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.
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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!
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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
Home mortgage refinance: sub prime market trends
By: Alan Lim
Rising delinquencies, bankruptcies and foreclosures are making home mortgage refinance a less lucrative than before. Are you part of the sub-prime home mortgage refinance scenario? Then it’s time to take a good hard look at current trends.
Rising real estate costsThe real estate market has seen a steep rise in the price of houses - with the result that the average home buyer cannot afford to spend such a high sum on owning a new home. Even those persons who are making monthly payments towards the home mortgage refinance are finding it increasingly difficult to cope with rising prices. Interest rates have shot up, further tipping the scales against the homeowner’s favor.Why the sudden rise?
There are many reasons why interest rates and associated real estate expenses have escalated. For starters, the sub prime market borrowers typically comprise those who have already been rejected as per other more stringent eligibility criteria in the prime market. This means the sub prime home mortgage refinance lenders offer them loans at relatively easier criteria – some of them may even imply lesser documentation and background checks on the borrower. Even those borrowers who have a relatively lower credit score maybe approved under the sub prime market home mortgage refinance lending process.
The real estate segment is hurtingDelinquencies and default patterns are at an all time high. Foreclosure and Real Estate Owned is a common phenomenon these days in the home mortgage refinance scenario. Why this is happening can be predominantly attributed to the re-adjustment in rates.
Usually the sub prime home mortgage refinance lenders attract borrowers with a low promotional rate. When this rate shoots up after the promotional stage, it’s a nightmarish situation for borrowers and lenders. The borrower finds it impossible to pay up and the lender finds it virtually impossible to recover the money. This is also known as predatory lending – it’s quite similar to hunting for a prey by luring with attractive rates of interest. Once the unsuspecting customer has been caught in the web, there’s no escape and the home mortgage refinance lender extract every possible penny from the borrower.
What this means from a long term perspective is that investors lose trust in the home mortgage refinance lending company. This can affect the prime market and potentially qualifying borrowers may not qualify in the prime market. This way home sales deteriorate and real estate suffers.Growing competitionWith the recent decline in home sales, most home mortgage refinance lenders are skeptical on future profit margins.
They prefer to be less optimistic about the future trends in the sub prime market. However this has not stopped lenders from fiercely competing with each other. In fact, competition has now escalated because in the dwindling home mortgage refinance market, every lender wants to make a quick buck or two.
http://www.articlecube.com
Rising delinquencies, bankruptcies and foreclosures are making home mortgage refinance a less lucrative than before. Are you part of the sub-prime home mortgage refinance scenario? Then it’s time to take a good hard look at current trends.
Rising real estate costsThe real estate market has seen a steep rise in the price of houses - with the result that the average home buyer cannot afford to spend such a high sum on owning a new home. Even those persons who are making monthly payments towards the home mortgage refinance are finding it increasingly difficult to cope with rising prices. Interest rates have shot up, further tipping the scales against the homeowner’s favor.Why the sudden rise?
There are many reasons why interest rates and associated real estate expenses have escalated. For starters, the sub prime market borrowers typically comprise those who have already been rejected as per other more stringent eligibility criteria in the prime market. This means the sub prime home mortgage refinance lenders offer them loans at relatively easier criteria – some of them may even imply lesser documentation and background checks on the borrower. Even those borrowers who have a relatively lower credit score maybe approved under the sub prime market home mortgage refinance lending process.
The real estate segment is hurtingDelinquencies and default patterns are at an all time high. Foreclosure and Real Estate Owned is a common phenomenon these days in the home mortgage refinance scenario. Why this is happening can be predominantly attributed to the re-adjustment in rates.
Usually the sub prime home mortgage refinance lenders attract borrowers with a low promotional rate. When this rate shoots up after the promotional stage, it’s a nightmarish situation for borrowers and lenders. The borrower finds it impossible to pay up and the lender finds it virtually impossible to recover the money. This is also known as predatory lending – it’s quite similar to hunting for a prey by luring with attractive rates of interest. Once the unsuspecting customer has been caught in the web, there’s no escape and the home mortgage refinance lender extract every possible penny from the borrower.
What this means from a long term perspective is that investors lose trust in the home mortgage refinance lending company. This can affect the prime market and potentially qualifying borrowers may not qualify in the prime market. This way home sales deteriorate and real estate suffers.Growing competitionWith the recent decline in home sales, most home mortgage refinance lenders are skeptical on future profit margins.
They prefer to be less optimistic about the future trends in the sub prime market. However this has not stopped lenders from fiercely competing with each other. In fact, competition has now escalated because in the dwindling home mortgage refinance market, every lender wants to make a quick buck or two.
http://www.articlecube.com
Mortgage: First Time Buyer Tips
By: James Miller Taking out a mortgage is always a huge decision. With interest rates varying and different mortgages to choose from there are right ways to go about getting a mortgage and ways you shouldn’t. Taking your mortgage from the salesman who makes commission from selling is not the best way to go. In many cases, they are going to sell you the costliest deal possible so always shop around and to get an idea of the best deals available. That way you will be better informed should you choose to use a broker or financial adviser.Some companies will include mortgage payment protection insurance (MPPI) along with your mortgage but you should realise that in most cases, this isn’t compulsory.
