Each lender has its own criteria for assessing mortgage applications. That is why it is important to understand the criteria. Based on your circumstances, an expert will know where to put your mortgage and how.
The first thing i.e. what advisors will do is to go through your information and ask general questions such as how much you want to borrow, the amount of deposits and so on. After this, advisors can make a start on seeing what products you may qualify for.
The lender will assess the maximum borrowing capacity based on your revenue. It is important to explain that the income itself is an area that lenders assess different.
You can also take the help of self employed mortgage lenders who will not only assess your income, they also will assess your spending and other financial commitments you may have.
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Knowing what your credit file contains very important, especially when applying for a mortgage in default. This is because your credit file will show the exact details that the lender will also look for.
If you have multiple credit problems then you will more than likely require a specialist adviser.
If you've got a credit file that's really clean and there's no default, borrowers typically lend up to five times as much as the industry average. Since adding default conditions, it becomes much more difficult to obtain full loan.
If the lender approves the maximum mortgage amount, then they will usually try and minimize their risk. One way to minimize the risk is by charging premium prices and costs.