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.
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.
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.
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 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!
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.
So make sure you know in advance exactly how much you will be able to borrow.
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.
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.
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.
If anything is wrong on your credit report it may affect your chances of getting that mortgage deal.
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.
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.
So therefore to do this properly you will have to get all three of your free credit reports as they all might be different form each other!
