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    What The Banks Ask & Why: Everything You Need to Know before Applying for a Mortgage If You're Self-Employed or Have a Complex Income
    What The Banks Ask & Why: Everything You Need to Know before Applying for a Mortgage If You're Self-Employed or Have a Complex Income
    What The Banks Ask & Why: Everything You Need to Know before Applying for a Mortgage If You're Self-Employed or Have a Complex Income
    Ebook107 pages1 hour

    What The Banks Ask & Why: Everything You Need to Know before Applying for a Mortgage If You're Self-Employed or Have a Complex Income

    By Robert Moffat

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    About this ebook

    It's the Bank's money, not yours.


    It's not 2007, lenders no longer give out millions of pounds and simply hope that you'll pay it back on time. If you want the bank's money these days, you need to be prepared for a detailed review of your personal finances and to be prepared to provide the ancillary do

    LanguageEnglish
    PublisherRobert Moffat
    Release dateSep 21, 2022
    ISBN9781802277135
    What The Banks Ask & Why: Everything You Need to Know before Applying for a Mortgage If You're Self-Employed or Have a Complex Income

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      Book preview

      What The Banks Ask & Why - Robert Moffat

      WHAT THE BANKS

      ASK & WHY

      WHAT THE BANKS

      ASK & WHY

      Everything You Need to Know

      before Applying for a Mortgage

      If You’re Self-Employed or

      Have a Complex Income

      Robert Moffat

      BA, MLIBF, DipFA, DipMAP, CeRER, CertLTCP, CeMAP

      Copyright © 2022 by Robert Moffat

      All rights reserved. No part of this book may be reproduced or used in any manner without written permission of the copyright owner except for the use of quotations in a book review. For more information, contact:

      [email protected]

      FIRST EDITION

      Paperback ISBN: 978-1-80227-712-8

      eBook ISBN: 978-1-80227-713-5

      Table of Contents

      Who is this book for?

      Why the Interest Rate Matters

      Why the Mortgage Term Matters

      Employment/Company Structures & How Lenders Assess Income

      Chapter 1:     The Basics/Personal Details

      Chapter 2:     Proof of Identity & Proof of Address

      Chapter 3:     Child Dependants, Adult Dependants & Other Occupiers

      Chapter 4:     Employment History & Business Interests

      Chapter 5:     Accountants Details

      Chapter 6:     Solicitor’s Details

      Chapter 7:     Property Details

      Chapter 8:     Current Mortgage Details

      Chapter 9:     Credit Commitments & Credit History

      Debt to Income Ratio

      Credit Impaired

      Chapter 10:   Monthly Expenditure

      Chapter 11:   Source of Deposit, Proof of Deposit & Personal Bank Statements

      Chapter 12:   Use of New Loan Funds

      Client Case Studies

      About the Author

      Who is this book for?

      How long will it take and how much will it cost? was the most common question I would get asked. With all applications, without exception, clients wanted to know the payment terms and how quickly the money could be made available. In the past 2-3 years, however, that has been overtaken with a sense of frustration and confusion as people ask, Why is the bank asking for that? Why does it matter to them?!

      This book explains, in detail, what questions mortgage lenders ask and why. It explains the importance of ensuring your mortgage application is 100% accurate. It shows how giving the underwriter the most comprehensive understanding of your finances and ability to repay the mortgage is the best way to get your application approved and a mortgage offer issued as quickly as possible.

      This book demonstrates the value of getting an experienced mortgage broker who is familiar with the challenges of self-employed/complex income cases and, more importantly, has a good relationship with lenders involved in that market. Some lenders are considerably better than others for self-employed or people with complex income structures.

      Why the Interest Rate Matters

      Unless you are buying with cash, the purchase price you pay for a property, whether it’s £250,000 or £2.5M, is not the true cost of the house. The true cost is the total you pay back to the bank, plus your deposit…

      There are many factors which impact on the interest rate you will be offered by a lender. This includes everything from the Loan to Value you apply for, your credit history, the type of property you are buying and your personal/financial circumstances. What you want, in all cases, is the lowest interest rate you can get for the longest period of time. The last ten years have seen some of the lowest mortgage interest rates ever offered. However, over the last 30-40 years, interest rates have been much higher. The lower the interest rate, the less you will pay back to the lender over the term of the mortgage. Even a 0.5% or 1% difference in interest rates can have a monumental impact on the amount of money you will pay the bank over the term of the mortgage.

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