By including the cost of mortgage payment protection insurance in your mortgage, it can boost up the price by hundreds of pounds. Again by shopping around you can purchase MPPI independently at a much lower cost. Of course if you are looking for a 100% mortgage it will cost you more. By going, say, for a 95% mortgage with a deposit, your options are more open with greater savings being made on the repayments. An option you will then have to take into account is where you are going to get the deposit from.
The bottom line is, shop around for your mortgage. Don’t go for the first one you are offered no matter how good a sales pitch you are given. Shopping online is a great way to make comparisons from many providers and also allows you to research the different types of mortgage available.Interest Only Mortgage a good option?Anyone needs to consider the type of mortgage they are going to take out before rushing into it, but for the first time buyer this is even more crucial.It is only common sense to go for the best deal possible, but you should also go for the shortest mortgage too. One type of mortgage to consider when taking the first steps in home buying is the interest only mortgage.
Of course as with any mortgage, there are good and bad points to consider. In the long run, the interest only mortgage can end up costing more but the monthly repayments are less. By just paying the minimum interest payment you could leave yourself wide open should the housing market take a downturn. This means that you could be paying more for your mortgage than what the actual property is worth.A way to counteract this is by putting down a deposit of around 10% to 15%, rather than get a 100% loan. However, you then have to take into account how to raise the deposit. Whichever mortgage you choose to go with it is essential that you have researched it thoroughly and know you can afford to make repayments. Providing you can afford a mortgage and particularly if you think you might wish to sell within a few years, then an interest only mortgage could work to your advantage.
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By including the cost of mortgage payment protection insurance in your mortgage, it can boost up the price by hundreds of pounds. Again by shopping around you can purchase MPPI independently at a much lower cost. Of course if you are looking for a 100% mortgage it will cost you more. By going, say, for a 95% mortgage with a deposit, your options are more open with greater savings being made on the repayments. An option you will then have to take into account is where you are going to get the deposit from.
The bottom line is, shop around for your mortgage. Don’t go for the first one you are offered no matter how good a sales pitch you are given. Shopping online is a great way to make comparisons from many providers and also allows you to research the different types of mortgage available.Interest Only Mortgage a good option?Anyone needs to consider the type of mortgage they are going to take out before rushing into it, but for the first time buyer this is even more crucial.It is only common sense to go for the best deal possible, but you should also go for the shortest mortgage too. One type of mortgage to consider when taking the first steps in home buying is the interest only mortgage.
Of course as with any mortgage, there are good and bad points to consider. In the long run, the interest only mortgage can end up costing more but the monthly repayments are less. By just paying the minimum interest payment you could leave yourself wide open should the housing market take a downturn. This means that you could be paying more for your mortgage than what the actual property is worth.A way to counteract this is by putting down a deposit of around 10% to 15%, rather than get a 100% loan. However, you then have to take into account how to raise the deposit. Whichever mortgage you choose to go with it is essential that you have researched it thoroughly and know you can afford to make repayments. Providing you can afford a mortgage and particularly if you think you might wish to sell within a few years, then an interest only mortgage could work to your advantage.
http://www.articlecube.com
Reverse Mortgage offers a second chance to life
By: Antonio Redford
Who says that life begins at forty? Today with the evolution and revolution of so many things, life too, has been highly influenced. The United States of America is one nation that has been progressing at a great pace and at the same time makes sure that the citizens of the county are happy staying in their nation. When we talk about the people of any nation, how can we manage to overlook the senior citizens of that nation? Thanks to this concern for the senior citizens of America, one can say that life now begins at sixty. With facilities like reverse mortgage gaining more popularity among the senior citizens of America, it seems that now they can actually live their dreams that they had left unfulfilled.
Now let us understand what a reverse mortgage is. A reverse mortgage is a kind of a loan that is made available to senior citizens of the age of sixty-two years and above. A reverse mortgage can be used to release the home equity in the property as one lump sum or multiple payments. The homeowner's obligation to repay the loan is deferred until the owner dies, the home is sold, or the owner leaves. In a typical mortgage, the homeowner has to make a monthly payment to the lender and after each payment, the equity increases within his or her property, and typically after the end of the term, i.e. the year for which the loan has been taken, the mortgage is paid in full and the property is released from the lender.
