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Why UK Mortgages Are Now So Hard To Obtain

Jul 19, 2008
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.

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.

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

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.

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.

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.

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.

The actual number of different mortgage deals available has dropped considerably and it makes sense to contact a mortgage broker as they will know the mortgage market well and will be able to advise you properly.

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.

There maybe incorrect facts on your credit report that should not really be there and which you can get removed.

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.

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.

Get a free credit report from each credit reference agency and fix the problems on each one as when you apply for a mortgage or remortgage you cannot predict which agency will be used for your credit check.

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 Report from each credit agency in the UK.
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