A mortgage broker has revealed that seemingly small factors can derail loan applications, even when the applicant's finances are otherwise solid. Ranald Mitchell, director at Charwin Mortgages, warns that lewd or humorous references in bank transfers, applying for new credit after an offer, regular gambling, and missed subscription payments can all raise red flags with lenders.
Lewd Bank References
Mitchell says that using bawdy references when sending money to friends or receiving such transfers can cause lenders to pause. “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,” he explains. Lenders want to see seriousness, and such references can undermine that. He advises having a word with friends who send money in this way.
New Credit After Offer
Another common mistake is applying for credit after receiving a mortgage offer. Mitchell says people often think the deal is secure and take out finance for items like a drone or a new credit card for a holiday. However, lenders can retract an offer if they see new credit activity on the applicant's profile before completion.
Gambling and Crypto
Regular gambling or cryptocurrency transactions, even in small amounts, can also be red flags. Mitchell notes that occasional betting on events like the Grand National is usually fine, but frequent use of betting sites or crypto exchanges can create a picture of unreliability, making lenders think twice.
Missed Subscription Payments
Missed payments for services like Netflix or HBO Max, where no formal credit is involved, can also cause issues. Mitchell advises cancelling subscriptions properly through the provider's website rather than stopping direct debits, as bounced or returned payments can appear as failed payments on your account and impact mortgageability.
In summary, Mitchell urges applicants to be aware that small things can impact mortgage approval right up until funds are transferred.
