For a First Time Buyer in Newcastle, many applicants have gotten in touch with our Mortgage Advisors in Newcastle. Explaining to us that, getting a mortgage is like being stuck in a labyrinth. All lenders have their unique lending criteria. One customer even felt like an “unsolved Rubik’s cube”. Particularly when trying to obtain a mortgage directly with their local Lender. That is just one of the many reasons why people get in touch and speak to one of our trusted Mortgage Advisors in Newcastle.
We know from experience some lenders’ credit scores are more accessible to pass than others. They are all targeting specific parts of the market. Often the Lenders with the lowest rates have the tightest lending criteria. As such, most customers do not match the requirements of every Lender out there.
When Lenders offer very competitive deals, their margins are very tight. To remain profitable, it is crucial to these Lenders that their customers do not fall into arrears. As such, it can be not easy to qualify with them, so don’t expect to pass their criteria the first time, using a Mortgage Broker in Newcastle we can help find you the best mortgage deal tailored to your circumstances.
High Street Lenders, have a reputation having very cheapest deals, have other ways of trying to maximize their earnings from borrowers. Once your mortgage got agreed, they will undoubtedly try and cross-sell your other products that they offer that make them more commission. These products include Bank Accounts, unsecured loans, credit cards, and Insurance.
Sometimes the mortgages with the lowest rates of interest come with high set up fees. Sometimes it’s better to ignore these products. As your friendly Mortgage Broker in Newcastle, we search thousands of deals to recommend the best product that represents the best value for money for you taking everything into account.
Lenders can also look to take advantage of their customers when their initial deals are coming to an end. Some lenders still let borrowers drift onto Standard Variable Rate hoping clients stick with them. More often these days, the Lender will offer a “follow-on” deal, also known as a “product transfer.” While these deals are easy to take up, they are rarely the most competitive and sometimes not as reasonable as the deals made available to new customers.
Also, about Standard Variable rate mortgages, of course, not all customers are eligible to Remortgage in Newcastle elsewhere. Perhaps their circumstances have changed, such as a relationship breakdown. Maybe there is less income coming into the household now than at the point of application. If an applicant has had a default or CCJ since they took the mortgage out or the value their home has dropped since they bought it.
Returning the Lenders’ criteria, depending on how the economy is performing. Can affect on how easy or hard it is to get a mortgage. When the economy has been suffering lenders can tighten the purse-strings and vice versa when things are going well. Some would say sometimes it is too hard to qualify for a mortgage, and in other years it can arguably be straight forward.
Sub-Prime and Self Cert mortgages were readily available to many people in the mid-2000’s. At that time, new lenders were regularly launching with ever more relaxed lending criteria. In the USA, the phrase ‘Ninja Mortgages’ was bandied, which meant no Income, no Job, or Assets.
Lenders took a completely different view and tightened criteria. Often a 25% deposit was required, and for many people, it became seemingly impossible to get on the property ladder. Interest rates were high as well, making it tempting for customers to continue renting.
Having industry knowledge, it is an invaluable experience and deep insight into what the lenders are looking for in mortgage applicants. Referring to Credit Scoring. Which most High Street lenders do now to save them time and money and also produce consistent decisions.
Lenders are very cagey about disclosing what influences their “Computer Says No” decisions. Still, having seen thousands of customers literally over the years. We can share with you some simple steps you can take. To improve your chances of your mortgage application being successful.
Some of these steps are straightforward, things you can do in one evening that will make a difference. Such as ensuring the formatting of your address is consistent across your accounts.
If you do not qualify for a mortgage yet. You can put in the foundations so that when the time is right. You are in a much stronger position to go ahead.