Because of the Credit Crunch and the sudden disappearance of sub-prime mortgages for people who need a Bad Credit Mortgage find a the mortgage you need is not an easy task.
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.
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.
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.
Anyone with an existing mortgage that includes a special deal or rate that is about to come to an end should get some mortgage advice to find out what deals are now available to replace it.
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.
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.
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 credit card deals and the best way to do this is by getting a Free Credit Report from each credit agency in the UK.
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