Does loyalty to your bank give you a better deal?

Is it easier to get a mortgage if you apply through the bank where your personal/business account is?

We are often asked this question and there is common perception that loyalty to your own bank pays off.

Whilst it can be worth checking their best products, it is very important to compare it to other lenders to see if it is indeed the best deal you can get.

Lenders may have exclusive products for their own customers, but it is not a guaranteed option.

Often, another lender may have a better interest rate for you and be sure that no lender will ever tell you that their competition may offer you something much better Each bank will only offer the best they have but is it the most attractive option you can get?!

If you contact a broker, they can collect all the details needed to do a thorough research to see how your bank’s deal compares to others.

Also, although verification checks may be easier sometimes with the bank where you have your own account, many lenders now access systems which can identify customers very quickly. Don’t assume that your own bank will be less thorough with their checks as any regulated lender has to do the due diligence checks to make sure customer’s circumstances meet their criteria.

Before you decide which mortgage lender is best for you, always speak to a suitably qualified broker.

Should you have any questions, do get in touch.

Does credit card help your credit score?

Have you heard that getting a credit card can help your credit score? Before you do anything, read this article.

When you want to apply for a mortgage, your credit worthiness is looked at by the lender. They score you and search through your credit history to see if you are a good candidate to lend to.

If you have never had any financial liabilities, your credit history may seem a little flat…. Indeed, one way to build up your credit history may be by sensibly using a credit card. There is a special, score building credit card type, and by using it and regularly repaying it, you build your credit worthiness.

Be careful though, as using up too much of your card’s balance may cost you interest as well as it may affect how much the lender would offer you when taking a mortgage. Also, remember to pay it on time each month – it is very important.

Before you decide to get a new credit card, always first speak to a broker!

Opening any new line of credit may lower your existing credit score and it may lower the amount you will be able to get from the lender! This is surely not the outcome you want!

A broker will look at your credit score and your credit report and will be able to tell you if you need to work on it or if it is good enough for mortgage purposes.

If you have any questions, feel free to contact us.

Is deposit from a loan a good idea when buying a house?

One thing is certain: in most cases, when buying a house, you will be required to have a deposit. So what should you do if you want to buy but don’t have enough deposit? Would taking a loan or borrowing from other people be a solution

We have been recently approached by some customers who had borrowed so they have a deposit and they were very disappointed to learn that this would not help them!

First of all, whilst lenders usually accept a gifted deposit (parents, siblings, grandparents can gift), on condition it is not repayable, only a very limited number of lenders would consider if the deposit was borrowed from a third party or from another lender. By taking this step, you are going to limit yourself extremely in terms of lenders’ choice.

Secondly, a loan for deposit may not only lower your credit score but it will also affect your affordability so the amount you could borrow as mortgage may get reduced!

Deposit coming from a borrowed amount is one of most common issues we see daily. Remember, before you take any financial decisions, you should speak to a broker first. Otherwise, you might end up with a loan but with no mortgage in the end!

Contact us if you have any questions.