On this episode of the ReadytoBuy Podcast, we talk you through how to represent yourself in the best possible light.
Time Stamps PART ONE 00:00 – Introduction 01:38 – ‘Getting Yourself as Presentable as Possible’ 03:58 – Credit Files 04:18 – Not Missing Any Payments 04:48 – Pay-day Loans 05:47 – Not Taking Out Any New Credit 06:34 – Don’t Push Credit Cards to the Limit 08:00 – Overdrafts 09:03 – Monetary Disputes 10:22 – Addresses and Voters Roll 11:46 – Spending on Luxuries 13:03 – Gambling 14:20 – Separate Accounts
INTERMISSION 15:16 – ‘Definitely Not A Silly Question’ Segment 15:45 – “Can having no credit commitments mean that I don’t get accepted?” 15:51 – Answer 17:06 – Contact Info for Questions 17:32 – Risk Warning PART TWO 18:10 – Being Open with Your Mortgage Broker 19:06 – Get Documentation Ready 19:32 – ID 19:50 – Marriage and Names 20:14 – Scanning of Documents 20:43 – Payslips and Self-employment Documents 22:00 – Bank Statements 24:21 – Concluding Thoughts on Documents
24:58 – Closing Thoughts 25:26 – Conclusion –––––––––––––––––– Notes (00:00 – 01:37) Introduction Website: http://www.mhcmortgages.co.uk/ (www.MHCMortgages.co.uk)
(01:38 – 03:57) ‘Getting Yourself as Presentable as Possible’ This is not about physical appearance, rather financial presentation to lender(s). A good metaphor is a lender having a blank sheet of paper and some basic info and using this to decide whether to give you a loan. No one thing will guarantee you get a loan. Marginal improvements on your record is the best way to think.
(03:58 – 10:21) Your Credit File Not missing any credit payments is very important! It doesn’t necessarily have to be actually missing a credit payment, often it is more to do with late payments. I would advise that you set up a direct debit for your credit card minimum payment so you don’t accidentally miss payments. Pay day loans – AVOID these like the plague! These tend to show desperation on your part and demonstrates to lenders that you are either struggling financially or, at best, cannot manage money well. Try not to take any new credit when approaching mortgage time as it can be seen as a negative if you're increasing your debt at a time when you're trying to paint yourself in the best possible light. Don’t push credit cards to the limit. As a first-time-buyer, you have no mortgage conduct to demonstrate you're good at managing a large credit commitment, so you need to demonstrate you can manage the credit commitments you do have. If you max out credit cards, it shows you may be living beyond your means or that you are not good at managing your money. If you have spare money, start paying off or reducing any debts. This will show on your credit file and looks good. Many people treat overdrafts as their own money, but they are borrowed money and are meant to be there as a safety net. If you go into your overdraft too much, lenders may look at this as overspending. Don’t default on payments that are owed, even if you are disputing an amount owed. We've seen this quite regularly, yet it's your credit file that gets negatively impacted by having a default (failure to pay loans) or county court judgement against your name, not the mobile phone company you're arguing with! These entries on your credit file could prevent you from getting a mortgage and will remain on your file for up to six years!
(10:22 – 12:21) Your Address With online banking, paper bank statements are not as common and so address changes often get overlooked. However, my advice is to always keep your address up-to-date on your credit agreements. Even if you don’t partake in elections, get yourself on the voter’s roll (electoral role). This doesn't cost you anything, yet can be a deal-breaker for some lenders if you're not on there!
(11:58 – 15:15) Spending & Bank Statements Cut back on excess spending on things like new...