However, in a reverse mortgage, the house owner makes no payments and all interest is added to the lien on the property. If the owner receives monthly payments, then the debt on the property increases each month.In a reverse mortgage, the loan is repaid when the homeowner or the spouse no longer occupies the home of the borrower. The bank or loan lender sells the house and then uses the funds to pay back the outstanding loan. If there is any money left over after the loan is repaid, then it goes to the homeowner or their estate. Essentially, the loan is not repaid until you no longer have use or need of your home.
There are n numbers of reasons why a reverse mortgage can be useful, the first and foremost reason being that the amount that the borrower incurs from the reverse mortgage can actually help to finance many things. Moreover, the borrower can stay in his or her home despite the fact that it has been mortgaged to the lender. In any other kind of mortgage loan, the borrower has to leave the house that he has put up as the mortgage.
Though reverse mortgage was introduced around twenty years back in the United States, it has been just three years that it has gained popularity. A reverse mortgage can be the answer to any sort of a financial help that the senior citizens of America want. Therefore, when one has an option like reverse mortgage, then why one should depend on anybody for any kind of a financial help. Just help yourself with a reverse mortgage and start your life at sixty or more precisely, sixty-two.
http://www.articlecube.com
Who says that life begins at forty? Today with the evolution and revolution of so many things, life too, has been highly influenced. The United States of America is one nation that has been progressing at a great pace and at the same time makes sure that the citizens of the county are happy staying in their nation. When we talk about the people of any nation, how can we manage to overlook the senior citizens of that nation? Thanks to this concern for the senior citizens of America, one can say that life now begins at sixty. With facilities like reverse mortgage gaining more popularity among the senior citizens of America, it seems that now they can actually live their dreams that they had left unfulfilled.
Now let us understand what a reverse mortgage is. A reverse mortgage is a kind of a loan that is made available to senior citizens of the age of sixty-two years and above. A reverse mortgage can be used to release the home equity in the property as one lump sum or multiple payments. The homeowner's obligation to repay the loan is deferred until the owner dies, the home is sold, or the owner leaves. In a typical mortgage, the homeowner has to make a monthly payment to the lender and after each payment, the equity increases within his or her property, and typically after the end of the term, i.e. the year for which the loan has been taken, the mortgage is paid in full and the property is released from the lender.
However, in a reverse mortgage, the house owner makes no payments and all interest is added to the lien on the property. If the owner receives monthly payments, then the debt on the property increases each month.In a reverse mortgage, the loan is repaid when the homeowner or the spouse no longer occupies the home of the borrower. The bank or loan lender sells the house and then uses the funds to pay back the outstanding loan. If there is any money left over after the loan is repaid, then it goes to the homeowner or their estate. Essentially, the loan is not repaid until you no longer have use or need of your home.
There are n numbers of reasons why a reverse mortgage can be useful, the first and foremost reason being that the amount that the borrower incurs from the reverse mortgage can actually help to finance many things. Moreover, the borrower can stay in his or her home despite the fact that it has been mortgaged to the lender. In any other kind of mortgage loan, the borrower has to leave the house that he has put up as the mortgage.
Though reverse mortgage was introduced around twenty years back in the United States, it has been just three years that it has gained popularity. A reverse mortgage can be the answer to any sort of a financial help that the senior citizens of America want. Therefore, when one has an option like reverse mortgage, then why one should depend on anybody for any kind of a financial help. Just help yourself with a reverse mortgage and start your life at sixty or more precisely, sixty-two.
http://www.articlecube.com
Bad Credit Remortgage Basics
By: Paul Haughney
Introduction
Adverse Remortgages give you a way of switching your mortgage to another lender, or in some cases staying with the same lender whilst switching to a better mortgage deal. Ending your current mortgage and starting a new mortgage with a lower interest rate provides remortgage loans with range of circumstances to everyone.
Remortgage for any purpose
Today, there are many financial institutions or lenders who offer adverse re-mortgage and this is the result of competition and growing number of defaulted loans. An adverse remortgage can be used to re-organize your finances and pay off your higher interest rate loans. There are lot of cost factors associated with your mortgage loans. The remortgage or loan can be used for many purposes; for Home Improvement, loan the money you need at a comparatively low interest rate for your circumstances; solve your debt problems and save money with Bad Credit Remortgage Loans. Taking out an Adverse Remortgage can help you consolidate debts or remortgage your house if you suffer.
The right advice
I can hear your brain whirring again: ‘If I’m remortgaging my property, I’ll need top advice’. You will find a number of online guides and agencies who are willing to offer remortgage advice in UK. You should be aware that all these advisors will be able to help you find a remortgage but be extra aware that some of them may not necessarily find you the most cost effective remortgage. This is largely due to the fact that most advisors and remortgage introducers earn commission from you taking on a remortgage.
Remortgages for Self-Employed
Whether you are self-employed or more than one source of income or credit issues, there are still loads of adverse remortgage UK products to suit. Being self-employed can sometimes be a problem for finance companies as they have no way of knowing whether you can/will pay back the loan on a regular basis. Basically there is more risk involved and as a result you will also have to pay a higher interest rate. Whatever be your situation – self employed or non status, you can still get an Adverse Remortgage.
