| So, you've decided that you need to take out a | | | | have left them with a black mark on their credit history. |
| mortgage? The only problem is, you've got a poor | | | | In line with this growing number of people, lenders have |
| credit history and you're worried that this might prevent | | | | created a whole new raft of financial products to |
| you from applying. Well, the good news is that it won't. | | | | attract would-be borrowers and to give them options |
| The great news is, that there are plenty of lenders | | | | that would not have otherwise been there. |
| willing to help and you may find that the interest rate | | | | Increased opportunity for the borrower also effectively |
| they apply to your mortgage may not necessarily be | | | | means competition between the lenders and that in |
| affected. | | | | turn has kept interest rates down to a more than |
| Let's take a look at what a poor credit history actually | | | | affordable level for many people. |
| is. In fact, it can be a very wide range of things, from | | | | So, What's Involved In A Mortgage Application? |
| arrears or defaults on your existing mortgage to a late | | | | If you're looking to apply for a mortgage or |
| payment on a store card and even bankruptcy. | | | | remortgage, it may only take you a few seconds with |
| Your Credit Record | | | | an online broker. You may get a decision in principle |
| Whenever you enter into a credit agreement, a record | | | | within a couple of hours and although you will need to |
| of this is created and your payment history can be | | | | complete a signed credit agreement, the whole |
| viewed by any organisation proposing to lend you | | | | process is relatively straightforward. The lender may |
| money in the future. They use it specifically to help | | | | need some or all of the following however: |
| them to make an informed and fair decision with | | | | - An independent valuation of the property |
| regards to your latest application for credit, though not | | | | - Proof of ownership |
| all of the information your credit report provides may | | | | - Proof of UK citizenship |
| need to be taken into account by the lender. | | | | - Searches - through a solicitor to look for things like |
| A mortgage is also known as a first charge. So called | | | | proposed, local building works that may effect the |
| because in the event of you defaulting on payment | | | | value of the property in the future, old mine workings |
| and the property is repossessed, the proceeds of the | | | | etc. |
| sale will be divided amongst the creditors. The | | | | Your finance broker will have the tools and the |
| mortgage lender will get their money repaid first which | | | | know-how to take care of all of this for you, so you |
| is why they may decide that they can ignore certain | | | | don't need to worry. They do an enormous amount of |
| areas of your credit history that may not affect the | | | | work behind the scenes on your behalf both internally |
| potential new mortgage or remortgage. Things like | | | | and using external agents for specialist functions. |
| store card and catalogue repayments are sometimes | | | | Although this takes care of all the hard work, it may still |
| ignored for the purposes of a mortgage application. | | | | take around 3 months to complete the whole process |
| Since the 1980's, the amount of credit per person in the | | | | and for you to have the funds in place. Still, we've |
| UK has increased enormously and if you believe all of | | | | hopefully now put your mind at rest a little in terms of |
| the economic predictions, chances are it will continue to | | | | applying for a mortgage or a remortgage with a poor |
| rise still further. With this increase, a great deal of | | | | credit history. |
| people have fallen foul of circumstances which in | | | | This article is free to distribute but please maintain |
| many cases have been outside their direct control and | | | | existing links in the article. Thanks you. |