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Bad Credit? These Are Mortgage Options Just For You!

[ Posted August 25th, 2009 ]

Past Money Troubles? Mortgage Solutions for You!

Just because you have had financial troubles in the past does not mean that you will be unable to get a mortgage.  Don’t worry.  Many of us have been there before.  There are lenders out their that cater to your particular situation.  They are often called credit repair lenders or nonconforming lenders. 

Wondering why someone is willing to lend you money with bad credit?  These lenders understand that just because you have bad credit, does not mean that you should be black balled throughout the investment community right?  To make it to where you too have investment options, these lenders will look at how far you have come and your current situation rather than placing all the weight on your past.  So, maybe you were unemployed and now have a job.  Or you were in serious credit card debt and can finally see the end of it nearing.  No matter what your situation was, as long as you have made forward progress in making your financial situation improve then they can assist you in finding a mortgage that will work for you.

The one thing you will need to remember in regards to mortgages for those of us with bad credit is that even though your credit progress is what gets you the new mortgage, but your past will be factor when it comes to establishing that interest rate.  The key to getting this rate as low as possible is to continue improving your credit so you will have the option for remortgaging for a lower interest rate later on down the line.  Also, you are going to want to shop around and not jump at the first lender who is willing to give you a loan.  Just because you have bad credit does not mean you have to take a long with a huge interest rate.  Remember, you want to continue making good decisions that will improve your credit and not get into another situation in which will possibly damage your credit in the long run.

 

First Time Applying For a Mortgage?

[ Posted August 25th, 2009 ]

Quick Starting Tips to Make Your First Mortgage Simple.

There are thousands of questions that come to mind for those seeking their first mortgage.  So to take a little of the stress off, we are going to give you all the questions you need to ask.  Don’t worry.  With all these questions will come many of the answers.  That way you are not left wandering throughout your days trying answers endless questions.

What is a mortgage?

A mortgage is a loan specifically designed for those who are wanting to buy property.  This includes both commercial and residential properties.  There is a loan for everything these days, from auto loans to personal loans, so why not have a loan that is specifically for those wanting to buy property right?

 


What things should be considered in choosing a mortgage type?

The basics questions you need to answer are the following:

1.What are you buying the property for?

For each type of property, the is a different type of mortgage that offers different benefits.  With this being your first mortgage, there are often special offers for first-time home buyers.  However, if you are buying commercial property you might want to check into commercial mortgages as well.  Often the difference in first time mortgages are in regards to interest rates.

2. Which fits your financial budget most comfortably?

This part is often in reference to interest rate options.  The two primary choices you have here are fixed rate and variable rate mortgages.  A fixed rate will guarantee the same interest rate being applied to the balance of the loan.  This means that you will make payments of the same amount every single month until the debt paid off. When it comes to variable interest rates, the are often compounding interest.  The rate has the potential to change.  The good news is, that it typically has a pre-disclosed range.  In regards to the compounding interest, since you could have equal monthly payments you may not always pay off all the interest.  If that is the case then you will be charged interest on the accumulated interest.  Getting complicated?  Basically have them run the figures for you rather than simply going off suggestion.  You can see which really works out best for you, as all our financial situations are a little different.

3. What extra options are important?

You want to look for things such as early payoff benefits (or penalties), mortgage insurance (just in case money gets a little tight for unexpected reasons, and remortgage options in case of lowered future interest rates.





Is it really this simple?

We would love to say this really is all there is to it, but you want to make sure you really take time to look into your options.  That is what we truly want to stress here.  It does not have to be hard or distressing, but it does require research.  This information will help you get started off on the right foot and make things run a little smoother.

Why Are People Not Remortgaging?

[ Posted August 23rd, 2009 ]

Remortgaging:  A good or bad decision?

When it comes to remortgaging, the answer is always dependent on the current economic status, and how good or bad of a deal you got when you first financed that home or business.  While it is sometimes are to see what is behind that closed door, we are going to provide you with the key to re-opening it. 

