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Why It Is Now So Difficult To Get A Mortgage In The UK
submitted: Jul 12th 2008 |
by: DaveJoa
Total views: 7 |
Word Count: 595 |
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Because of the Credit Crunch and the sudden disappearance of sub-prime mortgages for people who need a Bad Credit Mortgage find a the mortgage you need is not an easy task.
There has been a sudden and quite radical change in what is available to the consumer in the UK mortgages market and this has happened in just the last 6 months.
Anyone hoping to get a remortage or new mortgage deal currently in the UK should be aware of the following facts.
Start off in your mortgage search early to give yourself plenty of time to find the right deal as there are not so many deals available now.
Give yourself at least 3 months or so to find the right mortgage deal for your needs as it is going to take you much longer than it used to.
If you see some good interest rates advertised to be tempted into thinking that you can get them. Many of the these rates will only be available to those who can meet the tougher criteria recently set by the mortgage companies to capture those with really good credit. If you have any bad credit at all then the rate you get will not be as good.
Often there may also be a hefty arrangement fee to be paid to get these mrotgages.
Any first time buyer looking for their first mortgage are going to find that the deposits that the mortgage companies require are going to be much larger than previously and the income multiple used in the calculation of what they will lend have been severely reduced.
Work out exactly how much you can realistically borrow before you even think of applying for that new mortgage.
If you already have a mortgage that had a good deal attached to it which is now about to finish then get some professional mortgage advice to help you find out the current best deals you can get to refinance.
This factor is especially relevant to individuals who have mortgages with a high loan to value ratio.
You should get professional advice on what is currently still available from a ortgage broker as they know the whole mortgage marketplace better than anyone.
If you need or want a Buy To Let mortgage or remortgage then do your sums carefully to ensure that your income from rents will cover mortgage or remortgage repayments and your landlord expenses as well, otherwise you may find that the new stricter criteria for mortgages lending will prevent you from getting what you want.
Finally make sure that your credit rating is as good as it can be, so that you will not be rejected because of your bad credit score when you apply for a mortgage.
Your credit report is checked by all potential lenders and you need to make sure that there are no bad entires that are going to mark you down.
Each of the major three credit reference agencies in the UK currently have offers online to which you can apply for instant access to your credit report for 30 days for free.
So take this opportunity and signup for a Free Credit Report and then check it and fix and problems you find before you apply for mortgages.
In all honesty you should get your credit report from each of these three agencies as you will not know when you apply which credit agency your mortgage company will use to do your credit check during your remortgage or mortgage application.
So therefore to do this properly you will have to get all three of your free credit reports as they all might be different form each other!
About the Author
Dave Joa recommends that you always check your credit reports before applying for a mortgage, loan and new credit, including credit card deals and the best way to do this is by getting a Free UK Credit Report from each credit agency in the UK.
Article Source: Unique Financial Articles
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