The majority of people seeking mortgage advice want to know how much they can borrow and how much that borrowing will cost them by way of mortgage payments every month.
Your mortgage adviser will calculate how much different lenders will allow you to borrow and how much interest you will pay.
The amount you are able to borrow is calculated on an affordability calculator where information about income and outgoings is added.
Your mortgage adviser will need to know how much income you receive every month, this may be salary, overtime, pension, dividends, benefits, maintenance etc. He will also need to show the lender evidence of this income so will request copies of payslips if you are employed, pension statements if you are retired or tax calculations and overviews if you are self employed, plus evidence of any other income that you receive.
To assess outgoings your adviser will need to see your last three months bank statements, he will also run through a budget planner with you and ask you about your monthly outgoings asking you how much you pay for utility bills, groceries, clothes, phone bills and TV packages. He’ll need to know about car loans, credit card payments and any other borrowing that you have in place.
Your adviser will also request that you run an Experian Credit Report and give you instructions on how to do this. Your adviser will discuss this report with you and if you have any adverse credit give you advise on how to rectify it.
In addition to questions about your finances your adviser will ask you what your short and long term goals are for your work, home and your family. This will help him to give you the best mortgage advice for now and for the future to achieve those goals.
It is really important that you and your mortgage adviser have a good relationship and can work well together to achieve your goals. Having the right professional along side you will certainly smooth the way.