The best way to make decisions when it comes to remortgaging is to look at a variety of factors.  The first question to ask yourself is, "How were things financially when I made this investment".  That question should be quickly followed with the important question of, "Is my situation now, better or worse?"  Once you have gotten answers to the questions, you can narrow down the paths to choose between.  Obviously if you were struggling in the beginning  and have fought your way to a better financial situation, then remortgaging could be a great option for you to lower those interest rates.  For those of us who received our mortgage with low credit scores, this can make a drastic improvement in your financial well-being.

For all of those people who were in a better position than the rest of us, you most likely got a great interest rate on a cheap loan or mortgage option.  If you fall into this bracket then you will notice that lately it just does not really play in your favor to remortgage at this time.  With interest rates staying low after that initial introductory offer, many have chosen to stay with their initial lender. 

With the number of people opting out of remortgaging their properties, first time home buyers and next time buyers are benefiting as well.  With the competition amongst lenders heating up, it has proven to be a buyers market in which many have chosen to take advantage of expanding current investments instead of refinancing old ones.

Government Incentives Open New Doors

[ Posted August 23rd, 2009 ]

Government offers incentives to those homeowners willing to considered self-generation of energy.

An long-term investment for those who are willing to consider taking a proactive stance on energy conservation in their homes have the opportunity to create a great situation for themselves and the environment.  To those who are willing to install solar PV systems in their homes, which costs approximately £12,500 to install, can take advantage of a combined incentive offer from the government.  This incentive plan will be running from this month until April 2010.

So what is this incentive plan we are talking about?  While the upfront costs can seems a little steep, the first part of the incentive plan is to offer homeowners a grant up to £2,500 to assist in alleviating that initial cost.  Not enough to get you to really consider choosing solar PV’s?  No worries.  In addition to the grant, there is a benefit that truly makes this option worth your while.  It is a cash back offer around £1,000 yearly for doing your part in creating new, clean energy. This cash back offer can help refinance older mortgages, take the strain off current mortgages or simply open up cash flow for other future investments.

If you really take time to look at the costs, it will quickly show that not only will your investment be returned in full after a few years, but you actually begin making a profit. Remember to take into account that with your yearly cash incentive by generating your own power, your overall energy bill will begin to decrease as well.  This is an offer that is packed with pros and lacking cons. How many investments are guaranteed to offer end profits during stressful economic times, and are considered helpful to all parties involved?  The answer is practically zero.  In this situation, the homeowner, government, and environment all take a place in the winners seat.

Repossession from a Postive Outlook

[ Posted August 21st, 2009 ]

A Positive Outlook on the Current Status of UK Repossessions

I am sure you are wondering what is there that is truly good to say when it comes to repossessions.  The good news is that the number of repossessions occurring across the UK is on a downhill slide.  The number of people who are currently under extreme financial stress and facing repossession of homes and/or businesses is gradually decreasing.

The current drop cannot be considered a permanent trend, but at least offers a breathe of fresh air not only for lenders but also for many individuals whose investments were on shaky ground.  The primary key to saving many of these distressed properties are the in truth the low interest rates that have emerged as the best rates in quite sometime.  This has allowed struggling individuals and business to have a little extra breathing room when it comes time to make those monthly mortgage payments.  With the overall amount of debt across the country in a state of reduction, the outlook for those who were fighting to survive is finally headed back towards to the direction of self sustaining and healthy. 

While these improvements have thus far been short term, the hopes for continued forward movement are strong.  With many factors possibly contributing to this upward trend of improvement such as season factors, current interest rates, and slight rise in employment, it is important that those in distress take advantage of this dry time just in case another storm blows in disrupting the postive movement.  Buckle those seat belts and enjoy the ride while the opportunity is there.

APR’s- The Need To Know for First Time Buyers

[ Posted August 21st, 2009 ]

Need to Know: Annual Percentage Rates for First-Time Buyers.

