Securing the Best Mortgage Deal

The last year and a half has proved somewhat of a challenge for those that want to get a foot on the property ladder, move home or get the best mortgage deal. Along with furlough schemes, redundancy and taking mortgage and credit card payment holidays, there has also been the surge in the housing market from factors such as the stamp duty holiday which has pushed prices up. These specialist circumstances have meant that securing the best mortgage deal has become somewhat tricky and property has become less affordable as the amount you need to borrow increases month on month. We take a look at what this means for you and how we can help you overcome these mortgage obstacles.

Factors Affecting Lenders’ Decisions

Unfortunately, even those with the best track record with their finances, may have been hit at some point by the pandemic. As many workers became furloughed, their income was affected. Overtime was less in some cases and bonuses weren’t up to their usual levels. While some took advantage of welcome payment holidays, others had no choice but to default on payments. Just some of the factors that have had an impact on credit rating and lending criteria include:

Satisfied CCJs
Irregular income
Late payments
Payment holidays
Furloughed workers
Defaults

Of course, for many this has meant that they can no longer get the kind of mortgage deals that they could get pre-pandemic as many of the pre-programmed software packages spit out an instant no and lenders became more cautious! For the homebuyer looking for the best mortgage deal, they are either forced to pay more, or cannot secure the finance they need.

A Positive Time Ahead

While it may have been tough to secure the right kind of mortgage deal amidst all the uncertainty, it would seem that a brighter time is coming. Mortgage lenders are offering lower rates to attract new customers and the interest rates are lower than they have ever been. The stamp duty pandemonium is finally over and we are starting to see some sort of steady return to the housing market.

Check Your Credit File

That said, these remarkable deals are only available to those with an unblemished credit record so if you have taken a payment holiday in the last year or so, or weren’t the most reliable with your finances during your younger days, it’s well worth contacting the credit agencies (Equifax, Experian and TransUnion) to get a copy of your credit reports. This way you know what you are faced with and applying for a specific mortgage won’t end up costing you thousands more in interest than you expected. Even those defaults from the misdemeanours of your twenties could come back to haunt you so we would advise checking your credit file as your first step.

The next step is to call us!

Specialists in Financial Help and Advice

Our expertise in working with doctors and those looking for medical finance means that we are no stranger to finding the best deals for those with an irregular income. The way that salaries and remuneration packages are calculated for those in the medical profession can also be tricky which is why the personal approach is required. We have helped secure the best mortgages for doctors and medical professionals from all walks of life and work hard to help many of our clients who have experienced a change in circumstances due to the pandemic.