Mortgages: 5 things to avoid buying when you're trying to secure a mortgage, according to an expert

• Some purchases could jeopardise your chances of getting a mortgage
• A mortgage expert has listed the common mistakes people make
• Even though you think your spending is justifiable, some lenders might view it as frivolous

If you’re trying to secure a mortgage to buy your dream house, there are some mistakes which could jeopardise your chances of securing that crucial loan.

A mortgage expert has set out five things you shouldn’t buy while waiting for your mortgage to be approved.

Joseph Lane, from Mortgage Lane mortgage brokers, says you should hold back on making the following purchases until your mortgage is in place.

Buying a car

Making large purchases right before or during the application process is one of the most common reasons for people’s mortgage applications being rejected, says Lane.

He advises against buying anything big, especially a car, as these purchases can greatly affect your debt-to-income ratio.

“When you apply for a mortgage, lenders want to see that you can manage your finances and still have enough room for your monthly payments,” he explains.

“If you take on an additional car loan or another significant debt, it could make lenders question your ability to repay the mortgage.

“It’s tempting to reward yourself with a new set of wheels, but remember that the last thing you want to do is signal to lenders that you're overstretched financially.”

Buying high-ticket items on credit

Lane warns that buying high-ticket items on credit could significantly impact your credit score, making lenders question your financial stability.

“If you go out and buy a new sofa on credit or take out a loan for a new kitchen during the application process, the lenders will notice the change in your credit score,” he says.

“They might interpret it as a sign that you’re taking on more debt than you can handle, which is a major red flag.

“It’s best to avoid buying things like furniture, appliances, or electronics on credit during the mortgage process.”

Buying an expensive holiday

Spending large amounts on non-essential items, including a holiday, can drain your savings and increase your debt, which lenders take into account when making their decision.

“Taking a big holiday and charging it to your credit card can raise concerns with lenders,” says Lane.

“They may assume that you’re not managing your finances in a responsible way, and that can seriously harm your chances of approval.

“It’s tempting to dream of sunny getaways, but putting off that big holiday until after your mortgage is secured is a wise move.”

Giving large gifts

Gifting large sums of money to friends or family during the mortgage application period can also cause problems, says Lane, as this might signal to the lender that you’re financially unstable or not keeping enough in your savings to cover the home loan.

“You should be very careful when making big transfers,” he explains.

“Lenders will review your bank statements, and if they see substantial gifts, especially ones that may seem unusual or unexplained, they could reject your application.”

Spending too much on non-essential goods

It’s important to avoid buying items that could be flagged by the lender as unnecessary or extravagant, like expensive jewellery or designer clothes.

Even though you might think they’re ‘justifiable’ purchases, lenders might view them as frivolous.

Lane recommends sticking to essentials only while you wait for your mortgage application to go through.

“Lenders want to see that your money is being spent on things that are necessary, not on impulse buys,” he says.

If you’re saving for a deposit to buy your first home, an expert has offered her top budgeting tips to help you achieve your goal.