This guide is intended to help answer any of those questions you might get hung up on at the start of your application. Filling in your details shouldn’t take more than 10 minutes but some people can find a few of the questions tricky, so it’s worth having bank statements and payslips to hand. The information we collect helps us give you the best advice possible and means we can answer your questions in record time.
There are eight steps to collecting your personal details, so let’s get started! If you’ve already made progress and need help answering questions further down the line, feel free to skip through to your current stage.
What is the value of the property you wish to purchase?
If you’re not quite sure how much you want to spend on your new home, just give us an idea of the price of the house you’d like to buy, and your mortgage expert will advise you on how much you should be able to afford.
How long do you want to borrow it for?
The typical mortgage term is 25 years, and the longer the term of your mortgage (how long you borrow the money for), the lower the payments. However, you will pay more interest in the long run and less off the balance each year repaying this way.
Will you be the only listed owner for this property?
If you’re applying for your mortgage alone, and intend on paying the mortgage yourself, then you will be the only listed owner. If you’re intending on applying with another person who will also be named on your future mortgage and combining your income, then you will be making a joint application. If you are looking to remortgage and you’re unsure of the answer to this, check the deeds of your current home for the listed owners — the application should reflect the owners of the property to be named on the new mortgage.
This section is relatively straightforward, and as we mentioned on the website, if you’re unsure of any of your own or your co-applicant’s personal details, just make sure they match your passport or driver's licence.
Who are my dependants, and why do I need to include them?
Dependants are people you look after, and are usually your children. If you care for a partner or relative, they are also one of your dependants. Why are we asking about your dependants you might be thinking? This is because raising children or caring for someone carries a significant monthly cost.
Before banks agree to lend you an amount of money to buy a house, they need to assess whether or not you’ll be able to pay it back. This is what is known as an affordability assessment, and takes into account lots of different factors to work out your ability to pay back your mortgage. One of the factors they take into account is this monthly cost associated with your role as a parent or carer, which is why we collect this information at this point in your Habito journey.
School, nursery and childcare fees
As detailed above, lenders want to know your level of financial responsibility to your children and dependants. Included in this is any fees you might pay towards your children’s education and childcare. If you don’t pay any of these fees, you can select the ‘No’ option. If you’re not sure how much you pay towards these costs, enter a rough estimate, and you can check back to update this to a more accurate amount.
Child maintenance involves monthly payments intended to cover the everyday costs of raising a child. If you’re not sure whether you pay child maintenance, or how much you might pay, we’d encourage you to get in contact with the Child Maintenance Service and get a better understanding of your child maintenance circumstances.
Spousal Maintenance is a regular payment made by a former husband, wife or civil partner to their ex-partner.
It’s only paid where one partner can’t support themselves financially without it. The amount of monthly payments and other terms are usually set and agreed by the court service.
We ask for three years worth of address history, but understand you may not have this if you lived overseas at any point in this period. If this is the case, it is okay to backdate your UK address history to get to the next stage. Just be sure to let your mortgage expert know when you speak to them, and they should be able to give you some guidance on this. The lenders will typically expect you have lived in the UK for a minimum of 6 months.
Employment and Income
If you’re not sure of your exact salary at the moment, you can enter a rough estimate. Before submitting your application, lenders will need proof of income in the form of payslips, so entering in an estimate at this point to get to the next stage should be fine.
If you don’t have three years worth of employment history, it is okay to backdate your current employment history or select the Unemployed option, but be sure to let your mortgage expert know when it comes time for expert advice, as they can advise you on how this might affect your mortgage application.
Whilst you’re probably sure of your credit card provider, and who’s name the card is in, some details may be less apparent. If you’re not sure of the balance and credit limit of your card, the easiest thing to do is check your online account with your credit card provider. Much like online banking, you will probably have access to your credit card account online. This is where you’ll be able to find these details, along with information about your current interest rate (APR) and the size of your monthly payments.
