August 5, 2008
Why UK Mortgages Are Now So Hard To Obtain
By Dave Joa
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.
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.
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.
Some companies will still be advertising attractive interest rates but be aware that these may not be obtainable unless you have extremely good credit. If you have a lower than good credit score or rating you are unlikely to find that you can get these rates.
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.
Always calculate what you can really afford before you make any mortgage applications.
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.
If you have a high Loan To Value on your current deal then this advice is even more important.
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.
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.
If anything is wrong on your credit report it may affect your chances of getting that mortgage deal.
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.
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.
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.
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.
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