Conclusion
Adverse Remortgages were once considered as something you do in a crisis in order to gain extra finances, but now more and more people are remortgaging, and this is why: Enjoy lower and discounted interest rates Reduce your monthly outgoings Release equity in a property to buy a new car or home improvements etc. It is also very important to consider the implications of an adverse remortgage. If you're looking for an adverse remortgage you may already have looked into your credit report. These details will affect how your application is scored by an adverse remortgage lender. And finally, don’t go applying to many remortgage companies for an adverse remortgage. This can be picked up by the relevant agencies and affect your remortgage application.
http://www.articlecube.com
Introduction
Adverse Remortgages give you a way of switching your mortgage to another lender, or in some cases staying with the same lender whilst switching to a better mortgage deal. Ending your current mortgage and starting a new mortgage with a lower interest rate provides remortgage loans with range of circumstances to everyone.
Remortgage for any purpose
Today, there are many financial institutions or lenders who offer adverse re-mortgage and this is the result of competition and growing number of defaulted loans. An adverse remortgage can be used to re-organize your finances and pay off your higher interest rate loans. There are lot of cost factors associated with your mortgage loans. The remortgage or loan can be used for many purposes; for Home Improvement, loan the money you need at a comparatively low interest rate for your circumstances; solve your debt problems and save money with Bad Credit Remortgage Loans. Taking out an Adverse Remortgage can help you consolidate debts or remortgage your house if you suffer.
The right advice
I can hear your brain whirring again: ‘If I’m remortgaging my property, I’ll need top advice’. You will find a number of online guides and agencies who are willing to offer remortgage advice in UK. You should be aware that all these advisors will be able to help you find a remortgage but be extra aware that some of them may not necessarily find you the most cost effective remortgage. This is largely due to the fact that most advisors and remortgage introducers earn commission from you taking on a remortgage.
Remortgages for Self-Employed
Whether you are self-employed or more than one source of income or credit issues, there are still loads of adverse remortgage UK products to suit. Being self-employed can sometimes be a problem for finance companies as they have no way of knowing whether you can/will pay back the loan on a regular basis. Basically there is more risk involved and as a result you will also have to pay a higher interest rate. Whatever be your situation – self employed or non status, you can still get an Adverse Remortgage.
Conclusion
Adverse Remortgages were once considered as something you do in a crisis in order to gain extra finances, but now more and more people are remortgaging, and this is why: Enjoy lower and discounted interest rates Reduce your monthly outgoings Release equity in a property to buy a new car or home improvements etc. It is also very important to consider the implications of an adverse remortgage. If you're looking for an adverse remortgage you may already have looked into your credit report. These details will affect how your application is scored by an adverse remortgage lender. And finally, don’t go applying to many remortgage companies for an adverse remortgage. This can be picked up by the relevant agencies and affect your remortgage application.
http://www.articlecube.com
New Jersey's Foreclosure News Has A Silver Lining … Sort Of.
By: Tired Dad of Four
It has been difficult to put a positive spin on the foreclosure crisis gripping this country, but the news out of New Jersey gives the impression that although all is not well at least the bleeding has slowed down somewhat.According to RealtyTrac, last month 215 homes were foreclosed on, representing a 25% increase from June and a 65% increase from July of last year, which is a small number when compared to the previous month and against the same period last year.
The president of one New Jersey real estate research firm has said while the increase appears large; the number of homes foreclosed on is still quite small when compared against the total number.The major factor contributing to the problem remains the same as it is across the country.
Homeowners who purchased or refinanced mortgages using adjustable rate loans just a couple years ago are now going through the reset periods on those loans. They are seeing their interest rates climb which in turn increases their mortgage payments. Many of these borrowers are in the sub-prime category putting them at higher risk to default on their home loan as they typically had moderate credit to begin with. For those homeowners already treading the edge of the financial abyss this was the nudge they needed to complete their fall.
All is not gloom and doom as there may be relief on the horizon as the state government has recognized the need, and urgency, to offer assistance to any New Jersey homeowner facing foreclosure. There has been call for a consumer hotline to be established. Homeowners facing foreclosure could call in for advice and counseling.
A recent search has revealed this suggestion has not been put into motion.As the sub-prime lending market continues its collapse across the nation residents of New Jersey are still faced with the possibility of losing their homes through foreclosure with seemingly little in the way of outside help available now or in the near future. Until the housing collapse slows down, or the government steps in with some timely aid or assistance there is little more a homeowner trying to stop foreclosure in New Jersey can do except to wait it out and hope for the best, or do the smart thing and find help to stop foreclosure.
http://www.articlecube.com
It has been difficult to put a positive spin on the foreclosure crisis gripping this country, but the news out of New Jersey gives the impression that although all is not well at least the bleeding has slowed down somewhat.According to RealtyTrac, last month 215 homes were foreclosed on, representing a 25% increase from June and a 65% increase from July of last year, which is a small number when compared to the previous month and against the same period last year.
