For most people, getting a mortgage is essential when the times comes to buy a new house. Although we might wish it were different, most of us don’t have the money to pay for a house outright. There are some factors that could make it more difficult for you to get a mortgage. You should be aware of these factors. Of course, they don’t all necessarily lead to rejection. But they might make the whole process a little bit more tricky and troublesome for you.
Application Form Mistakes
Filling out forms is something that you end up doing a lot of when you are buying a new home. But that doesn’t mean you can let your attention drop for a single second. If you do, you will end up making the kind of mistake that could derail all your efforts to get a mortgage secured. Lenders are very picky, and they take the application forms you fill out very seriously. If you do something wrong or make a mistake, rejection awaits you. You will have to go back to the start and try again, which is a real pain when you are already dealing with the stress of moving.
Nearby Commercial Properties
If the home you’re buying is next to or connected to a commercial property, this could make it harder for you to get a mortgage. There are a few reasons for this. For a start, it could make the property harder to sell in the future. The lender has no idea what that commercial property could become in the future. If, for example, the shop that you’re flat is above turned into a bar, then the opening times would lengthen and it would drop in value. This is what mortgage lenders tend to be very wary of, so keep this in mind when you are choosing a home.
It’s often the case that older people have a tougher time getting a mortgage than younger people. This might seem unfair but this is just the way it is. Young people are easier to give long-term loans to because they have more of their life stretched out in front of them in which they can pay that money back. However, there are some specific options to explore when looking for ways to get a loan as a slightly older person. For example, 55+ mortgage from 1st UK are available if you need an easy mortgage and you’re 55 or older.
Bad Credit History
Bad credit histories are never looked at positively by lending companies. That’s the way it’s always been and probably always will be. If you want to get a mortgage when you have a bad credit history, you will have to be willing to accept some pretty unfavourable terms. This is because the lender will want to protect their investment, and they’re not going to risk lending you money on good terms if they think you might not pay it back. It’s certainly not ideal to have a bad mortgage deal, but it might be better than having no mortgage at all.