Why UK Mortgages Are Now So Hard To Obtain
by: DaveJoa |
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The Credit Crunch has forced many sub-prime mortgage companies to withdraw many of the Bad Credit Mortgage deals that were everywhere no so long ago.
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.
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.
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.
Be careful if you apply for these mortgages as you may also find that you have to pay a big arrangement fee as well.
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.
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.
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.
The three main credit reference agencies in the UK are currently offering free 30 day trials on their personal credit report services with instant online access.
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.
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.
That means you will have to get three free credit reports to do the job properly as any of the three might be wrong.
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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 Credit Report from each credit agency in the UK.
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