How to Apply Mortgage in UK


People in UK who want to purchase a house maybe choose full payment in a lump sum. However most of people would like to apply mortgage. Because they can use money to invest and earn more money.
How to apply housing loan for individuals in UK? First of all, banks will estimate their applicants, which is called Affordability Test. Banks will use this test to decide the credit quota. This measure will help those who don’t realize the importance that the daily expenditure have influence on the credit quota.
Before the subprime mortgage crisis in 2008, the bank’s loan application review, including the lender’s income status and loan quotas, was very lenient. Not just mortgage loans that exceed 100% of the price of your home, meaning you not only lend you money to buy a home, but also lend you money for decoration. And for the lender’s income allows the so-called Self Certification. It is to let lenders report their own income, say how much income there is how much revenue. As soon as the financial crisis came, loans to these issues were all exposed. This has given regulatory agencies a much stricter number of requirements for loan reviews. We are talking about here for the loan from the housing audit requirements. BTL loans have similarities, but also different places.
First, the review of the income must have reliable third-party documents to confirm. It is forbidden to accept Self Certification again. Income documents generally include pay slips, tax bills, bank bills and so on. Obviously, the income figures in the documents should be mutually verifiable to show the truth. If the bank has reason to believe that the lender’s income will change in the future, changes will also be considered. For example, when you apply for a loan, the Portuguese interpreter of English athletes in Rio Olympic Games. Then the bank may ask you the next job where? For older applicants, the bank will ask you what you plan to do after retirement if the loan maturity exceeds the statutory retirement age.
Second, the main determinant of the loan amount is the applicant’s multiple wage. The banks will be different but usually 3-5 times the income before tax. In the case of loans for joint applications, the conservative multiple of the higher incomes are generally combined with the lower ones’ wages. For example: If husband income 40K, wife 25K. So if the husband loans alone, the bank may lend 3.5 times the income, that is, the amount of 140K. If the joint, then the bank may give her husband three times the salary plus his wife’s salary, then it is 145K. Recommended reading: how to get more bank loans
Third, banks also look at lenders’ expenses while looking at their income. This is often not familiar to everyone. It is also the focus of my talk today.
There are three different types of spending banks to examine. The first is Committed expenditure. This mainly refers to the long-term lending contractual credit expenditures. The main representative items are Personal loan and legal child support after the divorce. The second is Basic essential. Refers to the inevitable cost of family life and can not be reduced. Mainly is the Council tax and utilities coal bills and the like. The third category is the cost of providing basic living standards, such as clothing and daily necessities, as well as basic recreational kindergarten expenses.
If the loan applicant can declare the figures for these expenditures to the bank himself and there is evidence of the relevant documents, such as credit cards and bank statements, the bank will take the credit. Banks may also use the statistics released by the Office for National Statistics as a basis for calculation.
To give an example: a bank requires an individual applicant to deduct mortgages after leaving at least £ 500 disposable income. Co-branded applicants, with a mortgage deduction of at least 750 pounds left disposable income. For every additional Dependant, add another £ 125 to disposable income.


Please enter your comment!
Please enter your name here