Mortgage Help for Home-movers
As the base rate has fallen further to an all time low of just 1%, mortgage interest rates are coming down too. Those with interest only mortgages have seen a huge drop in their monthly repayments with some lucky enough to have grabbed deals where they are paying no interest at all.
So great news for all, if the bank offers competitive rates it can help first time buyers get on the property ladder and will hopefully encourage other lenders to offer more competitive rates and kick start a revival of the mortgage and property market.
If you are a homeowner and you want to find one of the better deals you have to understand the new rules. Lenders are only going to offer you a mortgage if your credit file is very good. Any defaults, even something small like a missed phone bill payment could be the difference between approval and a declined application.
There are other sources of information that can help you with getting your mortgage. Government websites are good at explaining mortgage terms and there are other websites that offer good guides to the types of mortgages with the advantages and disadvantages of each. Great help but going to seek professional advice for a personal illustration will really help you and your partner if you are going with a joint application.
There are a couple of key questions to ask an advisor before choosing a mortgage. First of all ask if they are a ‘whole of market’ broker. When the broker is selecting mortgages suitable for you it will then compare it against every available mortgage product on the market. There are brokers who just search a small number of lenders. ‘Whole of market’ remortgage brokers UK is crucial.
The most comprehensive option is to use a mortgage broker that offers whole of market advice. The mortgage broker will search the market for you, find the mortgages to suit your circumstances allowing you to make an informed decision and give you peace of mind that you have chosen the option that is the best mortgage for you. Using a fee free mortgage broker means you can use the services of a mortgage broker without the obligation to continue any further with the application.
Mortgage lenders will allow you to borrow a similar amount to those in regular paid full employment. They will offer loans of up to 90% of the property’s value however this is the maximum. Plus with tightened lending criteria in the wake of the credit crunch your income will need to be good and be backed up with a credit file without defaults.
Ravi Mishra is an author and great financial advisor of Loan 2 Loan. He writes for the loan sites with his effective ideas and suggestions. He has a great passion for writing and he is expert in writing on finance and foreclosures. For more details please visit www.loantoloan.co.uk
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