Do you intend to book a flat, buy a house or build one? To make it clear from the very start, building a house requires a great deal of financial input. A very small part of the population can claim to have enough money to build a house all on their own. It is the lack of enough money to buy a house or build one which forces people to go for home loans. It was an easier deal before to get home loans, but with frauds being on a high in recent times, getting a loan requires fulfilling many formalities and is a tedious thing.
The process of procuring a home loan in UK is easy. If one has ever applied for a loan there, they would be rather familiar with the process after which the loan is sanctioned. It would be better if one already has contacts in the bank and knows people working there. Getting the loan sanctioned would just become easier.
In the post recession period, things have begun to change. One cannot disagree that UK was one of the countries that was worst affected by recession. The rules to get a home loan have just got stricter and it is a problem for the common Britons to get a loan sanctioned from a bank in UK.
Now a day, to get a home loan from the bank one should be able to offer a good credit score. Home loans from a reputed known bank are the safest loans available in the market.The only problem is that the loan is sanctioned against a collateral of some other asset you own.For example, if you have a garage somewhere, you can draw a loan against it to buy a house for yourself.
Due to the growing number of frauds everywhere, banks have just got stricter about the rules of sanctioning a loan or lending any kind of money for that matter. If you involve a minuscule of risk factor, they might just reject your loan plea without even properly considering it. If you owe someone money or have a bad credit to your name, forget about managing a home loan. It is next to impossible.
In UK, you can apply for a home loan if you are 18 years of age and above and you are a permanent resident of UK. You must be engaged in a regular job and must be able to prove your identity through driving license or passport. Migrant population fined it more difficult to get a home loan in UK than Britons. They have to prove their citizenship first.
Loans are often denied on the basis of a very high risk status which leads to immense frustration and depression in people unable to get a loan. In this case, it is advisable that one takes help of independent money lenders who give loan as well.
One might have a hazy idea about these people. They are not the employees of any bank, or run a bank. They are independent and money lending is a business for them. These companies lend money for educational purposes, medical facilities, starting a business and so on. The money is lent against collateral which is usually an asset of yours.
These new money lending companies have lately proved to be ultimate solution for people seeking loans, especially home loans. The UK banks have become averse to any sort of risk factor. Before recession struck they would sanction a loan to any individual who applied for it. But as on today, getting a loan from an independent loan company is a better option.
Most of the criteria they put forward are easier to fit in to the general circumstances. The LTV offered is usually higher. LTV refers to Loan to value. The markets which were struck by recession in which the independent lenders function more are recuperating faster than the bank markets. These lenders place an unimaginable high rate of LTV, as higher as 85% and can also help their customers to search the market for better and more lucrative opportunities.
They usually also have a specialist lender who deal with high risk people. The best part about loan lenders is that bad credit and reputation doesn’t matter to them.