Real mortgage advice -How to get your mortgage application approved in 2021

Top Mortgage Tips with Ifthikar

Host: Gemma

Guest: Ifthikar, Accountant, Mortgage Advisor, and Founding Director at WIS Group

Introduction

Gemma:

Hello and welcome back to our podcast and channel. My name is Gemma, and here at WIS we talk
about all things money, mortgages, and positive money mindsets.

If that interests you, be sure to subscribe to our channel and give this video a thumbs up.
It really helps our YouTube algorithm and ensures you won’t miss any of our future content.

Today’s episode of Let’s Talk Money & Mortgages features Ifthikar, who is not only a trained
accountant and mortgage advisor with over 10 years of industry experience, but also the founding
director of WIS Group.

It’s a pleasure to have you back on the show.

Ifthikar:

Thanks, Gemma. It’s lovely to be back.

Why Getting a Mortgage Isn’t Always Straightforward

Gemma:

Many people assume getting a mortgage is easy, especially when they know someone who has recently
been approved. Is that true?

Ifthikar:

Not necessarily. People often say, “My friend got a mortgage, and I’m very similar to them,
so I should qualify too.”

The reality is that every applicant is different. Mortgage approval depends on individual
circumstances, so it’s rarely as straightforward as people think.

Top Mortgage Tips

1. Make Sure Your Credit File Is Clean and Accurate

Gemma:

What exactly should people check on their credit file?

Ifthikar:

Your credit file shows how you’ve managed credit commitments in the past. It’s one of the most
important things lenders review.

Popular credit reference agencies include:

• Experian
• Equifax
• Credit Karma (formerly Callcredit)

My personal favourite is Check My File, which combines information from multiple
agencies into one report.

Things to Check

Personal Details

Make sure your:

• Name is correct
• Address is correct
• Previous names (for example, after marriage) are recorded accurately

Incorrect details can make it difficult for lenders to locate your information.

Adverse Credit History

Watch for:

• Missed payments
• Defaults
• County Court Judgments (CCJs)

These can negatively affect your mortgage application.

Electoral Register Status

Check whether you’re registered to vote, as this can impact your credit profile.

Existing Commitments

Make sure settled loans and credit accounts are shown correctly. Sometimes a loan that has been
paid off still appears active, which can reduce your borrowing capacity.

Is Credit Score Everything?

Not always. Someone may have a high credit score but still have recent missed payments.
That’s why lenders look beyond the score and examine the details of your credit history.

How Far Back Do Lenders Look?

Generally, lenders focus on recent credit behaviour. If you’ve maintained a clean record over
the last couple of years, most lenders will view that positively.

2. Get a Decision in Principle (DIP)

Gemma:

What is a Decision in Principle?

Ifthikar:

A Decision in Principle tells you how much a lender may be willing to lend.

I strongly recommend obtaining one before you start viewing properties.

There’s no point viewing a £250,000 property if the lender will only offer £200,000.

Be Honest with Your Broker

Provide complete and accurate information about:

• Salary
• Bonuses
• Commission
• Share schemes
• Other income

Many people underestimate how complicated income structures can be.

If inaccurate information is used, you could receive a Decision in Principle that overstates
your borrowing power, leading to problems later in the process.

3. Register on the Electoral Roll

Gemma:

Why is being on the electoral register so important?

Ifthikar:

Credit agencies use electoral roll information to verify your identity and address.

I recently worked with a client whose credit score improved significantly after registering to vote.

How to Register

You can register online through the UK Government website.

How Long Does It Take?

It won’t update overnight. Allow a few weeks for the information to be reflected in your credit file.

4. Keep Your Bank Statements Clean

Gemma:

What do lenders look for in bank statements?

Ifthikar:

They review both:

• Income
• Expenditure

Income Checks

For employed applicants:

• Salary payments should match payslips.

For self-employed applicants:

• Lenders expect to see salary or dividend income entering your account.

Spending Habits Matter

Lenders review recurring spending patterns.

• Gambling
• Expensive hobbies
• Frequent nightclub spending
• Other regular discretionary expenses

If spending appears consistently every month, lenders may treat it like a financial commitment.

Build Positive Financial Habits

It’s always beneficial to show that you have money left over each month.
Increasing account balances demonstrate responsible financial management.

5. Be Ready to Prove Your Deposit

Gemma:

What does “proof of deposit” actually mean?

Ifthikar:

Lenders want to understand where your deposit came from.

If You Saved It Yourself

• Bank statements
• Evidence of regular savings

If It’s a Gift

Gifted deposits are generally acceptable from close family members.

• Gifted deposit letter
• Evidence of the donor’s funds
• Donor bank statements (typically six months)

6. Budget for More Than Just the Deposit

Gemma:

What additional costs should buyers consider?

Ifthikar:

• Solicitor fees
• Survey fees
• Mortgage valuation fees
• Moving costs
• Furniture
• Home improvements

Have a Contingency Fund

• Boiler breakdowns
• Heating repairs
• Essential maintenance

7. Self-Employed Applicants: Prepare SA302s and Tax Overviews

Gemma:

Many people know about SA302s, but what is a tax overview?

Ifthikar:

SA302

An SA302 is similar to a P60 for employees.

• Income declared to HMRC
• Salary
• Dividends

Tax Overview

A tax overview shows:

• Tax due
• Tax paid

Lenders want to see that your tax liabilities have actually been settled.

Tip for Company Directors

Some lenders assess company profits alongside salary and dividends,
which can significantly increase borrowing potential.

8. Choose a Digital Mortgage Process

Gemma:

Why are digital mortgage applications becoming more popular?

Ifthikar:

Benefits include:

• Open Banking integration
• Automatic ID verification
• Digital document collection
• Faster application submission
• Fewer manual errors

Communication Benefits

• WhatsApp
• Facebook Messenger
• Zoom
• Microsoft Teams

9. Choose a Good Solicitor

Gemma:

What should people look for when choosing a solicitor?

Ifthikar:

Your solicitor is responsible for:

• Reviewing legal documents
• Investigating the property’s title
• Conducting local authority searches
• Raising enquiries with the seller’s solicitor

Don’t Choose Solely on Price

Quality and service are often more important than saving a small amount on fees,
especially when purchasing what may be the biggest asset of your life.

Seek Recommendations

• Your mortgage broker
• Family and friends
• Trusted review platforms

Final Thoughts

Gemma:

Thank you, Ifthikar, for sharing these valuable mortgage tips.

Please remember that every person’s circumstances are different, so always seek advice tailored
to your situation.

If you don’t currently have a mortgage broker, WIS would be happy to help.

Important Reminder:
A mortgage is secured against your home or property. Your property may be repossessed if you do
not keep up repayments on your mortgage.

Ifthikar: Thanks for having me.

Gemma:

Thanks for joining us. We’ll be back next week with more money and mortgage discussions.
Stay safe, and we’ll see you again soon.