Fitting In

You've been invited to a party! You arrive slightly late. Have you ever walked into a room full of people and felt that you didn't quite fit in? Wearing the wrong label or hairstyle - or the people, and or the music, just aren't your bag. This can happen to even the most confident person at times.

Many people feel these unwelcome signs while trying to obtain a mortgage. Prejudice can come in many forms and some requirements demanded by many of the major lenders may give this impression.

Lenders often have criteria that impair a clients ability to get a mortgage. Sometimes you could be mistaken for thinking that they don't wish to lend any money at all! They require a deposit greater than can be raised - it is not uncommon to find oneself with a salary that is smaller than needed. Self employed clients may find it difficult to prove their earnings through a lack of annual accounts.

An increasing number of new lenders in the market place are catering for people who do not quite fit the mould. They may allow you to borrow 100% of the sum required or borrow money without any proof of income providing you have a suitably large deposit. They may just adopt common sense and gauge your ability on your net income minus your outgoings.

Mortgage Without a Deposit

It may not be necessary to have any cash up front to buy a property. Some lenders will offer 100% of the purchase price to borrowers who can provide pay slips along with a good credit history. You could even borrow your legal fees. This scheme can be particularly useful for someone in the rental trap. You might as well be investing their money into your own property. These schemes are often at reasonably competitive rates and sometimes offer fixed rates of 2 to 5 years.

Mortgage Without Proof of Income

Some lenders are willing to offer mortgages without any proof of income. You will need a deposit of at least 15% of the value of the property that you're looking to buy.

These schemes are particularly suitable for the self employed and handy if you do not have your accounts ready. These schemes would expect a clean credit history. They would charge a rate slightly higher than the high street standard. However, they provide a stepping stone to achieving a good mortgage history. You may not need to pay more if you only wish to borrow less than 60% of the value of the property.

Borrowing More Than The Norm

A figure often used in calculating the amount someone can borrow is three times salary or two and a half times a couples income. A majority of building societies use this outdated formula. It may be worthwhile looking a little further afield as Lenders are beginning to relax their criteria in a number of areas. If you wish to borrow less than 90% of the value of the property they may lend up to four times a sole income or 2.75 times joint income.

A 10% deposit can open many doors. It is possible to achieve a mortgage for higher than 4 times your income. One particular lender calculates your net income on a monthly basis and deducts any liabilities. They look whether you can afford to meet the repayments. Common sense really!

The message here is not to give up. If your bank or building society doesn't wish to play ball then see a mortgage specialist. Particularly one who likes a challenge! If your circumstances are slightly unusual, don't be frightened to discuss them with an independent adviser. They will then determine how much the lender needs to know. With a little luck you'll be moving in before you know it.

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