As the mortgage and loan companies scrutinise applications more and more intensely, the UK’s leading specialist and sub-prime mortgage broker is advising people to stay right on top of their bills, or risk a six year blot on their credit copybook.
David Titmuss, Managing Director of The Mortgage Lender, says there are ten clear signs that you’re heading for ‘financial re-hab’.
- Bills are left unopened for more than two days.
- You ignore phone calls from lenders chasing-up missed payments.
- You daren’t do an income/outgoings analysis.
- You start eyeing up other loan offers, and consider switching rather than paying off.
- Your credit card bills are paid off with other credit cards.
- You run out of money in the middle of the month.
- You buy luxuries to feel good or keep up appearances.
- You don’t share your financial concerns or worries with your partner.
- You stop improving your home and let standards slip.
- You start to loose your self-esteem, maybe even change your diet or drinking habits.
“We’re one of the few companies still able to find mortgages and loans for people who have suffered financial accidents, or taken their finances up a cul-de-sac,” said David Titmuss, Managing Director of The Mortgage Lender.
“More and more people are moving into ‘financial re-hab’ – but in many cases they’re finding themselves there because they simply stick their heads in the sand at the slightest sign of financial hassle.
“We’re seeing people who have moved into near- or sub-prime financial status purely because they’ve left a bill unopened for two days longer than they should, or have simply ignored calls from a lender who is more interested in helping than pressurising a customer.”
Titmuss explained that by facing the issue and talking to lenders borrowers can save their status and potentially avoid defaults or County Court Judgements (CCJs).
“People who have good credit status can completely destroy it in as little as 48 hours – simply by ignoring calls, letters or bills. For many people, finding themselves in a minor financial difficulty is a first – the credit, loans and mortgages industry have not had to scrutinise people quite so much as they have in the past few months,”
“The answer is to address issues immediately – even, in some cases, don’t wait for the inevitable letter or phone call, but get pro-active and contact the lender to tell them that you’re expecting difficulties. They genuinely want to help – and, of course, it is in their interest to help you as well.”
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