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When Is The Best Time To Remortgage?

The main reason people remortgage is to make sure they are not paying more than they need to. When a mortgage deal comes to an end, many people find themselves falling onto their lender’s expensive standard variable rate (SVR). Read more

Mortgage Advisor – 9 Reasons To Get Independent Advice

Do you look at mortgage advisors and think “Why do I need one? Can’t I arrange a mortgage myself?Read more

What Is Our Mortgage Application Process?

GIGLY always aims to make your mortgage application process as easy and straightforward as possible. So to kick off 2018 – we’ve distilled the process down to ten simple steps in an attempt to make mortgages even easier. Let’s have a look at how the application process works. Read more

The Documents Needed For A Self-Employed Mortgage

Mortgages lenders are actively embracing people who work in the gig economy. Just look at the stats – in 2016, the number of mortgage loans taken out by self-employed workers increased by 11% whilst loans to employees grew by just 6%. Read more

How can I improve my credit score?

Before applying for any mortgage, you should always check your credit report carefully, to establish if there is any reason why your application could be refused. You can obtain a copy of your report from a credit rating agency – the major ones include Experian, Equifax and CallCredit.

If you don’t like what you see, it’s not a disaster. There are ways you can improve your credit score, giving you a better chance of having a mortgage application accepted. We’ve put together three high impact areas you should focus on if you want to improve your credit score.

1. Pay Your Bills On Time

Lenders don’t like to see late payments as it might suggest that you are unable to successfully manage your current finances and therefore aren’t able to cope with further debt in the form of a mortgage. If you can pay off any payments before you apply for a mortgage, then do that!

2. Close Unused Accounts

Make sure to close any unused accounts that could be charging you unnecessary fees. Lenders will view old accounts as credit which is still available to you, and this might affect your ability to get new deals. Checking your credit report will help you to identify any accounts you may have forgotten about.

3. Get On The Electoral Roll

Being on the electoral roll provides valuable proof of your address to lenders – it is evidence of where you live and how long you have done for. Remember, lenders want to be reassured that you can pay them back and a stable living environment does just that. You can register at www.aboutmyvote.co.uk

Why A Credit Score Is Important

Having a poor credit rating isn’t the end of the world and certainly doesn’t mean you can’t get a mortgage, it does, however, make things slightly more challenging but there are lenders who are prepared to help those who have been rejected elsewhere. (Contact us for more information)

Banks and building societies want to be reassured that you will be able to pay back the loan so often comb through applicant’s financial history very carefully. They are looking to see if you have defaulted on any previous payments and often their offer will be determined on the following factors:

  • Credit report
  • County Court judgements
  • Any bankruptcy proceedings

If any of these scenarios apply, the chances are you won’t be eligible for most mortgage deals, or you will have to pay a higher rate of interest – even if your financial problems occurred a long time ago.

Remember that certain simple oversights, such as not being registered on the electoral roll, or failing to close credit card accounts that you no longer use, can have a negative impact on your credit rating.

 

Photo by Clique Images on Unsplash

What Documents Do I Need For A Mortgage?

When applying for a mortgage it is a good idea to sort out all the paperwork you’re going to need ahead of time. We’re not going to lie – it’s a pretty boring task, but the quicker you get it over and done with, the quicker GIGLY can deliver your mortgage and you can move in to your dream home!

What you will need will depend on your specific circumstances and the lender you are going through. The GIGLY checklist is however, a good starting point from which to build on.

Identification

GIGLY carries out electronic identity checks on each applicant, but all mortgages require you to provide proof of identification and address. This is to prevent sneaky money laundering schemes. You have to show a current, valid original document – not a copy or expired version. Below are some examples of what counts as valid identification.

Photographic ID

  • A valid current passport
  • A valid photocard driving licence

Proof of Address

  • A utility (gas, electricity, water, etc) bill that is dated within the last 3 months. Note – lenders, do not accept mobile telephone bills
  • Your council tax bills for 2017/18
  • A bank statement dated within the last 3 months

Show Where Your Deposit Is Coming From

All lenders need to see where your deposit is coming from, whether it’s from your savings or a gift from someone else. Proof should be presented in the form of bank statements, lenders can be very fussy as to how these statements are presented so we recommend scanned copies that include your name and address.

You can find your bank statements by logging into your online banking and clicking ‘statements’ from the menu.

Documentation

Each mortgage is unique and will require specific pieces of evidence, so we have listed the necessary documents below dependent upon what type of work you do, and what mortgage you are looking for.

Contractor

  • A copy of your current contract
  • Three months worth of personal bank statements
  • Proof of Deposit (Bank statement showing the funds to use)

PAYE

  • Three months of payslips & your latest P60
  • Three months worth of personal bank statements
  • Proof of Deposit (Bank statement showing the funds to use)

Self Employed/Freelancer

  • SA302 & Tax Year Overviews for the last three years (Documents produced from HMRC which confirm the applicant’s taxable income for each tax year). The tax year ends 5th April each year so for mortgage applications we now need documents for 2015 – 2017
  • Three months worth of personal bank statements
  • Proof of Deposit (Bank statement showing the funds to use)

Zero Hours Contractor

  • You must have been in your current position for a minimum of twelve months and able to provide twelve months worth of payslips (or fifty two weekly payslips if you are paid weekly)
  • Three months worth of personal bank statements
  • Proof of Deposit (Bank statement showing the funds of use)

So there it is – the documents you’ll need to provide to get a mortgage. Time to start rummaging through the filing cabinet!

 

Photo by Florian Klauer on Unsplash

How Long Does A Mortgage Take?

Buying a home can be a tricky business, and bringing all the different processes and documents together can be a logistical nightmare. You want to get your mortgage advice, deal, lender and agreement decided as soon as possible so you don’t miss out. Read more

Mortgages For Contractors

Finding the perfect mortgage can be challenging for anyone. If you are looking for a contractor mortgage it can often feel like the odds are stacked against you even more than usual. Read more

Mortgages For Non-UK Citizens

If you are a foreign national living in the UK, you might want to buy a property while you are here – whether a new family home or just a temporary residence for you to work from. Read more

Mortgages For Zero Hours Contractors

‘A zero hours contract is a contract between employer and employee where the employee is under no obligation to work a minimum number of hours nor do they have to accept any work offered.’- ACAS

Read more