Why UK Mortgages Are Now So Hard To Obtain

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.

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

Give yourself at least 3 months or so to find the right mortgage deal for your needs as it is going to take you much longer than it used to.

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.

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 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.

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 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.

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.

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.

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.

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.

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.

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.

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