What does a lender look for when processing a mortgage application?

Once you have found your dream property, or you are looking for a remortgage or buy to let, processing the mortgage application can seem like a daunting task if you are juggling with a bad credit history. Moreover, different lenders use different credit reference agencies to determine a credit score. Therefore the information they gain may not always be a clear and comprehensive picture of your financial status. For example, a lender may decline an application because of what appears on an Experian report and another financial institution may give a resounding yes if they used Equifax or Call Credit instead. This can prove a frustrating barrier in the application process, so we always discuss this at our preliminary meeting to ensure you know how this procedure works. A decision from a lender, either positive or negative, will be based on the severity, timing and amount of the credit issue. A decent salary and deposit will not necessarily guarantee a mortgage and if a financial problem has occurred recently then this can be detrimental. That said, itbs important to remember everything is relative. For example, a default on a monthly mobile phone payment of B#100 will look better than a default for the same amount on a secured loan. Likewise a CCJ for B#2000 will appear far worse than one for B#50. A lender will also take into account any other loans, credit cards or outgoing debt payments that you have. Sub-prime or adverse credit mortgages normally come with a higher interest rate and deposit amount attached, however as long as your monthly income can support the mortgage payment, then they are a positive way of getting on the property ladder. Talk to one of our experienced advisors today for further help and support.