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Why Getting A Mortgage In The UK Is No Longer Easy

Author: DaveJoa Total views: 4 Word Count: 594

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the effect of the Credit Crunch now means that many previously available Bad Credit Mortgages (sub-prime) have been withdrawn from the market by many of the big mortgage companies.

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.

Get started as soon as you can when looking for your new mortgage as it couls take a lot longer than it used to.

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.

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 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.

Work out exactly how much you can realistically borrow before you even think of applying for that new mortgage.

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.

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

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.

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.

You can now get instant online access to each of your three credit reports at the major credit reference agencies in the UK and these are all free for a trial of 30 days.

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.

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.

So therefore to do this properly you will have to get all three of your free credit reports as they all might be different form each other!

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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 UK Credit Report from each credit agency in the UK.

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