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Why It Is Now So Difficult To Get A Mortgage In The UK

Jul 17, 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the effect of the Credit Crunch now means that many previously available Bad Credit Mortgages (sub-prime) have been withdrawn from the market by many of the big mortgage companies.

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.

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.

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.

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.

If you see some good interest rates advertised to be tempted into thinking that you can get them. Many of the these rates will only be available to those who can meet the tougher criteria recently set by the mortgage companies to capture those with really good credit. If you have any bad credit at all then the rate you get will not be as good.

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.

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.

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.

Before thinking about a mortgage you should first check you personal credit rating and if possible improve your credit score to ensure you do not get rejected on your very first application.

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.
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 Reports from each credit agency in the UK.
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