Multi Hats Limited

02/01/2025

Housing market activity remained "remarkably resilient" despite affordability challenges, the lender says.

19/12/2024

16/12/2024

House prices dip but activity remains buoyant: Rightmove

House prices slipped back in December but have ended the year 1.4% higher according to the latest price index from Rightmove. The residential property website said that asking prices dropped by 1.7% in December, to give an average property price of £360,197 on the site. But Rightmove said that this...

18/03/2024

ᗩᖇE YOᑌ EᒪIGIᗷᒪE ᖴOᖇ ᗩ ᗰOᖇTGᗩGE?

Mortgage lenders typically look for factors such as your credit score, income stability, employment history, debt-to-income ratio, and the amount of your down payment when assessing your eligibility for a mortgage.

For those considering purchasing a home or refinancing a mortgage, I've outlined below several warning signs that could result in a rejected mortgage application. Additionally, I've included helpful suggestions on how to navigate these challenges to ensure a seamless mortgage application process:

𝐆𝐚𝐦𝐛𝐥𝐢𝐧𝐠 - the odd bet on a bank statement is fine, but if you’re staking regular amounts each month, lenders will be concerned about your ability to meet monthly mortgage commitments.

✅ 𝘼𝙫𝙤𝙞𝙙𝙞𝙣𝙜 𝙧𝙚𝙜𝙪𝙡𝙖𝙧 𝙗𝙚𝙩𝙨 𝙞𝙨 𝙖𝙙𝙫𝙞𝙨𝙖𝙗𝙡𝙚 𝙬𝙝𝙚𝙣 𝙨𝙩𝙧𝙞𝙫𝙞𝙣𝙜 𝙩𝙤 𝙢𝙖𝙞𝙣𝙩𝙖𝙞𝙣 𝙖 𝙢𝙤𝙧𝙩𝙜𝙖𝙜𝙚 𝙖𝙥𝙥𝙡𝙞𝙘𝙖𝙩𝙞𝙤𝙣'𝙨 𝙘𝙧𝙚𝙙𝙞𝙗𝙞𝙡𝙞𝙩𝙮.

𝐋𝐞𝐧𝐝𝐢𝐧𝐠 𝐦𝐨𝐧𝐞𝐲 𝐭𝐨 𝐨𝐭𝐡𝐞𝐫𝐬 - lending money occasionally to family or friends, as reflected in your bank statements, is generally acceptable. However, consistent monthly lending might lead a lender to perceive you as financially irresponsible.

✅ 𝙒𝙝𝙞𝙡𝙚 𝙩𝙝𝙞𝙨 𝙞𝙨 𝙖 𝙜𝙚𝙣𝙚𝙧𝙤𝙪𝙨 𝙜𝙚𝙨𝙩𝙪𝙧𝙚, 𝙞𝙩'𝙨 𝙖𝙙𝙫𝙞𝙨𝙖𝙗𝙡𝙚 𝙩𝙤 𝙖𝙫𝙤𝙞𝙙 𝙡𝙚𝙣𝙙𝙞𝙣𝙜 𝙢𝙤𝙣𝙚𝙮 𝙤𝙣 𝙖 𝙧𝙚𝙜𝙪𝙡𝙖𝙧 𝙗𝙖𝙨𝙞𝙨, 𝙞𝙛 𝙥𝙤𝙨𝙨𝙞𝙗𝙡𝙚.

𝐋𝐚𝐫𝐠𝐞 𝐜𝐚𝐬𝐡 𝐩𝐚𝐲𝐦𝐞𝐧𝐭𝐬 - if significant cash deposits are made into your bank account, lenders must conduct anti-money laundering checks to verify the legitimacy of the funds. Failure to trace the origin of these funds could lead lenders to assume the cash deposits as suspicious activity.

