Top Reasons Why You May Find it Difficult to Obtain a Mortgage in Grimsby

Expert Mortgage Advice in Grimsby

Obtaining a mortgage in Grimsby occasionally be quite challenging, especially for those who have never done so before. There are hundreds of different mortgage lenders out there all with their different lending criteria that you need to match up against.

We have been working within the mortgage industry for well over 20 years now, learning in that time the best ways to help a customer save both their time, and their money. After all, customer satisfaction is at the heart of what we do.

As a trusted and experienced mortgage broker in Grimsby, we have the knowledge to overcome most mortgage hurdles. We love taking on a good challenge, so even if it’s a situation we haven’t directly come across, it’s likely we’ll have gone through at least something similar before.

We specialise in providing expert Mortgage Advice in Grimsby. No matter if you are a First Time Buyer in Grimsby, looking at Moving Home or wanting Self-Employed Mortgage Advice in Grimsby, we are here to help you in any way we can!

Top Reasons That Make a Mortgage Challenging

Whilst it can go fairly smoothly for some, there are instances where obtaining a mortgage may become a challenge.

Our dedicated team of mortgage advisors in Grimsby will always work hard, using their knowledge to overcome as many mortgage hurdles as we can. Below we have put together a list of the most common situations we encounter with customers who are struggling to be accepted for a mortgage.

Income is Too Low

A mortgage lender will always want to know that you have a suitable income and are able to afford the monthly repayments on your mortgage. They will perform affordability checks, reviewing your income and outgoings, to make sure that a mortgage is right for you.

If a mortgage lender isn’t willing to accept you for a mortgage on the amount you need, you may need to look at putting down a higher deposit. Doing so will reduce the amount you need to borrow, possibly allowing for lower monthly repayments over a longer term.

Not Enough Deposit

Relating to the previous point, you may not be able to save enough for the initial deposit. Generally speaking, you will need between at least 5-10% to be in with a shot at obtaining a mortgage, though if you can go higher, this would be recommended.

The reason we recommend a higher deposit, is because it can open you up to much better deals, with a wider variety of mortgage lenders. Doing so will put you in a much better position than you otherwise would be.

Unfortunately not everyone can save the right amount, which will obviously put a halt on plans for the foreseeable, until that amount is saved. There are a few saving graces though, especially for first time buyers in Grimsby.

The first of these is the Bank of Mum & Dad, otherwise known as a gifted deposit. This is a gift, donated from a family member (typically parents, adopted parents, carers or legal guardians), allowing their loved one to get onto the property ladder.

This is an increasingly popular option, being a large factor into so many young people getting onto the property ladder these days. You must remember though that this is gift and not a loan, something which the lender will need to see in writing, along with proof of deposit.

The other helpful tool for first time buyers, is the government Help to Buy Equity Loan Scheme. The aim of this scheme is to boost a first time buyers deposit up to 25%, with a loan from the government.

So long as you have saved up 5% by yourself, the government will loan an additional 20%. This works within that 25% amount, so if you have 10%, they’ll loan you 15%. This too is a loan, and will need to be paid back.

Not having enough deposit initially can create challenges, but with the right help you may be able to still obtain a mortgage, especially if that is the only hurdle in your way and the rest of your case looks fine.

Poor Credit Score / Credit Problems

Credit score is one of the biggest factors in obtaining a mortgage. Whether it’s from a poor track record of handling credit, obtaining defaults and missing payments, or from simply not having enough of a credit score (common in younger applicants), this can present challenges.

We have a large panel of specialist lenders on panel, so even if your case is a little more complex, there may still be mortgage options for you, though they will often require a more substantial deposit from you, closer to at least 20%.

It’s not just things like defaults and missed payments that affects your credit score, as there are other aspects that may affect that also. Making sure all your addresses are in line is a common one some applicants forget about.

You should update all addresses to your current address and register on the electoral register, so that lenders are able to confirm you’re living where you say you are. Also, avoid applying for too many mortgages yourself, without speaking to an expert.

If you are applying for mortgages by yourself and constantly getting declined, this can seriously harm your credit score. There is the potential that one of these mortgage lenders will have been assessing you using a hard credit score.

A hard credit score, unlike a soft credit score, is a lot more in-depth but also leaves a visible footprint on your credit file. A mortgage broker in Grimsby will match you up with the right lender, so you don’t run the risk of this happening.

Speak to an Expert Mortgage Broker in Grimsby

As an experienced and reputable mortgage broker in Grimsby, we have lots of valuable experience and we know exactly what lenders are looking for in mortgage applicants.

We can talk you through some simple steps you can take to improve your chances of your mortgage application being successful.

These steps can be very simple and easy to do. Speaking to an expert mortgage advisor in Grimsby could get you a couple of steps closer to securing a mortgage deal.

Book your free mortgage appointment today and we’ll get the ball rolling on achieving mortgage success for you and your future home.