10 Top Tips to Bad Credit Mortgages - Part 2
Looking over the final 5 in our bad credit mortgage 10 top tips.
Here we will look at what you should tell your mortgage broker, bad credit mortgage documentation, choosing the right solicitor for a bad credit mortgage, settlement figures for your existing mortgages and a little about keeping a cool head when applying for a mortgage with bad credit.
6. Be honest with yourself when applying for a mortgage with bad credit
Be realistic in what you can afford and with your situation. A lender may deem a mortgage affordable but only you will know if you can truly afford the new repayments - its far better to be realistic and make sure your happy with any new payments so they, and any existing debts are affordable, if you feel you can't afford the new repayments speak to your broker about it as they be able to help or answer any concerns you have or confirm what you are thinking.
7. Get information or documentation to the lender as soon as possible
We have seen fairly straight forward mortgage applications take twice as long as they should due to the applicants not providing information or documentation when it was requested. It is important to act on requests for information or mortgage documentation as soon as possible so as not to miss out on the mortgage deal being offered and to help complete on the mortgage as soon as possible.
8. Choose the right solicitor
Choosing the right solicitor to handle the conveyancing is important for any mortgage - with a bad credit mortgage application we would recommend using a solicitor that operates on a 'no completion no fee' basis. That way if the mortgage does not complete you will not have solicitor fees to pay.
9. Check settlement figures - don't guess at what you owe
If you are applying for a bad credit remortgage, you should request settlement figures from your existing mortgage lender as soon as possible - especially if you have mortgage arrears. You should also request a settlement figure for any secured loan's you have on the property as some secured loans have very high redemption penalties and you may find that when the solicitors apply for settlement figures they come back much higher than you were expecting which may mean you have to change the mortgage product being applied for.
Getting settlement figures - even if its just verbal confirmation from the lender to the nearest £100 on what the settlement figures are is better than guessing and will enable you to feel much more confident about what is required to clear your existing mortgaged finance.
10. Don't get too stressed when applying for a bad credit mortgage
Not getting stressed may not sound like brilliant mortgage or debt advice but applying for a mortgage can be stressful at the best of times - include the terms bad credit or adverse credit and you could find your blood pressure going through the roof! Stay calm, keep everything in perspective and act rationally and professionally. If there are problems to overcome with your bad credit mortgage application they will be dealt with much quicker and easier if you keep a clear head.
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