Confusion over address details when applying for mortgages

k8louise

Hi
I'm confused about the following and wondered if anyone could shed any light for me. My partner and I want to start applying for a mortgage, we both live together in a rented flat at the moment but all our bank statements and anything formal is still registered under our parents addresses. This is the way i've always worked it while moving around at university, as i moved house every year. We are also both on the electoral role at our parents addresses.
I'm wondering whether this will have any effect on us when applying for a mortgage - do we declare the fact we are living in rented accomodation as surely they will see this when they examine our bank statements and see rental payments coming out each month. Does it matter that all our formal stuff is still registered at our parents address??
I'm sure this must be a common issue and was just wondering if its even an issue or not?

bobula

if it doesnt match your electoral roll address you will have a nightmare

i experianced this recently and am currently still trying to sort it out.

my mortgage application has taken 3 times as long as anyone i know and this was apparently the reason according the poor woman on the end of the phone on friday !

id line it all up if i was you before you apply.

then make sure the credit ref agencys have the correct address !

k8louise

Thanks for that
We were going to say that we both still live at home separately and therefore would be applying under our parents address, which is where we are on the electoral roll and all our bank accounts are registered too etc, but then i thought that they may be able to see we are living somewhere else by inspecting our bank statements as they will see the rent coming out each month that is going to an external party. This is the bit I'm worried about really in terms of whether it will have any impact on us??

fimonkey

ONly if the reference to your rent payments is specifically called 'rent payments'. Otherwise how will they know? You could be donating a large amount every month to a cats shelter for instance!?

k8louise

Good Point!

sockpuppet

If the lender requests bank statements (as they often do for FTB) possibly up to six months worth, they will question any large, regular payments going out (even if they dont say 'rent')

You will be better off applying at your actual address and saying you rent as this is viewed as juts like paying a mortgage and shows you can pay a regular monthly payment

It will then be easier if you get your documents set up at your actual address
The addresses being different will cause issues/delays we have this problem all the time! - you will need to provide:

Identification (such as a passport - okay, no address on) but if you do not have a passport, possibly a driving licence will do - but this will need the correct address on.

Bank statements should show your correct address

Electoral Roll - change it as most lenders will check this and some will decline automatically if you are not showing at the correct address

You will also need Address Verification so will need a utility bill, or council tax bill or similar. (If you use a passport for ID, you can usually use a driving licence for this)

Things still registered as previous/parents addresses is a common occurrence and causes delays in the processing of applications

littlemonkeywolf

Start changing addresss asap! taken nearly 2 months to prove and sort all paperwork out for our house purchase due to the same approach we move as in rented so both registered at parents houses. If I had known about all this hassle I would have changed them long ago. It is possible but expect extra forms, id checks and delays :mad:

xylophone

But surely it can be argued that your current address is temporary? You can explain this to the potential lender when you go for your exploratory interview?


As for asking for utility bills, are there really no couples where each is living at home until marriage say, but currently seeking to buy the first marital home?

In this case the utility bills will be those of the parents?

And surely your bank statements will show the parental address?

And if the lender wants to check the electoral roll then that is where you are registered?

sockpuppet

The lender will still want identification for the address you live at at the time you make the application.
'Temporary' doesnt really cut it as you should still change your address details with any official bodies.

As the previous posters have stated it can cause all kinds of confusion and delays if you have different addresses on different documents.

It will still cause an issue when the lender wants 3 or 6 months bank statements (as FTB) and these show a regular large payment going out, which may well show a company name and when they google it, it turns out to be a letting agents. Even with no company name on the statement, a regular amount (such as £550 per month) is obviously rent - same date/same amount every month.

You will then need to explain to the lender where you actually live and then delay your application by about 4-6 weeks while you try and change everything, plus your application will need to go back and be re credit scored which means going back into the underwriters queues (Seen this happen so many times!)

So its up to you really, much easier to get things organised before you start. You dont necessarily need to change everything, just make sure you will have sufficient for the lenders requirements