Almas Uddin
Founder and Mortgage Advisor
16 Aug 2023
How Can a Broker Improve My Mortgage Eligibility Assessment?
Finding a mortgage with any eligibility issues can feel like an uphill struggle. The good news is that an independent broker can substantially improve your chances of approval by:
- Assessing your circumstances and comparing your requirements to the lending rules from all of the mortgage providers across the UK.
- Negotiating terms and rates on your behalf.
- Working directly with lenders to understand any risk factors and agree on ways to mitigate their exposure to make sure they are comfortable lending.
- Advising on different borrowing products or ways to make the mortgage more affordable, such as extending the term.
- Helping you compile your application and recommend what documentation to include to ensure the lender can offer approval.
In this guide, the Revolution Brokers team explains the most common eligibility requirements that cause a stumbling block and the best options to ensure you can find the home loan you need.
For tailored advice and help with your application, give us a call on 0330 304 3040, or drop an email to [email protected].
How Does a Bad Credit Mortgage Work?
The most typical reason to be turned down for a mortgage is due to bad credit. However, there are many options out there, and a whole-of-market broker can run through them with you.
Options might include:
- Applying to specialist bad credit lenders rather than a high street bank.
- Offering a more significant deposit value.
- Improve your credit score before beginning the application process.
Get in touch if you have been turned down for mortgage lending due to credit issues, and we'll discuss the best course of action based on your circumstances.
Do Mortgage Credit Checks Further Damage My Credit Score?
Yes, they can do it, which is why it's so important to work with a broker who will ensure you apply to the right lender the first time.
There are two types of credit checks - soft checks are usually carried out for initial approvals in principle. Hard checks do appear on your credit file and are required for a full application.
Applying to multiple lenders could mean racking up a significant number of checks on your credit file, which can put off any future providers you might apply to - even if they would have approved your mortgage beforehand.
Are There Mortgages for People on Benefit Income?
Again, many people are rejected for a mortgage because their income includes benefits or assume they won't be approved and don't apply.
A broker can ensure that you apply to a lender who offers mortgages suitable for applicants on a range of benefit income, whether that is your primary source of earnings or supplements a salary or other income stream.
There are also mortgage interest support programmes, and so Revolution can recommend mortgage schemes designed to make it easier for you to get onto the property ladder.
What About a Mortgage for a Self-Employed Person?
Lenders often struggle with self-employed applicants if they don't have three years worth of trading history or filed accounts and tax returns to demonstrate their average annual income.
The good news is that a whole-of-market broker can help in this scenario and even connect applicants with lenders who will offer a mortgage to self-employed people with just a year or less of trading.
How Can I Increase My Maximum Mortgage Offer?
Another typical problem is that you are approved for a mortgage, but the lender caps the offer at a value lower than you need to buy your dream property.
First up, that maximum will vary significantly between lenders. The industry standard is to offer around four times your annual income, but Revolution Brokers can almost always find you a higher offer - because:
- Some lenders have more generous salary multiples than others - so you will increase your mortgage offer simply by applying to the right provider.
- Lenders have varying policies about how they calculate your income. Some won't include any bonuses, commissions, or overtime, for example, while others who include 100% of this income might offer a much higher amount.
Can a Broker Help Me Find a 100% Mortgage?
Mortgages with no deposit are rare since most UK lenders need at least a 5% deposit, and commonly 10%, to consider approving an application.
However, as with all of these scenarios, a whole-of-market broker can invariably find a solution.
That might be:
- Considering a Shared Ownership Mortgage.
- Using another borrowing form to finance the deposit.
- Putting a guarantor in place in lieu of a deposit.
Are There 95% Mortgages Available?
If you have a 5% deposit, you might find that many mainstream banks still reject your application - but there are plenty of alternatives.
Help to Buy is one option and can boost your deposit by 20% of the property value on an interest-free basis for the next five years.
You can also find 95% mortgages for new-builds, and if you have a good credit rating, it's possible to negotiate competitive terms even with this lower deposit value.
Expert advice With Mortgage Eligibility
As we've discovered, there are many reasons a high street bank might reject a mortgage application, which can usually be overcome by working with an independent, whole-of-market broker.
The best course of action is to give Revolution Finance Brokers a call, run through what mortgage you need and the surrounding circumstances, and we'll work with you to ensure you can secure the borrowing you need.
Give the team a call on 0330 304 3040, or drop a message to [email protected].
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