Mortgage Lenders And Specialist Lending

Mortgage Lenders And Specialist Lending
Fierce competition amongst mortgage lenders in​ recent years has brought about great news for the​ consumer - the​ Banks & Building Societies scrapping for business has only resulted in​ a​ greater depth of​ choice and value,​ for nearly every type of​ borrower,​ from those looking to​ obtain a​ mortgage for the​ first time through to​ those looking to​ remortgage their existing one .​
In todays market,​ the​ traditional one size fits all type of​ mortgage has long disappeared - individual borrowers now have individual requirements and objectives,​ not to​ mention individual credit backgrounds too! It is​ true to​ say that regardless of​ your credit history or​ personal circumstances,​ there are mortgage products to​ suit nearly every type of​ borrower .​
If your mortgage requirements are less than conventional,​ you​ may experience difficulties securing mortgage finance through the​ usual channels,​ by way of​ approaching the​ High Street Banks and Building Societies.
Traditional High Street lenders have long been the​ preserve of​ those borrowers with impeccable credit records - many of​ these lenders will be extremely anxious to​ deviate from their ideal customer profile .​
In many cases where a​ borrower has a​ blemished credit history,​ an​ initial computerised credit scoring system will result in​ an​ application refusal .​
There are a​ now a​ huge selection of​ specialist/sub-prime mortgage lenders,​ many of​ whom that are prepared to​ consider most types of​ mortgage application - from those with the​ most severe of​ credit records,​ to​ those self employed borrowers with little or​ no proof of​ income.
In many instances,​ a​ borrower will find themselves being redirected to​ the​ world of​ specialist lending after having been turned away by a​ High Street Bank or​ Building society for whatever reason .​
These types of​ specialist lenders,​ once regarded as​ a​ niche market,​ have become widely recognised throughout the​ mortgage industry and provide an​ increasing important role .​
Many specialist/sub-prime mortgage lenders may only be accessed through an​ intermediary such as​ a​ mortgage broker,​ Independent Financial advisor or​ mortgage network - Customers must first go via these channels in​ order to​ access many of​ these lenders mortgage products.
Self Employed Mortgages
Self employed borrowers have always been treated differently from their employed counterparts .​
They have always been penalised for their status in​ the​ past,​ usually in​ the​ form of​ higher interest rates,​ or​ an​ interest rate loading .​
Self employed borrowers are still today perceived by many Banks & Building Societies as​ a​ higher lending risk unless you​ are able to​ provide backup of​ your income in​ form of​ two or​ three years of​ accounts and six months of​ bank statements .​
There are many specialist lenders who recognise the​ sheer volume of​ self employed individuals in​ the​ workforce,​ well over four million and thus make a​ greater effort in​ accommodating the​ borrowing needs of​ such individuals .​
They may not offer the​ lowest rates on​ the​ market however their mortgages are still competitively priced and can offer greater degrees of​ flexibility too .​
Buy to​ Let Mortgages
Buy to​ let remortgage products have long been the​ preserve of​ the​ specialist lender .​
The buy to​ let market has attracted a​ huge number of​ landlords in​ recent years as​ escalating house prices and a​ greater need for low risk investment has made property a​ very viable option in​ which to​ invest in.
Many of​ the​ mainstream lenders have since jumped on​ the​ buy to​ let bandwagon however it​ is​ worth considering that specialist lenders often have more experience of​ the​ buy to​ let market .​
Approaching a​ mortgage broker can often be a​ great place to​ start in​ researching your specialist lending needs .​
As previously mentioned many of​ the​ leading specialist lenders are only available through an​ intermediary however most mortgage brokers will have access to​ a​ wide variety of​ these different lenders.
A mortgage broker may charge you​ a​ fee for there services however this can at​ times be negotiated in​ light of​ the​ fact that most will also receive a​ commission from the​ lender on​ completion of​ your mortgage application .​
You will also notice when doing your research that most of​ the​ specialist lenders are in​ fact lending arms of​ the​ major mainstream Banks & Building Societies.

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