How to Get a Mortgage: 3 Tips for Proactive Buyers
While the UK continues to experience considerable growth, British bank lending is continuing to lag behind fellow economies. This is according to accountancy group UHY Hacker Young, who claim that private sector credit volumes fell by 2.2% in 2013 while lending across the whole of the G7 increased by 0.1%.
Although this may seem like bad news for aspiring borrowers, there are steps that you can take to proactively seek credit and pursue your financial goals.
3 Tips for Borrowers: How to Obtain a Mortgage in 2014
With this in mind, what are the practical steps that individuals can take in order to successfully apply for a mortgage in the current climate? Consider the following: –
1. Review Your Credit Standing
No matter what the economic circumstances, you will need a solid credit history and standing if you are to apply for a mortgage with a lender. This cannot be achieved overnight, however, and individuals with a history of poor credit or previously defaulted loans must review their status prior to making an application.
By accessing a credit report across the two major providers (Equifax and Experian) you can obtain a true insight into your standing and determine whether or not it is viable to make an application. This also allows you to create a plan of action for reducing debt and improving your overall score. If you do this right, these reports can also be obtained completely free of charge.
2. Seek Out Alternative Lending Options
In days gone by, seeking out alternative lending options amounted to obtaining the number of the local loan shark. This is no longer the case, however, as the Great Recession has given rise to a number of alternative options that are accessible to individuals with less than perfect credit.
The financial crisis also triggered the emergence of community banks and regional building societies such as Saffron Building Society, which have been established to serve local residents and make credit as accessible as possible to families and young professionals.
3. Modify Your Goals and Manage Expectations
Before the Great Recession, you may have had grand aspirations of moving into a lavish home that reflected your salary and hard work. Such dreams are harder to achieve the wake of the recession, however, as lenders are far more cautious and reflective than they once were.
With this in mind, you may benefit from modifying your goals and managing long-term expectations, as this will open your mind and enable you to consider more affordable properties in the future.