From the perspective of many, getting a mortgage isn’t an easy process. All lenders have their own unique lending criteria and applicants can often feel like it’s a neverending cycle trying to obtain a mortgage directly with the lender they think will be able to help.
Luckily, that’s where a Mortgage Broker in Liverpool like us comes into play. Our experienced team of Mortgage Advisors may be able to help, no matter the mortgage type. In our many years of helping home buyers achieve their goals, we have helped First Time Buyers in Liverpool, those looking to Remortgage in Liverpool & even the Self Employed in Liverpool.
Some credit scores are harder to pass than others, though that depends on the lender you ultimately go with. Each of their scoring criteria targets specific parts of the market. Generally, lenders with the lowest rates have tighter lending criteria than others might have. Because of this, it’s likely that most customers will find they don’t match the criteria of every lender.
Margins are usually tight when lenders offer very competitive deals. Lenders need to ensure customers don’t fall into any kind of debt, so that they may remain in profit. Due to this, qualifying for them can prove to be a complex task.
These lenders of the high street with the cheapest of deals will use and take advantage of other means to increase their earnings from borrowers. Once a lender has agreed to give you a mortgage, chances are they’ll try and sell you other products that they offer, in a bid to bulk up their commission. These products may include bank accounts, unsecured loans, credit cards & insurance.
Occasionally, mortgages that have lower interest rates are put together with higher setup fees. It’s usually best to ignore products like these and leave the recommendation to a trusted and experienced Mortgage Broker in Liverpool. One of our Mortgage Advisors in Liverpool will recommend the product that best suits your individual situation, saving your time and saving your money.
Lenders may also try and seize an opportunity when their customers’ initial deals get closer to their endpoint. Some lenders still let borrowers move onto a Standard Variable Rate (SVR), in hopes the customer may stick with them, as opposed to switching lenders.
Lenders these days will offer follow-on deals, referred to as “Product Transfers”. Whilst these may be easier to arrange with your lender, they’re not particularly competitive and don’t compare well when looking at deals made available to newer customers.
Not everyone is actually able to Remortgage elsewhere, so if your credit history has changed during your mortgage term, there’s a chance your only option will be to stay on your lenders Standard Variable Rate. This may also be the case with changes in individual circumstances, such as relationship status.
The current status of the UK economy may also affect how hard it is to obtain a mortgage. If the economy is going through a tough time, lenders may restrict how much they’re willing to lend out. On the flip side, if things are going well, they may be willing to lend out more.
Some would say qualifying for a mortgage in the modern era is considerably easier, whilst some would argue it’s become harder.
Back before regulations were put in place, there were “Sub-Prime” and “Self-Cert” mortgages, available to all those looking to take out a mortgage. In the early 2000s, new lenders were popping up all over the place, relaxing their criteria and attempting to take advantage of different situations for a profit.
Overseas in North America, “Ninja Mortgages” became popular. This stood for “No Income, No Jobs Or Assets”. Luckily, reckless lending such as “Ninja” & “Self-Cert” are banned, with only “Sub-Prime” continuing through select lenders.
After the Credit Crunch, lenders looked at the world of mortgages with a whole new mindset, tightening their criteria. The deposit required was often 25%, with many struggling to get onto the property ladder because of this. On top of higher deposits, interest rates also rose, leading many to stick with renting over buying.
Over the years, our advisors have worked through all the industry hardships, gaining insight and experience into what lenders tend to look for in their applicants. This allows us to personalise our service to hopefully get you the best possible outcome for your situation.
Lenders don’t really disclose what influences their criteria, however, having spoken to literally thousands of customers since our company first opened, our experienced mortgage team have built up enough industry knowledge to hopefully help you through each step of your mortgage journey.
Some of the steps to take are easy, such as ensuring the formatting of your address is consistent across your accounts. These things can often be done in the course of one evening, requiring little to no work on your part.
If you don’t qualify for a mortgage yet, you can put in the foundations, so that when the time is right for you, you’ll be in a much better place to take on your mortgage goals.