✅ 𝘼𝙫𝙤𝙞𝙙 𝙧𝙚𝙡𝙮𝙞𝙣𝙜 𝙨𝙤𝙡𝙚𝙡𝙮 𝙤𝙣 𝙡𝙖𝙧𝙜𝙚 𝙖𝙢𝙤𝙪𝙣𝙩𝙨 𝙤𝙛 𝙘𝙖𝙨𝙝 𝙙𝙚𝙥𝙤𝙨𝙞𝙩𝙨 𝙞𝙣𝙩𝙤 𝙖 𝙗𝙖𝙣𝙠 𝙖𝙘𝙘𝙤𝙪𝙣𝙩. 𝙄𝙣𝙨𝙩𝙚𝙖𝙙, 𝙪𝙩𝙞𝙡𝙞𝙯𝙚 𝙖𝙪𝙩𝙤𝙢𝙖𝙩𝙚𝙙 𝙘𝙧𝙚𝙙𝙞𝙩𝙨 𝙬𝙝𝙚𝙧𝙚 𝙩𝙝𝙚 𝙨𝙤𝙪𝙧𝙘𝙚𝙨 𝙤𝙛 𝙛𝙪𝙣𝙙𝙨 𝙖𝙧𝙚 𝙚𝙖𝙨𝙞𝙡𝙮 𝙩𝙧𝙖𝙘𝙚𝙖𝙗𝙡𝙚.

𝐏𝐚𝐲 𝐃𝐚𝐲/𝐒𝐡𝐨𝐫𝐭 𝐭𝐞𝐫𝐦 𝐥𝐨𝐚𝐧𝐬 - taking out payday loans with the intention of improving your credit profile may seem helpful, but these short-term, high-interest loans can actually harm your credit score. Even if you've repaid them promptly, lenders generally view this type of credit unfavorably.

✅ 𝘼𝙫𝙤𝙞𝙙 𝙨𝙚𝙚𝙠𝙞𝙣𝙜 𝙨𝙝𝙤𝙧𝙩-𝙩𝙚𝙧𝙢, 𝙝𝙞𝙜𝙝-𝙞𝙣𝙩𝙚𝙧𝙚𝙨𝙩 𝙡𝙤𝙖𝙣𝙨 𝙬𝙝𝙚𝙣𝙚𝙫𝙚𝙧 𝙥𝙤𝙨𝙨𝙞𝙗𝙡𝙚.

𝐁𝐮𝐲 𝐧𝐨𝐰, 𝐩𝐚𝐲 𝐥𝐚𝐭𝐞𝐫 - regularly utilizing buy now, pay later options may lead lenders to believe you're living beyond your means, raising concerns about your ability to fulfill monthly mortgage commitments.

✅ 𝙈𝙤𝙨𝙩 𝙤𝙛 𝙪𝙨 𝙪𝙩𝙞𝙡𝙞𝙯𝙚 𝙩𝙝𝙚𝙨𝙚 𝙨𝙚𝙧𝙫𝙞𝙘𝙚𝙨 𝙛𝙤𝙧 𝙘𝙤𝙣𝙫𝙚𝙣𝙞𝙚𝙣𝙘𝙚, 𝙗𝙪𝙩 𝙞𝙩'𝙨 𝙬𝙞𝙨𝙚 𝙩𝙤 𝙖𝙫𝙤𝙞𝙙 𝙧𝙚𝙡𝙮𝙞𝙣𝙜 𝙤𝙣 𝙩𝙝𝙚𝙨𝙚 𝙤𝙥𝙩𝙞𝙤𝙣𝙨 𝙩𝙤 𝙞𝙢𝙥𝙧𝙤𝙫𝙚 𝙮𝙤𝙪𝙧 𝙘𝙧𝙚𝙙𝙞𝙩𝙬𝙤𝙧𝙩𝙝𝙞𝙣𝙚𝙨𝙨.

𝐎𝐯𝐞𝐫 𝐮𝐭𝐢𝐥𝐢𝐬𝐚𝐭𝐢𝐨𝐧 𝐨𝐟 𝐜𝐫𝐞𝐝𝐢𝐭 - borrowing close to your credit card limit, frequently using your overdraft, or withdrawing cash from a credit card can lead lenders to believe you're living beyond your means, causing concern about your ability to meet monthly mortgage commitments.

