Published in on Tuesday, April 07 2009 by Ideal Debt Solutions
It’s more difficult than it has been for a long time to get a mortgage. Most lenders are insisting on much larger deposits and better credit ratings than for a long time. This is understandable – it was reckless lending that caused the problems we’re now experiencing. The problem is that the over correction in the opposite direction is tough if you’re looking for a first mortgage or to re-mortgage. And this is far worse if you have a poor credit rating.
The good news is that it is still possible. The quickest and easiest way to find out is to get expert advice. An expert debt adviser will be able to find out very quickly what type and size of mortgage is available given your poor credit history. There are pros and cons to every mortgage deal
Alternatively, an online comparison system can give you a quick overview of the options available.
With interest rates at record lows, this will encourage spending which, in turn, may well lead the Bank of England to raise rates to cool things off a bit. So now could be an excellent time to mortgage or re-mortgage and to try and secure a fixed rate deal for as long a period as you can.
Don’t automatically be tempted by the current range of low-rate tracker mortgages available, which look excellent value at first glance set, as they are, around the 3% mark.
Interest rates are as almost as low as they can possibly go and the only further option for the Bank of England is to start printing extra money to reflate the economy if need be. Either way, it looks like the long-term direction of interest rates has to be up. So it may well be worth securing a long term fixed rate on your mortgage now, even if this is above some of the other deals available.
The important thing to remember is to use a loan or mortgage to good effect – to improve your financial situation (by reducing overall monthly payments for example) rather than deepening your debt and spending the proceeds. Mortgage lenders recognise your situation and will look far more favourably on your prospects if you have taken steps towards managing your debts sensibly and are progressing towards being debt free.