Mortgage companies are becoming ever more flexible, meaning that whatever your situation there is probably an ideal product for you.
Finding a mortgage can be time-consuming and complicated. If you’re struggling to find the right product, consider speaking to an independent financial adviser to obtain some help. We look at some of the situations where you might be surprised to find you can still obtain a mortgage.
Finding a mortgage when you have poor credit
There are lenders who specialise in lending to those with lower credit ratings. They will assess your individual situation, taking into account the length of time since any incidents and the amount of any debt. They will also look at your outgoings, to include payment of any loans, debts and overdrafts. Interest rates are likely to be higher than normal and you may have to provide a larger deposit than with standard mortgages. The amount they lend may be limited.
Finding a mortgage when you’ve got an overdraft
As with poor credit, having an overdraft does not preclude you having a mortgage. Lenders will look at the amount of the overdraft and how you are managing the payments in making their decision.
Finding a mortgage when you’re self-employed
The same range of mortgage products is available to the self-employed as to anyone else, but lenders will require you to prove your earnings and they will also want to be confident that they are sustainable.
Lenders like to see accounts for two years, preferably three or more, prepared by a chartered or certified accountant, although some will consider those with only a single year’s figures.
Finding a mortgage when you’re older
The range of later life loans is on the increase as more banks take advantage of those wishing to take out a mortgage in more advanced years. Traditionally the cut-off age for repayment was 70 or 75, but more recently lenders have emerged willing to lend to people into their eighties or even up to 99 to allow people to release the equity in their home.
Keeping your mortgage when you move house
You may be encouraged to find a new mortgage when you move house, but in some circumstances you can keep your existing mortgage. If you want to do this, for example, to keep a good rate, contact your lender and see if they will be prepared to port your loan to your new property. They will need to do a valuation and see all the usual searches and if you are asking to borrow more they will also assess your income situation. Any new amount loaned will be based on their current lending terms.
If you’re thinking of buying a property and would like to speak to one of our expert lawyers, ring us on 0345 2413100 or email us at mail@cplaw.co.uk.
