The 7 mortgage traps you must NEVER fall for if you want your dream home – from Instagram fail to phone mistake

SO, you’ve found your dream home and you’ve had an offer accepted – now comes the stressful process of applying for a mortgage. While you might think it’s straightforward, something as innocent as posting on social media, getting a new phone or changing your job can easily throw a spanner in the works and upend your purchase. There are several things that can be a red flag for mortgage lenders and impact your application Credit: PA Rachel Geddes, expert at the Mortgage Advice Bureau, tells you all you need to know To help make getting your mortgage as stress-free as possible, we’ve spoken to experts to find out all the things you should NEVER do when buying a home… and some of them may surprise you. “The golden rule is don’t hide anything,” says Rachel Geddes of the Mortgage Advice Bureau. “Any adverse credit, any loans, any part of your income: your broker and lender need the full picture. “They’re not there to judge you, but they can only get the application right if they can see everything.” With lenders pushing up prices, avoiding mistakes could also mean you’re offered a lower interest rate on your mortgage deal saving you money. So we spoke to the experts to find out the things to avoid doing if you’re applying for a mortgage. Avoid changing jobs You must let your lender know if you change jobs or salary – and it could impact your mortgage application Credit: Getty If you change job, become self-employed, have your hours reduced or take a pay cut after receiving a mortgage offer, you must let your lender know. If you don’t do this, you could be breaching the terms of your mortgage offer, or even be committing fraud. Sarah Tucker, mortgage expert at the HomeOwners Alliance, says that if you are planning on moving roles, it’s best to wait until after completion. “Starting a new job does not automatically prevent you getting a mortgage, but it can reduce the number of lenders willing to consider you, particularly if you are in a probationary period or have less than three months’ employment history,” she says. Being in your probation period at a new job can also cause difficulties in getting a mortgage. However, she adds that this can depend on your lender, as some are more flexible than others. Rachel Geddes: “When it comes to applying for a mortgage, getting a new job isn’t the red flag it used to be. Most lenders will now accept a new contract or a recent payslip, so a change in circumstances doesn’t rule you out of getting a mortgage. If you have had any change of work, make sure you have much evidence of your income and savings as possible to show that you will still be able to make the payments. Mortgage expert Sarah Tucker warns about changing jobs just before applying for a loan. Credit: Sarah Tucker Try not to move address If you’re renting and looking to buy, think twice if you can about moving house too soon before a purchase – and avoid moving while your mortgage application is in the works. You’ll need postal proof of your address for your mortgage application, which can be difficult to get if you’ve just moved. “A change of address partway through can disrupt the paper trail lenders rely on to verify your history,” says Rachel. “Similarly, changing your name or address at the same time as applying can complicate things. “Lenders need your details to match consistently across all the checks they run.” Don’t buy furniture before you get the keys Avoid buying furniture until after your purchase has completed Credit: Alamy Stock Photo Try to hold off until after completion to buy any big ticket furniture items. “It is tempting to order the sofa or appliances once your offer has been accepted, but wait until the purchase has completed,” Sarah advises. Things like sofas and beds can cost a lot, and she warns that a large new commitment could change your affordability calculation at precisely the wrong moment. You can purchase essentials like a mattress and bed frame right after completion so you can comfortably move in. Make sure to set a budget for your furnishings and decor, to avoid spending more than you can afford while you’ve got a mortgage to repay. Don’t take out a mobile phone contract or car finance agreement Other types of borrowing, including phone contracts, can impact your ability to get a mortgage Credit: REUTERS Taking out a mobile phone contract might seem harmless… in fact, you might not even think twice about. But this is considered new borrowing, which can damage your mortgage application. “The application may leave a hard search on your credit file, while the repayments increase your monthly commitments and could reduce what the lender believes you can afford,” Sarah says. This also applies to car finance, new credit cards, personal loans, and paying annually priced insurance by monthly credit. Anything that can impact your credit file, and potentially your credit score, should be avoided in the run up to getting a mortgage. Your credit score – which gives lenders a picture of how likely you are to be a reliable borrower – is an important part of any application. One mark on your file from a missed payment, even if it’s old or small, can do real damage to your chances of borrowing. Sarah recommends avoiding any new credit applications for up to six months before applying if possible, and continue to