✅ 𝙏𝙧𝙮 𝙩𝙤 𝙧𝙚𝙙𝙪𝙘𝙚 𝙤𝙫𝙚𝙧𝙖𝙡𝙡 𝙪𝙩𝙞𝙡𝙞𝙯𝙖𝙩𝙞𝙤𝙣 𝙤𝙛 𝙘𝙧𝙚𝙙𝙞𝙩 𝙬𝙝𝙚𝙧𝙚𝙫𝙚𝙧 𝙥𝙤𝙨𝙨𝙞𝙗𝙡𝙚, 𝙖𝙞𝙢𝙞𝙣𝙜 𝙩𝙤 𝙪𝙨𝙚 𝙖𝙧𝙤𝙪𝙣𝙙 𝟑𝟎% 𝙤𝙧 𝙡𝙚𝙨𝙨 𝙤𝙛 𝙮𝙤𝙪𝙧 𝙘𝙧𝙚𝙙𝙞𝙩 𝙡𝙞𝙢𝙞𝙩.

𝐋𝐚𝐭𝐞 𝐨𝐫 𝐦𝐢𝐬𝐬𝐞𝐝 𝐜𝐫𝐞𝐝𝐢𝐭 𝐜𝐨𝐦𝐦𝐢𝐭𝐦𝐞𝐧𝐭𝐬 - missed or late payments on any type of credit will stay on your credit file for six years and impact your credit score. Although some lenders may consider low credit scores, their interest rates may be higher.

✅ 𝙎𝙚𝙩 𝙪𝙥 𝙖 𝙙𝙞𝙧𝙚𝙘𝙩 𝙙𝙚𝙗𝙞𝙩 𝙤𝙧 𝙨𝙩𝙖𝙣𝙙𝙞𝙣𝙜 𝙤𝙧𝙙𝙚𝙧 𝙛𝙤𝙧 𝙖𝙡𝙡 𝙘𝙧𝙚𝙙𝙞𝙩 𝙘𝙤𝙢𝙢𝙞𝙩𝙢𝙚𝙣𝙩𝙨 𝙨𝙤 𝙩𝙝𝙖𝙩 𝙩𝙝𝙚𝙮 𝙖𝙧𝙚 𝙣𝙚𝙫𝙚𝙧 𝙤𝙫𝙚𝙧𝙡𝙤𝙤𝙠𝙚𝙙.

I trust these tips are beneficial and if you're considering securing a mortgage but have apprehensions regarding your credit profile, feel free to get in touch.

03/11/2022

Another base rate rise and what this means for your mortgage

This rate is used by the central bank to charge other banks and lenders when they borrow money – and so it influences what borrowers pay and what savers earn.

24/09/2022

You’ll usually pay stamp duty tax if you buy a residential property or a piece of land in England or Northern Ireland over a certain price.

Following yesterday’s mini budget, first-time buyers can now buy a property costing up to £425,000 without having to pay stamp duty tax (up from £300,000).

For home movers, stamp duty tax is paid on properties costing more than £250,000 (up from £150,000).

If you’re a first-time buyer or looking to move and need mortgage advice, feel free to get in touch.

Chancellor Kwasi Kwarteng has announced a flurry of new stamp duty thresholds on a permanent basis. Alongside this, stamp duty will be eradicated for purchases of land and buildings for commercial or new residential development. These announcements come as part of the new government’s mini-budget,...

10/09/2022

A truly inspirational leader. ❤️

Thank you ma’am and may you rest in peace.

28/06/2022

A Bank of England article from 2020 explaining the correlation between the housing market and the economy.

House prices affect how much money people spend. They have tripled since the late 1970s.

28/04/2022

If you’re a homeowner currently paying a standard variable rate, you could see your mortgage payments increase over the next year.

Fixed rates have also been steadily rising and, it’s expected they’ll continue to rise over the next 12 months.

We’ll know more when members of the Bank of England meet on 5 May to decide whether or not the base rate should change again.

