Last week, my colleague Sonya Matharu, revealed five tips which will improve your chances of success when making a mortgage application.
But whilst following her action points will make your journey to purchasing a home much smoother, there are still some common mistakes homebuyers make which can trip them up or lead them to give up on their dream property purchase altogether.
So, to follow on from Sonya’s ‘do’s’ here are my ‘don’ts’ to make sure you stay on track to achieving mortgage success.
1. Don’t… make assumptions about your position
The world of mortgage lending is ever changing, and the lenders’ criteria, policies and affordability calculations vary hugely.
You can obtain indicative information yourself on the internet about your mortgage borrowing but this can lead you down an unhelpful path. Because unless you’re working in the market it would be very difficult to know the ins and outs of how your individual case is seen by a lender.
For example, it may be a bank cannot offer you what you want – and you assume you are therefore not eligible. But it could be that another lender could offer you a mortgage.
Speaking to a mortgage broker can clear up these misconceptions. They take a full a holistic view of your case, crosscheck this with the variations on the mortgage market and fit the puzzle to the best possible outcome and advice for you.
2. Don’t… offer on a property without a Decision in Principle
Technically you can make an offer without one, however it would not be wise to.
Estate agents want to be certain of your offer before putting it forward to the seller. And the best way to provide this reassurance is to have a Decision in Principle (DiP) or Agreement in Principle in place, preferably one which has been checked and verified by a broker.
A DiP is the closest you get to an official offer before full mortgage application. It means the case has been agreed in principle subject to the property and further underwriting. A good broker will have made sure DiP is an accurate representation by having verified your documents first.
Without a DIP in place, not only does your offer hold less weight with the agent but you may be disappointed – for example, if your calculations of what you could buy weren’t accurate. It is certainly better to know your position fully.
3. Don’t… bury you head
What if your current borrowing position isn’t looking favourable?
Most commonly this is because of past adverse credit issues, over indebtedness effecting affordability. Perhaps it’s the type of employment contract you have or the years you’ve been self-employed.
Whatever the reason, do not bury your head and give up on your property purchasing dreams. Speak to a broker about a forward plan.
They can help you understand why your current circumstances aren’t meeting your mortgage needs and look at options going forward.
Often, if you know what needs to happen and what could be possible in a year or so, you will feel more empowered and equipped with knowledge to achieve a different, more positive, outcome for the future.
4. Don’t… be afraid to ask
Having a mortgage is the biggest financial commitment of your life. It is therefore so important you understand all the details and features of your product, loan and process.
This will be explained to you, but sometimes there is so much information coming your way that you need to ask a question or ask for it be reiterated.
Please don’t shy away from doing this. Even the most well-intentioned broker may use words that are industry jargon because it’s banded around them regularly and they may forget this isn’t an everyday term outside of property purchasing.
If you hear something and you’re really not sure what it means, don’t assume or pretend you do. Instead ask for clarification. It is your money, your life, you need to feel completely comfortable.
5. Don’t… fall for conditional selling
Under no circumstances are you obliged to use the broker referred by the estate agent for your mortgage application to ensure your offer is put forward.
Sadly, we have seen these improper selling tactics rear their head a number of times.
If you have started the process with a broker of your choice, you have your DIP you can continue to work with any broker you like.
It’s fair, in certain practices, that the agent will encourage you to go over affordability with one of their in-house brokers.
If this is still required after you’ve offered them reassurance via your own broker and DIP, then you can go through this 
process by all means. But you are in no way obliged to use their broker for an offer to be presented or accepted.
Apart from the few examples we’ve witnessed, most estate agents are happy to work in respectful synergy with your chosen professional broker to get the sale progressed but watch out for the moments this might be suggested and know your rights.
Gemma Bennett is a senior mortgage broker for The Mortgage Mum
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Connect with The Mortgage Mum team
You can connect with Sonya via her website www.sonyamatharu.com and you can contact Gemma via email Gemma@themortgagemum.co.uk: or at her website, here.
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