How Getting A Mortgage Has Changed In The UK

The Credit Crunch effect now means that many previously available bad credit mortgages have been withdrawn from the market by many of the big mortgage companies. Things have changed radically in the UK mortgage market for all types of mortgages, even compared to what was available less than a year ago.

Here is an up to date evaluation of what you now need to do to successfully get the mortgage or remortgage you want in the UK.

Start Looking Early!

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. Latest 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.

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 financial 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.

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 is especially true for individuals who have mortgages with a high loan to value ratio.

Today there is just not the same number of mortgage deals out there, so ask a mortgage broker to shop around for you.

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

Get a Free Credit Report

The three main credit reference agencies in the UK are currently offering free 30 day trials on the personal credit report services.

So take this opportunity and signup for your Free Credit Report and fix and problems you find before you starting applying for your mortgage.

Do this for each of the three agencies as you will not know which agency your mortgage company will use when you make your mortgage application.

So this means that you will need to Get All 3 Free Credit Reports as each might be different!