The president of one New Jersey real estate research firm has said while the increase appears large; the number of homes foreclosed on is still quite small when compared against the total number.The major factor contributing to the problem remains the same as it is across the country.
Homeowners who purchased or refinanced mortgages using adjustable rate loans just a couple years ago are now going through the reset periods on those loans. They are seeing their interest rates climb which in turn increases their mortgage payments. Many of these borrowers are in the sub-prime category putting them at higher risk to default on their home loan as they typically had moderate credit to begin with. For those homeowners already treading the edge of the financial abyss this was the nudge they needed to complete their fall.
All is not gloom and doom as there may be relief on the horizon as the state government has recognized the need, and urgency, to offer assistance to any New Jersey homeowner facing foreclosure. There has been call for a consumer hotline to be established. Homeowners facing foreclosure could call in for advice and counseling.
A recent search has revealed this suggestion has not been put into motion.As the sub-prime lending market continues its collapse across the nation residents of New Jersey are still faced with the possibility of losing their homes through foreclosure with seemingly little in the way of outside help available now or in the near future. Until the housing collapse slows down, or the government steps in with some timely aid or assistance there is little more a homeowner trying to stop foreclosure in New Jersey can do except to wait it out and hope for the best, or do the smart thing and find help to stop foreclosure.
http://www.articlecube.com
California reverse mortgage lender: the best companion for senior citizens
By: Antonio Redford
Money is the basic requirement for everyone. Being a senior citizen never means that he/she does not need money. This money may be needed for many purposes such as health treatment, house renovation or any other personal need. If you are a senior citizen and want a large amount of money instantly then California reverse mortgage lender is the ultimate destination for you. Senior citizens who reside in California or in any nearby place can decide on reverse mortgage for best and reliable support.
There are some basic requirements that need to be fulfilled for getting mortgage from California reverse mortgage lender. First of all the borrower has to be a senior citizen and owner of a high valued residential asset. The compulsion of the mortgagor to repay the amount is delayed till the mortgagor is alive. In case the house is sold or person who is residing in it moves to somewhere else, then the mortgagor will have to repay the mortgage. The best thing about California reverse mortgage lender is that the borrower will not have to pay any interest on the loan amount, as it will be deducted from the realized cost of house. Normally the mortgage is repaid within the limit of 30 years whereas in case of reverse mortgage a monthly amount will be paid to mortgagor.
Actually this is the amount which is payable to property owner by California reverse mortgage lender on cost increment of house. In such a phase of life when you cannot ask anyone to lend money as no one would like to take risk for his money, as you cannot guarantee to return it. California reverse mortgage lender assures senior citizens for instant finance with less paper work. It understands the intensity of your need and thus it does not delay in lending you the money. Mortgaging from California reverse mortgage lender is beneficial from every aspect. Its terms and conditions are crystal clear so that any mortgagor may not feel cheated at any point of time.
If you are planning to go for reverse mortgage then do a detailed market research before making any decision. Compare plans and offers of all reverse mortgage lenders. Always choose a plan according to the requirement for instance you need a loan for home repairing then the best option will be the single purpose loan of California reverse mortgage lender. Read all terms and conditions carefully so that you may avoid frauds.
California reverse mortgage lender is the best option a senior citizen can ever find. California reverse mortgage lender enables them to convert their asset in guarantee for loan and equity. This equity is totally a tax-free income, which means you will not have to pay any tax on that income from house. It is a perfect idea to take loan from California reverse mortgage lender as it makes monthly payment to you instead of receiving payment to from you. Isn’t it a double benefit plan that continues your source of income even when you are a retired person? Therefore don’t be confused and make a sensible decision that will pay you equity on your loan.
http://www.articlecube.com
Money is the basic requirement for everyone. Being a senior citizen never means that he/she does not need money. This money may be needed for many purposes such as health treatment, house renovation or any other personal need. If you are a senior citizen and want a large amount of money instantly then California reverse mortgage lender is the ultimate destination for you. Senior citizens who reside in California or in any nearby place can decide on reverse mortgage for best and reliable support.
There are some basic requirements that need to be fulfilled for getting mortgage from California reverse mortgage lender. First of all the borrower has to be a senior citizen and owner of a high valued residential asset. The compulsion of the mortgagor to repay the amount is delayed till the mortgagor is alive. In case the house is sold or person who is residing in it moves to somewhere else, then the mortgagor will have to repay the mortgage. The best thing about California reverse mortgage lender is that the borrower will not have to pay any interest on the loan amount, as it will be deducted from the realized cost of house. Normally the mortgage is repaid within the limit of 30 years whereas in case of reverse mortgage a monthly amount will be paid to mortgagor.
