Why It Is Now So Difficult To Get A Mortgage In The UK
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.
You need to realize that things have changed radically in the UK mortgage market even compared to what was available less than a year ago.
Here is an up to date evaluation of what you now need to do to successfully get the mortgage or remortgage you want in the UK.
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.
Recent recommendations suggest that you should start looking at least 3 months in advance because of the fact that the right mortgage or remortgage is now much harder to find.
When looking at mortgage adverts do not think that you will necessarily be able to get the mortgage rate advertised. Although the rate you see may seem very good it will probably only be available to those that meet the stringent lending criteria set out by the mortgage company. Your own personal situation may not fit in with what they require.
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.
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.
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.
Ii is also now a lot more difficult to get a buy-to-let mortgage or remortage and as a landlord you will need to make sure that your rental income is sufficient to cover your mortgage and all your other property expenses. Mortgage companies have changed their criteria for mortgages and remortgages in the buy to let market so things are now more difficult.
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.
There maybe incorrect facts on your credit report that should not really be there and which you can get removed.
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.
This is an opportunity that should not be missed as you need to fix any problems with your Free Credit Report before you make that first application for a new mortgage.
You need to do this for each of the 3 credit agencies as you will not know which agency your mortgage company might use for a credit check when you go to make your next application for a mortgage or remortgage.
To ensure that all bases are covered and that any issue on any credit report is resolved you will have to get free access to all three credit reports.
