Thanks to the Credit Crunch we have seen most if not all sub-prime mortgage companies forced to withdraw many of the Bad Credit Mortgage deals that were so easily available until very recently. There has been a sudden and quite radical change in what is available to the home loans consumer in the UK mortgages market and this has all taken place in just the last few months. This has been experienced as an almost immediate non-availability of good mortgage deals.
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.
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. 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. Some companies will still be advertising attractive interest rates but be aware that these may not be obtainable unless you have extremely good credit. If you have a lower than good credit score or rating you are unlikely to find that you can get these rates.Often there may also be a hefty arrangement fee to be paid to get these mortgages.
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. Always calculate what you can really afford before you make any mortgage applications. If your current great mortgage deal is about to end then you really should contact a mortgage adviser for some professional help, as they will know the best deals currently available for you to apply for. Individuals with mortgages with a high LTV, which need replacing, should be considered as definitely in need of professional mortgage advice before replacement.
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 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. You also need to check your credit status to make sure that your credit score is as high as it can be as it is now only too easy to get rejected from many mortgage applications. There maybe incorrect facts on your credit report that should not really be there and which you can get removed.
The three main credit reference agencies in the UK are currently all offering you a free 30 day trial on their credit report services and they all provide instant online access. This is a great opportunity and you should not ignore it as you really do need to sort out any problems with your Free Credit Report before you even think of applying for that new mortgage. Make sure you 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.
That means that you should to get all three of your free credit reports and check and fix each of them as any one of the three might have incorrect information on it. With your credit reports fixed your credit score will be as high as it can be and you are more likely to get the mortgage you want.
It is recommends that you make a habit of checking all your three credit reports before you start applying for mortgages, loans or new credit, including freecreditreport4u.co.uk/personalfinance/creditcards/creditcards.asp credit card deals and currently your best option in the UK is to get a freecreditreport4u.co.uk free credit report from each major credit reference agency.
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