest-free overdraft which I literally LIVE in, as I take full advantage of that bank's £1k and invest my own funds elsewhere. I can afford to pay it off fully if I need to but just wanted to ask if this reflects negatively to the lenders? do I need to show 3 months of clear statements with no overdraft even if i have emergency funds etc elsewhere?
If the mortgage lender sees that you are always in the overdraft, they will deduct this as a credit commitment… They usually would take 3% of the common debt balance which will likely be the overdraft limit, and times that by 12 and then take that from your income… If you have three months clear bank statements this could solve the problem, unless they need bank statements to go further back at any point in the mortgage application process.
@@alexkerrmortgage from your annual income or monthly income?
@@christopherdonnelly3849 Annual income
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
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 jump on the property ladder as a first time buyer. Looking to switch jobs as I have been offered another job with a better pay, will this affect my mortgage application ?
If its in the same industry, without any breaks between employment, and there isn't any probation, you should be good. Most lenders will need to wait until probation is over...
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!
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 ?