The mortgage market has suddenly become incredibly competitive again. This may be a sign that the effects of the credit crunch are over, or simply that lenders find themselves with reserves of cash and need to work harder to bring in business.
Whatever the reason, if you are looking for a new mortgage deal, or a remortgage on your existing property, you could be faced with a bewildering choice.
Finding a mortgage deal
From the many different providers to the extensive range of products and rates available, there are choices to be made. Getting those choices wrong could mean serious financial consequences.
You could of course simply go to an online comparison site and pick a mortgage product that appears to offer the best deal. But can you really trust an automated list, with what is probably the biggest financial decision you will ever make?
Applying for a mortgage
But even though the choice of mortgage has improved, the process of getting one has not. In fact, you could well find that the mortgage application process has become much more difficult with more paperwork and many more questions to answer.
Getting things wrong at the application stage could mean delays, which could mean missing out on the home or mortgage deal you want. It could even sink your chances of getting a mortgage altogether.
Getting through the application
Mortgage criteria have tightened massively over the past few years. What’s more, there are new lending rules to consider, that have made the process of obtaining a mortgage much more thorough. It’s no longer just a salary multiple – you will need to provide a whole file of documents, which could be even longer than the basic items listed.
Your broker will be able to help you through the process, and if your mortgage application does hit a snag, then a broker can also help by using their personal contacts with lenders to find out what has gone wrong and see if it can be resolved.
The documents your lender will need to see
- Proof of your identity (e.g. passport or driving licence)
- Proof of residency (e.g. utility bill or bank statement
- 13 weeks’ or 3 months’ payslips
- Latest P60 (usually issued by your employer in April/May)
- Employers’ details for the last 3 years
- Last 3 years’ copies of SA302s/audited accounts (if self-employed)
- Your latest annual mortgage statement
- Your full address history (to cover at least the last 3 years)
- Proof of deposit
- Bank statements (latest 3 months)
- Details of all existing personal and mortgage related insurance
- Employment benefits
- Debit/credit card
- Solicitor’s details (name, address, landline telephone and fax number)
- New property details
- Copy of credit report for each applicant -= you can get this yourself from a company like Noddle.
With bewildering choice and perhaps even more bewildering applications, there’s a sound case for getting some expert help. A Mortgage Broker may seem an extra expense and complication, but hiring an expert could save you money in the long run.
Comparison sites might look as though they can help you find the best deal on home insurance – but getting the right mortgage is not as simple as just opting for the cheapest fixed or tracker rate. Your circumstances are unique. You may have particular needs or financial advantages that the automated systems of comparison sites simply can’t pick up on.
Your Mortgage Broker will search all the available mortgages – including those that are not publically advertised, and certainly never show up on comparison sites.
Out of the ordinary lending
Mortgage brokers are a good idea for everyone, but they are vital if your situation is unusual. Self-employed or contract workers might need guidance about the best lenders, and interest only and lending into retirement are other areas that are much harder to navigate and need a broker’s advice.
Even if you are the kind of customer mortgage providers love, your choice of property might not be. There are many types of property that banks aren’t keen to lend on. If you’re looking at flats over commercial premises and high-rises or conversions, a Mortgage Broker can assess your situation and will advise which lenders to approach.
Protection for you
Mortgage Brokers have to be qualified to give you mortgage advice – which means protection for you if things go wrong, and you are sold a mortgage that turns out to not be what you really needed. They aren’t on the lender’s side, they’re on yours. You get advice specific to you your circumstances and access to a wide range of the lenders and mortgage products available, rather than being restricted to the single range of the lender you go to.
To get the services of a Mortgage Broker, simply call us and ask to talk to a member of the Continuum lending team.
Remember your home may be at risk if you do not keep up with the repayments for a loan or mortgage secured on your property.
There may be a fee for mortgage advice. The precise amount will depend upon your circumstances. For example, if the fee was 0.5% of the loan and the mortgage was £150,000, we would receive £750