Actually this is the amount which is payable to property owner by California reverse mortgage lender on cost increment of house. In such a phase of life when you cannot ask anyone to lend money as no one would like to take risk for his money, as you cannot guarantee to return it. California reverse mortgage lender assures senior citizens for instant finance with less paper work. It understands the intensity of your need and thus it does not delay in lending you the money. Mortgaging from California reverse mortgage lender is beneficial from every aspect. Its terms and conditions are crystal clear so that any mortgagor may not feel cheated at any point of time.
If you are planning to go for reverse mortgage then do a detailed market research before making any decision. Compare plans and offers of all reverse mortgage lenders. Always choose a plan according to the requirement for instance you need a loan for home repairing then the best option will be the single purpose loan of California reverse mortgage lender. Read all terms and conditions carefully so that you may avoid frauds.
California reverse mortgage lender is the best option a senior citizen can ever find. California reverse mortgage lender enables them to convert their asset in guarantee for loan and equity. This equity is totally a tax-free income, which means you will not have to pay any tax on that income from house. It is a perfect idea to take loan from California reverse mortgage lender as it makes monthly payment to you instead of receiving payment to from you. Isn’t it a double benefit plan that continues your source of income even when you are a retired person? Therefore don’t be confused and make a sensible decision that will pay you equity on your loan.
http://www.articlecube.com
Overview of Remortgages
By: michael sterios
Remortgages comprise a significant and ever-growing proportion of the overall mortgage market.Property owners are always on the lookout for ways to save money, and with remortgages being relatively simple to organise, it has emerged as a popular method for helping home owners restructure their personal finances.
Remortgages are continually growing in popularity, with property owners rarely keeping the same mortgage product for more than five years. Remortgages may be a suitable option for various reasons, including; securing a better interest rate, freeing up equity, or consolidating debt.
Remortgages are also popular with people who wish to keep the same mortgage when they move home but will have to either increase or decrease the mortgage’s balance. Property owners move home every seven years, on average, which is another contributing factor to the trend of people rarely sticking with the same mortgage product for a long period of time.
Mortgage lenders are always on the lookout for new customers these days as the mortgage market has become highly competitive. For this reason, remortgages are usually offered with incentives such as low arrangement fees, discounted interest rates for a short period of time, and free gifts.
The competitiveness of the remortgages market is good for consumers as they have plenty of choice when looking to find a better mortgage deal for their home. Borrowers are no longer restricted to several high-street banks who offered products that were virtually identical to each other before the banking industry was deregulated.
Home owners should therefore not feel as though they should be locked in to their current mortgage deal if they feel the interest rate is too high. Instead, they should contact an independent mortgage adviser who can source remortgages from the entire mortgage market.
An independent mortgage adviser will use special software to locate the best remortgages on offer for the homeowner’s personal circumstances.
Home owners should therefore take advantage of the competitiveness of the remortgages market and ensure that they always have the best mortgage product possible secured on their home.
If you are looking to remortgage your property and are confused by the sheer volume of remortgages on offer, contact an independent mortgage broker for expert and impartial advice.
http://www.articlecube.com
Remortgages comprise a significant and ever-growing proportion of the overall mortgage market.Property owners are always on the lookout for ways to save money, and with remortgages being relatively simple to organise, it has emerged as a popular method for helping home owners restructure their personal finances.
Remortgages are continually growing in popularity, with property owners rarely keeping the same mortgage product for more than five years. Remortgages may be a suitable option for various reasons, including; securing a better interest rate, freeing up equity, or consolidating debt.
Remortgages are also popular with people who wish to keep the same mortgage when they move home but will have to either increase or decrease the mortgage’s balance. Property owners move home every seven years, on average, which is another contributing factor to the trend of people rarely sticking with the same mortgage product for a long period of time.
Mortgage lenders are always on the lookout for new customers these days as the mortgage market has become highly competitive. For this reason, remortgages are usually offered with incentives such as low arrangement fees, discounted interest rates for a short period of time, and free gifts.
The competitiveness of the remortgages market is good for consumers as they have plenty of choice when looking to find a better mortgage deal for their home. Borrowers are no longer restricted to several high-street banks who offered products that were virtually identical to each other before the banking industry was deregulated.
Home owners should therefore not feel as though they should be locked in to their current mortgage deal if they feel the interest rate is too high. Instead, they should contact an independent mortgage adviser who can source remortgages from the entire mortgage market.
An independent mortgage adviser will use special software to locate the best remortgages on offer for the homeowner’s personal circumstances.
Home owners should therefore take advantage of the competitiveness of the remortgages market and ensure that they always have the best mortgage product possible secured on their home.
