New figures show that the number of mortgages being approved in the UK is reducing, despite the demand being just a high. This is the second consecutive month where mortgages numbers have declined proving that tit’s harder to get a mortgage.
The reason for the decline in mortgage acceptance rates is being accredited to the stricter rules being implemented by the industry regulators. The Bank of England said that the approvals were 67,135 but that’s down from 69,592 from the previous month.
The mortgage industry was on the increase and expected to show a positive growth in February and March after the positive outlook shown in January. The Bank of England confirmed that in January the mortgage approvals reached record levels since 2007. This has caused frustration among house owners and mortgage advisors alike. The mortgage market is a vital component to the continued economic recovery of the UK, so the additional criteria means fewer people will be able to get a mortgage.
Mortgage Approvals Decline
When people fail to get a mortgage it means the property market stutters and fails to grow. This stops the flow of money around the UK but more importantly it haults people’s ambitions to move property. This results in people being “trapped in their property” and unable to move house.
Whether you’re upgrading to a bigger house for your family, downsizing because the children have left home or divorcing, getting a mortgage is vital.
The problems arise when the application for mortgage is submitted incorrectly. This can affect your credit file and mean it’s difficult to get a future mortgage. New mortgage criteria means you have to be able to afford the mortgage if the interest rates begin to increase. It’s suspected in 2016 the mortgage interest rates will increase again resulting in variable mortgages being more expensive.
How a Financial Advisor Can Help You Get a Mortgage
There are plenty reasons why using a financial advisor or mortgage broker are a good idea when applying for a mortgage, but none more so than the fact they are specialists at understanding the criteria and the changing market conditions.
If you apply for a mortgage yourself and are rejected then this will place a footprint against your credit file. This footprint and being rejected means it could be impossible to get a mortgage, or that your mortgage would be more expensive.
For this reason it’s often best to let professional mortgage advisors apply on your behalf for your mortgage. If a mortgage advisor thought you couldn’t get a mortgage because of the criteria then they would tell you and at least it would protect your credit file.
If you want help with your mortgage application give My Financial Helpline a call today on 0800 783 4440 or complete an enquiry and we’ll call you back.