We're seeing some issues for those coming up to the end of
their product promotional rate period, especially where the lender is not
offering them anything attractive to stay.
Lenders want to lend, but in some cases are not able to, or may choose
not to, even to existing customers.
The simple reason being that the customers may not pass
the same lenders new criteria. Reasons can include, original
borrowing on a multiple of income, age, small equity levels in
property. Lending rules have changed dramatically
over the last few years and more stringent measures are in place, as well as
tougher reporting to the regulator. Lenders
have to be sure the customer can afford their mortgage for a number of years
ahead and stress test against possible rate rises. Seek professional advice if
you are concerned or are looking for an alternative lender as some might
be considered to be hiding behind the rules!
Remortgaging away from your current lender should not be
looked upon negatively. Many lenders
will cover the cost of surveying your property, as well as covering the legal
fees in transferring your mortgage from one lender to another. But most of all, you should think of number
one as this could save you money on your monthly budgets and, subject to terms
and conditions, this can only be a good thing.
Products continue to increase and one of the fastest
growth markets seems to be in the Ex-Pat sector. A British Ex-Pat in good
employment abroad is favoured by a growing number of lenders who are willing to
provide a mortgage to help them obtain a Buy to Let property in UK .
The rules are tight but there are lenders who will advance up to 75% of the
property value. Incomes usually need to be from a recognised and preferably
multi-national business abroad and in a region upwards of £40000 sterling
equivalent. A couple of lenders will also allow Ex-Pats to own a residential
property in UK and
where their family, usually off-spring, will reside pending their return
to UK .
No comments:
Post a Comment