There always seems to have been a lot of confusion about mortgages. Up until recently the problem was that there were so many different lenders, all offering such a variety of different products. So the need for mortgage advice isn’t new.
Now, however, there seems to be more confusion than ever. There are stories of people not being able to get a mortgage; people being offered a mortgage and the product being suddenly withdrawn; people whose house sales have fallen through because the buyers couldn’t arrange a mortgage; or people whose repayments have suddenly gone through the roof. It seems the need for mortgage advice has never been greater.
So how could mortgage advice help you?
• There’s no doubt that mortgages are a lot less plentiful than they were even a year ago. But there are still mortgages out there. If you are looking for a mortgage and don’t know where to start, working through the Yellow Pages is not a very good use of your time! Your first step should be to seek mortgage advice from a qualified mortgage broker. The broker will know which lenders are still offering mortgages and which are worth applying to.
• The days of being able to get mortgages of over 100 per cent are certainly over, and the vast majority of lenders insist on a healthy deposit of at least 20-30 per cent. However there are still a small handful of lenders who will consider a mortgage with a deposit of as little as 5% for suitable applicants. If you are finding it difficult or impossible to get a big enough deposit together, it’s worth seeking mortgage advice. The broker will be able to identify which if any lenders might be able to get you a 95% mortgage. However the adviser might also look into other possible ways of raising the required amount.
• Nowadays it is becoming more and more difficult to get a mortgage if your credit record is less than perfect. Of course this is because lenders are now much more reluctant to take risks. However, if you have a blemished credit record it’s worth seeking mortgage advice. The adviser will discuss your credit problems, how they arose and what you are doing about them. Lenders differ in the way they react to imperfect credit – some reject you automatically if the computer shows a poor score, whereas others will look at your reasons for credit problems and if there are extenuating circumstances. The adviser will be able to see whether there is a lender who can accommodate you.
• Everyone is finding mortgage rates getting higher. Whether you want a mortgage or a remortgage, you should take mortgage advice. Competitive deals do become available from time to time, but they may only last for a short while. Your best chance of getting hold of the best deals will be through a broker who can give advice on the whole market.
The whole area of mortgages is certainly challenging nowadays. But people still need to live somewhere and still have to move house. And there are still mortgage lenders who need to lend money to stay in business. So don’t give up – look for mortgage advice for the best chance of bringing you and your mortgage together.