Archive for February, 2014

Basics of mortgage lending criteria

Wednesday, February 26th, 2014

mortgage lending criteriaEvery Building Society and Bank has their own criteria for mortgage or remortgages lending. But one thing that you need to understand is that the principles are same for all the criteria. The basic principles of mortgage lending criteria are as follows:

• The application for the mortgage cannot be declined on the grounds of what your gender is. It is not like an advert where the company would specify whether they are looking for a male candidate or a female candidate. Everyone is eligible to apply for a mortgage.

• One criterion which is common to all people is the age limit. A person should be at least 18 years of age in order to file for a mortgage application.

• The main secret about mortgage lending is that the lenders would invest the money at a certain percentage which is more than the base rate of the Bank of England. They will then lend that money at a higher rate and the difference would be equal to the profit.

• Before you apply for a mortgage lending it is important that you check your credit history. This is because the person to whom you will make the application will check your credit history and if it is not good then the chances are that the deal might not be a good one. In such cases although that person would be making money but you will not be able to make a sufficient amount of profit.