Getting A UK Mortgage Is A Lot Harder Than It Was
Author: DaveJoa. Total views: 5 Word Count: 576
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the effect of the Credit Crunch now means that many previously available Bad Credit Mortgages (sub-prime) have been withdrawn from the market by many of the big mortgage companies.
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.
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.
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.
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.
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.
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.
You also need to check your credit status to make sure that your credit score is as high as it can be as it is now only too easy to get rejected from many mortgage applications.
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.
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.
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.
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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