If you have a personal loan, and you’re not sure of the details, we recommend getting in touch with your loan provider. They should be able to issue a statement by post or online detailing the outstanding balance, end date, and the size of your monthly repayments. These details should help you fill out your personal details and get you back on track to expert mortgage advice.
Hire purchases or lease agreements
Hire purchase agreements and leases are often made when purchasing cars, or more expensive pieces of furniture or home appliances. If you have any of these agreements, you should be receiving monthly statements detailing who the agreement is with, the outstanding balance of your agreement, and the size of your monthly repayments.
If you’re unsure of the current balance and monthly payments of your student loan, a rough estimate should be just fine to get you through to the next step. If you want to find out more about the status of your student loan, you can contact the Student Loans Company either by phone, or through their website. They should be able to provide you with this information which will come in handy further down the line in your mortgage application.
What do you currently have insured? If you have a car, you should be paying to insure it, and this monthly outgoing must be accounted for by your mortgage lender when they perform their affordability assessment. If you’re looking for your first home, it’s unlikely you have home insurance, but may have a tenant’s insurance agreement. If you’re remortgaging or moving home, it is likely you have home insurance. If you travel frequently, you may have personal travel insurance policies, and if you’re looking to carry these forward in the future, these costs must be accounted for.
Like many of us in the UK, commuting to and from work is a sad reality. Whether it’s the bus, train, in the car, or a mixture of the above, the costs can start to add up. These costs need to be accounted for by your lender during their affordability assessment, and can represent a healthy portion of your steady monthly outgoings.
Going out and social activities
We all enjoy going out for a drink with friends or meal with our other half, but these activities can represent a major monthly cost. For this reason, lenders are interested in your monthly outgoings on these sorts of activities. If you’re not sure how much you spend on these sorts of things a month, a rough estimate should be fine. If you track these outgoings in your online bank account, even better!
Repeating household goods and services
Regardless of whether you’re a renter or homeowner, you’ll have monthly outgoings directed towards maintaining your home. These include things such as cleaning services, cleaning products, home improvements and any repeating monthly payments intended to maintain the interior or exterior of your home. If you don’t know the exact figure, you can just add a rough estimate and carry on to the next question. If you keep track of these expenses, you’ll be able to answer this question a little bit more accurately.
These are usually payments you have set up by direct debit, and cover utilities such as gas and electricity, water, your TV licence, telephone and internet plans, and council tax.
Accessing these payments is as simple as logging in to your internet banking account for the account you use to pay them, and from there you can start to add up the sum of these monthly payments. It is the sum of these utility payments we are after, but don’t fear, adding them up shouldn’t take more than a few minutes.
Source of your deposit
Mortgage lenders are interested in the source of your deposit, as this sum cannot usually be borrowed. Deposits for new homes typically come from savings, and often a portion, and sometimes all of the sum, is gifted from friends and family. If you’re moving home, some, or all of your deposit may come from equity in your current home.
Mortgage lenders want to know the size of your pension pot, particularly if you plan on borrowing into retirement. This is because your salary is intended to cover the costs of your monthly mortgage repayments, so when you are no longer collecting a salary, your pension might be the main source of income for keeping up mortgage repayments. If you’re unsure of your co-applicant’s or your own personal pension, you can enter a rough estimate, and this figure can be updated further down the line.
If you have found a house you'd like to buy
If you’ve found a property, but you’re not sure on the specific details, these might be available from the vendor (the person selling the property), or the estate agents selling the property. If you cannot obtain these details at this point in the process, not to worry. You can select “No” and simply continue to the next stage, making sure to let your mortgage expert know you have found a property when speaking with them.
We hope this answered your questions!
If you've got this far, hopefully we've answered your questions about filling out your personal details, and you're well on your way to receiving expert mortgage advice. If you're still stuck, hit the "Need Help?" button at the bottom right hand corner of your screen, and hopefully a real life member of the Habito Team will be with you for live trouble-shooting help.