If you’re coming to the end of your fixed rate, think about securing a new rate as soon as possible (as it’s likely rates will continue to rise). If your lender allows you to switch to one of their new rates, it’s a very simple process.

A mortgage broker will automatically compare your existing lender’s rate against the market. If you’d like me to do this for you please message me, and I’ll be happy to help. If you decide to stay with your existing lender and switch to one of their new rates, I can happily do this for you completely free of charge.

The Times reports that chancellor Rishi Sunak believes that interest rates will rise by 2.5% over the next 12 months. It says he reported this to the cabinet on Tuesday, allegedly adding that homeowners who are not on a fixed rate deal could see their mortgage payments rise by £1,000. According to ...

03/03/2022

𝐖𝐡𝐚𝐭 𝐜𝐚𝐮𝐬𝐞𝐬 𝐚 𝐥𝐞𝐧𝐝𝐞𝐫 𝐭𝐨 𝐝𝐞𝐜𝐥𝐢𝐧𝐞 𝐚 𝐦𝐨𝐫𝐭𝐠𝐚𝐠𝐞 𝐚𝐩𝐩𝐥𝐢𝐜𝐚𝐭𝐢𝐨𝐧?

When lenders assess mortgage applications, the entire financial & personal information of all potential borrowers is scrutinised. To help understand a lender’s perspective and what’s expected, I have listed below the most common red flags that can lead to an application being declined:

𝐆𝐚𝐦𝐛𝐥𝐢𝐧𝐠 - the odd bet noticed on a bank statement is not a concern, but if a borrower is staking regular amounts each month, lenders will have concerns about their ability to meet their monthly mortgage commitment.

✅ 𝘼𝙫𝙤𝙞𝙙 𝙧𝙚𝙜𝙪𝙡𝙖𝙧 𝙗𝙚𝙩𝙨 𝙬𝙝𝙚𝙣 𝙩𝙧𝙮𝙞𝙣𝙜 𝙩𝙤 𝙤𝙗𝙩𝙖𝙞𝙣 𝙖 𝙢𝙤𝙧𝙩𝙜𝙖𝙜𝙚.

𝐋𝐞𝐧𝐝𝐢𝐧𝐠 𝐦𝐨𝐧𝐞𝐲 𝐭𝐨 𝐨𝐭𝐡𝐞𝐫𝐬 - lenders usually ask for 3 months bank statements, with some asking for 6 months. If, on the odd occasion a borrower has lent money to a family member or friend, this should be fine. However, where money is being lent on a regular basis and is evident on bank statements, a lender may view a borrower as not being financially responsible.

✅ 𝙒𝙝𝙞𝙡𝙨𝙩 𝙩𝙝𝙞𝙨 𝙞𝙨 𝙖 𝙜𝙚𝙣𝙚𝙧𝙤𝙪𝙨 𝙜𝙚𝙨𝙩𝙪𝙧𝙚, 𝙖𝙫𝙤𝙞𝙙 𝙡𝙚𝙣𝙙𝙞𝙣𝙜 𝙢𝙤𝙣𝙚𝙮 𝙤𝙣 𝙖 𝙧𝙚𝙜𝙪𝙡𝙖𝙧 𝙗𝙖𝙨𝙞𝙨, 𝙞𝙛 𝙖𝙩 𝙖𝙡𝙡.

𝐋𝐚𝐫𝐠𝐞 𝐜𝐚𝐬𝐡 𝐩𝐚𝐲𝐦𝐞𝐧𝐭𝐬 - if large cash payments are being paid into your account, lenders need to carry out their anti money laundering checks and, if they are unable to evidence an audit trail of the original source of funds, lenders could view cash deposits as illegitimate activity.

