The Large Mortgage Service has been developed in direct response to the recent Mortgage Market Review that was designed to tightened the guidelines for mortgage lenders in the United Kingdom.
Overnight the new rules made it more difficult for borrowers to secure Mortgages, in what already was an increasingly difficult market place for attracting Mortgage funding. The aim of Unusual Mortgages is to help and advise borrowers in finding their way through this maze of new rules and regulations.
We have noticed that there have been a number of groups of borrowers that have been effected by the new rules, but the rules especially effect those who happen to be Self Employed, those who may be looking to take out Larger amounts of borrowing and those in multiple mortgage situations such as Let to Buy or Buy to let borrowers.
Rule Changes
The main change in the rules is that Mortgage Lenders are now directly responsible for ensuring that mortgages are affordable for the applicant. On face value you would think that this would have been the case already, but in the aftermath of “Self Certified” Mortgages the authorities are making it perfectly clear that the Bank and Building Societies will be held to account for any poor lending decisions they make.
Income
This means that lenders are now being extremely careful with their lending practices, with an applicants Income and Affordability under more scrutiny than ever before in the UK Mortgage Industry. Each Mortgage lender has introduced it’s own version of the Income and expenditure calculation for residential mortgages, which has created massive confusion and frustration for borrowers.
Affordability
The old system of lending mortgages on a direct multiple of an applicants salary has been abolished, with total emphasis being placed on a person’s net income after taxation and their outgoings. Lenders are putting applicants expenditure under the microscope, with some of them even scrutinising discretionary spending like Social expenses, Insurance Premiums and Pension payments.
Self Employed
Self Employed people have found it increasingly difficult to get mortgage funding with them now faced with difficult decisions trying to balance securing mortgage and home finance, with the levels of taxation they pay on their annual tax returns. Lenders now have strict policies and guidelines on what is counted as Self Employed income and what they will accept as proof of this income.
Landlords and Multiple Mortgages
Letting Landlords or those looking to take multiple finance in a Let to Buy situation have also found it increasingly difficult to find mortgage finance. It has almost become frowned upon to ask mortgage lenders for both a Buy To Let Mortgage and a Residential Mortgage at the same time. Lenders are now placing great emphasis on the overall amount of mortgage lending that a borrower has in place.
Whole New World
Mortgages are now a “Whole New World” and Unusual Mortgages are experts at helping Self Employed people utilise their Income to secure mortgage finance and specialists at helping people with complex or multiple mortgage situations. We charge reasonable fixed fees for our advice, instead of percentages of your advance and have recently saved people literally thousands in broker fees.
Visit www.unusualmortgages.co.uk for our free Large Mortgage Fact Sheet
If you require more information on Large Mortgages, Buy to let, Self Employed or Executive Mortgages you can contact Unusual Mortgages on UK 0845 474 3075 or International +44 1404 45397, email at enquiries@unusualmortgages.co.uk