Category: Mortgage Industry News & Updates

WILL MORTGAGE INTEREST RATES GO UP AGAIN?

It is expected that interest rates will continue to increase slightly due to the predicted, Bank of England Base Rate increase on the 11^th of May.

Mortgage interest rates have been increasing again over the last fortnight with large Mortgage lenders like Barclays Bank, The Coventry Building Society, Virgin Money and Nationwide increasing their rates by up to 0.45% along with many other lenders.

With the cost of living meaning that people are struggling to pay their bills on time, criteria search platforms used by professionals reported a big increase this month in Mortgage Brokers searching for lenders that will accept poor credit, with the highest search being for lenders that will accept late or missed payments. 

Mortgage interest rate increases are in the headlines most days, however, what isn’t in the headlines so regularly, is what Mortgage Professionals are seeing, this is,  that their customer have used up their savings, started relying on credit cards and loans, but because household income hasn’t increased in line with the cost of living, the trend is, people struggling to pay their monthly outgoings, and needing help to get their outgoings under control before they can’t afford to pay their bills.

Mortgage Brokers have never been so important!  In this ever changing market, where lenders are changing their criteria and tightening up on affordability, along with customers having more borrowing, and more monthly outgoings for basic living expenses, Mortgage Advisors are finding it increasingly difficult to place mortgages, but they will hugely increase your chances of having your mortgage application accepted, because they are up to date with everything involved in getting a mortgage and have a vast amount of experience and professional tools to assist them. 

How can you lower your monthly outgoings, with the mortgage rates increasing?   There are options; get in touch with the company you owe and ask if they can offer any help.  Speak to the Citizens Advice Bureau, and if you haven’t already, cut back on spending if that’s possible, however, aside from the cutting back, most other options will result in your credit report being affected, which in turn can increase the interest rate you will pay on your mortgage when you need to remortgage.

Alternatively, talk with a Specialist Mortgage Broker who has expertise in debt consolidation, they can help you lower your monthly costs by adding some or all of your debt to your mortgage, making your monthly payments more affordable in the short term. Then work out a budget plan and stick to it so that you don’t end up in the same situation again.

Can I get a debt consolidation loan with bad credit?

If you’ve struggled with debt in the past and have a low credit score you may not be offered the best interest rate, however there are specialist lenders that do offer debt consolidation remortgages.

At the end of the day, we are all in this cost of living crisis together and Mortgage Brokers have experience, knowledge and tools available to find the best solution to help you.

Good Luck!

Risk Warning:
It is important to consider the implications of adding your debts onto your mortgage. Your home may be repossessed if you do not keep up repayments on your mortgage.

More than 25% of borrowers being denied a mortgage due to non standard income, with just under 50% of customers that have zero hour contracts being turned down.

This doesn’t have to be the case, people that are self employed or work on a zero hours contract are finding it increasingly difficult to get their mortgage application accepted, this is due to the fact that this type of income can be unpredictable, there are not usually standard hours and they do not have a contract that covers them for sickness, maternity and annual leave.

It’s always been more difficult to get a mortgage if you don’t have a standard 9-5 job with a permanent contract, however, specialist mortgage advisors can massively increase your chances of having your mortgage accepted because they will walk you through what you will need to provide the lender,  to give them the confidence to accept your mortgage application. 

Documents that are frequently requested by mortgage lenders to help them assess the sustainability of income are;

3-6 months bank statements, its important if you are self employed to make sure that cash goes through your business bank account, because if you say you are earning for example £52,000 per year, the lender can check back using your bank statements to see that there is roughly £1000 per week, or just over £4000 per month being paid into that account.

SA302’s, this is your personal Tax Return, it proves to lenders that you are declaring what you are telling the lender you are earning, it also proves you are paying tax on that income.  It’s a myth that you need 2 to 3 years tax returns, there are lenders who will accept one years SA302’s for proof of earnings.

Your credit score is important, it shows every credit commitment taken over the last 6 years, it shows how much you currently owe and how you have conducted your finances over the last 6 years.  Don’t be put off by the words “Credit Report”, worse case scenario, you are self employed, have poor credit and only one years proof of self employed income, BIG NEWS, THERE ARE STILL LENDERS AVAILABLE FOR YOU.

One of the worst things that any one with non standard income can do when they are looking for a mortgage, is approach lots of different banks and/or mortgage advisors because these could result in multiple credit searches being carried out on you, this will in turn lower your credit score which isn’t the best thing to do if you are looking for a mortgage or remortgage.

We can help, we will help, if for any reason we cant, we will give you a thorough financial overhaul and tell you what to do to help you get your mortgage application accepted as soon as possible.

Goood Luck!

The cost of living crisis and the increasing interest rates have caused a lot of uncertainty for home owners looking to reduce their monthly outgoings by adding credit card and loan debt to the mortgage in the hope of saving money on a monthly basis.

Mortgage brokers here at A Little Mortgage Advice have access to every UK Lender and we are  reaching out to more of these than ever before to help our customers get the best interest rate and lowest monthly payments possible to fit with their individual circumstances.

Our Specialist Mortgage Brokers are getting the biggest demand for help because people are running up credit card bills, taking out loans to keep up with the rising cost of living, but can’t keep up with the repayments and find themselves looking for a mortgage with bad credit, because they have missed payments, cant get a mortgage because of defaults, their income isnt enough to get the mortgage they need etc.

If you are looking for help remortgaging, are confused about what to do, A Little Mortgage Advice, Mortgage Advisors are friendly and patient and have been trained to listen to what is going on for you, what you would like to get from your mortgage, or remortgage, are you looking to pay your mortgage off quicker, reduce the term of your mortgage, or are you looking to just get through this mortgage interest rate crisis? do you need to stretch the term of your mortgage to lower your monthly repayments?

There are so many variations of circumstances that we can help you with, it is unusual that we cant help someone, but if for any reason we cant help you, we can tell you what you need to do, and what options there are available.