It’s understandable that some may question, because of the current economic climate or their personal, more challenging, financial situation whether they will be able to secure a mortgage but as Andrew Kidd, a Financial Consultant for Embrace Financial Services (who work in partnership with Your Move) explains, the answer can be more positive than some may fear.
“Many people might think that the chances of getting a mortgage now will be doomed, particularly if they are furloughed, self-employed or reliant on bonuses/commission as part of their income, but that’s not necessarily the case.
The main priority for mortgage lenders is affordability now, and sustainability long term i.e. how the applicants’ current personal circumstances could affect their ability to pay their mortgage now, and in the future and if there is any special considerations that can be taken into account. It’s about asking the right questions from the outset – but that’s always been the case.
Using a good mortgage broker, who asks the right questions, can enhance your chances of getting a mortgage
As any professional, well trained mortgage broker knows it’s about getting the full picture and, as well as trying to get the best deal (and the best lender) for the client, its important to get a mortgage that they will be able to afford, or have protection for should something go wrong. It’s about asking the ‘what ifs’ i.e. what if they lose their job, what if they fall ill or what if they have to reduce their hours or their income temporarily – just like those impacted by COVID-19.
Equally current questions should be asked about the likelihood of a return to work or an increased workload and how this may positively influence the lender’s decision to offer a mortgage. Self-employed applicants will, for example, have to prove they are up and running with their business as they were before lockdown, or close to doing so, and people on commission/ bonuses will have to show they are likely to receive these.
How much someone has as a deposit will also need to be asked and that’s where, because many lenders are now asking for a high deposit to be made available, a good mortgage broker can really make the difference.
Seeing the bigger picture helps too
A broker, one that has visibility of a wide range of lenders in the market, rather than just one or two, will also be able to identify which lenders are the most suitable for the applicant and most likely to accept the circumstances they are currently in, or which they could face.
We are seeing more and more lenders suggesting that their clients visit a broker for the professional advice which we consider is always better than trying to do it alone. By anticipating the questions the lender will ask, understanding the concerns and worries of the applicant and then reviewing the market as a whole, a broker can really take the stress out of finding a mortgage.
The fact that interest rates are lower than ever, the types of mortgage available as wide as ever, and the number of lenders in the whole market, as large as ever, it might just be the time to find out why you should use a mortgage broker – whatever your personal circumstances may be. “
If you’d like to gain further advice or support in finding a mortgage, why not book a mortgage appointment today.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Embrace Financial Services usually charges a fee for mortgage advice. The amount of the fee will depend upon your circumstances and will be discussed and agreed with you at the earliest opportunity.