Mortgage Application Tips for First Time Buyers // Applying for a mortgage in 2021+

[@Michyhopey]

Well that little update basically is telling me I’m fucked!👍🏻

[@alexkerrmortgage]

oh dear... which part is the hurdle for you ?

[@drayblanco1319]

Almost ready just need to check the other credit score providers and I'm set. Not sure ill be buying in 2021 though until the house prices come down. Since the Stamp duty holiday everyones expecting premium prices which will likely start to fall after summer. In the last year the average house price has gone up by £17,000!

[@alexkerrmortgage]

Hi Dray, it's a little bit crazy out there at the moment!

[@FootprintsForTwoTravel]

Subscribe to this man folks! He's been banging out tips for years now and just smashing this advice style video in such a calm and simple way. Very active in the comments too!

[@alexkerrmortgage]

Thanks very much for your kind words!

[@jesscunningham1072]

Myself and my boyfriend are considering a mortgage this year, however both on furlough at the minute so it is a little scary!

[@alexkerrmortgage]

We do have a couple of lenders now that are excepting furlough… Just get in touch when you are ready!

[@blazingevildee]

Do lenders check what you spend your money on a monthly basis i.e weekly shopping, asos order amazon order etc...

[@lethalno1]

Pretty much all you out going bills

[@blazingevildee]

So bills not purchases

[@lethalno1]

@@blazingevildee yeah

[@alexkerrmortgage]

They are looking for evidence of income and how are you conduct your accounts, looking out for any excessive spending

[@ashleybest6448]

Hi Alex, thanks for the videos, super helpful. In regards to proof of deposit, my partner and I plan on using some inheritance? I’m sure this will be alright, but we don’t want to use the full amount on a deposit. Would the lenders look on this negatively? What sort of documentation would we need to provide? Thanks in advance

[@alexkerrmortgage]

Thanks Ashley! Inheritance is ok, the lender will want to see the Will, grant of probate, and death certificate. If the inheritance is going to someone else then being gifted, the lender may want to know the person is allowed to gift the inheritance. Hope this makes sense! Alex

[@lauren.x.7459]

Hello 👋 I have a question about shared ownership and savings. Is there a maximum amount of savings you can have for shared ownership? I've been lucky that I've been able to save for a long period of time so have built up quite a bit of savings but obviously won't be using it all as a deposit as I'll need to furnish and pay solicitor fees, and have some left over for emergencies. What I get paid monthly/yearly still won't cover me for a full mortgage so will need help with a SO mortgage but didn't know if you could have a certain amount in savings for that?!

[@alexkerrmortgage]

Hi Lauren, generally it's just the maximum income you can have... The amount of savings is fine, the more you have the better the rate would hopefully be!

[@FootprintsForTwoTravel]

We are truly hoping for the first home scheme this year. I am a support staff in a school so hope that counts. But me and my partner are first time buyers getting a mortgage this year for sure!

[@alexkerrmortgage]

Yep we are all hoping for that! Ok great, exciting stuff for you coming up!

[@FootprintsForTwoTravel]

@@alexkerrmortgage its so scary ha

[@alexkerrmortgage]

@@FootprintsForTwoTravel we can make it easy for you when the time comes 😀

[@FootprintsForTwoTravel]

@@alexkerrmortgage certainly will use the help if you offer it and it helps you also.

[@iRiShRaPtEr]

Question about the deposit. If I have a total of £15’000 for example as a deposit, but it’s in my current account where I use for direct debits, will this still be acceptable as a deposit as I haven’t not been to £0 since opening my account? Or should I open a savings account and transfer the money into a savings account? I’m confused on what is required for a deposit to be acceptable?

[@alexkerrmortgage]

Hi Darren, as long as it's all savings then it will be fine, it's just easier if it's in a savings account as the transactions will not be mixed with day-to-day expenses. If it was me I would properly just leave it where it is for now and try and untangle it all when the time comes. Alex

[@jackharg4496]

Hey Alex that’s for the info quick question,Iv spoken to 3 brokers so far and all have given me different max mortgage amounts is this normal ?

[@alexkerrmortgage]

Hi Jack, you may have had 4.5, 5 and 5.5 times your salary? If this is the case, or similar, then there are lenders that will provide these income multiples. If it fits with 4.5 times your income then that will open the door to most lenders, a few do 5 and one lender does 5.5. I hope this helps, Alex,

[@mp4846]

Great videos 👍 but this one says I’m fooked !! I’m a first time buyer with self employed history until 2 months ago when I became employed. I did this so I could get a mortgage but it sounds like it’s getting tougher. Any advice?

