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Unfortunately the effect of the Credit Crunch now means that many previously available Bad Credit Mortgages (sub-prime) have been withdrawn from the market by many of the big mortgage companies.

In the last few months radical changes in the mortgage marketplace in the UK have had a big impact on what is currently available to those looking for a new mortgage.

Anyone hoping to get a remortage or new mortgage deal currently in the UK should be aware of the following facts.

If you know you are going to need a mortgage then make sure that you start the process well before the date on which you require the money.

Recent recommendations suggest that you should start looking at least 3 months in advance because of the fact that the right mortgage or remortgage is now much harder to find.

Some companies will still be advertising attractive interest rates but be aware that these may not be obtainable unless you have extremely good credit. If you have a lower than good credit score or rating you are unlikely to find that you can get these rates.

Often there may also be a hefty arrangement fee to be paid to get these mrotgages.

Any first time buyer looking for their first mortgage are going to find that the deposits that the mortgage companies require are going to be much larger than previously and the income multiple used in the calculation of what they will lend have been severely reduced.

So make sure you know in advance exactly how much you will be able to borrow.

If your current great mortgage deal is about to end then you really should contact a mortgage adviser for some professional help, as they will know the best deals currently available for you to apply for.

If you have a high Loan To Value on your current deal then this advice is even more important.

The actual number of different mortgage deals available has dropped considerably and it makes sense to contact a mortgage broker as they will know the mortgage market well and will be able to advise you properly.

If you are a landlord looking for a buy-to-let mortgage or if you need a buy to let remortgage then make sure your rental income will be enough to cover the mortgage repayment, as well as you other expenses, as many lenders have revised their criteria for buy-to-let mortgages and remortgages.

You also need to check your credit status to make sure that your credit score is as high as it can be as it is now only too easy to get rejected from many mortgage applications.

Your credit report is checked by all potential lenders and you need to make sure that there are no bad entires that are going to mark you down.

The three main credit reference agencies in the UK are currently offering free 30 day trials on their personal credit report services with instant online access.

So take this opportunity and signup for a Free Credit Report and then check it and fix and problems you find before you apply for mortgages.

Get a free credit report from each credit reference agency and fix the problems on each one as when you apply for a mortgage or remortgage you cannot predict which agency will be used for your credit check.

To ensure that all bases are covered and that any issue on any credit report is resolved you will have to get free access to all three credit reports.

Filed under: Finance