Trying To Get a Mortgage?
Many people are trying to get a mortgage but failing, why is this happening?
For first time buyers trying to get a mortgage to get onto the property ladder the first major stumbling block for them is the fact lenders are demanding a big deposit.
The days of 100% or even 120% loan to value mortgages have long since disappeared. You’re more likely to need a 10% deposit as a minimum, whilst the credit crunch continues to munch it’s way through the financial liquidity market.
Another major problem for many people, particularly the young, in trying to get their foot on the property ladder is high mortgage repayment costs. It may be that a discounted mortgage may help with lower repayments in the first two or three years.
However, you need to consider the fact that after the discounted period the interest rate reverts back to the standard variable rate so repayments will increase at this juncture.
This can be a very practical solution if the first time buyer is a young professional. Such as an accountant, solicitor or recently qualified graduate, where lenders appreciate your income is likely to increase over your formative years in employment.
An alternative option at the end of the discount would be to source a more competitive discount remortgage with another lender, but of course there is no guarantee that at this time your fiancial situation would meet the new lending criteria of the lender.
Other areas where people trying but fail to get a mortgage from a high street lender, is if they have bad credit problems.
A few years ago the sub prime market or bad credit market was so lucrative to the financial institutions that the high street lenders got in on the act, but have now pulled out of that market sector.
However, don’t worry, if you want to remortgage your property or buy your first home with an adverse credit mortgage you need look no further than The Bad Credit Mortgage Centre who offer specialist help for people who need a bad credit mortgages.
You’ll have read about how lenders are currently dropping products on a daily basis whilst increasing interest rates on an ongoing basis as the financial crises deepens.
So taking action as soon as you can has got to be the right policy in the current situation.
So call now, its free!…
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