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Problem Remortgages What Are They?
| A problem remortgage is quite simply another way of describing a troublesome remortgage application. This can occur for a number of reasons. For example this could be down to affordability issues, an adverse credit history, a non standard property type or even one in which an applicant has no proof of ID to verify money laundering requirements! A standard property type would normally be considered as a Brick and tile construction. This may also include stone and slate also. Where a property is of a non standard type, this may include a concrete construction (Usually referred to as a pre-fabricated type) or a steel framed construction. Many mortgage lenders in the United Kingdom are apprehensive of many non standard construction types due to the fact that on the whole they were not designed to live as long as a standard one when they were first built! There are many different construction types which fall under the banner of a concrete construction and many lenders will assess each one accordingly. Within the sub-prime mortgage industry it is common for many lenders to impose a maximum loan to value limit below that of a mortgage scheme for a standard one. A problem remortgage application can also occur where a borrower has a history of poor credit. Adverse credit comes in many different forms, for example this could be down to having missed credit card or store care payments, defaulted loan payments, missed mortgage or secured loan repayments or even a County Court Judgement! Generally speaking the adverse credit mortgage market is serviced by a wealth of sub-prime mortgage lenders however in recent times many High Street Banks and Building Societies have moved in on the act. Sub-prime mortgage lenders will take a more favourable view of a borrower with an adverse credit past and as such they are more likely to approve a problem remortgage application as opposed to many of the High Street lenders. Affordability is a very important issue within a remortgage application. Often issues can occur where an applicant is unable to verify their income by way of payslips and P60s. These individuals will of course usually be self employed. However in today's market it is relatively easy to find a lender who will allow you to self certify your income. This can also in fact be an extremely useful facility for employed applicants as well as self employed applicants who have various streams of income. Whatever your problem is in respect of your remortgage application it is likely that you will be able to find a lender who will be prepared to take on board whatever issues you may have. It is worth persevering as this could ultimately help you to save lots of money in the long term. |
About the Author
James Copper is a writer for Repossession Stopper where you can find information on troublesome remortgages
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