| There are usually two reasons for not being able to | | | | While the credit crunch continues to exist, it is much |
| get a mortgage. The first is you may not have enough | | | | more difficult to find 90% or 95% mortgages and this |
| deposit for lenders to be sure the property can be | | | | trend is likely to continue through 2009. Ideally, it's worth |
| bought without any loss to them, and secondly, you | | | | using this time to save as much as you can for a |
| either don't have the income to support the mortgage | | | | bigger deposit or find someone else that will buy a |
| you want or have a difficult credit history which can | | | | property with you who can help raise the deposit or it's |
| put lenders off. | | | | that time to speak very nicely to your mum and dad! |
| Deposit Not High Enough | | | | Not Enough Income |
| Typically financial institutions offered mortgages up to | | | | The only real way of securing a bigger mortgage is to |
| 95% of a property's value. Prior to the credit crunch, | | | | find more income. You could do this by seeing if there |
| some mortgages were offered at over 95% but this | | | | are extra hours you could do at work, or if you could |
| has caused problems for many buyers as prices have | | | | get a better paid job, or if your partner could work if |
| now fallen below the amount they have borrowed. | | | | they don't already. However, it may be better to |
| During the credit crunch, the best mortgage offers | | | | purchase a property you can afford now that you can |
| were saved for those with 25% or more equity in their | | | | build onto in the future when you can afford to. |
| property as they are seen as a 'safer' bet. So if you | | | | Bad Credit History |
| have more than a 25% deposit, then you are likely to | | | | Always search as many mortgage offers as you can |
| be able to secure mortgages at a good rates. | | | | and seek help from someone that offers completely |
| However, if you have less than a 25% deposit, | | | | independent financial advice. However, make sure that |
| unfortunately you are seen as a greater risk and | | | | anyone who advises you is fully qualified and that they |
| lenders will now charge you higher rates and higher | | | | are licenced of the Financial Services Authority. |
| fees to secure a mortgage. In some cases you will | | | | For more information on mortgages, visit our buying a |
| also be charged for a mortgage indemnity too. This is | | | | home section where you can download our Buying a |
| an insurance that you have to pay for, but it actually | | | | Property eBook. |
| protects the lender if you default on your mortgage. | | | | |