Credit spread over some spreadsheets, and a calculator and pen

As a first-time buyer, you may be unfamiliar with the process of searching and applying for a mortgage. But one thing you might already know is that us mortgage advisers ask for a lot of paperwork and get you to answer quite a few questions!

Well, unfortunately this is a necessity that we simply can’t avoid. It’s to prevent fraud.

Preventing false mortgage applications

No matter the subject, there are always some people ‘that spoil it for everyone else’, as can be seen for the case of mortgage fraud in this account from the Financial Conduct Authority.

‘In 11 cases, he dishonestly inflated the applicant’s income in their application to the lender. Mr Barreto would then pay Mr Hussain, who created false self-employment and employment documentation to support the inflated mortgage applications for clients with insufficient income.’

The account highlights how it could be possible for some people to generate false documents to provide to the mortgage lenders as proof of earnings. By inflating the amount of income, you can qualify for a larger mortgage loan value…

This is easily dealt with as mortgage lenders now ask clients to provide bank statements and payslips to cross reference, along with credit card statements and proof of ID to name just some of the documents. To find out exactly what paperwork is need, and why we ask for it, have a look at the blog, ‘What Paperwork is Need to Apply For a Mortgage?

Although it can seem intrusive let’s face it, this isn’t online shopping, we have to be very careful how we convey earnings to the mortgage lenders.

Help with mortgages for first time buyers

If you’re not sure if the paperwork you have is sufficient, or if you are self-employed and would like to ask about how that might make a difference to your mortgage application, please just give me a call.

My advice is fee-free, which means you won’t pay a penny for it, ever, even when the mortgage is accepted. I can do this because the commission that mortgage lenders pay covers it all.

Read more about my ‘No Fee Mortgage Advice’, or give me a call today on 01869 390490.