Applying for a mortgage
As soon as you know you are looking for a property you should start finding out about mortgages. This will help you establish how much you can spend on a property and also enable you to act fast when you find a property you like.
Once you have chosen the mortgage you want, make an appointment with your lender. You may need to take along the following:
- Three months pay slips from your employer (or three years accounts if you are self-employed)
- Proof of the length of your contract
- Copies of three months bank statements
- Proof of twelve month mortgage or rent payments
- Copies of insurance policies (building, contents and life insurance)
Once you've filled in the application form the lender will consider all of your income details and do a credit check. They will then give you an acceptance in principle which is useful to show a seller. However, this does not guarantee that you will definitely get a mortgage for a particular property.
The final application will not take place until you have had an offer on a property accepted.
What to do if your mortgage application is rejected.
There could be lots of reasons your application is rejected; credit rating, income, employment status, problems with the property. You can ask the lender for reasons for the rejection. You may want to try other lenders.
If the reason is because of your credit history it's worth checking with credit agencies that they hold the correct details for you.
If you feel you have been treated unfairly by a lender or broker you should approach them first to try and resolve the problem. However, if there are no suitable resolutions you make a complaint to the Financial Ombudsman Service.
