4 notices you can not ignore while applying Mortgage Loan in UK


According to Rightmove, more than a third of the UK’s current sellers are forced to cut their selling prices, and the price cut is still the biggest since 2012.
In the past, home sellers had to be forced to cut prices before the Christmas holidays, because everyone was preparing for the holidays and did not think about buying a house, and the market was colder. However, it will not be like this year’s collective “fall discount.”
According to Rightmove’s latest survey, 37% of the sellers have already lowered their prices by 0.8%, or a one-time drop of 2,392 pounds.
At the same time, Rightmove also said that at present those who are still not willing to cut prices, I am afraid the real estate market is too optimistic. If you do not discounted prices, to be sold successfully or more difficult.
In addition, the current downturn in the housing market in the United Kingdom, the biggest blow is the capital of London. Under the dual impact of rising prices and the BoE’s interest rate hikes, buyers’ desire to buy a home has shrunk.
However, for some people, the housing market is getting colder and falling prices are just a good time to come in. Whether it’s a first-time home buyer who wants to buy his first home, or a real estate investor who wants to see it, it’s possible to buy a house now.
Since it’s mentioned buying a home, then I have to mention “loans.”
Many people think about buying a house at the same time, but also consider how to apply for a loan, that is, how to borrow money with the bank to buy a house, because not everyone can so easily come up with so much money.
But to borrow money from Banks, but also a borrowed a large sum of money, so for a bank, is certainly need some requirements, because they must also ensure that the money can take back, reducing the risk of debt.
That is why, when the applicant makes a loan application, the bank must have a detailed review of the applicant before deciding whether to approve the applicant’s loan application.
You need to pay attention to the following matters to pass the bank loan application
1.”Clean up” your bank letter and credit card
Before you start looking at your home, and start looking for your best loan package, you should first clean up your Bank Statement.
What does this “clean up” mean?That’s because when the applicant makes a loan application, the bank reviews the applicant’s “credit check”.That said, Banks would normally require a “three-month bank run” of all the bank accounts of the applicant, in which the applicant would have to produce a bank letter for nearly three months.
At this point, the applicant can start to move to make his bank look more consistent with the bank’s requirements.For example: lose some unnecessary spending and uninstall direct debit, which will cost you less every month.On the other hand, it means you’re more able to repay the loan.
Also, try to minimize the amount of money you spend in the last three months, or the bank may have questions about your expenses.
If you use a credit card to buy something, try to pay it off as quickly as possible, or at least make it feel like you’re paying on a regular basis.
And, after deducting your monthly expenses, you have to have a surplus balance every month.In general you have to prove that you are capable of paying off the loan.
And it’s worth noting that paying off the loan is not just paying off the borrowed money, but also paying interest.So the bank has to make sure that you still have to pay the amount you borrowed, and make sure you have the extra interest to pay for it.
2.Track your monthly expenses
In addition to the above mentioned above, the bank may also require the applicant to provide a detailed account of each month’s expenditure. So the applicant also needs to prepare early.
Banks will hope to learn more about you all the cost every month, like spend how many money in transportation, travel, shopping, eating, clothing, entertainment, mobile phone bills, etc., all sorts of cost details.
Here’s a reminder: don’t try to cheat the bank when you’re giving it to the bank.Because you don’t forget, the bank also holds your bank list, so your spending details bank will know.
Also, keep track of your expenses and let yourself judge whether you can afford to repay the loan.The key point of mortgage is not only to buy a house, the applicant also has to be able to get up later, otherwise oneself can be very hard.
3.Tidy up all the relevant documents
You need to prove your identity when you apply for a loan.This means that in addition to your own identification document (e.g. passport, id card, etc.), you also need to have a file with the address certificate.
There are a lot of documents that can be used as proof of address, such as energy bills, water bills, Internet fees, council tax, etc.
4.Credit Score
This last point and also very important one, is that the bank will investigate the applicant’s Credit Score ranking.
Typically, Banks have their own set of criteria for determining whether an applicant is appropriate for their loan product. The bank usually USES the following points:
The loan amount of the applicant
How much money does the applicant hold
The job status and income of the applicant
credit rating of the applicant
The expenses and debts of the applicant
The reason why credit is so important is that a bank can judge whether a person is capable or repaying a loan on the basis of one’s credit.
For those with bad credit, Banks are usually less willing to take the risk;Or say you’re willing to lend to you, but the interest rate on the loan is much higher than the others.


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