London: Applying for a mortgage is exciting, especially for first-time buyers. But many don’t realize small issues can lead to rejection. A study found that 41% of young adults had their applications turned down. Jonathan Bone from Better.co.uk shares eight key points to consider before applying.

Joke References in Money Transfers

When sending money to friends, avoid funny references. Lenders review your bank statements. Inappropriate notes can raise red flags and lead to rejection.

Gambling Transactions

Frequent betting can hurt your mortgage chances. While occasional lottery tickets are fine, regular gambling may signal financial instability to lenders.

New Job Concerns

Getting a new job is great, but it can complicate your mortgage application. Lenders prefer stable employment history. A new job might seem risky, even if it pays more.

Self-Employment Proof

Self-employed individuals face challenges proving income. Regular payslips aren’t available. Provide evidence of consistent earnings and tax payments to show stability.

Electoral Roll Registration

Not being on the electoral roll can hurt your application. Lenders use it to verify your address. Registering is easy and free, so do it before applying.

Avoiding Admin Errors

Simple mistakes can lead to rejection. Double-check your application for errors like misspelled names or incorrect addresses. Take your time to ensure accuracy.

Multiple Credit Applications

Applying for several loans at once can raise concerns. Lenders may question your ability to repay. Limit credit applications before seeking a mortgage.

Documenting Your Deposit

Have a clear paper trail for your deposit. If you received money as a gift, show where it came from. Lack of documentation can delay or derail your application.

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