As you have no doubt noticed, we are in the midst of a “credit crunch”. Many people are feeling extra vulnerable just now, and you may be one of them. This could be because:
• Your mortgage payments are going up;
• You can’t get a mortgage in the first place; or
• You can’t sell your house because other people can’t get a mortgage.
Life does seem very difficult at the moment. But if there’s one person who may be able to come to the rescue, it’s a mortgage broker. That’s what mortgage brokers are there for.
So how could a mortgage broker help you?
• If you’re having trouble making your repayments and are desperate to avoid repossession, it’s essential that you find the most competitive mortgage product you can. This isn’t easy because the mainstream lenders are reluctant to offer their most competitive products at the moment. A mortgage broker can scan through large numbers of products not available on the high street. Despite the crunch, these lenders are really keen for your business, so this way you stand the best chance of finding a better deal.
• It’s true that currently some providers are witholding some of their products from brokers and only selling them direct, in order to avoid paying commission to the mortgage broker. However it can still be worth going to the broker – a good broker can help you with the application and paperwork for these mortgages. This not only gives you a better chance of succeeding in your application, but also saves you time and stress.
• More and more people are finding they have credit problems as a result of the current financial pressures. If you are one of them, or if you find it difficult to prove your income because you are self-employed, you may be feeling particularly discouraged at the moment with lenders tightening their criteria so much. Your best plan is to look for a mortgage broker who specialises in adverse credit and self-certification mortgages. The broker will scan the market to find the best deals, and will also identify the lenders most likely to accept you and help you with your application. This will minimise the risk of rejection, which would damage your credit rating even more.
• If you’re a first time buyer and are losing hope of getting on the property ladder, you could try looking at repossessed properties. There are a lot more of these on the market at the moment, usually sold at auction, and they can often be bought for a very good price. The snag is that it can be hard to get a mortgage on properties sold at auction. However if you consult a mortgage broker, he/she can advise you on what lenders are most likely to come up with auction property finance and ensure you get your funds in time. This gives you the best chance of taking advantage of the bargains on offer.
There are ways you can help yourself to get the best chance of a mortgage. For instance:
- Try to have as much saved up as possible. The bigger the deposit you can come up with, the better rate you can get. In the current risk-averse climate, mortgages of 100% are virtually a thing of the past.
- When you find a good deal, act immediately and don’t dither. There are usually only a few of the good products available so be an early bird.
There is certainly a lot less mortgage money to go round. But there are still some good deals around, and your mortgage broker is the one person who is best placed to help you get one.