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submitted: 2008-04-14 03:19:25 | by: ChrisClare
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The current credit crunch which we are all experiencing is affecting the way in which mortgages are being given out. This article will aim to show why your good credit score last year may not be holding up as well this year, meaning you aren't geting as good a market value.

To understand the situation you first have to be aware of what exactly is out there that is affecting your ability to get particular mortgage products with particular lenders. This issue is broken down into two parts. The first part is the credit crunch itself and the second part is how lenders score borrowers for mortgages.

The credit crunch is not just affecting UK markets. Although it is affecting the UK in particular, it has ramefications the world over.In a nutshell, the money lenders are having difficulty in acquiring the money which they subsequently lend on to you, the borrower. Lenders get their money reserves from the money markets in the US. However, poor returns in the US money markets and bad investments have meant that the lenders are reluctant to lend out any more as the risks are too great.

It is not that the lenders cannot get the money but to do so they have to be far more rigorous in the vetting of their potential clients.This is one of the reasons behind your difficulty in obtaining a mortgage as easily as before and it is called credit scoring.

Using a computerised screening system, lenders will assess various aspects of a potential borrower's profile to see how reliable a borrower they will be. If you score high, you will be seen to be a sound investment and you will probably get the mortgage you want. If your score is low, however, you may be seen as a risky investment and will either not get the mortgage or will be granted it at a higher rate. This is also known as sub prime lending.

There are a lot of different ways in which your score is calculated, most of which you will not be told about as you may be seen to be able to manipulate the answers to your advantage. Having said that, there are tricks to making sure that your credit profile looks as healthy as possible. First of all, it is advantageous to have a stable address history. If your contact address has changed several times in the last 6 years, it can make you look financially unattractive.

Ensuring you are on the voters roll is a must, lenders like to know that the addresses that they are searching are actually the addresses you have really lived at this is usually confirmed by the fact that you are on the electoral roll or voters roll as it is also known.

Having a landline phone is also a must, it has to be said this does not have a huge effect but it is better than just having a mobile phone. Having a stable employment history is also a must again lenders do not want to see people changing jobs every couple of months this spells trouble and they feel it could leave you without a job in the future and them without mortgage payments.

Most importantly it is imperitive to have credit in some shape or form and also to make sure that you don't miss any payments due. If the system does not detect credit then it has no basis to assess you on. But a healthy credit background with regular monthly repayments lets the lender know that you will be less of a liability as far as their money is concerned.

So as you can see if you follow some simple steps can take a lot of the trial and error out of obtaining the best deal for you as the credit crunch takes hold. And always bear in mind that mortgage brokers deal with these scenarios on a daily basis and so who better to go to for the best advice for your financial needs.

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Mortgage Route gives assistance help and mortgage advice from qualified mortgage brokers along with free mortgage calculators and sourcing tools. Click here to get your own unique version of this article with free reprint rights.

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