Tesco Bank has recently rolled out its mortgage range. Sadly, this does not mean you can now pop down to the supermarket and arrange a home loan along with your groceries. But what is does show is that there are an awful lot of mortgages to choose from, and more are being added.
With newcomers like supermarkets joining the old familiar names in the mortgage market, it’s safe to say that getting a mortgage is getting more complicated instead of simpler.
It’s also fair to say that some mortgage lenders don’t seem to want you to know all the facts about just what is available.
They don’t want you to know about the choice available
Whilst we’re a long way from the dizzy heights of 2007 when providers were so desperate to sell they would offer 110% mortgages, the mortgage market is buzzing again. It’s been helped by the government’s introduction of the Help to Buy scheme, and many other factors, not least the house price boom.
Of course, you’ll need to shop around to get the best rates.
They don’t want you to know about competitive rates
There are actually some very good deals available, as lenders compete for business again. Introductory rates are not the most reliable guide to the true cost of a mortgage, but some very exciting deals are available if you know where to look. With base rates low, mortgage providers can afford to offer low rates, particularly for borrowers with a big deposit.
Again, shopping around to get the best rates is essential.
They don’t want you to know about 100% mortgages
It’s true the market was against high loan to value ratios for years after the credit crunch. But it’s also true that things are moving on. 90% mortgages have been around for some time. 100% mortgages are now available again. They may be very expensive, but for those with a good income and little or no deposit, they can be the best way onto the housing ladder.
They don’t want you to know about low arrangement fees
A few years ago ‘arrangement fees’ were a rarity. Since the banking crash they have become the norm – but again, this is changing. As lenders compete for your business, they are starting to find that they might not need to charge you quite so much for the privilege of lending you money.
They don’t want you to know you can get a mortgage if you’re self-employed
One of the areas where the mortgage market tightened up following the banking crisis is in letting people ‘self-certify’ what they earn – this used to be common but has now all but disappeared. New rules have just come out which prevent this but they are somewhat irrelevant as the market has already stopped granting them. But there are self-employed mortgages out there. They are not easy to find, but with a little professional help you can arrange one, even if you are your own boss.
They don’t want you to get expert help
Probably the best way to get the mortgage that is right for you is to call on a Mortgage Broker. Not only can they offer you expert advice on all the things mortgage providers don’t want you to know, they can make it easy for you to get the mortgage you really need.
An independent Mortgage Broker isn’t looking for the best commission rates, or to sell their quota that month. They’re on your side, and they’ll give you access to far more products than if you went direct, because they search the whole market for the best mortgage for you. You get unbiased advice and you can have access to every lender and mortgage product available, rather than being restricted to the single range of the lender you go to.
Guiding you through the mortgage maze
Mortgage criteria has tightened massively over the past few years. The Mortgage Market Review is a major new hurdle. It’s been designed to ensure borrowers can prove affordability, even in the event of a rate rise, and those it includes extra checks that means increased application times.
A broker deals with lenders on a day-to-day basis, so they’ll know what the application process is like for each one and can tell you which lender can process your application with minimal delays.
They also know the background criteria that a lender has and can bring this experience to bear when advising you and processing your application.
Then there’s the fact that, because a Mortgage Broker may put a lot of business to a particular lender in a year, they can exert influence and chase things in a way you just can’t do by yourself – and that can be invaluable should things get held up.
You can start now
A Mortgage Broker is a good idea for anyone who wants a better mortgage, and if you are looking for Interest-only solution or lending into retirement, a qualified adviser is essential. To get the help you need, simply contact us.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.