So! You have no credit problems: you have a good income: no debts and you are looking to buy a property or maybe remortgage. But then, your bank, with whom you’ve been a loyal customer to for many years, reports back that you have a low credit score and the computer says “no”. They will not offer you a mortgage. This is a dramatically increasing scenario. The world of credit scoring (tick box mentality) is in our day to day finances and there’s no arguing with the lender once their technology has made the decisions.
Fear not! There are a number of options still available to you which include lenders who will assess an application manually and seek to offer assistance to such customers. It does not just include those turned away by the high street for low credit scores. It could be a case scenario that needs a bit of lateral ‘out of the box’ thinking by an underwriter keen to say ‘yes’. This could include cross collateral security for clients who are asset rich: a sympathetic view for those who have trouble in proving ‘real’ income: customers who need guarantors: those in later life, or maybe just need someone to sit down, review the whole picture and advise on the best route to take.
As with everything you purchase, it’s always worth shopping around as although you might think you have a great deal with your current provider, there may be better products out there that you are missing out on. And make sure you do move! Why would you stay on the lenders variable rate, after the promotional rate had ended, if there was a more cost effective rate available with another lender saving you money? Always think of number one.
Banks may only advise on their own product ranges. Estate Agents ‘in-house’ mortgage advisers may only be able to offer mortgages from a select panel of lenders. Therefore, in order to get best advice, make sure you do your homework, speak to a whole of market mortgage broker who can advise on the most appropriate mortgage in the market to meet your requirements.
And yes, there may be a small fee for this research and advice. Prices vary from company to company and you can decide exactly who to deal with. As with everything, before committing, make sure you read the terms, conditions and small print!