Vanishing Mortgages

You might be thinking that the computer will tell you that you can’t get a mortgage. In fact recent headlines have been talking about taking a lot of mortgage products off the market, so that it is harder for you to get the mortgage you need or want. The truth is that big banks are increasing their rates on personal loans because of the credit crunch. The credit crunch has also had a limiting effect on the mortgage options that you have. The fears are in some way true that mortgage options are not as plentiful, but this shouldn’t allow the fear to get out of control. Just because some items have been removed doesn’t mean you will be rejected completely from getting a loan.

At the beginning of the year we did start to see a lot of mortgages get taken off the market. In fact more than half the banks in the UK have taken some of their loans away. This doesn’t mean there isn’t something there though. These lenders have been replacing the mortgages and other loans with personal loans. The personal loans have increased in rate, but they are still there.

In two weeks we have seen five major UK banks push for an increase in rate. The borrowers who are looking to take out a loan need to be cautious, but not afraid. Caution allows you to choose a product that will work for you when you need it to. For example if you are struggling with your debt a loan can save you from that as long as you are careful.

Borrowers should check the fine details in the loan agreement before signing. You should understand the details and what the loan will do. There can be some surprises such as penalty charges that you were not aware of if you don’t read. Paying off a loan early can be costly.

You should also know that a loan rate quote doesn’t mean that is what you will get. The loan company may offer you something higher after the initial search. There are typical rates offered, but these are not always awarded. Things will depend on the debt, income, and credit history that you have. In fact some rates are going to be higher because you are seen as more of a risk. You may also get a lower rate if you take out more money than you need. So ask lenders what their typical loan rate is and then choose. You may find that it is too high or it could be what you are looking for. It is worth checking out the competition to make sure you are satisfied and not the bank.

Don’t assume the high street banks will be offering you a better deal than other places. They could be overcharging you without you really understanding why. Remember that you only want to apply for one loan. By applying for more than one loan you could get rejected because you are hurting your credit score. By applying to the company for a loan that you are more likely to get you are saving yourself from other issues. You could be risking your credit score for nothing. Only allow one company to access your scores as well.

By following the rules and making comparisons you can be saving yourself from some issues down the road. Be thorough. Even on a personal loan , if you don’t have collateral to risk you can still be liable for the loan. By having a larger amount for the loan you could save money over time depending on the terms as well.

Back To Financial News May 2008

Are air miles credit cards right for you?
Things To Know About Bad Credit Credit Cards
Reasons For Having Balance Transfer Credit Cards
Advantages of Business Credit Cards
Consumer Credit Act Section 75
Cornwall Debt Increases
Credit Card Cloning
Credit Card Scam Unearthed
Credit Cards and Web Trade
Expensive Credit Cards
Gains for Credit Card Thieves
Government Help on Loans
Insurance and Refunds
Insurance Price Issues
Japan Investments
Lost or Stolen? How to Handle Credit Card Issues
Obtaining a Personal Loan
Payment Protection Insurance Scandal
All About Personal Loans
Police Credit Cards
What is the point of prepaid credit cards
Repossessions on the Rise
Vanishing Mortgages
Watch Your Credit Card Bill