As a mortgage broker in Essex, we’ve seen many first time buyers in Essex and home movers struggle to start their mortgage journey. Whether this is due to their total deposit size, affordability or credit score, when we see an applicant in need of support, we will always offer a helping hand.
If this is also your situation and you can’t seem to get going with your mortgage application, you may need to contact a professional. As mortgage experts ourselves, we have seen lots of different reasons why applicants have been declined for a mortgage. Here are some of the most common scenarios that we come across:
Every lender will have their own, individual credit scoring criteria and you’ll find that some will be easier to match than others. You won’t be able to match every single lender’s criteria as most of them, especially specialist lenders, have carved out their own niche audiences. Furthermore, if you are an applicant with a high credit score and good affordability, you will not need to look for a specialist product or lender who normally works with applicants with lower credit scores.
You’ll also find that lenders offering the lowest rates will likely have the strictest lending criteria. To pass their criteria, you’re going to need a higher credit score and a clean credit history, etc.
Lenders need to know that you’re reliable and that they can trust you. They’ll never take on an applicant that has the potential to fall into areas over the course of their mortgage term. If you’re suffering from bad credit issues, you may need to look for a specialist over a high street lender.
In fact, we are a specialist mortgage broker in Essex and we have access to lots of different specialist lenders on our panel. We can compare each lender’s products and see whether you match any of them. It’s our job to help struggling customers take that first step onto the property ladder, even when they think that it’s impossible.
How much do I need to put down for my initial deposit? Is it 5%, 10%, 15%?
Usually, the lower that your credit score is, the higher your initial deposit will have to be. Remember that a deposit total will also vary from property to property. An increase in property price means an increase in the deposit amount.
If you don’t have a deposit, it’s very unlikely that you’ll be able to get a mortgage. There’s only a couple of scenarios where you may be able to get a mortgage without a deposit. One example would be if you’re taking out a right to buy mortgage in Essex.
You should take a look at government-led schemes, there are many different ones available that could help you get a mortgage with a small deposit. The schemes were brought in to help mortgage applicants struggling to get onto the property ladder. A couple of the ones at the forefront of the market include the Help to Buy Equity Loan, Shared Ownership or the Mortgage Guarantee scheme?
Find out more here: ownyourhome.gov.uk
As a mortgage broker in Essex, in some cases, we see that the applicant was not told the reason why their mortgage application was declined. Sometimes, your lender can just decline your application.
You may need to get mortgage advice in Essex if you find yourself in this situation. It could be anything from that you’ve tried to take out the wrong product to that you simply didn’t match the lender’s criteria. We tend to call this scenario “the computer says no”.
Essexmoneyman will never put your application in front of a lender when we know that you won’t pass their lending criteria.
As a mortgage broker in Essex, our job is to try and pick out a perfect mortgage product that suits your personal and financial situation. During the first stage of our process, we will measure your affordability. This is a huge part of the mortgage process, we need to know that you can afford a mortgage before continuing.
Once you pass through the first couple of stages of the mortgage process, the rest of your journey should be stress-free and easy-going. You may need a mortgage advisor in Essex by your side throughout the whole journey.
You will now no longer need to ask yourself “why can’t it be easier to get a mortgage?”, you can use a mortgage broker in Essex and get all of the help that you need.
Advisors in Essex are available 7 days a week. Book your free mortgage appointment online today.