London drain clearance: Sep 28, 2010

When buying an investment property, you want to be sure that you able to get the best mortgage rates to finance the investment. There is almost no point in paying a fortune in interest every month if it is not absolutely necessary, because it can prevent you from making a decent return on your buy to let property.

One of the first things that you need to have to get a low mortgage interest rate is a big deposit. The more money that you can put down, the safer you’ll seem to the bank. The reason for this is that the bank wants to be sure it has a good chance of getting its money back if you ever default. The more you put down, the bigger the bank’s of safety margin. So to get a good rate you really need to think about trying to put down at least 30%, possibly even 40% of the value of the property. Most big mortgage banks reserve their best buy to let mortgages for their best customers and will offer far better rates if you’re able to put down that sort of deposit than if you only have 10% or 20% to put down.

The second factor you want to consider is your own credit history. Your credit history is an important factor in determining interest rate you will pay for your mortgage. Banks will look at it to decide whether you’re a good risk, or a bad risk. If they think you’re a bad risk they may not give you a mortgage at all.
And even if you have only a few black marks against your name on your credit record, the bank may only give you a mortgage at a higher rate.

A fair number of people have got bad credit scores because of a mistake by the rating agency. They may have moved into a property that was inhabited by people with a bad credit score and have had their records tarnished by the previous tenants. Or they may have a family member or spouse or even someone with the same name has not related to them with a bad credit record. It is not uncommon in these circumstances for the credit records to get confused and the innocent get tarred with the brush of those with bad scores.

If that is the case you really want to clear that up and get your credit record cleaned before you apply for a mortgage. It is easy and cheap to do this in Britain. By law rating agencies have to give you a copy of their records for free although they are allowed to charge a nominal fee for postage. If you write to any of the big credit rating agencies such as Experian or Equifax, they will send you a basic report. This report will allow you to find out whether there are any errors or other issues such as bills that have been repaid but that have still been reported as unpaid. If you discover errors, then you have the right to have these corrected. You can do this by writing back to the credit rating agency with details explaining why you think they’ve made the error, and by law they have to fix it if they are wrong.

You can also get a more advanced online credit report from these companies. Many of them will give you details and instructions on your credit score, and steps that you can take to improve your credit score. The great thing about many of the services is that they are often free for the first month. You can sign up for a month, get the credit report, and then unsubscribe. That should give you a lot of information at no real cost.

London drain clearance

Tuesday, September 28, 2010

Check Your Credit Score to Get the Best Buy to Let Mortgage Rates

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