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Mistakes on your mortgage application can lead to annoying delays or worse still, a rejected application. Applying could also affect your credit score, as it may require a hard credit search. Therefore, submitting multiple applications could have a negative impact.

As your mortgage adviser, we want to help you avoid issues and secure your mortgage approval as soon as possible. Moving into a new home is exciting, and we know you want to get there seamlessly.

To do so, we outline the top six mistakes people make when applying for a mortgage and explain how to avoid them.

Incorrect income proofs

Not giving necessary documents like wage slips, bank statements, tax forms, or accounts can pause applications. Before applying for a mortgage, make sure you have the right documents across the right dates to prove your income.

Deposit evidence gaps 

You’ll need to fully evidence where your deposit has come from. You can do this through clear bank statements, investment portfolio printouts, or gifted deposit templates. Any question marks over the source of funds invariably causes delays. It may also lead to potential questioning about the legitimacy of your deposit.

Muddled identification  

It’s possible that the details on your driving licence have changed since you last looked at it. Or it’s been a long time since you last used your passport, and it’s now out of date. Submitting outdated or incorrect documents can slow the mortgage application process down.

Before you make your mortgage application, ensure all identification documents are in date, clear, and meet requirements. If they’re not, or they don’t, now is the time to get them updated.

Also bear in mind that utility bills used for identification must also be recent, dated within the last three months. Bank statements need to include the address you currently live at.

Credit history 

More delays can be caused when the information in your application doesn’t match the information on your credit file. Be sure to know what is on there and that everything is accurate before starting the process.

Unrealistic budgets  

Reducing expenses temporarily may help get an initial agreement in principle (AIP) but can lead to problems when affordability is assessed later.

During your mortgage application, give truthful budgets including some discretionary spending, like eating out and entertainment. By being honest, it’s easier to source mortgage deals that match your financial position. It’s better to be given a formal mortgage offer that is affordable and well within financial reach than one that could leave you struggling.

Rushing submission 

While you may be eager to secure your mortgage as fast as possible, rushing evidence compilation heightens the chance of making mistakes. We recommend taking your time to thoroughly gather everything your mortgage lender requires for the best chance of quick approval.  

If you’re ever unsure of how best to proceed with your mortgage application, or you would like advice on what you need to have ready before you begin, we’re here to support you. For fee-free, fuss-free advice, contact our mortgages team today.