If you are looking to remortgage your property and are confused by the sheer volume of remortgages on offer, contact an independent mortgage broker for expert and impartial advice.
http://www.articlecube.com
Why to go for mortgage
By: destin
Your house is a big investment probably one of the biggest you’re every likely to make. It is also the place that you and your loved ones call home; a shelter and haven from the outside world. That’s why it is so important to ensure that your home and family are protected in the event of your death. It’s not a topic that any of us like to dwell on, but the sad fact is that should you die and the family are no longer able to afford repayments on the house, they will lose the property and the roof from over their heads.
Having a good mortgage policy in place to guard your property in the event of your death is vital. When you die, your family will have enough to worry about without the added stress of how they are going to hold on to the family home. Mortgage insurance is what can make them feel like this, with the mortgage balance being paid in full upon your death.
This means that your dependants will not have the financial worry of trying to find the mortgage repayments in the event of your death. Neither wills they have to worry about selling up and maybe downsizing in order to keep a roof over their heads the last things that you would want to put them through.
When the mortgage loan is provided to any of member of it, he/she will get a thorough look at his member's finances, which can be a major starting point for cross sell opportunities. This will increase member product usage. If the credit union gives up the mortgage transaction for his/her member to a participant, then the member may be at risk.
In a nutshell, in the event of you or your partner dying, mortgage life insurance can mean that the difference between keeping a roof over your head and ending up having your home repossessed a frightening thought. And while many of us find organizing something like life insurance a somber business as it makes us face our mortality, it is the fair and right thing to do for your partner and any next of kin to make sure that your finances are in order in the event of your death. So why do you need mortgage life insurance cover? A mortgage policy runs for a fixed policy term many people take it put to run concurrent with their (personal loans) mortgage. The policy can help pay off outstanding balance of the mortgage on your home. This will be in the form of a cash sum. If you are looking for a satisfactory mortgage, then do shop around and do not automatically admit the first quotation you get. Premiums as well as terms of the policy and other benefits can vary wildly from provider to provider and you could be surprised just how cheap mortgage life insurance can be, without any compromise on cover.
http://www.articlecube.com
Your house is a big investment probably one of the biggest you’re every likely to make. It is also the place that you and your loved ones call home; a shelter and haven from the outside world. That’s why it is so important to ensure that your home and family are protected in the event of your death. It’s not a topic that any of us like to dwell on, but the sad fact is that should you die and the family are no longer able to afford repayments on the house, they will lose the property and the roof from over their heads.
Having a good mortgage policy in place to guard your property in the event of your death is vital. When you die, your family will have enough to worry about without the added stress of how they are going to hold on to the family home. Mortgage insurance is what can make them feel like this, with the mortgage balance being paid in full upon your death.
This means that your dependants will not have the financial worry of trying to find the mortgage repayments in the event of your death. Neither wills they have to worry about selling up and maybe downsizing in order to keep a roof over their heads the last things that you would want to put them through.
When the mortgage loan is provided to any of member of it, he/she will get a thorough look at his member's finances, which can be a major starting point for cross sell opportunities. This will increase member product usage. If the credit union gives up the mortgage transaction for his/her member to a participant, then the member may be at risk.
In a nutshell, in the event of you or your partner dying, mortgage life insurance can mean that the difference between keeping a roof over your head and ending up having your home repossessed a frightening thought. And while many of us find organizing something like life insurance a somber business as it makes us face our mortality, it is the fair and right thing to do for your partner and any next of kin to make sure that your finances are in order in the event of your death. So why do you need mortgage life insurance cover? A mortgage policy runs for a fixed policy term many people take it put to run concurrent with their (personal loans) mortgage. The policy can help pay off outstanding balance of the mortgage on your home. This will be in the form of a cash sum. If you are looking for a satisfactory mortgage, then do shop around and do not automatically admit the first quotation you get. Premiums as well as terms of the policy and other benefits can vary wildly from provider to provider and you could be surprised just how cheap mortgage life insurance can be, without any compromise on cover.
http://www.articlecube.com
Advantages and Disadvantages of using a Mortgage Broker
By: michael sterios
When searching for a mortgage, you will be faced with the decision of whether or not to use a mortgage broker. There are advantages and disadvantages to using a mortgage broker instead of applying for a mortgage directly with a lender.One of the main advantages is that independent mortgage brokers have access to, and knowledge of, the entire mortgage market. Mortgage brokers are able to advise which lenders will consider your case and which lenders will not based on your individual circumstances.
Mortgage brokers are also adept at sourcing mortgages for people with poor credit ratings. They will have access to many lenders who specialize in lending to people with adverse credit. If you are in this situation, you may find it futile to apply for a mortgage directly through a mainstream bank.
Another advantage of using a mortgage broker is that they will take care of a lot of the paperwork and chasing up of the lender for you. This can save you precious time and reduce stress. Mortgage brokers will often have points of contact with the various lenders they put business through. This can help improve the efficiency with which your mortgage case is dealt with.