avoid them until completion. And according to Rachel Geddes of the Mortgage Advice Bureau, taking out a loan or new credit can even cause issues AFTER your mortgage offer has been issued. “Lenders can and do re-check your credit file between application and completion, so a loan taken out mid-process can still derail things,” she says. Be wary of buy now, pay later Buy now, pay letter borrowing can appear on your credit report Credit: PA It’s easy to use Klarna or Clearpay with the click of a button to spread out purchases – but think twice about it if you’re getting a mortgage. “Buy now, pay later borrowing can be visible either on your credit report or in the bank statements supplied to the lender. “Regular commitments may be included in affordability checks, while missed payments can seriously damage your credit record,” Sarah says. “Occasional responsible use for a small purchase won’t sink an application, but taking on several plans or using them for everyday essentials may suggest that finances are stretched,” she adds. How to improve your credit score CREDIT scores weigh up lots of different pieces of information, including previous credit applications and payments. Improving it takes time and consistent financial management, but there are things you can do to help boost your credit score. Make sure to pay your bills on time every month. Set up direct debits for bills, credit cards and loan repayments to keep you on track. You will be monitored on how much available credit you use (credit utilisation) by keeping it low – ideally below 30% of your total credit limit – you can improve your score. Constantly reaching your limits on your credit cards suggests financial strain, even if you make payments on time. If you aren’t already, make sure to register on the electoral roll at your current address. Lenders and credit reference agencies use this information to confirm your identity and stability. Being on the register can add a few points to your score Keep your personal details up to date with your bank and creditors Limit how often you apply for new credit. Each application you make triggers a hard search on your credit file, which could temporarily lower your score. Review your credit report regularly with all three agencies to make sure the information is correct. Don’t live in your overdraft Beware of relying on your overdraft in the months before you’re planning on applying for a mortgage – as it may risk your application. Sarah says: “Some lenders may refuse an application where the borrower has used an overdraft during the previous three months. “Persistent overdraft use can suggest that someone is relying on credit to meet ordinary living costs. “It is particularly important to avoid exceeding an agreed limit or having payments returned.” Avoid going on a spending spree in the months before and during your application. This could be a red flag to lenders when assessing whether you can afford to repay your mortgage. Don’t brag about your spending on social media Proudly posting your big purchases can land you in trouble with lenders. Credit: Getty In this day and age, there’s nothing stopping mortgage lenders searching your name online and browsing through your social media profiles. According to MoneySavingExpert.com, it’s not uncommon for Google searches to raise red flags for mortgage lenders. Avoid bragging about excessive spending or any unprofessional behaviour or extreme views. And make sure your details on platforms like LinkedIn about your employment or businesses match what you’ve told your mortgage lender, or it could raise questions. 'Tiny £4 charge left me unable to take out a mortgage and I couldn’t buy a house' A MUM was horrified to discover she was refused a mortgage because she'd forgotten to pay a tiny £4 charge. Kelly Miles, 33, discovered she had a black mark on her credit file when she and her ex-partner applied for a mortgage — caused by a missed £3.99 delivery charge on a buy now, pay later purchase. She had used the scheme to buy an iPad mini as a birthday present for her partner. Although she completed the £500 repayment within six months, the delivery fee had been left off the plan — and she was never notified. Kelly said: “We wanted to buy so we went ahead and put the mortgage application in, which is when we discovered this big black mark on my credit file.“I never had notification of this – I don’t remember seeing a single letter.” The mark meant Kelly was rejected by lenders and left unable to get a mortgage for six years, as black marks and defaults typically stay on a credit file that long, regardless of whether the debt is paid off. As a result, her ex-partner had to buy the house without her, though Kelly still contributed to the deposit after saving for up to three years. She said: “I was frustrated because it was out of my control, I couldn’t go in and suddenly edit it. I was annoyed that someone could put that mark against my name without me having any knowledge of it.” The advice charity manager, who shared her story on social media last week, says the 2016 experience put her off buy now, pay later and now checks her credit score every month. She said: “I’m not someone who’s in debt so you would always assume your credit score must be good, but it wasn’t.” Kelly, who’s since split with her ex, hopes to buy a home herself next year — and is urging others to check their credit score regularly.