In these uncertain times, it’s best to act fast if you are looking to secure a mortgage deal. Although average fixed-term rates are starting to fall slightly, they are still much higher than they were this time last year. It is likely that the Bank of England may make further interest rate rises next year, so there are no guarantees about what the future holds.
Mortgage products also have a shorter shelf life now than previously, as lenders act fast to protect their assets. Therefore, if you are seeking a remortgage deal, or you are looking to secure a mortgage as a first-time buyer, it’s a good idea to lock in a deal as early as possible. Here are some steps that you can take.
It might seem more cost-effective to research mortgage products yourself using online comparison tools, but this can be a false economy. A good broker will have immediate access to a comprehensive range of lenders, and may be able to secure special intermediary rates which are not directly available to customers.
It is especially important to seek the advice of an experienced broker if your circumstances do not fit the norm, such as a poor credit history, or if you are self-employed. This is because mainstream lenders may be more wary of making you a mortgage offer, because you represent more of a risk to them.
Applying to one or more lenders who subsequently decline to make you an offer can damage your prospects of a successful mortgage application in the future, because rejected applications are recorded on your credit file, and this information is available to other lenders when they run a credit check.
A good broker will be well placed to know which specialised lenders are most likely to make you an offer, depending on your individual circumstances. If you have an adverse credit history, it may still be possible to secure a mortgage deal with the right advice, although you may have to accept a higher than standard interest rate.
Securing a decision in principle (DIP) helps you get some initial administrative barriers out of the way, and gives you are firmer idea of whether the lender is likely to make you an official offer.
A DIP is also a good idea to have in place before you begin house hunting. This is because it gives more weight and authority to any offers which you may wish to put on a property, as you will have some degree of proof that you can afford it. Some estate agents or vendors may even ask to see a copy of a DIP before they will arrange a viewing.
A lender will carry out a soft credit check and will ask to see evidence of your income and outgoings before making a DIP. Therefore, it’s advisable to have the previous three months of bank statements ready, and be on top of all your monthly payments.
If you would like to talk to CCJ mortgage brokers, please get in touch today.
Your home may be repossessed if you do not keep up with your mortgage repayments.
There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is £595.
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Create Finance Limited is an appointed representative of Mortgage Advice Bureau (Derby) Limited which is authorised and regulated by the Financial Conduct Authority.
Create Finance Limited. Registered Office: 35 Friar Gate Studios, Ford Street, Derby, Derbyshire, England, DE1 1EE. Registered in England Number: 09582938.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is £595.
The guidance and/or advice contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK. The actual rate available will depend upon your circumstances. Ask for a personalised illustration.
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