[@alexkerrmortgage]

As long as it’s the same line of work you should be okay?

[@polishlad8873]

Last month I have received a gifted deposit. Planning to buy a house next year after pandemic. Do you think banks will still be asking me for letters and bank statements off my parents?

[@alexkerrmortgage]

Thanks for watching, yes banks will still ask for letters and bank statements of your parents. Alex

[@marcelladugan4178]

Hi, my partner and I are looking at taking out a HTB mortgage in the summer 2021. Do you think there will be more lenders back on the market after July?

[@alexkerrmortgage]

Hi Marcella, yes I do think options will start getting better from now and will be much better in the summer, as long as lockdown is over!

[@DDOfficial200]

This video is so helpful! If you have been gifted money in the past, how long does it have to be in your "savings" for to count as savings and not as a gifted deposit? Thanks so much.

[@alexkerrmortgage]

Hi Jade, if it is gifted money, it will always be gifted money and you will need a letter from the person who made the gift to confirm it is not a loan, does not need repaying and that they have no interest in the property. Thank you for watching! Alex

[@georginarobertson4024]

Hi Alex, we are hoping to buy this year! can i ask i have been waiting for a job to come up closer to where we want to buy is it a bad idea to change jobs before i apply for a mortgage even though there won’t be a long gap? i have stability due to being an nhs employee. i’m unsure on what to do.

[@alexkerrmortgage]

Hi, I just answered this on the other video you left a message on, hope you receive it safely. Alex

[@iansketchley5319]

I have a deposite from a shere of inheritance from My mum and dad's home that went into my brothers account before my account do I need a copy of the will to show where its come from

[@alexkerrmortgage]

Yes along with probate, the death certificate and possibly a letter confirming that some funds can be gifted… It all depends on the lender. Happy to help when the time comes, we have done many of these… Alex

[@rebeccarobinson3425]

We are hoping to get a first time buyer mortgage in the autumn but have been claiming universal credit since January because my husband is a chef and has been furloughed since November. As universal credit has a housing element included does this mean we would need to be off it 12 months before we can apply for a mortgage? Thanks!

[@alexkerrmortgage]

Hi Rebecca, it all depends on the mortgage lender, but some do operate in this way… The best thing to do would be to analyse your options when you are in a position to start looking for properties… Given the complex nature of your situation, it would be a good idea to use a broker! Feel free to get in touch when the time comes, as we could certainly help you find the right Lender.

[@joyb18]

Hi Alex, thank you so much for taking your time to make such informative and helpful video as alway. Me and my husband are planning to buy our 1st home this year.but it seem quite difficult right now. Our deposit has been given as a gift from my parent from oversea, it has been transferred from my husband's oversea bank account to his UK bank account 3 years ago, we had used it as proof of finance to extend his uk visa. ( he is on spouse visa, has been living in uk 3 year now) And now we want to used it for our first home. We have a letter from our parent when they gifted the money 3 year ago. Plz advise us, What are the proof of deposit that we need to provide in this case? Thanks again for your supper helpful videos. Im so glad i found your channel.

[@alexkerrmortgage]

In regards to a gifted deposit, you would need a letter set out in a way to satisfy the bank, all banks may have slightly different terminology that needs to be used, but effectively it would need to say the gift is not a loan, it does not need repaying, and they have no interest in the property. You would also need to provide bank statement evidencing any buildup of savings and transfers of the gifted deposit.

[@nicolasjimenezshaw7623]

Hello , very well Informed video. I'm planning getting a mortgage for 1st time buyer, I got good credit score but wife not, would you recommend I get the mortgage with my name only or what's best? Thanks

[@alexkerrmortgage]

It all depends on the situation and mortgage lender… If you would like to get in touch to understand your options, for free, please complete the short form - www.mortgagechain.co.uk/contact-us/

[@jamesmcd]

I've been saving for the last two years for my mortgage. I've got close to £40k saved. I'm a Starling Bank user and all I've been doing is putting money into a "Space" on the app each month. Would I just have to provide 2 year statement to the broker as proof of the deposit? How would you recommend compiling this neatly? Great videos btw! Your content is super helpful.

