Mortgage Information & Resource

Mortgage ABC is an online mortgage information resource, for those seeking general information on the various mortgage options available in the UK mortgage market.

Mortgage ABC is an ideal place to commence your mortgage search; whether you are looking to finance the purchase of your first property or a seasoned home buyer.

Locating the best mortgage deals in todays mortgage market is a time consuming task and carries many pitfalls, therefore the best course of action is to assess your current financial situation before applying for a mortgage deal:-

Do you have a good or bad credit history?

Having a clean credit history when seeking a mortgage deal is an advantage in today's mortgage market. Clean credit histories lend themselves better to mortgage deals, than those with a bad credit history. The benefits of a good credit history are lower interest rates, smaller deposits, longer repayment terms and lower arrangement fees.

If you do have a bad credit history and are seeking a mortgage, don't lose hope. There's a myriad of bad credit mortgage lenders in today's mortgage market, competing to secure your mortgage business.

Bad credit mortgage companies cater for those with Repayment Defaults, Arrears, CCJ's, IVA's and even Dis-Charged Bankrupts. So no matter how bad it may seem, there will be an option open to you.

How much can you afford, for a mortgage?

By assessing your current financial status and ability to repay a proposed mortgage repayment you are acting in your own best interests. Don't overcook the mortgage repayment figure, this can lead to increased stress levels and quite often particularly uncomfortable situations.

Many mortgage lenders will lend 3.5 times the annual income of the applicant, joint mortgage applications can vary from 3.5 to 7 times the total annual salary of both applicants..

Typically the higher the income multiple the larger the mortgage deposit. Larger income multiples also carry a greater risk to the mortgage lender and they will subsequently require the applicants to have a very good credit score. So make sure you are realistic in you're ability to secure the necessary mortgage debt.

Do you have a deposit for the property?

You don't necessarily need a deposit to secure a mortgage, for instance many mortgage lenders offer 100% mortgages or even 125% mortgages. Of course to attain a 100% mortgage or more, there needs to be a god business case for the mortgage lender ie., property is in need of development whereby the market value will dwarf the initial cost after the redevelopment.

Mortgage deposits typically start from as little as a few percent. The level of deposit required for a mortgage is purely dependent upon the applicants credit score and loan to value.

First time buyers who do not possess a deposit, can apply for what is referred to as a FTBI (First Time Buyer Incentive) government run home buying incentive for UK citizens.

Do you feel secure purchasing in the current housing market?

We have all seen the housing market go from being relatively stable and predictable to being completely out of control. Houses are at an all time high and some say they are set to spiral in price as financial mediators speculate a fast approaching recession.

Are you looking for a quick win (buy then sell in the same year) or a long term investment (more than 5 years)? No one really knows where the mortgage market will go, but one thing is for sure - Over a long period of time property will almost always make a profit.

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