Have you ever been turned down for a mortgage, and now you want to try to get another one? Chances are you?re not alone. Most people suffering from a poor credit history tend to get declined the first time they apply for a mortgage. However, to avoid chances of the same thing happening to you, there are a few things you could try.
Steps to Getting the Perfect Mortgage Deal
Every individual has his or her own unique needs. Therefore there is no such thing as a ?perfect? mortgage deal that meets everyone's requirements. What may be good for one person need not be the best deal for another. That?s why it is so important to assess one?s individual requirements and goals first before taking the plunge.
Here are some guidelines to follow while shopping for the best next time mortgage deal:
- Order your credit report: Most people do not realise that their credit report might be marked with several defaults, notices or CCJs without their even knowing it. Even a small error on your report could cost you significant losses in terms of the mortgage payment you would eventually pay. Therefore, it would be prudent to get a copy of your credit report from the respective credit reference agencies such as Experian and assess it thoroughly. If you do find any inaccuracies or errors, try and rectify them before going for a best next time mortgage deal. If the inaccuracies are not fixed, you might risk being declined a mortgage finance altogether.
- Keep a tab on interest rates: Mortgage interest rates are as dicey as the weather in London. They fluctuate with frequency, and it's quite hard to predict what they'll do next. There are several factors that determine the current interest rate. Having an idea of these indicators can help you determine if the rate is going to rise or fall. You can then make a more informed decision about the best next time mortgage deal. Some of the factors that determine the rate include:
Gross Domestic Product (GDP): This refers to the total output of goods and services as a result of labor. A rapid increase in GDP can signify inflation while a negative growth can mean lowering of interest rates.
Consumer Price Index (CPI): This refers to the average change in the prices paid by consumers for a fixed amount of consumer goods as well as services. Similar to the GDP, the rapid rise in CPI tends to result in rising interest rates and a decline results in lower interest rates.
Producer Price Index (PPI): This indicates the average change in the rate of selling price of goods received by domestic manufacturers of goods and services. Higher PPI indicates rising interest rates while lower PPI indicates lowering of interest rates.
Employment situation: This is two-fold in nature. One refers to the unemployment rate while the other refers to the ratio of payroll employment. Lower unemployment rate can result in higher interest rates and vice versa.
Housing starts: A higher rate of housing starts indicates a high interest rate and vice versa.
- Educate yourself: While shopping for the best next time mortgage deal, it?s imperative to have sufficient knowledge of the various types of mortgages. It?s quite similar to shopping for vegetables without knowing the different types of vegetables available. If you do not have sufficient knowledge about mortgages, you risk being taken for a ride by some of the lenders. You may also not be in a position to bargain and get the best deal possible.
- Financial objectives: As mentioned earlier, every person has his or her own unique financial objectives. That?s why it is essential to do a self-assessment of your own goals. Questions like:
- What is the duration of stay in the new house you plan to buy?
- How much monthly payment on the mortgage can you afford?
- Do you have sufficient amount for paying an initial deposit?
- Is it important for you to pay off the mortgage as soon as possible?
- Is your income stable and regular or does it fluctuate?
Getting the answers to these questions can help you identify the best kind of next time mortgage deal for you. It will also help you save more money in the long run.
If you'd like to get started finding a the best next time mortgage deal for you, take a moment to fill out our short form, and one of SimplyFinance's representatives will contact you to introduce you to a mortgage broker that will work with you to find the best next time mortgage deal available. In addition, they'll be able to answer any mortgage questions you may have. Give it a try! It's quick, easy, and you're under no obligation to take the quote you're given.