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Posts Tagged ‘Free Mortgage Quotes’

Even if you have never applied for a mortgage, you will know that getting a free mortgage quote relies on some basic factors – house price, income, size of loan and your credit score. It is a great surprise therefore to learn that Legal and General Mortgage Club have just announced the launch of a new loan that uses underwriting instead of credit scoring; the only mortgage of its kind. The product means that Londoners applying for a mortgage are assessed on a case by case basis, ideal for applicants who have managed to get a bad credit rating just through getting a mortgage quote.

It has been a common trend of late for applicants to be turned down for a mortgage by a lender because of a less than favourable credit rating, even though it is evident that repayments will be affordable. This has been due to a twitchy financial industry trying to cover it’s back after handing out large loans on a paper plate to borrowers who couldn’t afford the repayments. It is understandable that financial institutions want to reduce the risk of bad debt, but it also means that perfectly eligible candidates are being denied the chance to secure a mortgage for a London property.

Some less than reputable loan companies put those just interested in a quote through a credit scoring system without any warning that it could affect their rating, which in turn affects the ability for that person to secure a mortgage when the time comes to apply. This practice of non disclosure has created a new sector of would-be homeowners that cannot secure a mortgage, because they have inadvertently attained a bad credit score.

Thankfully Legal and General have recognised this factor and have found a way to capitalise on the creditworthy with a bad credit score through no fault of their own. It is interesting to note that the lender is also offering competitive rates rather than selling a high interest product to borrowers that essentially have very little choice when it comes to securing a loan to purchase a property. There is a £100 booking fee, an administration fee of £1,399 and the interest rate is fixed at 3.35% over 2 years for a maximum LTV of 75%.