There’s a variety of problems that a lot of potential First Time Buyers in York can face when starting the process of gaining a mortgage and we see them crop up time and time again in many different cases.
It’s not a high chance that you will be turned down for a mortgage for the reason of childcare costs. However, as alot of parents will know, it can be very expensive the majority of the time. Therefore, it is likely chance that you will be granted a lower mortgage amount that you’re able to borrow than other applicants who receive the same income but with no kids.
Childcare costs are assessed as an extra financial commitment. Even without childcare costs, parents may be granted a lower mortgage than applicants without children. This is because the lender’s affordability calculators automatically factor in some of the additional expense that they may have which is included with children.
To counter-balance this, some lenders will take things like child benefit and other state benefits into account. This can squeeze up the maximum mortgage allowable sometimes.
No one buys a home with a partner with the expectation of divorce or separation. However, this does happen. And when it does, the family finances have to be re-organised.
Some common questions we get asked in this situation include:
The answer to all the above can be yes but you will need expert Mortgage Advice.
It is also worth noting, that if you end up receiving maintenance this can sometimes be used as part of the assessable income for a mortgage. This might be useful if you’re also concerned about the first point regarding childcare costs
This one comes up a lot but is usually easy enough to resolve. Some lenders need you to have been in work continuously for a certain period before they will consider your application, but others don’t. With some lenders, you can even get a mortgage if this is your first job.
If you are due to start a new job soon, then you may be able to get a mortgage if you have a signed contract and job offer letter.
However, gaps in employment can be a problem with some lenders. On the other hand, probationary periods tend to be ok though.
With this one, there are many different parameters, criteria, and circumstances to consider, so it’s always worth speaking to a Mortgage Advisor in York if that’s the case.
Another one of the common problems people face when getting a mortgage is proving they have the deposit.
With fairly strict anti-money laundering precautions these days, all lenders will need you to evidence your deposit as well as where the money has come from. It is also possible that your solicitor and the estate agent you are buying from may ask you for this evidence too.
Firstly, cash is a big no-no. Any big cash deposits into your bank will be questioned and your application may be rejected. However, it’s possible for some or all the deposit to come from a gift. Although the person gifting you the money will need to confirm in writing that it is a gift and not a loan. Gifted deposits are mostly popular with First-Time Buyers in York.