17 Reasons it is Easy to Get a Mortgage

17 reasons it is easy to get a mortgage are explained in this blog. Whether you are a first-time buyer or purchasing a buy-to-let property, getting a UK mortgage is not difficult.

You can get a mortgage even if you have a bad or poor credit record.

Here are the 17 reasons it is easy to get a mortgage:

17 REASONS IT IS EASY TO GET A MORTGAGE – LENDERS

1  There are a great many lenders

There are over 200 mortgage lenders in the UK. That gives you every chance of being able to find a lender whose lending criteria you match.

The best mortgage deals are those with the best interest rates or the lowest fees. They will normally be available to applicants with the best credit record.

Whatever your credit status, there are likely to be several lenders willing to offer you a mortgage.

Find a good, experienced mortgage broker. They will be able to identify the specific mortgage companies willing to accept your credit profile and borrowing history.

2  There are many sub-prime lenders

If your credit record or score is far from perfect, there will still be many sub-prime lenders willing to consider your application.

Sub-prime lenders typically offer their mortgages through brokers. Best practice, therefore, is to seek out a broker who specialises in the sub-prime market.

Of course, you will need to pay a premium interest rate for the benefit of being able to get a mortgage with a problematic, poor or bad credit history.

Lenders willing to consider sub-prime borrowers include: Kensington Mortgages, Precise Mortgages, Bluestone, Magellan Home Loans and Pepper Home Loans.

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3  Mortgages are relatively cheap

Another factor making it easier than ever to secure a mortgage is the fact that interest rates have been at historic lows for many years.

Low-interest rates make mortgages very affordable. They enable lenders to lend to borrowers they would probably avoid in a high-interest rate environment.

17 REASONS IT IS EASY TO GET A MORTGAGE – FORMALITIES

4  You simply need a credit record

The first financial hurdle to getting a mortgage is not difficult at all. You simply need to have a credit record.

That means you must have obtained credit in the past, therefore having a credit record that lenders can examine to assess your ability to handle credit – your creditworthiness.

Most people start with credit by way of a phone contract or credit card.

To make it even easier to get a mortgage, you should increase your credit score. If you want to find out how to do that, read this blog: Boost your credit score (12 easy things you can do to improve your credit rating)

5  Merely getting on the Electoral Roll is a big plus

Simply putting yourself on the Electoral Roll can improve your chances of getting a mortgage.  It can make the difference between acceptance and rejection in some cases.

6  Reducing excessive debt can boost your prospects

Lenders look at your level of debt as well as your income in deciding whether you can afford a mortgage.

By reducing your amount of debt in advance of making a mortgage application, you can improve your chances of a successful application.

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7  Avoid multiple loan applications before a mortgage application

Just by not making multiple applications for credit before your mortgage application, you will increase your chances of success.

Multiple applications, especially unsuccessful applications, suggest that you are possibly distressed financially.

Further, a high level of borrowing at the time of your application may cast doubts on your ability to afford your mortgage payments going forward.

8  You don’t need a perfect credit record or score

Because of the number and range of mortgage lenders, you do not need a first-grade credit score or record to successfully obtain a mortgage.

Different lenders will have a different appetite for risk. There are so many lenders, you are almost certain to find one willing to lend to you – no matter how flawed your credit past.

If you are new to mortgages and want to know more about the main ins and outs of them, read this blog: Mortgage FAQs (a comprehensive list of the main questions people usually ask about mortgages)

9  A low or poor credit score is not necessarily a deal-breaker

If you have a low or poor credit score, that is not necessarily a deal-breaker in terms of obtaining a mortgage.

You may not qualify for the best mortgage deals made available to borrowers with an excellent or good credit record.

However, you are likely to find a sub-prime lender willing to provide you with a mortgage. But you may be charged a premium rate of interest and perhaps higher than normal mortgage charges.

Mortgages to people with a bad credit record are sometimes referred to as “adverse credit mortgages”.

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17 REASONS IT IS EASY TO GET A MORTGAGE – SEVERE DEBT

10  Bankruptcy is not fatal to your chances

You might think bankruptcy is fatal to your chances of getting a mortgage. However, it is not.