 

It is important that when we choose to make a serious investment that we truly understand the costs involved.  So for those first time mortgages we are going to break it down simply for you. There are numerous times of interest rates out there to choose from when in comes to repayment options.  These are often broken down into "variable" interest rates and "fixed" interest rates.  These rates will apply to all forms of financing from loans, mortgages, and remortgaging options.

The first one we shall discuss is variable interest rates.  Depeding on the company in which you recieve your loan from, the rates are calculated with a range for potential variance.  For example, if you recieve at loan at 5% interest monthly, that is not a guaranteed rate for every month during that year or term of the investment.  It will have a range of values in which it can vary between throughout a single term.  The term can be monthly, annually, bi-annual and quarterly.  Also, which an interest rate is provided to you, it is important to know the time periods in which the interest is going to be applied.  Maybe a little more than you had orginally thought was required to simply make that next home purchase?  It really is not as difficult as it seems.  You are not expected to be an expert in financing as that is your bank or other financing instituions job.  However, it is important that you have basic knowledge of the information you will be presented with so you can ask questions.

The second topic in regards to interest rates are the different types.  The is a different between simple interest and compounding interest. A simple interest rate is easily calculated by simply taking the amount owed (principal), and multiplying it by the interest rate and time period ( number of quarters, months in the year, or number of years).  That will give you the amount of interest that will be paid over the duration of your loan.  This interest type is associated with a nominal APR.  Then there is the matter of compounding interests.  This is the option that most lending providers will choose.  This simply means that everytime interest is applied to your loan, that amount will be applied to the total loan amount.  Now, when it is time to apply the next interest amount, you will be charged interest on the new principal amount which includes the last interest addition.  Just think about it as buying jelly candies.  If I charge you tax for every candy you have, then when you start with 3 candies, the initial tax will be charge on three candies.  Now that you purchased two more, your collection has risen to 5.  The next time I charge you taxes it will be on 5 candies.  Not as hard as you thought right?

Finally, a fixed APR will result in a constant percentage rate being applied to your original loan amount for the duration of your loan.  This is often chosen by those who seek consistency and prefer smaller risks that can be associated with variable interest rates.  Now that you have the basic understand of APR’s and how they can affect your loans, you have enough knowledge to at least ask questions and do not have to solely depend on your or trust your financial institution’s suggestion for "best choice for you".

A Sense of Security Can be Found in Fixed Mortgage Rates

[ Posted August 21st, 2009 ]

Fixed Mortgage Rates offer buyers a sense of security.

Homeowners have begun to look at fixed mortgage rates to help offer a new level of security.  By opting for a fixed mortgage rates, homeowners now have been able to receive lower monthly repayment amounts.  This simple choice has kept many people from having to downsize from their current home to housing that could have created a financial strain under other mortgage options such as the lower-cost standard variable rates.

How does a fixed mortgage help create this sense of security? It allows the buyer to always have a consistent payment with a set mortgage rate.  The inconsistency and range of variation involved with many other financing options can sometimes leave a buyer feeling vulnerable to changes in the market.  It provides those buyers who prefer knowing exactly what their investment is going to cost with definitive answers. 

What about the possibility of overall lessened cost under other variable mortgage rate options?  While many individuals who analyze the current rates and make predictions on future rates expect the current low interest rates to continue for the next few years, with economic predictions nothing is guaranteed.  Fixed mortgage rates are designed to eliminate the risks involved with variable rates.  With minimal risk and still very acceptable fixed rates available, mortgage companies are seeing a drastic increase in the number of investors who are opting for this investment solution.

Overall, selecting a fixed mortgage rate may not save you, the investor, money.  The possibility of slightly increasing the total investment has been shown to be acceptable in exchange for the feel of knowing exactly what agreement you have entered into with your mortgage lender.  When it comes to making an investment, everyone knows it is a volatile market and nothing is guaranteed.  So if it is security that you are looking for, fixed mortgage rates is definitely the option for you.

 

 

 

 

Mortgage Approval Rates are on the Rise creating a Buyers Market.

[ Posted August 21st, 2009 ]

 

Mortgage Approval Rates are on the Rise creating a Buyers Market.

