{"id":10367,"date":"2022-09-27T10:46:33","date_gmt":"2022-09-27T10:46:33","guid":{"rendered":"https:\/\/loans.tiida-nissan.ru\/?p=10367"},"modified":"2022-12-08T18:42:38","modified_gmt":"2022-12-08T18:42:38","slug":"i-m-a-mortgage-expert-here-are-the-tricks-to-get-a","status":"publish","type":"post","link":"https:\/\/loans.tiida-nissan.ru\/i-m-a-mortgage-expert-here-are-the-tricks-to-get-a.html","title":{"rendered":"I’m a mortgage expert – here are the tricks to get a loan as lenders make it harder to get approved"},"content":{"rendered":"
HOME BUYERS might find it harder to get a mortgage as the cost of living skyrockets, but insider tricks can help you get the loan you want.<\/p>\n
Greg Cunnington of mortgage broker LDN Finance says rising energy bills, council tax and travel costs mean lenders are now cutting the amount they lend you.<\/p>\n
Gregg Cunnington says it's harder to get a mortgage – but not impossible <\/p>\n
Banks use official household spending data to calculate how much a prospective homebuyer can afford to borrow and repay.<\/p>\n
When the cost of living rises, banks usually lower the amount they lend.<\/p>\n
Greg says: "When an energy bill goes from \u00a3100 to \u00a3300, lenders know they can play around with less money each month. This has a domino effect on how much people can borrow."<\/p>\n
In a one-two punch, interest rates also rise, increasing repayment costs to further contain the size of mortgages for borrowers.<\/p>\n
But Greg says insider tricks can help you borrow more to ensure you get the home you want.<\/p>\n
When you take out a mortgage, you commit to having it for a certain amount of time.<\/p>\n
Usually this is around 25 years, but it can be longer or shorter (and you can change it later).<\/p>\n
One way homebuyers can make monthly payments more affordable, according to Greg, is to opt for a longer mortgage term.<\/p>\n
He says: "The longer the term, the lower the monthly rate. We see many customers asking us to continue with a maximum term. It really helps first-time buyers.<\/p>\n
"You must be working a job where you are not legally required to retire early, but anyone working in an office setting should not have a problem."<\/p>\n
Many lenders will lend up to age 75, with some offering terms of up to 40 years.<\/p>\n
However, borrowers need to be aware that extending the term means you will pay more interest on the mortgage in the long run.<\/p>\n
If you have a mortgage for 25 years of 150.000 \u00a3 at 3.5%, your monthly repayments would be 751 \u00a3. And over the life of the mortgage, you would be taking into account interest payments 225.Pay back \u00a3281.<\/p>\n
If you had the same 40 year mortgage, your monthly repayments would drop to \u00a3581, but the total amount you would repay jumps to 278.921 \u00a3.<\/p>\n
Choosing a longer term fixed rate is another way to increase the size of your loan if you are comfortable with it.<\/p>\n
Greg says: "There are a few lenders where you can borrow more if you take a fixed rate of five years or longer.<\/p>\n
"In the current environment, people also want to lock in longer because they're worried about interest rate rises – it's a win-win situation."<\/p>\n
A fixed rate mortgage is ideal for those who want to know exactly how much they have to repay each month.<\/p>\n
They also protect you from interest rate increases. If you have a variable or tracker mortgage, your monthly repayments are likely to go up every time the Bank of England raises interest rates.<\/p>\n
But those with fixed rate mortgages have their interest rate fixed for a period of time and are therefore protected from these increases.<\/p>\n
Buyers who want to borrow more and keep repayments low could also consider interest rate mortgages if they have a deposit or equity of at least 25%, according to Greg.<\/p>\n
With these deals, borrowers pay back only the interest on the mortgage each month, so bills are lower.<\/p>\n
Greg says: "There are lenders who will allow mortgages to be interest only for a period of time as long as borrowers feel the hardship, as long as they have a suitable repayment strategy in place."<\/p>\n
But you need to have a plan for how you'll pay off the rest of the loan in the future.<\/p>\n
These mortgages are generally only suitable for people who have saved or invested a lot of money and can therefore afford to pay off the balance of their loan.<\/p>\n
Different mortgage providers have different lending criteria, so you may borrow more from some than others.<\/p>\n
This means it's important to look across the market to maximize what you can get.<\/p>\n
Greg says, "Different lenders specialize in different customer scenarios. You want to make sure you get the loan numbers from each lender, as they can vary widely."<\/p>\n
For example, aspiring buyers who work overtime, receive bonuses or earn commissions might find that lenders will only consider 50% of that extra income, but others will consider everything.<\/p>\n
A good mortgage broker can help borrowers compare lenders to find the greatest loan based on their particular circumstances.<\/p>\n
Greg says: "Brokers have access to the decision makers at lenders, they can arrange things that clients can't do themselves."<\/p>\n
Consultants also have relationships with little-known lenders who accept applicants when big name banks don't.<\/p>\n
Greg says, "There are specialized lenders who can evaluate customers based on their individual affordability and not work with statistics. This is a really useful part of the market for those who don't get what they want from high street names."<\/p>\n
If you get your finances in shape, you can also take out more loans.<\/p>\n
Property seekers who aren't in a hurry to buy and can wait while saving a larger down payment may find it's worth it to eventually get a larger mortgage.<\/p>\n
Greg says: "The bigger your deposit, the lower the interest rate – so lenders lend more."<\/p>\n
At the same time, cleaning up damaged credit scores is another check for people who expect to buy in the coming years.<\/p>\n
Greg adds, "With a clean credit score, you can access lenders that offer the most credit."<\/p>\n
Each week, as part of our "My First Home" series, we talk to a first-time buyer, including this person who quit the job she loved to save more money for a down payment.<\/p>\n
Elsewhere, a real estate expert reveals the four simple steps to getting rid of mold for good.<\/p>\n
Do you have a story for the team at The Sun Online Money?<\/p>\n","protected":false},"excerpt":{"rendered":"
HOME BUYERS might find it harder to get a mortgage as the cost of living skyrockets, but insider tricks can<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"yoast_head":"\n