Why UK Mortgages Are Now So Hard To Obtain
Author: DaveJoa. Total views: 9 Word Count: 573
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.
Anyone hoping to get a remortage or new mortgage deal currently in the UK should be aware of the following facts.
Get started as soon as you can when looking for your new mortgage as it couls take a lot longer than it used to.
If you can start about three months before you need the cash then you stand a better chance of getting it on time as getting what you want is now a lot more difficult.
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.
Also be aware that you may have to pay quite a large arrangement fee to get the best rates!
If this is you first mortgage then the deposit you will need to find is going to be a lot larger than it used to be and the income multiples that used to be so high have also been drastically reduced making it much harder for the first time buyer.
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.
You should get professional advice on what is currently still available from a ortgage broker as they know the whole mortgage marketplace better than anyone.
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.
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.
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.
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.
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.
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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