[@alexkerrmortgage]

If this was the case I was dealing with yes I would just ask for two years worth of statements and that should sort it out…

[@Bellajoie24]

I would appreciate if you could respond.. the husband works and we both have our names on universal credit which includes our rent being paid.. how do we go about sorting it out, i am a full time student and carer for my autistic sons which doesn’t allow me to work, will this also affect us?., thanks for your help.

[@alexkerrmortgage]

Hi, please can you email me - [e-mail] and we can carry on this chat.

[@cameronsmith1590]

Hi Alex great video. I have a HTB isa which gets £200 a month put into it and can show it from £0 to now. However, if I need to use some extra money to top up my deposit amount I'll need to take it from my current account which has not been at 0 since it opened in 2014. I save approx 1k a month. How will this work in the eyes of lender/solicitor?

[@cameronsmith1590]

I would only need to use less that 1k of savings from the account to top up the HTB, less than I save away each month

[@alexkerrmortgage]

You only need to prove the funds that you are using for the deposit… So don’t worry if the account was not a zero balance as I doubt you are using that balance for your deposit. I hope this helps, Alex

[@ahaph123]

Hi Alex, Thanks for all your highly informative, short-and-to-the-point videos! We hope to be buying our first home this year (long overdue...). As my salary is due to be increased next month - I understand we will have to wait 3 months before we apply, to show 3 payslips with the new salary. Is that right? Also, are there any lenders that offer better mortgages for teachers (which we both are)? Best wishes, Shif

[@alexkerrmortgage]

Hi Shif, thanks for kind words! You will be okay with one payslip or even just your contract. I work with a couple of specialist lenders who can provide enhanced criteria for teachers! Please do get in touch when you're ready, via this form. I look forward to helping! www.mortgagechain.co.uk/contact-us/

[@wanderlustitis]

So lenders are now asking to see all backdated statements from £0 to £xxx for deposits?

[@alexkerrmortgage]

Lenders will want to every transaction in the buildup to saving the deposit.

[@robcri8348]

Hi Alex if I moved to UK on 2016 from Eu country and I will get settled status there should't be any problem in buying as first time buyer is that right?

[@alexkerrmortgage]

Hi Rob, that is correct!

[@robcri8348]

@@alexkerrmortgage Hi thanks for your reply. talking about statements as proof of deposit would be ok to give just help to buy statements from opening until closure?

[@TeioCollectables]

thx for your question we also moved to uk in 2016 from EU (Belgium) and hoping to get a mortgage in 2021

[@TeioCollectables]

@@alexkerrmortgage Hi alex we have a pre settlement as we moved to UK in 2016 we can apply for a settlement by the end of the year would this pre settlement effect us ?

[@thebookstar1]

What's the stance on inheritance as a deposit. Due to a family member passing?

[@vivianmensah1882]

It's fine I did it but they may ask to see probate papers to confirm source

[@alexkerrmortgage]

Hi Steve, you would need to supply the death certificate, probate documents and if someone is gifting you the deposit (from the inheritance) the lender may ask if the inheritance was allowed to be gifted. Hope this helps!

[@k.c.alarmsltd29]

I I'm on my way to having my deposit and I'm going to need help what if I have no fixed abode

[@alexkerrmortgage]

Where do you live?

[@lilrr1431]

Hi im not on furlough since june but 2 payslips of my last 3 months have a bit of furlough from the first lockdown which was underpaid? Can i still apply??

[@alexkerrmortgage]

Hi, there are a few lenders which will look at this… As long as you are now back at work full-time!

[@davewhatley5647]

Do child maintenance payments effect the mortgage amount I can borrow?

[@alexkerrmortgage]

Yes, this would be considered as an expense.

[@steffc8611]

Now banks are going back to giving 95% mortgages, is it possible to have a deposit from 2.5% savings and 2.5% personal loan? Just curious, thanks

[@alexkerrmortgage]

Hi Stef, the lenders that have criteria, that allow a personal loan as part of a deposit, are not currently lending 95% mortgages, said currently the answer would be no. If you do come across a lender allowing this situation with a 95% mortgage, just be sure that the personal loan allows the usage to be for a deposit on a property. Tesco have been popular for this. However criteria can change at any time. I hope this helps.

[@namphungpeimyoo6912]

Hi I'm full-time employed and I have been working in this current place for nearly 2 years. By the time that I think I will apply the mortgage application (when my deposit is ready), my contract might only has 6 months left. Will this affect the decision from the lenders? What do you suggest? Thank you

[@alexkerrmortgage]

Hi and thanks for watching! If you have contracted for at least 18 months at the point your contract has six months left, we have lenders who will work with us on that scenario. So my suggestion is to get in Touch with us so we can help!

