Buy Now Pay Later can affect your mortgage application!

Did you know that a Buy Now Pay Later (BNPL) activity could affect your mortgage decision. Why?

• This is a financial committment that gets reported on your credit file. Make sure it is set up as a direct debit and do not miss any repayments.

• Relying on BNPL may be seen by mortgage lenders as not managing your finances too well, especially if there are multiple BNPL activities on your account.

• Only use it when you are absolutely sure you can pay it off

• Every now and then, monitor your credit report to check that no errors have been marked against your account.

If you have used BNPL and would like to check your mortgage readiness, do get in touch with us.

No deposit mortgage available now!

YES, IT IS POSSIBLE. TODAY A NEW PRODUCT HAS BEEN INTRODUCED FOR A 100% MORTGAGE FOR FIRST TIME BUYERS

This, however, is not a product for everyone…

Main criteria:

• each applicant must be a first time buyer

• each applicant must be 21 years old or older

• the same people who are and have been renting in the last 12 months must go on the mortgage application

• applicants must have proof of paying rent for at least 12 months out of the last 18 months

• applicants must also have been paying the household bills in the 12 months out of the last 18 months

• each applicant must have good credit history with no missed payments/direct debit commitments in the last 6 months

• the monthly cost of mortgage must be equal or less than average of the last 6 months rental cost

• deposit must be less than 5% - can be £0!

• maximum loan size must be £600000

• not available on new build flats

• applicants must pass lender's affordability test and credit score check

This product may be a great help for many first time buyers but any buyers who want to check if they qualify, should first speak to a mortgage adviser before making offers on properties Buying a house requires planning ahead and strategy and a good mortgage adviser will help you prepare for this step Contact us if you are planning to buy your first home.

Relocation, relocation...

What mortgage options do you have if you are moving to a different place in the UK? To get a mortgage you must evidence that you will have income in new place so you can service your mortgage payments.

Your employer may give you a letter of relocation to another branch. This will give lender the confidence that your income will continue. If your job involves working from home, lender will accept this as, naturally, your income won’t be affected by the move.

You could also find a completely new job and as long as new employment contract shows start date within the next

3 months, state the job role, confirm job is permanent (or in some cases fixed term too) and show salary details, some lenders will be ok with that.

Why is this important?

You wouldn’t lend someone thousands of £s without knowing that they will have income to be able to fully repay you, would you? That is why some evidence that you will have a job that is acceptable by mortgage lender is required when you are relocating.

Sometimes, depending on a job role, some lenders can accept that you will be travelling to and from other work locations, but this is assessed on a case by case basis.

Should you have any questions, do get in touch and we will be happy to help.