Is 2017 The Year To Fix Your Credit Rating And Get That Mortgage?

Is 2017 The Year To Fix Your Credit Rating And Get That Mortgage?Financial experts are predicting that 2017 could be a good year for the recovering mortgage market. Hit hard by the financial crisis of 2008, the market became a closed shop for many new applicants, while those with mortgages were hit hard by the foreclosure crisis and institutions either failed or were bailed out by national governments. This left a large number of people with bad credit ratings or who were too young and could not afford to save for deposits, essentially locked out of the property market unless their parents could step in. However, with interest rates on the rise and the economy doing well, now is the perfect time to get on the property ladder for the first time.

An Overview Of The 2016 Mortgage Market

The mortgage market grew during the calendar compared to 2015. New home sales rose 16% as part of an overall volume rise. Furthermore, interest rates remained low, bond take up was spurred on by the Brexit vote in the UK, and more millennials were able to enter the property market. Interest rates for the 30 year fixed rate mortgage fell to a 3 year low. Fintech, direct to consumer property services and sites continued to grow as a presence in the market.

This defied early 2016 market predictions which thought that there would be 4 quarterly interest rate rises coupled with a 20% downturn in residential mortgage originations. Furthermore, experts predicted the industry would shrink somewhat, partly through mergers and acquisitions, but mostly through the introduction of TRID and an increased awareness of compliance and customer rights rules, which would push up costs in those areas.

The Mortgage Market Is Changing

In recent months, mortgage lenders have begun to slowly loosen lending restrictions put in place after the foreclosure crisis. It was thought that toxic debt levels ended up causing the crisis, though others would argue that unfair practices forced many families into foreclosure. Regardless of this, interest rates are slowly on the increase in step with looser restrictions and improving economic performance by the nation as a whole. These restrictions will help those with modest savings for deposits and those with lower paying jobs. However, individuals and couples with bad credit ratings may still struggle to gain mortgages from lenders.

Fix Your Credit Rating While The Sun Shines

If you have a poor credit rating, then now is the time to get it fixed. Within a relatively short period of time you can overhaul your credit rating issues and have a fresh slate for applying a mortgage. 2017 could be that year. The first step in solving credit issues is to get a credit report from one of the 3 official organizations – Equifax, TransUnion, and Experian.

Next, it is important to understand any errors within the reports and write letters of dispute, then you need to find sources of bad credit and develop a strategy to rectify them. This can include paying off debts or developing debt repayment plans, but also ensuring no new debts are taken on and future repayments are made on time.

This might seem all very complicated, and it can be depending on your personal situation. However, to take advantage of improving mortgage markets, it is vital to get a good credit rating. If this work is too much, then it is possible to hire a credit expert. These agencies routinely help clients improve their ratings and know what to look for in a credit report and how to fix any issues arising. Before choosing an agency, make sure you read reviews of their practices and ensure they are a reputable company.

The good practices to look for are:

  • Being given your legal rights before being expected to sign
  • Agencies who work for all 3, no less, of Equifax, Experian, and TransUnion
  • Those offering material on how to improve spending habits
  • And who have a good track record for these services

You should also be wary, many companies have bad habits to be avoided at all costs, these include:

  • Any company wanting money upfront
  • Those wanting your CPN instead of your Social
  • Offering to delete accurate information
  • And any offer to create a new credit file

Bear all of these in mind if you choose to go with an agency rather than doing the legwork yourself. Find the right agency and you could repair your credit in no time.

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Article by Leigh Marcos


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