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Why UK Mortgages Are Now So Hard To Obtain
By Dave Joa | August 5, 2008
Unfortunately the effect of the Credit Crunch now means that many previously available Bad Credit Mortgages (sub-prime) have been withdrawn from the market by many of the big mortgage companies.
In the last few months radical changes in the mortgage marketplace in the UK have had a big impact on what is currently available to those looking for a new mortgage.
If you hope to be successful in getting a new mortgage or remortgage in the UK you need to be aware of the following factors.
If you know you are going to need a mortgage then make sure that you start the process well before the date on which you require the money.
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.
Some companies will still be advertising attractive interest rates but be aware that these may not be obtainable unless you have extremely good credit. If you have a lower than good credit score or rating you are unlikely to find that you can get these rates.
Often there may also be a hefty arrangement fee to be paid to get these mrotgages.
If you are a first time buyer then you will have to put down a much large deposit on your new home than use to be normal and when calculating what you can afford the income multiple used will not be anywhere near as attractive as in the past.
So make sure you know in advance exactly how much you will be able to borrow.
If your current great mortgage deal is about to end then you really should contact a mortgage adviser for some professional help, as they will know the best deals currently available for you to apply for.
Individuals with mortgages with a high LTV, which need replacing, should be considered as definitely in need of professional mortgage advice before replacement.
Today there is just not the same number of mortgage deals out there, so ask a mortgage broker to shop around for you.
If you are a landlord looking for a buy-to-let mortgage or if you need a buy to let remortgage then make sure your rental income will be enough to cover the mortgage repayment, as well as you other expenses, as many lenders have revised their criteria for buy-to-let mortgages and remortgages.
Before thinking about a mortgage you should first check you personal credit rating and if possible improve your credit score to ensure you do not get rejected on your very first application.
If anything is wrong on your credit report it may affect your chances of getting that mortgage deal.
You can now get instant online access to each of your three credit reports at the major credit reference agencies in the UK and these are all free for a trial of 30 days.
Do not miss this great opportunity to check your Free Credit Report and to fix the problems you find, as you should do this before you make any application for a mortgage.
Get a free credit report from each credit reference agency and fix the problems on each one as when you apply for a mortgage or remortgage you cannot predict which agency will be used for your credit check.
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!
Topics: Finance |