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Why isn’t it easier to get a Mortgage in Sheffield? | Mortgage Advice in Sheffield

Getting a mortgage in Sheffield

We have been in the mortgage business for a very long time now, it’s been ten years! Over these years, we have learnt how to help you get over almost every mortgage hurdle. Whatever your personal situation is, we have probably been faced with a similar situation. Just to list a couple, we offer First Time Buyer, Remortgage and even Self Employed Mortgage Advice in Sheffield.

Getting a mortgage can become complex very quickly. This is because there are thousands of different lenders out there who all have their own unique lending criteria. So, if you decide to go to a lender over a Mortgage Broker in Sheffield, like us, it could get be complicated and hard to get accepted a mortgage.

Going to a lender for a Mortgage in Sheffield

You’ll see that some lender’s credit scores are easier to pass than others. Different lenders like to focus on different parts of the market. You will find that lenders with the tightest lending criteria will supply the lowest rates. Also, it is common to find that customers do not match the criteria of every lender.

When a lender is offering a competitive deal, they will always have a tight margin. Firstly, they need to make sure that the customer will be able to afford a mortgage because at the end of day lenders want to make a profit and not end up losing money. This is why it can be hard to qualify with lenders who have tight criteria.

Lenders with low rates

High street lenders who are offering the cheapest rates will always try and find other ways to increase their earnings from their borrowers. Once you have been accepted a mortgage, they will always try and sell you more of their products to try and gain even more profit. Their products will include Bank Accounts, unsecured loans, credit cards and Insurance.

However, mortgages with the lowest rates of interest often come with high set-up fees and that’s why people often stay away from these products. A lender will only think about their profit whereas as a Mortgage Broker in Sheffield will always have your best interests at heart. We know exactly what to do in order to save your time and your money, but we do this for you, recommending you the best deal available to you based on your individual circumstances.

You will find that not everyone can just remortgage elsewhere and this is down to different reasons:

  • A relationship breakdown
  • Less household income than there was at the start of the application
  • The applicant has had a default or CCJ since they took out a mortgage
  • The value of the home has dropped since it was bought

Lending criteria and the economy

Matching the lenders’ criteria, depending on how the economy is performing, can affect how easy or hard it is to get accepted a mortgage. If the economy is suffering, lenders will tighten the margins and vice versa when the economy is doing well. Depending on when you are applying, it can sometimes be hard to obtain a mortgage, yet previously, mid-2000’s, it was too easy. This was just before the credit crunch where lenders where stupidly granting mortgages to people who couldn’t even afford one.

After the credit crunch, lenders took a completely different view and tightened their criteria. You needed a 25% deposit which meant that getting on the property ladder was basically impossible. Interest rates began to rise, tempting customers to continue renting.

Mortgage Broker in Sheffield | Sheffieldmoneyman

Being an expert Mortgage Broker in Sheffield has allowed us to gain valuable experience and deep insights into what lenders are looking for in mortgage applicants. We are referring to credit scoring, which most high street lenders do now to save them time and money and also produce consistent decisioning.

So, if you are finding it hard to match with lenders criteria it may be time to approach a Mortgage Broker. As a Mortgage Broker in Sheffield, we can share simple steps with you on how to improve your chances of your mortgage application being successful.

These steps are very easy and just by giving us a call, you could end up a step closer to securing a mortgage deal. We will take a look for you, all you need to do is get in touch, speak to an experienced Mortgage Advisor in Sheffield today.

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UK Moneyman Limited is authorised and regulated by the Financial Conduct Authority.
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