Mortgage Problems can be divided into three distinct areas
- Problems obtaining a mortgage
- Problems during the mortgage process
- Problems encountered during the mortgage term
Current problems in the mortgage and property markets are mainly down to the unwillingness of banks to lend to first time buyers. In more stable time these are the problems, in roughly the order that they are met:
Problems obtaining a mortgage
- Failed, or Low Credit Score
- Not enough income (for a particular lender)
- Income not provable (for self employed)
- Some income not wholly accepted for the employed – for example bonus or commission
- Not enough deposit
- Unable to provide documented address history for the last three years if not on electoral roll
- Existing debt payments reduce income for income multiples
- Outside other lender criteria
Problems during the mortgage process
- Incorrect information supplied for the agreement in principle
- Property values at less than the agreed price
- Further reports required for the valuer
- Lender applies a retention
- Vendors withdraws the property
- Vendor accepts a later, higher offer
- Legal problems
- Lender asks for additional paperwork
- Buildings insurance difficult to obtain
Problems during the mortgage term
- Problems, not noted on the valuation report become apparent
- Change of circumstances mean that mortgage payments are missed
- Problems marketing the property when moving on
