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Why UK Mortgages Are Now So Hard To Obtain

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the effect of the Credit Crunch now means that many previously available Bad Credit Mortgages (sub-prime) have been withdrawn from the market by many of the big mortgage companies.

There has been a sudden and quite radical change in what is available to the consumer in the UK mortgages market and this has happened in just the last 6 months.

If you hope to be successful in getting a new mortgage or remortgage in the UK you need to be aware of the following factors.

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.

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 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.

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.

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.

If you need or want a Buy To Let mortgage or remortgage then do your sums carefully to ensure that your income from rents will cover mortgage or remortgage repayments and your landlord expenses as well, otherwise you may find that the new stricter criteria for mortgages lending will prevent you from getting what you want.

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.

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.

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 Reports from each credit agency in the UK.

Why UK Mortgages Are Now So Hard To Obtain

About the Author

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