• Decrease font size
  • Reset font size to default
  • Increase font size

Main Menu

Articles

Newsletter


Receive HTML?

Information

Home Home and Family Home Why UK Mortgages Are Now So Hard To Obtain
Why UK Mortgages Are Now So Hard To Obtain PDF Print E-mail
Written by Dave Joa   
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the effect of the Credit Crunch now means that many previously available Bad Credit Mortgages (sub-prime) have been withdrawn from the market by many of the big mortgage companies.
by DaveJoa


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the effect of the Credit Crunch now means that many previously available Bad Credit Mortgages (sub-prime) have been withdrawn from the market by many of the big mortgage companies.

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.

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.

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.

Be careful if you apply for these mortgages as you may also find that you have to pay a big arrangement fee as well.

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.

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.

This factor is especially relevant to individuals who have mortgages with a high loan to value ratio.

The actual number of different mortgage deals available has dropped considerably and it makes sense to contact a mortgage broker as they will know the mortgage market well and will be able to advise you properly.

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.

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.

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.

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.

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.

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.

About 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 Credit Reports from each credit agency in the UK.

Kindly provided by 4Girls.dk You are welcome to use this article on your own website, if you include this link.
 
Members : 2569
Content : 3681
Web Links : 3
Content View Hits : 541651