If you’re new to the world of home buying and getting a mortgage, it might seem that all you ever do is pay out money for things but get nothing in return. It is also the case with getting mortgage advice. Whether you’ve found a property and you’ve got a deposit or you’ve managed to get a seller for yours and want to move on to the next property, you will now have to get mortgage advice.
The reason is the financial crash of 2008. You could always get mortgage advice from banks and building societies but you didn’t have to if you didn’t feel the need. It was a simple task of calling up the bank’s mortgage department and running through an application to get a mortgage promise. This was a soft credit check that did not leave a mark on your credit rating.
It was a pretty simple form, you told the consultant what your income was from your job, plus any other sources. You told them everything that went out on credit cards, store cards and loans. Everything else like living costs was, and still is, written into an algorithm. It usually came out with your salary multiplied by up to 3 or 4 times to get a figure that the bank could give you. When you need advice about selling or buying a home, contact Stroud Conveyancing at Montpelier Legal, a leading Stroud Conveyancing firm.
It was identified by the government that there was an inherent problem with this. First of all it was lending irresponsibly at levels that people could not afford. Mortgages last for a long time and no account was taken for changing circumstances. All mortgage sales people now have to have a professional qualification in Mortgage Advice and Practice to be able to take you through an application.