 

After a slump in mortgage approval rates, relief has finally began to trickle down throughout the investors market.  Reports from the Bank of England have shown that overall approval rates have jumped a drastic 80% of the past month.  One of the most exciting aspects of this new trend taking place is that the loan to value ratio is maintaining its current status with little to no variance.  This help provide a stable environment for all of those possible new home owners to finally stop calling a place home and finally start creating one that will finally become a home that they own.

Bank assets have been gradually shifting from the remortgage area to new mortgages.  With the Bank of England’s measurable stress relieving program, it has allowed mortgage providers to focus on the new home buyer market instead of being dependent upon current home owners.  The transition can create a tougher situation for those looking to remortgage their home or property but places opportunities and new open doors for those looking to pursue first time mortgages.

To help show the improvements in statstical analysis performed on this promising increased approval rates, a £0.5bn increase in gross mortgage lending can be seen in the past month alone.  There is promise of continued growth in the approval rates and consistency to be found in the LTV.  These two elements combined will create a positive and stable enviroment for individuals who have been holding off on making new investments.

First Time Buyers Ask More Questions

[ Posted August 13th, 2009 ]



Unbiased.co.uk is a web site that answers questions that people have on mortgages and other topics related to housing needs in the United Kingdom.

They answer varying questions with professional advice on a wide area of topics that will hopefully help the general public.

The company released some statistics on the question areas most asked and it turns out that some 41% of the questions were related to first time buyers.

The second area of questions was on remortgages which was some 33% of the questions. This area grew by some 5% which means more people are becoming interested in this area of home buying or repurchasing.

The third area of interest came in at 24% and this was on the residential property market, where there were many questions asked in this area.

The remainder of the top ten questions included buy-to-let, self-employed, high loan to value, equity release, flexible, sub-prime and right to buy. There were a total of 5,940 questions asked of the web site which shows that there is a high level of information being sought.

David Elms, the Chief Executive of Unbiased.co.uk commented, “These latest figures suggest a stirring amongst those thinking about re-mortgaging, after the previous two months drop in re-mortgage enquiries. More of those looking to re-mortgage are now seeking a whole of market mortgage adviser who can give whole of market advice and start to unravel the confusion of the current mortgage market.”

He continued, “It is also clear from these new figures that first time buyers remain baffled with the mortgage maze, and are continuing to seek whole of market advice to get guidance and help on the right mortgage decision for them.  With some mixed news on whether there are signs of recovery in the property market, as well as mortgage options and deals still changing at a fast pace, it is not surprising that those looking to enter the market are seeking advice.”


UK Unemployment At Highest

[ Posted August 12th, 2009 ]




The recession is certainly taking a hit on all facets of UK living from the amount that mortgage rates are currently offered to the price houses, which seem to be falling.

One of the other areas that seems to be hit the hardest is the unemployment rate which seems to be at its worst since 1995.

According to the Office for National Statistics, in the second quarter of this year, they have finally reported that some 2.43 million are unemployed which is an increase of approximately 220-thousand individuals.

According to the Office, the unemployment rate was 7.8% for the three months up into June of 2009. That’s a jump of around 0.7% from the previous quarter. Vacancy rates are not included with this count however that means that there are quite a few additional jobs which aren’t being filled.

The Office also says that average earnings, without bonuses, has fallen from the previous quarter. When you included the bonuses, however, the rate has increased.

Statistics also show that the employment rate for individuals of a working age is around 73% for the three months leading to June of 2009, which has been a decline of almost 1% from the previous quarter and 2% when you include the whole year.

The statistics also show that some 28.9-million individuals have applied for unemployment benefits over the quarter ending June 2009 but not all of them are on the roles as of yet. The annual growth rate, excluding bonuses, is the lowest since the Office has been collecting the information which began in 2001.

The next update for the Office for National Statistics to update their information will be when the quarter ends in late September 2009 and that should give a better direction of where unemployment is heading in the country even though we receive monthly figures in between.

 
 
 
 
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