Hallmark Independent Financial Services

Not so very long ago mortgages were a pretty straightforward affair. We had the traditional building societies and then came the banks. Interest rates were more or less the same across the market and lending criteria was generally 3 x the main income plus 1 x the secondary income. Well these days it’s very, very different!

There are typically well over 10,000 different mortgage products available at any time and it’s not uncommon for a single major mortgage lender to themselves have over 100 different mortgages in its product range at any one time. Furthermore, lending criteria, interest rates, terms and conditions and new borrower incentives vary enormously. The choice is huge:

Many of these mortgages carry Early Repayment Charges. Some aren’t too bad and finish when the initial special rate finishes, these are known as a Tie-ins, but many have extended early repayment charges, known as Over-hangs, which can be a real shock if not explained or forgotten about. But on plus side, such is the competition in the mortgage market, many mortgages come with free or refunded mortgage valuation fees, or free legal costs or a contribution towards legal fees, and other incentives.

We use a whole of market mortgage research system which is updated daily so we always know exactly what mortgage products are available but we also draw on our own extensive experience to ensure we match your circumstance and credit history with the right lenders.

In an attempt to secure your business as early as possible, many lenders, mortgage brokers and mortgage advisers alike are keen to complete a Decision In Principle (DIP) or Approval In Principle (AIP) on a prospective new customer, and you might think that this is helpful. But the problem is that each time you're DIP'd or AIP'd a credit search is carried out on you which leaves what we call a "footprint" on your credit record, i.e. record of the search. We actively discourage this practice.

The fact is that every search of your credit record causes a slight deterioration in your credit rating until the search eventually expires. So when shopping around for a mortgage (or any other form of credit or loan), if you allow yourself to be DIP'd or AIP'd by over zealous lenders, brokers or advisers, when you do finally properly apply for your new mortgage you could actually be declined or not be allowed to borrow as much as you need, even with a lender who originally accepted you. This is a common trap, especially for those searching for a mortgage over the internet.

Most people simply do not need to be DIP'd or AIP'd, even First Time Buyers. An experienced mortgage or financial adviser should be able to tell you with certainty what your mortgage prospects are. Now if you think there is something in your credit history which might effect your credit rating and therefore your likelihood of being accepted for a mortgage, carrying out a DIP or AIP will only worsen your credit rating. Speak with us first, we'll advise you on how to obtain a copy of your credit file, which is simple procedure, and based upon the information in your report, we'll advise you on which lender(s) will be most helpful to you. Only then would we recommend carrying out a DIP or AIP with the chosen lender.

It’s not actually a minefield but the choice can be mind boggling and there are a few hidden traps, so more than ever, seeking experienced independent advice to ensure you choose the right mortgage is so important, and it could save you a lot of time, disappointment, and £000s.

If you would like to speak with one of our Advisers about personal or business protection, or to arrange an appointment, please call us on LoCall number 08456 120 375 or email us your contact details with a preferred contact time by clicking here.
We look forward to hearing from you.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Mortgages

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