May 6, 2009

Find A Better Remortgage Deal

If you have been putting off the inevitable remortgage because you think as a self cert borrower you will not be able to get credit, it's time to get up, get active and find something better.

This starts by going straight to a financial adviser. The days of easy self certification are over, unfortunately. Lenders will no longer offer out mortgages without proof of income very easily. They demand details, demand a good credit score and they demand much higher rates of interest.

A financial adviser will spell this all out to you, and then will begin the process of getting you a new mortgage. And this starts with you, not the mortgage. A good adviser will tell you that before they even begin to search their databases for a loan, they will interview the borrowers. This gives them an idea of how much you definitely earn, how much you could earn and how much you could be down if anything goes wrong.

In all this, the key is to be truthful. Self cert borrowers who are now struggling could have been a bit too optimistic when they certified how much they could afford. The key in 2009 is to be realistic and to understand that you have to be able to meet repayments every month.

Once the adviser has a good idea of your limitations and your potential, they will begin to find something better. They will search the whole of the UK mortgage market – thousands of mortgages – to look for a deal that is just right for you. It might be a fixed rate deal, a tracker or even an offset mortgage. They will then show you their findings, explain why they think that loan is right for you and then go through each and every detail, making sure you know what you are getting into.

It is scary to consider a new mortgage now, especially if you are self employed or you earn an irregular income. But there is help out there, and there are still options for you. Just call a financial adviser and see what they can do to make your new mortgage a reality.

Keep up with the latest news and comments on Self Employed Mortgages at the Self Cert Mortgage Blog