If you’re self-employed and a homeowner or (potential) homebuyer, then now is the perfect time to have a mortgage check-up. After the last few years with Covid-19, inflation and cost of living increases, your financial situation may not be the best. Don’t, however, let that deter you from securing your best deal. Instead, use your business skills, strategy and help to get the mortgage you deserve.
Set yourself a deadline for action
If you’re a homeowner then you should look to have a new deal ready before you are switched to your lender’s standard variable rate (SVR). Depending on your mortgage, you may be able to change deals earlier than this. Whether or not it makes sense to do so will, of course, depend on your circumstances. You should, however, definitely monitor the situation.
If you’re a (potential) homebuyer then, in theory, you simply need funds in place before you complete. In practice, securing a mortgage (in principle) can help a lot with your home search. It reassures a seller that you are capable of making good on any offer you make. Ideally, therefore, you should start arranging your mortgage as soon as you realise you are serious about buying a property.
Keep in mind that the level of demand can influence how long it takes to get a mortgage. Autumn is generally a fairly brisk time in the housing market so processing times may be longer. Demand may slow as winter arrives but this is also the time when staff are very likely to be on holiday (or off sick).
Get professional help
The UK has a lot more mortgage lenders than you might think if you just go by the adverts you see. What’s more, even if you have heard of a lender, you may not be aware of all their products. By enlisting the help of a mortgage broker, you can vastly increase your chances of finding the right mortgage product for your needs, wants and budget.
In essence, a mortgage broker’s job is to assess your situation in much the same way as a mortgage lender. This will give them an idea of what products you could potentially access. The key difference between a mortgage broker and a lender, however, is that a mortgage broker works for you. They will therefore work with you to determine which product is the best fit and help you to put together your application for it.
Going to a mortgage broker, therefore, reduces the likelihood that you will end up with multiple “hard” (visible) searches on your credit record. You may very well be accepted on the first product you apply for.
Even if you don’t (for example, you choose to chance your luck slightly), you should still expect to find a good fit relatively quickly. A mortgage lender will only recommend you to apply for a product if they think you have a decent chance of getting it.
Remember credit issues aren’t necessarily dealbreakers
Credit issues weren’t necessarily a total dealbreaker even before COVID19. Post-COVID19 (and Brexit), it’s arguably in lenders’ best interests to be at least somewhat flexible about them.
Of course, how much flexibility you may get will depend greatly on the lender. That’s part of the reason why having a mortgage broker can be so useful. It’s literally part of their job to know just how much flexibility lenders are prepared to offer applicants with credit issues.
Realistically, the level of interest you get from lenders is also likely to depend on how attractive a candidate you are overall. Having a big deposit can do a lot to make lenders view you favourably.
You might not even need to have the money in your bank account. If you have a reasonable expectation of releasing funds through the sale of your current home, this may be enough. At a minimum, show plenty of evidence of solid financial management.
For mortgage advice, please get in touch
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE