By: Armand Glans
The subprime mortgage situation is hitting the credit market in the US and the house mortgage loans are once again in focus where the credit squeeze might go towards a credit crunch. If we going towards a credit crunch there will be signs that mortgages rated as Alt A loans is starting to get hit.At this stage there are no signs that the credit squeeze is going towards a credit crunch and hit the private consumption and global growth.
Interesting though is that problems in the subprime mortgage loan market in the US expect to be hitting the loaning market world wide and for now stock markets in “old Europe” is taking a hit and been coming off more than 10% in the last month though Asia, where the real growth is today not been taking much on the downside.
Though the depending on the US market is declining the fear is spreading all over the world but the impact of US insecurity is day by day decreasing when country by country is less depending on the US consumers. Japan as an example have the last 5-6 years decreased there total depending on the US market by 25 %.
To understand the impact on what is going on at this stage there might be a good idea to try to find out the worse case scenario on the US mortgage situation. When it comes to high risk loans in the US market there is four types of high risk loans, subprime, Alt – A, Jumbo IO and option ARM which together stands for around ј of the total house mortgage stock in the US. What shakes the market at this point is the insecurity how far this can go, what is going on now is revaluation of risk and this might in the end hit the spreads between company bonds and government bonds.
At this stage the spreads in the private sector is getting wider and if that also hit company loans that will hit the cost for company investments world wide. Besides the fear of increasing spreads on loans the stock market speculating that the growth coming from US consumers will be taking a hit when the house mortgage sector having problems.The FED is though very aware of the risks and will be watching very close what will occur regarding the mortgage situation.
FED has to provide the market with liquidity and act powerful to avoid the US going into a recession. At this stage FED is waiting for the growth of employments to ease off to take the step to cut interests. This might though be a view that FED will change if the mortgage situation is getting really bad.In the longer run the level of interest in a number of countries seems to peak on historically low levels will be something that might help the global growth in near future.
The US and Great Britain is as an example where the probability of pushing the interest any further is out of the question regarding the risks of growth and inflation. The impact on the overall expectations on low interest levels in the global economy might at this stage as well be underestimated by the market and help both easing off the mortgage problems we have at this stage and keep the growth on a descent level as it did in the mid ninety when the stock market holding up nicely though the interest was peaking.
http://www.articlecube.com
Tuesday
How To Prepare Yourself To Become A Homeowner
By: James Miller
If you are looking to get that all important first step on the property ladder, then you need to prepare yourself financially. By making preparations, you will help boost your credit rating. Having a good credit rating will give you a wider choice of mortgages and will heighten your chances of getting accepted by a lender.
So what steps do you need to take?
First of all, open a high interest bearing savings account. You can then use this account to start building a deposit as well as have money put aside for all the costs associated with buying a home.This will benefit you in two ways. The first way is that the bigger the deposit you have – and you should aim for at least 5% of the anticipated purchase price – the more mortgage products that will be available to you. Someone with a 10% deposit will have more mortgage options available to them than someone with a 5% deposit so save as hard as you can.
The second benefit of having a savings account is that it will look good on your credit file as it demonstrates responsible money management.To build your credit rating further, for at least twelve months prior to moving, get your finances squeaky clean. Pay off any overdrafts, loans and any balances on credit cards. Pay all your bills on time. And never ever miss a payment on anything. Not even your mobile phone bill as this can negatively affect your credit rating.Do not move bank accounts or switch jobs as stability is attractive to lenders.
And if you are planning to get a joint mortgage, ensure that whoever you are planning to buy with follows these same steps too, as both your credit files will be taken in to consideration.
Getting a foot on to the property ladder is harder now than ever. With house prices rising far quicker than inflation, many first time buyers simply do not earn enough money to be able to buy a home.
So what options are available to you?First of all, ask your parents. Could they release some of the equity in their home to raise a deposit for you in the form of a secured loan? Or would they be willing to act as a guarantor? A guarantor is where they agree to be liable for the mortgage should something go wrong.
Secondly, consider buying a place together with friends. Certainly, having three people buy a property means you can borrow a lot more money. Another option is a shared ownership scheme. You tend to pay around 25% of the property's worth, and then pay rent on the remainder. You will have the option to own the house outright in the future. See www.housingcorp.gov.uk. for more information.With these first two options, ensure that you draw up a proper legal agreement between yourselves as relationships can go wrong, however close you are.
And, finally, no matter how desperate you are to own your own place, make sure that you don’t over stretch yourself with a mortgage. Affordability is the key. After all, there is no point having your own home is you are too cash strapped to be able to do it up or furnish it!
http://www.articlecube.com
If you are looking to get that all important first step on the property ladder, then you need to prepare yourself financially. By making preparations, you will help boost your credit rating. Having a good credit rating will give you a wider choice of mortgages and will heighten your chances of getting accepted by a lender.
So what steps do you need to take?
First of all, open a high interest bearing savings account. You can then use this account to start building a deposit as well as have money put aside for all the costs associated with buying a home.This will benefit you in two ways. The first way is that the bigger the deposit you have – and you should aim for at least 5% of the anticipated purchase price – the more mortgage products that will be available to you. Someone with a 10% deposit will have more mortgage options available to them than someone with a 5% deposit so save as hard as you can.
The second benefit of having a savings account is that it will look good on your credit file as it demonstrates responsible money management.To build your credit rating further, for at least twelve months prior to moving, get your finances squeaky clean. Pay off any overdrafts, loans and any balances on credit cards. Pay all your bills on time. And never ever miss a payment on anything. Not even your mobile phone bill as this can negatively affect your credit rating.Do not move bank accounts or switch jobs as stability is attractive to lenders.
