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Tuesday, September 15, 2009

Will I get a mortgage?

The answer is maybe...

It depends on how a lender sees you as a financial risk. It's much more difficult than the pre-credit crunch days of 2 years ago.

The outcome will depend on

1 Your salary
2 Your outgoings
3 Existing credit commitments
4 Past credit history
5 Size of deposit you can put up

#4 is particularly important. People always look surprised when I reveal to them a lender will be reluctant to give them them £150 000 because they struggled in the past to pay a relatively small credit card or mobile phone bill!

Big salary, low level of outgoings, decent sized deposit.....no problem
Low salary, big outgoings, big debts, no deposit...no comment.

It's worth remembering, the credit crunch began when US banks lent to people who could not afford to make repayments....

Posted by Sean Wilson, APFS, Independent Financial Advisers (IFA), Swindon, Wiltshire.

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