[@namphungpeimyoo6912]

Thank you so much for your suggestions! Will definitely contract you in the future.

[@Pr_20]

if I've bene saving for 2/3 years do I need all those bank statements to prove where I started saving from? All the money comes from my wage....

[@alexkerrmortgage]

You only need to provide the bank statements showing the transactions. So if the balance remained the same for six months, you wouldn’t need to provide the statements for those six months, where the balance remained unchanged.

[@anthonymcgeachy7272]

A mortgage broker told me they are expecting 5% deposits to come back in the next few months. Do you think they will?

[@alexkerrmortgage]

I was thinking once we are out of lockdown, it should happen… Hard to predict but it should be at some point this year.

[@alexkerrmortgage]

Hi Anthony, thought I would follow up with this… They are coming back in April!

[@JDMELLOR1986]

I'm hoping to become a first-time buyer this year. I will be seeking financial advice in the coming weeks, to help get me on the ladder.

[@ShahzadAhmad-ce6ty]

This is very beneficial information especially about personal loan can be used for mortgage deposit. Thanks Alex great job 👍

[@msbelle9960]

Thank u

[@alexkerrmortgage]

No worries!

[@AliH-zx8pp]

Hi alex im currently 18 and want to have a property by im 19-20 ish. Currently im doing a apprenticeship and earn 17000 a year before any taxes. Is it possible for me to get a property in my area for about £80000 and do it up?

[@alexkerrmortgage]

You should be able to borrow around 4 1/2 times your income. So just times your current salary by 4.5 and that will give you alone amount you can achieve. That’s assuming you have no debts at the moment?

[@thegamingpanda727]

I have a question it may of took you 3 years to save 10000 would they want to see all the transactions up to that amount ?

[@alexkerrmortgage]

They would want to see each transaction… So if there was any period without activity, you wouldn’t have to show those statements… I hope that makes sense!

[@thegamingpanda727]

@@alexkerrmortgage good morning Alex thanks for your reply when applying for the morgage application they have only asked for 3 months bank statements so when would the lender ask proof of my deposit as most of it is coming as a gift with written letter and my part of the deposit goes back months in my current account say from 0 to 10000

[@alexkerrmortgage]

@@thegamingpanda727 You would need to supply that at the start of the application… You would need to supply a gifted deposit letter to the lender confirming the gift is not a loam, it doesn’t need repaying back and the person making the gift has no interest in the property.

[@nicw56]

This was so useful thank you!!!! Maybe I’m being too literal - I have a deposit saved but showing the saving of that deposit from £0 will likely be about 10 years of bank statements as I’ve never quite ever hit £0 ....would they just want to see the last £10k (to use your example) of income? So for example the last 6 months of wages going in and totalling £10k or more? Thanks!!

[@alexkerrmortgage]

Hi Nic, thank you! Bank statements would need to be supplied showing a change of balance... if you had 5 years with no balance change, then you would not need to supply statements for that period.

[@gazgaffa8437]

Do you have a company that's does all this for us ? I'm a first time buyer with his head so far up his arse with it all I'm still continuing to rent, many thanks.

[@alexkerrmortgage]

Hi, yes I do this for a living! When you are ready just get in touch so we can help you… Alex

[@jhonvera74]

Hi Alex. Great video. I have a question in regards to the deposit since lenders will check where it came from. If I have invested X amount into cryptocurrencies a few months ago, and 1 month before my mortgage application I decided to withdraw the amount invested + profits (let's say 200% gained). Will they allow this? What's your opinion on this? Considering that I would have all proofs needed. Thank you!

[@alexkerrmortgage]

Hi Jhon, this video has information about your question! kzbin.info/www/bejne/j4izf5apqNWnhtk

[@georginarobertson4024]

Hi Alex, we are hoping to buy this year! can i ask i have been waiting for a job to come up closer to where we want to buy is it a bad idea to change jobs before i apply for a mortgage even though there won’t be a long gap? i have stability due to being an nhs employee. i’m unsure on what to do.

[@alexkerrmortgage]

It is best to change jobs first in this instance, as lenders will not like you travelling long distances between home and work, so if you plan on getting a new job near to the location where you want to buy, then change the job first. Alex