(01 of08)
Open Image Modal(02 of08)
Open Image Modal(03 of08)
Open Image ModalThe delay: Your estate agent and broker may be charmed by your likeability factor and satisfied with your earnings, but the bank only cares about details in the paperwork. Having to chase you for missing papers or being provided with different documents than the ones specified will not endear you to a lender.
The solution: Create a neatly organised folder with every bank statement for the past year, and at least three months worth of payslips. If any are missing, get replacements. Your latest P60, SA302s for the past three years if you’re self-employed, utility bills, council tax bills, employment contracts, insurance papers – get your docs in a row! (credit:Alamy)
(04 of08)
Open Image ModalThe delay: Whether you’re self-employed, or have recently changed jobs, your lender will be looking for the same thing: consistency in your earnings. Income that varies from month to month can unnerve lenders, as does the instability of a job change.
The solution: Try to avoid switching jobs during the application process, but if you have to, be upfront about it and get a letter from your new employer guaranteeing your salary and assuring job security. If you recently changed jobs but for a higher salary in the same field, that’s no problem, but be prepared to go through many hoops if you went from a salaried position to a commission-based one. For the self-employed, the more you declare to the taxman, the better your chances will look on paper. Top tip: get a good accountant. (credit:Shutterstock / Alex Kosev)
(05 of08)
Open Image ModalThe delay: Your mortgage lender will carry out a valuation survey, a process that has been dogged by delays and a shortage of qualified surveyors in recent years, after which there could be further delays if the lender isn’t satisfied the property isn’t worth as much as the sum the borrower is expecting.
The solution: A valuation survey is for the benefit of the lender (even though you pay for it) and isn’t the same as a full survey, which you’ll need to get done anyway as it examines the house in much closer detail. To speed up the process and save you money, ask your lender to upgrade you from a valuation report to a full home buyer’s survey. (credit:KTSDESIGN via Getty Images)
(06 of08)
Open Image ModalThe delay: Many rely on a loan from parents to make up the requisite 10% deposit (17% if you’re a first-time buyer), with many gifting the money to help raise their children’s borrowing capacity. This makes lenders suspect it’s a trick, which, it often is.
The solution: You absolutely need a good solicitor to guide you through the stringent process of the gifted deposit. A good record of personal savings and a regular surplus amount at the end of the month always helps. And you’ll need it too – there’s all the extra costs – set up and survey fees, legal costs and stamp duty and so on. (credit:Peter Dazeley via Getty Images)
(07 of08)
Open Image ModalThe delay: You might think having more money in the bank strengthens your position. But if it’s beefed up by loans or through risk-taking ventures, you may well scupper your chances.
The solution: Avoid taking out any kind of loan (don’t even think about a pay day loan) and any earnings that could be described as gambling. Also, don’t hedge your bets by applying with multiple lenders. Each rejection leaves a footprint on your rating, and the muddier it gets, the longer the process takes. Shop around for the best rates by all means, trust your broker, apply for what’s realistically within your limits, then be patient. (credit:Shutterstock / Alex Kosev)
(08 of08)
Open Image ModalThe delay: An unblemished credit history is the key to your dream house, but unless you’re among the few to score a 999 credit rating, your lender will look at every missed payment and default with extreme scrutiny.
The solution: You don’t have a time machine, and there’s not much you can do about some of the defaults that stay on your records for up to five years. Start putting your finances in order from right this moment, if not for an entire year, then at least three months prior to applying. Make sure you don’t go over your overdraft limit, every bill that goes out is paid on time, ideally loans are paid off, if not then certainly no further borrowing, credit cards debts are settled by direct debit, and there’s no sign of excessive spending (no one wants to lend to a spendthrift). And seriously, if you’re not on the electoral role, where have you been? (credit:Shutterstock / phloxii)