The 5 most-asked mortgage questions

Missed our webinar on mortgage success? No stress, we’ve rounded up the most popular questions that people put to our advice team, so everyone can enjoy the answers.

Q: Should I close my credit card account?

I currently have one that I’m thinking of getting rid of because I ever use it.

Dan from Multiply:

Having a credit card with no balance will not impact your ability to borrow, or the amount you can get. Using it a little bit and clearing the balance each month looks good to lenders because it shows you can borrow and repay.

Q: Is there any value in paying a mortgage broker?

I've heard you can access the same deals online.

Dan from Multiply:

It’s fine to go without a broker if you’re happy to deal with the whole process yourself and you are absolutely sure they can’t get you a better deal. However, in my experience, a good broker should usually be able to get you a better deal.

Q: What impact does a payday loan have on a mortgage application?

I've heard it stops mattering after six years but I'm not sure when this counts from.

Peter from Multiply:

Lenders generally don't like payday loans, as they indicate that something may have happened that required a quick solution. However, the six years you mention seems very harsh - generally only Debt Management Programmes and CCJs remain on your credit file for that long. Each lender has different rules, but basically the longer ago it was, the better. If it was more than three, it should not prevent you from getting a mortgage offer, even if it’s not the best deal. However, we'd recommend you take advice from a mortgage broker.

Q: What’s the best way to show proof of savings?

We’ve been saving for 2 years - are bank statements enough?

Dan from Multiply:

Yes, bank statements will be fine to show as evidence of your deposit savings. They will also want to see statements for all of your active bank accounts.

Q: Is day trading negative for your mortgage application?

I'm getting an income from trading but I'm not sure how a lender would view it.

Dan from Multiply:

The lender would not view it as guaranteed income, so it doesn’t count towards your affordability. However, the money you put into it does count as outgoings. That means you wouldn’t be able to borrow any more based on your day trading income, and the money you put into it might even count against you a lender's eyes.

Still got questions?

We're holding live webinars every Tuesday in June to help you get onto the property ladder. You can book your free Zoom ticket now for our sessions on Finding "the One" and Sealing the Deal.

You can also watch all of our previous webinars on YouTube, including this week's session on Mortgage Success.