If you were bankrupt in the past, there will be sub-prime lenders willing to consider your application.

You will enhance your chances of a successful application if you find a mortgage broker with expertise in placing mortgages for ex-bankrupts.

11  A default entry does not necessarily stop you from getting a mortgage

Where you fail to pay instalments on a loan or credit card, your lender can enter a default entry against you on your credit file.

A default raises questions  about your ability to manage credit. However,  it does not automatically exclude you from obtaining a mortgage.

Depending on the circumstances and magnitude of the default, sub-prime lenders may be willing to consider your application.

But there is the good news that a default does not remain on your file forever. After 6 years, it will come off your record and so will not show up in a search by lenders.

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12  A court judgement does not stop you from getting a mortgage

A county court judgment against you for a debt will usually be registered against your name on your credit file, remaining there for 6 years.

However, the entry – although it does not tell a good story about your ability to handle credit – will not prevent you from landing a mortgage.

Lenders offering adverse credit mortgages will be willing to assist you – especially if you have paid off the debt and there were good or understandable reasons why the judgment was entered against you.

Bad management of credit cards is one of the things that can make it more difficult for you to get a mortgage or a top mortgage deal. Learn how to keep on top of your credit cards by reading this blog: 6 must use credit card strategies (the 6 fundamental things every credit card holder should know)  

17 REASONS IT IS EASY TO GET A MORTGAGE – PROCEDURE

13  You simply need to be an adult to be eligible

Age is not a significant barrier to obtaining a mortgage. In terms of the law, you simply need to be 18 years old, an adult, to be eligible for a mortgage in your sole name.

Technically you can even get a mortgage below 18 if an adult is accepted as a guarantor of the mortgage debt.

14  Making an application is easy

It is easy to make a mortgage application.

You can make an application online, you can get help from a broker at your bank or building society or you can engage an independent mortgage broker or IFA.

15  It doesn’t take long to get a mortgage

The decision-making process with mortgage applications is straightforward and fast.

In routine cases, you can receive a decision in around 30 days. In most cases, a decision is reached within 60 days.

If you go through a broker, they will advise and assist you with information or documents you will need for your application – reducing the risk of delays or rejection.

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16  Self-employment is not a barrier

Even if you are self-employed, with “non-standard income”, there will be many lenders willing to consider you for a mortgage.

If you are self-employed, lenders will typically be looking for you to have two years’ accounts, an accountant, a track record of regular work, a reasonable deposit and an acceptable credit record.

Several lenders specialise in offering mortgages to the self-employed. They can be understanding and flexible in their requirements.

17 REASONS IT IS EASY TO GET A MORTGAGE – EX-PATS

17  It is easier than ever for expats to secure a mortgage

There was a time when it was extremely difficult, if not impossible, for most expats to get a mortgage. That is no longer the case.

Also, if you are an expat, there is a small but growing number of lenders who specialise in lending to expats.

Obtaining an expat mortgage is usually more difficult and time-consuming than securing a regular mortgage.

The best practice is to seek out brokers who specialise in sourcing mortgages for expats. Such brokers will know the best lenders to approach and will be familiar with their eligibility requirements.

They will offer you the best chance of making a successful application.

Lenders willing to lend to expats include Paragon, Saffron Building Society, Market Harborough Building Society, and Natwest International.

It is not hard to get a mortgage

It would be wrong to say everyone can get a mortgage. However, for most people with an average income or better, it is easy to get a mortgage – particularly if they take the time and effort to find the right type of mortgage lender for them.

The better your credit score, the easier you will find it to get a mortgage.

If your credit record is poor, you will need to work harder to find a mortgage.

As a result, whatever your status, seeking the help of a mortgage adviser will undoubtedly make it easier for you to secure a mortgage.

Your comments

Do you have a mortgage? Did you find it easy to obtain? If you came across problems or issues, what were they, and how were you able to overcome them?

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About the author

Dalton Barrett is a long-practising property solicitor, investor, PRS registered property coach and Amazon author. Read about his unconventional worldview of property here

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Dalton Barrett, Solicitor
Rebel Property Coach

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