✅ 𝙒𝙝𝙞𝙡𝙨𝙩 𝙩𝙝𝙚 𝙢𝙖𝙟𝙤𝙧𝙞𝙩𝙮 𝙤𝙛 𝙘𝙖𝙨𝙝 𝙥𝙖𝙮𝙢𝙚𝙣𝙩𝙨 𝙖𝙧𝙚 𝙡𝙚𝙜𝙞𝙩𝙞𝙢𝙖𝙩𝙚, 𝙖𝙫𝙤𝙞𝙙 𝙥𝙖𝙮𝙞𝙣𝙜 𝙡𝙖𝙧𝙜𝙚 𝙖𝙢𝙤𝙪𝙣𝙩𝙨 𝙤𝙛 𝙘𝙖𝙨𝙝 𝙞𝙣𝙩𝙤 𝙖 𝙗𝙖𝙣𝙠 𝙖𝙘𝙘𝙤𝙪𝙣𝙩. 𝙄𝙣𝙨𝙩𝙚𝙖𝙙, 𝙪𝙨𝙚 𝙖𝙪𝙩𝙤𝙢𝙖𝙩𝙚𝙙 𝙘𝙧𝙚𝙙𝙞𝙩𝙨 𝙬𝙝𝙚𝙧𝙚 𝙩𝙝𝙚 𝙨𝙤𝙪𝙧𝙘𝙚 𝙤𝙛 𝙛𝙪𝙣𝙙𝙨 𝙖𝙧𝙚 𝙩𝙧𝙖𝙘𝙚𝙖𝙗𝙡𝙚.

𝐏𝐚𝐲 𝐃𝐚𝐲/𝐒𝐡𝐨𝐫𝐭 𝐭𝐞𝐫𝐦 𝐥𝐨𝐚𝐧𝐬 - Sometimes, a pay day loan is taken out to improve a credit score, but this can actually go against a borrower when applying for a mortgage. Even if these have been paid on time, lenders frown on this type of credit.

✅ 𝘼𝙫𝙤𝙞𝙙 𝙨𝙝𝙤𝙧𝙩 𝙩𝙚𝙧𝙢 𝙝𝙞𝙜𝙝 𝙞𝙣𝙩𝙚𝙧𝙚𝙨𝙩 𝙡𝙤𝙖𝙣𝙨 𝙖𝙨 𝙡𝙚𝙣𝙙𝙚𝙧𝙨 𝙬𝙤𝙪𝙡𝙙 𝙧𝙖𝙩𝙝𝙚𝙧 𝙘𝙤𝙣𝙨𝙞𝙙𝙚𝙧 𝙖 𝙗𝙤𝙧𝙧𝙤𝙬𝙚𝙧 𝙩𝙝𝙖𝙩 𝙙𝙤𝙚𝙨𝙣’𝙩 𝙣𝙚𝙚𝙙 𝙩𝙤 𝙧𝙚𝙡𝙮 𝙤𝙣 𝙩𝙝𝙞𝙨 𝙩𝙮𝙥𝙚 𝙤𝙛 𝙘𝙧𝙚𝙙𝙞𝙩.

𝐁𝐮𝐲 𝐧𝐨𝐰, 𝐩𝐚𝐲 𝐥𝐚𝐭𝐞𝐫 - where this facility is used on a regular basis, lenders will be concerned about affordability as they will assume a borrower is living beyond their means.

✅ 𝙈𝙤𝙨𝙩 𝙤𝙛 𝙪𝙨 𝙪𝙨𝙚 𝙩𝙝𝙚𝙨𝙚 𝙨𝙚𝙧𝙫𝙞𝙘𝙚𝙨 𝙛𝙤𝙧 𝙘𝙤𝙣𝙫𝙚𝙣𝙞𝙚𝙣𝙘𝙚 𝙗𝙪𝙩, 𝙞𝙛 𝙖𝙛𝙛𝙤𝙧𝙙𝙖𝙗𝙞𝙡𝙞𝙩𝙮 𝙞𝙨 𝙣𝙤𝙩 𝙖𝙣 𝙞𝙨𝙨𝙪𝙚, 𝙩𝙧𝙮 𝙩𝙤 𝙖𝙫𝙤𝙞𝙙 𝙩𝙝𝙚𝙨𝙚 𝙤𝙥𝙩𝙞𝙤𝙣𝙨 𝙩𝙤 𝙞𝙢𝙥𝙧𝙤𝙫𝙚 𝙮𝙤𝙪𝙧 𝙘𝙧𝙚𝙙𝙞𝙩𝙬𝙤𝙧𝙩𝙝𝙞𝙣𝙚𝙨𝙨.

