You may have heard about the massive rise in interest from potential first time buyers and homeowners looking to move home. With house prices falling and interest rates at historic lows the two combined has resulted in a huge rise in enquiries to estate agents.
The latest mortgage information in the news is despite increased demand in the mortgage market unfortunately supply still isn’t there. Mortgage lending in 2008 was at its lowest level since the 1970’s despite the pressure from the government to increase lending.
What can I do to get a mortgage?
As lenders are reluctant to lend the best course of action is to make yourself look like an attractive prospect. Understandably lenders don’t want to offer mortgages they deem unable to afford repayments.
The first thing you should do is run a credit check; there are three credit scoring companies in the UK used by the mortgage lenders. You can ask them for a copy of your credit file. Ensure there is nothing on your credit file that shouldn’t be there. If there is get in touch with the company concerned and ask them to remove it, they are obliged to.
Once your credit file is free from defaults and in good shape you’re ready to start your property search. You can first of all find a property you want to but or get an estimate for the price of the type of property you wish to buy to allow you to find out the mortgages and rates available to you.
Once you get to this stage whether you actively want to buy a home now or just see what is available to you, using a mortgage broker is hugely beneficial.
They can provide expert mortgage information on the market and what is likely to suit your circumstances. Many offer their services for free so there is no obligation to make an appointment.
The issue that is hardest for borrowers to overcome is the size of the deposit needed. Eighteen months ago you could get a mortgage with no deposit, now you need at least 10% and more realistically 25% is the normal.