IFA Bob Riach from Riach Independent Financial Advisers said lenders expect the fact find and the application form to tally exactly, so handing ID paperwork to lenders is simply not enough.
Riach said: “Mortgage lenders are asking for more details in the current financial climate and first-time buyers and home movers should be prepared to be able to give evidence of their financial position and ability to afford the mortgage.”
Advisers have to uncover and account for any affordability or fraudulent discrepancies at the application stage and be able to offer key documents in the first interview.
Riach explained in one case, a client’s pay slips revealed he earned £1000 more than stated on the application form as a result of a Christmas bonus, so he was forced to add a note of explanation.
* Proof of ID;
* P60;
* Last three months’ payslips;
* Last three months’ bank statements;
* Full documented details of any other income;
* Full documented details of any loans & credit cards.
Riach added that consumers without credit cards will also struggle to get a mortgage, so should get a credit card, but pay it off on time at the end of each month to establish a credit record.
Jayne Walters, CML spokesperson, said: “Lenders need to know that any potential borrower is who they say they are, earns what they say they do and can actually afford what they think or hope they can. By asking for all the required information up front, lenders can uncover any potential fraudulent activity and reveal any affordability issues.”
