But don’t be put off, there are many opportunities whatever your circumstances and lenders are willing to have a conversation in order to do the right deal. These are not always high street names, so do speak to someone who has whole of market access and not just a limited panel of lenders. Of course, rates and terms will vary depending upon the type of mortgage written. Lenders have varying degrees of risk assessment calculations and this will determine the loan to value and charging rate levels. Finally, remember to always read the small print and understand all fees involved. The lowest rates on offer may not always be the most cost effective over a period of time for you.
We’ve seen an increase in enquiries from those who might have used a Payday loan over the last twenty four months. I need to reiterate that these are classed as an ‘adverse entity’ with most lenders (not that some would admit it!). However, even the lenders who accept customers with historic CCJs, defaults, or missed mortgage payments registered against them, MAY NOT accept someone who has taken out a payday loan. So, although these may be right for a customer in certain circumstances, they will almost definitely limit the number of lenders available to you when you come to apply for or change mortgages. Seek advice.
With this in mind, lenders will look closely at an individual’s payment profile, how many recent credit searches have been incurred by financial institutions and more. The more credit searches you have on your profile, over a recent amount of time, the more likely your credit score will be lower as a result. Try and ensure there’s no missed or late payments as these will also decrease your credit score. In short, your credit search / score are the basis on which most lenders will initially decide whether to lend to you or not. If you’ve not checked your credit file before, it is well worth a review. Experian, Equifax and Noddle tend to be the main providers used in our market with some offering free initial trials and you can find links to these on the AToM website.