In recent years, fierce competition among mortgage lenders has brought great news to the consumer – Banks & Building Societies scrapping for business has only resulted in greater depth of choice and value for almost every type of borrower, from those seeking to obtain a mortgage for the first time to those seeking to reclaim their existing mortgage.
The typical one size fits all forms of mortgages in today’s market has long vanished-individual borrowers now have individual requirements and goals, not to mention individual credit histories too! It’s fair to say that irrespective of your credit background or personal circumstances, virtually every form of borrower is suited to mortgage items.Interested readers can find more information about them at getting a mortgage
When your mortgage standards are lower than traditional, you can find it difficult to obtain mortgage funding through the normal channels to reach the High Street Banks and Building Societies. Modern high street lenders have been the domain of those borrowers with impeccable credit histories for a long time-many of these lenders would be highly reluctant to deviate from their ideal client profile. In several cases where a borrower has a poor credit history, an initial computerized credit rating system may result in a denial of application.
There is now a huge selection of specialist / subprime mortgage lenders, many of whom are willing to consider most types of applications for mortgages-from those with the most serious credit records to those self-employed borrowers with little or no evidence of revenue. In many cases, a borrower would find himself diverted to the professional lending world after being turned away for whatever reason by a High Street Bank or Building society. Formerly regarded as a niche market, these types of specialist lenders have become widely known in the mortgage industry and play an increasingly important role.
Most specialist / subprime mortgage lenders can only be reached through an intermediary such as a mortgage broker, an Independent Financial Adviser or a mortgage network-customers first have to go through these networks in order to access many of these lenders.
Self employed hypothecs
Borrowers who were self-employed have often been handled differently from their working counterparts. In the past, they were often penalized for their position, usually in the form of higher interest rates or a loading of interest rates. Many Banks & Building Societies still view self-employed lenders as a higher lending risk unless you can provide a backup of your income in the form of two or three years of accounts and six months of bank statements.
Many specialist borrowers understand the sheer volume of self-employed individuals in the workforce, well over four million, and therefore make greater efforts to meet these individuals’ borrowing needs. Nonetheless, their mortgages are often competitively priced and may also provide greater degrees of versatility, they do not provide the lowest rates on the market.