3 Major Facts Behind The Fiction Of Guaranteed Bad Credit Mortgages

With quite an enchanting and attractive image, guaranteed bad credit mortgages in the UK always become the magnet for the borrowers from mortgage brokers like Shinemortgages.co.uk. They are still on demand because they look like the last-minute saviours for those who ever get denials. Yes, the bad credit score people.
guaranteed bad credit mortgages in the UK

 A mortgage is a big size loan, and for a person with poor credit score performance, it already sounds unachievable.
What makes the property market offer a guaranteed approval thing on the bad credit mortgage? It is essential to know how things work.

1.     No lender has the rights to offer a guaranteed approval

Few things are for only promotional purposes to catch the attention of the borrowers. Let us all confront reality. The lending market is restricted in many rules made by the regulatory authorities. Technically and ethically, no lender can ever offer guaranteed approval. Especially when it is about the applicants with imperfect payment records, circumstances are stressful. If a mortgage company commits to you to provide assured funds, then please do get familiar with the reality.

2.     An applicant can only try to prove best possible repay capacity

Yes, this is what happens in actuality. An applicant, whether with a good credit score or bad credit score, needs to prove to repay capacity. Procedures always work in the decided manner.

·         Bank statements
·         Salary slip
·         Job stability proof (last two years at least)
·         Recent financial behaviour (of last 6 months)

There is no escape to the set process and the words like ‘guaranteed’ ‘assured’ have no existence in front of ethical lending.

3.     In place of relying on a fake promise, make workable efforts

Forget about all the glittery promotional lines that show you the mirage with surety of funds. Dreams from open eyes always meet their ultimate destiny of destruction.

Here are the practical ways to follow when you apply for the funds and improve chances of approval.

·  Improve credit rating before you make the mortgage application
The best way to safely play during bad credit situation is to bring a good change in your current situation.

ü  Make timely debt payments
ü  Do not take any new loan/credit card
ü  Do not pay only the minimum due of credit cards, pay the full instalment
ü  Never check your credit score with a loan amount to check the eligibility, it hurts the rating

· Find a broker that can bring you the best suitable deals

It can be difficult for you as a low credit score person to find the mortgage providers. The one that is not reluctant towards your application is not easy to detect. Broking companies know the industry in totality. They have a large panel of lenders, and their contacts in the market are always beneficial.

· Add an additional income to improve repayment capacity

The anxiety of lenders is still on the part of your efficiency to bear a loan. If you manage to arrange any additional income source, it can help a lot. More substantial grounds facilitate smoother approval. Rental income, freelance or part-time work, anything can be beneficial if it adds a considerable amount of Pounds.

The only conclusion can be

You should NEVER believe in exaggerations when it comes to financial decisions. One mistake can cause further loss to your credit rating. Applying at the wrong time, to the wrong lender can leave an adverse impact with unnecessary search footprint on your records.
Stay practical, and you can find a better solution despite the stressful condition of low credit score. 

Comments

Post a Comment

Popular posts from this blog

4 Foremost Things to Know About Mortgage Brokers

Image
Mortgage brokers are an unavoidable part of the real estate industry. However, their selection is a tough task for any borrower . By knowing them deeply, it is possible to make the right decision on them. Even if you are not buying a property, it is best to stay informed for future use. There are 5 most important things about the brokers you should keep in your knowledge. 1) Mortgage brokers paid by the lenders are safer to hire There is no clash on the method through which the brokers get paid. However, usually, the lenders pay them. It is considered the best way, especially for the borrowers who keep a negative image of them due to the brokerage factor. The advertisements that mention  fee-free mortgage broker  online in the UK denote the same message, which means that the borrower is not required to pay anything.   Such brokers are considered genuine. 2) Brokers are different from loan officers It is crucial information. There is a prevalent confus...
Read more

How to Get The Best Mortgage Rate Possible

Image
The rate of interest dominatingly affects the total cost of the mortgage ; this is why the prime struggle is to get a lower price. It is necessary to squeeze the size of the monthly instalments to make them fit in the monthly budget. But the question is, how to get the desirable rates? Well, several ways may help you get the best possible rates on a mortgage. Your stronger finances are the key to best rates Yes, this is true. We keep wandering here and there begging to lenders and arguing on the silly things to get a lower rate. But the prime power lies in our financial conditions. A significant amount of monthly salary, perfect debt-to-income ratio, credit score, registration on electoral roll etc. are your pillars. If you have a stable financial condition, nothing can be better than this. Lenders are always flexible for promising customers. Also, the available choices increase considerably in number. Stability gives you the strength to negotiate on the rate quote. T...
Read more

SHOULD YOU SPEND ENTIRE MONEY ON EVERYTHING THAT SATISFIES YOU?

  When you are in college or about to graduate, you often dream about earning money and living a lavish life. Watching movies and TV series also makes us wonder how we want our lives to be in the future. We are never satisfied with what we have now and always want more. It can be a better car, a big house, a better job, better furniture, better clothes, or shoes. If you start walking on the road where you spend money from your savings on whatever you feel like at that moment, trust me, there is no going back. Are we trying to tell you that spending your own hard-earned money is bad? Not at all, but not spending it wisely is not a great option. Sometimes a person starts using multiple credit cards to meet lavish expenditures and end up in credit card debts. As per the latest research, money is not the way to buy happiness in your life, and we couldn’t agree more. The question comes about how you should tackle your money to lead a more productive life: Ü   Start making a l...
Read more