When you’re looking to apply for a mortgage, your mortgage broker is there to help you navigate the process and find the best mortgage product for your needs. However, it’s important to remember that mortgage brokers are professionals, and like any other professional, there are certain things you should avoid saying to them.
Here are seven things you should not say to a mortgage broker:
1. “I don’t want to provide all of this documentation.”
Obtaining a mortgage often requires you to provide a significant amount of documentation for your mortgage broker or lender, including proof of ID, proof of address, proof of income and proof of expenditure. While it might be laborious to provide all of this documentation, mortgage brokers and lenders do require it to assess your financial situation and determine whether or not you’re a good candidate for a mortgage. Unfortunately, it just can’t be avoided.
2. “I’ll just lie about my income.”
It’s never a good idea to lie about your income when applying for a mortgage. Lenders will verify your income and, if you’ve provided false information, it could lead to your mortgage application being rejected. It’s also illegal to lie on a mortgage application. Lenders share information with each other about fraudulent applications, meaning any future borrowing you apply for is also likely to be declined. It’s not worth the risk.
3. “I don’t have any debts.”
It’s not advisable to try to hide your debts when applying for a mortgage. Lenders will consider your debt-to-income ratio when determining how much you can borrow. If you have high levels of debt, it may affect your ability to get a mortgage. It’s better to be upfront about your debts so your mortgage broker can find a solution that works for you. Having no debt can also go against you with some lenders (but definitely not all) as, if they have no examples of you taking out credit and paying it back responsibly in the past, they have no idea how you’ll handle managing your finances to make your monthly payments in the future.
4. “I don’t want to do a credit search.”
Credit searches are a crucial part of the mortgage application process, as they allow lenders to assess your creditworthiness and determine if you are a good candidate for a mortgage. While you may be hesitant to allow a credit search, it helps ensure that you are offered the best mortgage terms possible. There’s no point in trying to hide any bad credit, late payments or credit commitments, as a lender will certainly find them sooner or later.
5. “I’ll just change my job before I apply for a mortgage.”
Lenders will consider your employment history when determining your mortgage eligibility. If you switch jobs just before applying, or suddenly start earning a significant amount more than you used to (a warning sign that you could be “staging” your income), it may raise red flags for the lender and could affect your ability to get a mortgage. It’s best to have a stable employment history before applying for a mortgage. Obviously, it can’t always be helped if the timing of your new job coincides with you needing to apply for a mortgage.
6. “I’ll just get a mortgage from my bank.”
While it may be easy to get a mortgage from your current bank, it’s not always the best option. Mortgage brokers have access to a wide range of mortgage products from different lenders, and they can help you find a mortgage that’s right for you. It’s a good idea to shop around and consider your options before making a decision.
7. “I don’t want to pay for a mortgage broker.”
It may be tempting to try to save money by skipping the services of a mortgage broker, but they can help you navigate the complex world of mortgages and find the best deal for you. Avoiding this step could result in you paying far more for your mortgage in the long run than the fee your broker might charge you. If your mortgage broker does find you the best deal, they won’t be impressed if you then go direct to the lender they recommend, to avoid paying their fee.
In conclusion, it’s essential to be open and honest with your mortgage broker and be willing to provide the necessary financial information and documentation. By being transparent and working closely together, you can increase your chances of getting approved for a mortgage and finding the best mortgage product for your needs.
You can find the UK’s best-rated mortgage advisers in our directory.