𝐎𝐯𝐞𝐫 𝐮𝐭𝐢𝐥𝐢𝐬𝐚𝐭𝐢𝐨𝐧 𝐨𝐟 𝐜𝐫𝐞𝐝𝐢𝐭 - again, lenders will be concerned if a borrower is living beyond their means. For example, borrowing close to a credit card limit, excessive overdraft use, or taking out cash from a credit card.

✅ 𝙏𝙧𝙮 𝙩𝙤 𝙧𝙚𝙙𝙪𝙘𝙚 𝙤𝙫𝙚𝙧 𝙪𝙩𝙞𝙡𝙞𝙨𝙖𝙩𝙞𝙤𝙣 𝙤𝙛 𝙘𝙧𝙚𝙙𝙞𝙩 𝙬𝙝𝙚𝙧𝙚, 𝙤𝙣 𝙖𝙫𝙚𝙧𝙖𝙜𝙚, 𝙪𝙨𝙞𝙣𝙜 𝙖𝙣𝙮𝙩𝙝𝙞𝙣𝙜 𝙪𝙣𝙙𝙚𝙧 30% 𝙞𝙨 𝙘𝙤𝙣𝙨𝙞𝙙𝙚𝙧𝙚𝙙 𝙜𝙤𝙤𝙙.

𝐋𝐚𝐭𝐞 𝐨𝐫 𝐦𝐢𝐬𝐬𝐞𝐝 𝐜𝐫𝐞𝐝𝐢𝐭 𝐜𝐨𝐦𝐦𝐢𝐭𝐦𝐞𝐧𝐭𝐬 - if a payment is missed or is late on any form of credit, this will remain on your credit file for 6 years and impact your credit score. Whilst there may be lenders that will consider an application where a borrower has historic missed or late payments, the interest rates with these specialist lenders are so much higher.

✅ 𝙎𝙚𝙩 𝙪𝙥 𝙖 𝙙𝙞𝙧𝙚𝙘𝙩 𝙙𝙚𝙗𝙞𝙩 𝙤𝙧 𝙨𝙩𝙖𝙣𝙙𝙞𝙣𝙜 𝙤𝙧𝙙𝙚𝙧 𝙛𝙤𝙧 𝙖𝙡𝙡 𝙘𝙧𝙚𝙙𝙞𝙩 𝙘𝙤𝙢𝙢𝙞𝙩𝙢𝙚𝙣𝙩𝙨 𝙨𝙤 𝙩𝙝𝙖𝙩 𝙩𝙝𝙚𝙮 𝙖𝙧𝙚 𝙣𝙚𝙫𝙚𝙧 𝙤𝙫𝙚𝙧𝙡𝙤𝙤𝙠𝙚𝙙.

I hope these tips are helpful and, if you’re looking to obtain a mortgage but have concerns about your credit profile, PM or call me.

20/02/2022

According to UK Finance, there were 908,000 interest-only homeowner mortgages outstanding at the end of 2020, with 457,000 mortgages set to mature by 2027.

If you’re on an interest only mortgage and unlikely to pay this off by the agreed end date and, where equity release isn’t for you, there are other options available.

For example, some lenders allow you to switch your mortgage to a repayment basis and extend the term allowing you to pay off the capital.

There are quite a few lenders offering mortgages up to age 85, with a handful lending up to age 90. There are even the odd few that do not have an age limit.

All of these lenders will assess affordability based on potential or current pension/investment income and, if you remain on an interest only mortgage, you’ll need to have a repayment strategy in place (such as downsizing, sale of an investment property, selling stocks and shares, etc).

If you’d like to know more about your mortgage options in retirement, please message me and I’ll be happy to help.





https://www.ukfinance.org.uk/data-and-research/data/mortgages/interest-only-mortgages