The economic situation has been worsening recently, and we do not seem to see any hint of light at the end of the tunnel. In an attempt to protect themselves, ?banks and credit card companies are shying away from riskier customers by lifting rates and lowering credit limits - adding to borrowers? woes after the Bank of England decided not to cut the base rate this week,? according to Sharlene Goff?s and Steve Lodge?s article, Borrowers face higher rates and lower limits, on FT.com. This means more work for you, when looking for a great mortgage deal.
Mortgage lenders will try to protect themselves a bit by passing on more costs via interest and increased fees to borrowers, as previously mentioned. For example, ?Alliance&Leicester, the UK?s ninth-largest mortgage lender, has increased interest rates for new customers with less than a 25 per cent deposit,? according to Gill Montia?s article on Finance Markets? website. To help you get the great mortgage deal that you want, keep in mind the following. As previously alluded to, risky customers looking for a great mortgage deal , those with a poor credit history or those looking to borrow more than 75 per cent, are being charged extra fees. So, work on your credit history and on saving a sizable down payment. In order to work on bad credit towards the goal of a great mortgage deal, you need to know what your credit score is. Some information can be secured for free online, whilst more detail will cost you. This is money well spent, however, because you cannot fix an unidentified problem.
Another of the ways to obtain a great mortgage deal, if you are working with your bank, is to research some of the going mortgage rate and then ask for a great mortgage deal when you meet with your bank?s mortgage representative. Finally, there are numerous websites with handy search engines that will do the searching for a great mortgage deal for you. For example, fill out SimplyFinance?s short mortgage form and let them canvass the mortgage deals they represent to find a great mortgage deal for you.