Who are the UK’s largest mortgage lenders?

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When comparing mortgages, you can search for a quote from the largest and most famous mortgage lenders. However, some of the smaller and lesser known lenders can still get a great deal on depending on what you’re looking for.

The UK’s largest mortgage lenders

When it comes to the UK’s largest mortgage lenders, not all of them will have a full range of mortgage options.

When we talk about the largest or largest mortgage lenders, we are usually talking about the lenders who have a history or who lend the most amount of money.

In the UK, the largest mortgage providers are:

This largely corresponds to the list of “Big Four” banks in Great Britain: Lloyds, Barclays, RBS and HSBC.

Largest mortgage lender or specialty mortgage?

Specialized mortgage lenders usually hire people who are experts in dealing with special and unusual circumstances. You are likely to have experience lending to these individuals and therefore have a better knowledge and understanding of the risks.

This means that if you apply for a mortgage from a specialist provider, they are more likely to be able to help you.

On the flip side, the biggest mortgage lenders have more cash to spend on their customers – but only those they approve.

You are also likely to be less risk averse than other lenders, so you will consider whether or not your application should be approved in a more calculated and thorough manner.

Talking to a mortgage broker can be the best option for finding a mortgage if you have special or unusual circumstances – and it can also be helpful even if you have good credit and a steady income.

Find and compare the best mortgages

Comparing mortgages is tricky and it can take hours to find a good deal. Even if you do find one at some point, it’s hard to know whether or not this deal is really good enough.

And more importantly, how can you be sure that a business you like will actually suit you and your circumstances – not just now but in the future too?

The short answer is that you can never really be sure of that. Finding a mortgage, whether alone or through a broker, always requires careful planning with your finances. This also applies to whether you are taking out a mortgage with a “Big Four” lender or a smaller, specialist lender.

Compare mortgages with a broker

Whichever method you choose to compare, it is important to plan how you are going to pay back your mortgage.

A mortgage broker can make things a little easier than simply going to your current bank and asking them for one. Banks are unlikely to be impartial simply because they want you to tie all of the money to them and not to any of their competitors.

Mortgage brokers, on the other hand, are required by financial regulations to help you find a mortgage that is right for you and your circumstances.

If something goes wrong with your repayments and it is proven to be due to unsuitability, the broker may be held liable for recommending this mortgage.

Before you talk to a mortgage broker, check that they cover the entire market – that is, they simply cover everything in the market. Many offer their services for free and take commissions from the mortgage lender, while others will charge you a fee instead.

Finding a mortgage from one of the largest lenders shouldn’t be your first option. Compare the mortgage market, do research and always look to the future when planning your budget.

Credit criteria

After the 2008 recession, mortgage lenders were required to conduct stricter reviews of mortgage applications, including an affordability assessment.

With these checks, you will no longer only be asked for your salary, but also on your bank statements to see what your monthly expenses are.

So if you have a monthly gym membership or even a Netflix account it may be reflected in your application and your ability to repay the mortgage.

Your life circumstances can also be an important factor in deciding which bank to go to. Some banks will have better fixed rate mortgage deals, and others will have better interest rate tracker variable rate mortgages.

In addition, there may be special personal circumstances, such as low or poor creditworthiness, registered self-employment, or being over 60 – all factors that make borrowing difficult – that could limit the type of bank or mortgage lender you speak to .

Mortgages for bad credit or self employed

Unfortunately, the largest mortgage lenders tend not to be the best lenders for people looking to buy a home with low or poor credit. The same applies to the self-employed or people who do not have a regular income.

Although all banks and mortgage lenders are subject to rigorous financial performance reviews, the larger lenders focus on the most common types of borrowers, that is, people with good credit ratings and stable, reliable incomes.

So if you’re in an unusual financial situation, getting a mortgage approval elsewhere can still be difficult, but finding a specialist lender will improve your chances of getting approval.

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