Fierce competition amongst Mortgage lenders in recent years has gotten about fantastic news to the consumer - Financial institutions & Building Societies scrapping for business has only ended in a better depth of and value, for up to different types of borrower, from those seeking to obtain a Mortgage the first time to those seeking to reMortgage their existing one.
In the current market, the regular one size fits all type of Mortgage has long disappeared - individual borrowers now have individual requirements and objectives, not to mention individual credit backgrounds too! It is true to state that in spite of your credit track record or personal circumstances, you can find Mortgage products to accommodate virtually every type of borrower.
In case your Mortgage requirements are under conventional, you could experience difficulties securing Mortgage finance through the usual channels, through approaching high street shops Banks and Building Societies. Traditional High-street lenders have for ages been used by of people borrowers with impeccable credit records - a number of these lenders will likely be extremely anxious to deviate off their ideal customer profile. Most of the time in which a borrower includes a blemished credit score, a primary computerised credit scoring system will result in an application refusal.
There are a now numerous specialist/sub-prime banks, a lot of whom that are happy to consider most kinds of Mortgage application - from those that have the most severe of credit records, to those self-employed borrowers with little if any proof income. In most cases, a borrower will see themselves being redirected to the world of specialist lending after having been turned away with a High Street Bank or Building society for reasons unknown. Most of these specialist lenders, once considered to be a distinct segment market, have become widely recognised throughout the Mortgage industry and offer an increasing natural part.
Many specialist/sub-prime banks might be accessed with an intermediary such as a Mortgage loan officer, Independent Financial advisor or Mortgage network - Customers must first go via these channels to be able to access several of these lenders Mortgage products.
Independantly employed Mortgages
One-man shop borrowers have been treated differently using their employed counterparts. They have for ages been penalised because of their status during the past, usually as higher rates of interest, or perhaps an interest rate loading. One-man shop borrowers are still today perceived by a lot of lenders & Building Societies as a higher lending risk if you do not are able to provide backup of the income in type of several many years of accounts and six months of bank statements.
There are many specialist lenders who recognise the sheer amount of self employed individuals inside the workforce, well over four million and thus make a greater effort in accommodating the borrowing needs of these individuals. They could not provide lowest rates in the marketplace however Mortgages are still affordable which enable it to offer greater degrees of flexibility too.
Buy To allow Mortgages
Buy to allow reMortgage products have for ages been the preserve with the specialist lender. The buy to allow market has attracted a large number of landlords recently as escalating house prices and a greater requirement for safe investment makes property a very viable option to invest in. Many of the mainstream lenders have since jumped on the buy to allow bandwagon however it is worth considering that specialist lenders will have more experience of the buy to allow market.
Approaching a home financing broker can often be a great starting point for in researching your specialist lending needs. As earlier mentioned many of the leading specialist lenders are just available with an intermediary however most lenders can have access to numerous these different lenders. A home loan broker may impose a fee a fee for there services however this could sometimes be negotiated considering the belief that most will even obtain a commission in the lender on finishing your Mortgage application.
Additionally, you will notice when doing pursuit that a lot of with the specialist lenders are actually lending arms from the major mainstream Banks & Building Societies.
