Private Loans vs. Your Bank - Know the Differences and Take Full Advantage
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Previously, many people who required home loans would have simply approached their banks to apply for mortgages. However, over the past few years, private lenders have managed to gain as much as 40% of the market when it comes to obtaining a private home loan in London. Below are a few of the most common differences between obtaining second mortgages in London from banks or from private lenders.
1. Access to Single Lender vs. Multiple Lenders
When approaching a traditional bank for mortgages, you will only have access to the products they have on offer. This can be disadvantageous in that you may not end up getting the best possible rates. However, when applying for poor credit mortgages in London through a private lender, you will have a distinct advantage in that they have access to an extensive range of lenders, products and mortgage rates. This enables you to get the best rates possible when applying for bad credit mortgages in London.
2. Mortgage Lenders Usually Go the Extra Mile
In more than 80% of cases, banks are not willing to grant a mortgage to anyone who has bad credit. They normally also don’t go out of their way to ensure that you get the best rates possible when applying for a mortgage. However, you’ll be pleasantly surprised to find that private mortgage lenders will do everything in their power to help you obtain much-needed second mortgages in London. In addition, they will do the legwork of comparing interest rates and products to ensure that you are rewarded with the most affordable mortgage possible.
3. Private Lenders May be able to Provide Larger Mortgages
When shopping around for a private home loan in London, many people are disappointed to find out that their regular bank is often not willing to grant them a large enough mortgage to purchase the home of their dreams. However, upon approaching private lenders, the same loan applicants have been able to obtain loans that are large enough to do renovations, add an extra room or garage or even help pay a first mortgage that may be in arrears.
4. Always Use a Reputable Lender
Before signing on the dotted line for poor credit mortgages in London, it’s essential that you research your chosen lender. Reading online reviews is one of the best ways to find out whether a particular lender provides good service before, during and after the application process or not. If a particular lender has more complaints or negative reviews than positive comments or information available online, it’s recommended that you continue shopping around.
If you have been struggling to qualify for a traditional bank mortgage or you think that your credit score is too low to obtain bad credit mortgages in London, our team at Mortgagecwf.com may be able to assist you in obtaining the home of your dreams. Contact us today to find out how we will be able to help you obtain an affordable mortgage – even with a lower than average credit score.