'I'm a mortgage broker and lewd reference can be a red flag'

'I'm a mortgage broker and lewd reference can be a red flag' It might seem daft, but it could cause a real issue There are countless factors taken into account when you apply for a mortgage, with the biggest ones, understandably, your income, level of existing debt, use of credit and credit score. But a mortgage broker has revealed some of the small things that can cause big issues when people apply for a loan, which can sometimes scupper an application even when the big factors reveal everything a lender wants to see. “I’ve lost count of the times a regular mortgage application has been at risk of being derailed because of something perceived to be quite small,” said Ranald Mitchell, director at bad credit mortgage specialists Charwin Mortgages. He continued: “A lender will sometimes pause for thought, or not give a straight ‘yes’ to a mortgage application for things that many people think are irrelevant, but which actually matter in the eyes of the lender.” By way of example, Ranald the use of lewd or humorous references when sending money to friends, or friends sending money to you, has caused many a mortgage issue. He said: “It’s a bit of fun at the time, but not so much fun if a lender red flags it and sends an application for more manual underwriting. Lenders want to know that the person they’re handing potentially hundreds of thousands of pounds to is serious and bawdy bank references can undermine that. If your friends transfer money to you in this way, have a word with them.” Ranald said another stumbling block in an otherwise straightforward mortgage application is people applying for credit when their mortgage offer has been made. He said: “People get their mortgage agreed in principle and think, ‘OK, that’s in the bag, I’ll now go out and buy that drone at Curry’s on finance that I’ve held back on for a few months’, or they take out a new credit card to pay for a holiday. They forget that a mortgage offer can be retracted by a lender if they see new developments on a person’s credit profile that make them uneasy right up until the moment of completion.” Ranald said regular gambling and usage of crypto exchanges, even if the amounts are relatively small, could also raise red flags and make a lender think twice. He said: “If you’re betting a few times a year, such as on the Cheltenham Gold Cup and the Grand National, a lender will generally wave that on. Millions do it. “But if you’re regularly using betting sites or sending money to crypto exchanges, that can create a picture of someone who is more likely to be less dependable with their mortgage repayments. Again, it can make the lender think twice.” Missed payments, even where the provider is not actually offering you formal credit, can also cause mortgage issues, Ranald said. He added: “Take Netflix as an example, or HBO Max if a person likes their sport. If someone’s planning to ditch their sub, they’ll often just cancel the direct debit or not bother transferring the money across, meaning the payment won’t go through. “If you’re going to cancel a monthly subscription, do it the right way through their website. That way, it won’t appear as a missed or failed payment on your account. Bounced or returned direct debits can create real issues that people just don’t recognise. “All in all, be alive to the fact that even the small things can impact your mortgageability, right up until the funds are in your account.”