After the credit crunch, lenders tightened their rules and restrictions to lending on large loans including mortgages, making it more difficult for people looking to buy property to obtain a loan in the first place. There are, however, ways to get around these stricter rules to ensure you are able to buy when you want to, and get the loan amount you hoped for.
Firstly, using an offset mortgage calculator can show you how much you can save on interest and time on the repayment should you opt for an offset mortgage. If you have a large amount of savings, this may encourage lenders to give you a mortgage on an offset basis as it proves you already have a decent amount of capital to protect the loan and make repayments. Offset mortgages also save you on interest and give you a more flexible mortgage option. Choose the best mortgage calculator online to help you make your decision (most comparison sites will have a free mortgage calculator you could use to make your initial decisions on how much to borrow).
Another way to get around tighter rules is to choose a flexible repayment option which allows you to make overpayments when you have a lot of money coming in and smaller repayments when times are tight. This gives you so much more financial freedom that lenders are likely to be more satisfied that you are not going to default on the loan or miss repayments should you get into trouble. As long as you make a larger payment as soon as your financial situation improves you shouldn’t bear the brunt of higher interest for too long either.
The safest way to get a mortgage with lenders cutting back on mortgages is to have a hefty deposit. If you have some money saved and would like to have a bigger deposit there is no harm in saving for a couple of years and then going back to mortgage lenders with this increased deposit to see what kind of deal they can offer you then. the more money you can put down on a property the more quickly you are likely to be able to pay off the loan so it really does save you time (and money) in the long run. Plus, it makes lenders feel more secure and is bound to get you a better deal which you
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