And if you are planning to get a joint mortgage, ensure that whoever you are planning to buy with follows these same steps too, as both your credit files will be taken in to consideration.
Getting a foot on to the property ladder is harder now than ever. With house prices rising far quicker than inflation, many first time buyers simply do not earn enough money to be able to buy a home.
So what options are available to you?First of all, ask your parents. Could they release some of the equity in their home to raise a deposit for you in the form of a secured loan? Or would they be willing to act as a guarantor? A guarantor is where they agree to be liable for the mortgage should something go wrong.
Secondly, consider buying a place together with friends. Certainly, having three people buy a property means you can borrow a lot more money. Another option is a shared ownership scheme. You tend to pay around 25% of the property's worth, and then pay rent on the remainder. You will have the option to own the house outright in the future. See www.housingcorp.gov.uk. for more information.With these first two options, ensure that you draw up a proper legal agreement between yourselves as relationships can go wrong, however close you are.
And, finally, no matter how desperate you are to own your own place, make sure that you don’t over stretch yourself with a mortgage. Affordability is the key. After all, there is no point having your own home is you are too cash strapped to be able to do it up or furnish it!
http://www.articlecube.com
How To Prepare Yourself To Become A Homeowner
By: James Miller
If you are looking to get that all important first step on the property ladder, then you need to prepare yourself financially. By making preparations, you will help boost your credit rating. Having a good credit rating will give you a wider choice of mortgages and will heighten your chances of getting accepted by a lender.
So what steps do you need to take?First of all, open a high interest bearing savings account. You can then use this account to start building a deposit as well as have money put aside for all the costs associated with buying a home.This will benefit you in two ways. The first way is that the bigger the deposit you have – and you should aim for at least 5% of the anticipated purchase price – the more mortgage products that will be available to you. Someone with a 10% deposit will have more mortgage options available to them than someone with a 5% deposit so save as hard as you can.
The second benefit of having a savings account is that it will look good on your credit file as it demonstrates responsible money management.To build your credit rating further, for at least twelve months prior to moving, get your finances squeaky clean. Pay off any overdrafts, loans and any balances on credit cards. Pay all your bills on time. And never ever miss a payment on anything.
Not even your mobile phone bill as this can negatively affect your credit rating.Do not move bank accounts or switch jobs as stability is attractive to lenders. And if you are planning to get a joint mortgage, ensure that whoever you are planning to buy with follows these same steps too, as both your credit files will be taken in to consideration.Getting a foot on to the property ladder is harder now than ever. With house prices rising far quicker than inflation, many first time buyers simply do not earn enough money to be able to buy a home.So what options are available to you?First of all, ask your parents.
Could they release some of the equity in their home to raise a deposit for you in the form of a secured loan? Or would they be willing to act as a guarantor? A guarantor is where they agree to be liable for the mortgage should something go wrong.
Secondly, consider buying a place together with friends. Certainly, having three people buy a property means you can borrow a lot more money. Another option is a shared ownership scheme. You tend to pay around 25% of the property's worth, and then pay rent on the remainder. You will have the option to own the house outright in the future. See www.housingcorp.gov.uk. for more information.With these first two options, ensure that you draw up a proper legal agreement between yourselves as relationships can go wrong, however close you are.
And, finally, no matter how desperate you are to own your own place, make sure that you don’t over stretch yourself with a mortgage. Affordability is the key. After all, there is no point having your own home is you are too cash strapped to be able to do it up or furnish it!
http://www.articlecube.com
If you are looking to get that all important first step on the property ladder, then you need to prepare yourself financially. By making preparations, you will help boost your credit rating. Having a good credit rating will give you a wider choice of mortgages and will heighten your chances of getting accepted by a lender.
So what steps do you need to take?First of all, open a high interest bearing savings account. You can then use this account to start building a deposit as well as have money put aside for all the costs associated with buying a home.This will benefit you in two ways. The first way is that the bigger the deposit you have – and you should aim for at least 5% of the anticipated purchase price – the more mortgage products that will be available to you. Someone with a 10% deposit will have more mortgage options available to them than someone with a 5% deposit so save as hard as you can.
The second benefit of having a savings account is that it will look good on your credit file as it demonstrates responsible money management.To build your credit rating further, for at least twelve months prior to moving, get your finances squeaky clean. Pay off any overdrafts, loans and any balances on credit cards. Pay all your bills on time. And never ever miss a payment on anything.
Not even your mobile phone bill as this can negatively affect your credit rating.Do not move bank accounts or switch jobs as stability is attractive to lenders. And if you are planning to get a joint mortgage, ensure that whoever you are planning to buy with follows these same steps too, as both your credit files will be taken in to consideration.Getting a foot on to the property ladder is harder now than ever. With house prices rising far quicker than inflation, many first time buyers simply do not earn enough money to be able to buy a home.So what options are available to you?First of all, ask your parents.
Could they release some of the equity in their home to raise a deposit for you in the form of a secured loan? Or would they be willing to act as a guarantor? A guarantor is where they agree to be liable for the mortgage should something go wrong.
Secondly, consider buying a place together with friends. Certainly, having three people buy a property means you can borrow a lot more money. Another option is a shared ownership scheme. You tend to pay around 25% of the property's worth, and then pay rent on the remainder. You will have the option to own the house outright in the future. See www.housingcorp.gov.uk. for more information.With these first two options, ensure that you draw up a proper legal agreement between yourselves as relationships can go wrong, however close you are.
And, finally, no matter how desperate you are to own your own place, make sure that you don’t over stretch yourself with a mortgage. Affordability is the key. After all, there is no point having your own home is you are too cash strapped to be able to do it up or furnish it!
http://www.articlecube.com
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