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Why Getting A Mortgage In The UK Is No Longer Easy

Jul 12, 2008
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the effect of the Credit Crunch now means that many previously available Bad Credit Mortgages (sub-prime) have been withdrawn from the market by many of the big mortgage companies.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.

Anyone hoping to get a remortage or new mortgage deal currently in the UK should be aware of the following facts.

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.

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!

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.

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.

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.

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.

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.

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.

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 top credit cards 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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