Mortgage brokers can also have access to exclusive deals not available on the open market. This is a major advantage of using a mortgage broker as exclusive deals can be quite favourable to the borrower.
Sometimes mortgage brokers are able to negotiate a better interest rate or lower application fees from the lender. This is rare, but it is not unheard of, particularly where a broker has a strong relationship with a particular lender.
While there are many advantages to using a mortgage broker, there are some disadvantages.
One of these includes the tendency for some unscrupulous brokers to show bias towards lenders that provide them with higher fees and commissions instead of recommending the most appropriate product for the borrower.
Also, the broker may not be as highly trained and experienced as you are lead to believe. While there are exam and training requirements, some mortgage brokers are simply not very good at their job.
Additionally, not all brokers have access to a full panel of lenders, meaning that they may not be able to source mortgages from the entire market.
Finally, some brokers charge hefty fees to their clients, particularly for difficult cases, usually relating to adverse credit. The fees can be costly and may be a deterrent to using a mortgage broker.Whether or not to employ the services of a mortgage broker is a matter of personal preference.
http://www.articlecube.com
When searching for a mortgage, you will be faced with the decision of whether or not to use a mortgage broker. There are advantages and disadvantages to using a mortgage broker instead of applying for a mortgage directly with a lender.One of the main advantages is that independent mortgage brokers have access to, and knowledge of, the entire mortgage market. Mortgage brokers are able to advise which lenders will consider your case and which lenders will not based on your individual circumstances.
Mortgage brokers are also adept at sourcing mortgages for people with poor credit ratings. They will have access to many lenders who specialize in lending to people with adverse credit. If you are in this situation, you may find it futile to apply for a mortgage directly through a mainstream bank.
Another advantage of using a mortgage broker is that they will take care of a lot of the paperwork and chasing up of the lender for you. This can save you precious time and reduce stress. Mortgage brokers will often have points of contact with the various lenders they put business through. This can help improve the efficiency with which your mortgage case is dealt with.
Mortgage brokers can also have access to exclusive deals not available on the open market. This is a major advantage of using a mortgage broker as exclusive deals can be quite favourable to the borrower.
Sometimes mortgage brokers are able to negotiate a better interest rate or lower application fees from the lender. This is rare, but it is not unheard of, particularly where a broker has a strong relationship with a particular lender.
While there are many advantages to using a mortgage broker, there are some disadvantages.
One of these includes the tendency for some unscrupulous brokers to show bias towards lenders that provide them with higher fees and commissions instead of recommending the most appropriate product for the borrower.
Also, the broker may not be as highly trained and experienced as you are lead to believe. While there are exam and training requirements, some mortgage brokers are simply not very good at their job.
Additionally, not all brokers have access to a full panel of lenders, meaning that they may not be able to source mortgages from the entire market.
Finally, some brokers charge hefty fees to their clients, particularly for difficult cases, usually relating to adverse credit. The fees can be costly and may be a deterrent to using a mortgage broker.Whether or not to employ the services of a mortgage broker is a matter of personal preference.
http://www.articlecube.com
No deposit mortgage - No deposit, small deposit….no problem
By: steve croxton
First time buyers are the largest group of people who struggle for the illusive deposit, but those people having suffered a relationship break up can find that by the time they have paid off the joint debts and sold the property at a reduced price in order to get a quick sale, then split the proceeds, there is not much left to start again and apply for another mortgage. Also, those who have sold their property to clear mounting debts, and again, once the debts have been cleared there is often very little left to use as a deposit for the next mortgage.
Here are 3 ways of buying a property with little or no deposit saved –
1. Search around new property developments to find a builder who will provide you with a 5% or even 10% deposit for your mortgage. This is referred to as a ‘builder’s gifted deposit’. Not all lenders accept builders gifted deposits but many do and it’s a great way to get you started.
2. If you are employed, you have been in your job for at least 12 months, you are not heavily committed to many loans or credit cards and you have not had any late payments, defaults, CCJ’s or arrears for the last 2 years, then you may be able to access a 100% (no deposit) or 95% mortgage.
3. The third way is popular with investors. Find a property which has been reduced in price or negotiate a lower price, ie, It has a value of Ј100,000 and you manage to buy it for Ј80,000. You have made a 20% saving. You buy the property with a Bridging loan, which is a short term mortgage requiring no deposit. Once you own it, you remortgage the property and you can increase your borrowing from 80% loan to value to 85% or 90%. This would then release 5% or 10% of the equity giving you Ј5,000 or Ј10,000 cash released based on the example above. The Bridging loan would probably cost 2% (Ј2,000), with no deposit required, and for most properties over Ј125,000 there would be stamp duty to pay and the solicitor fees would probably cost around Ј1,000. Releasing just 5% would probably cover all of your fees associated with the purchase and you have just achieved raising a mortgage with no deposit contribution from you.
Clearly, you can see there are ways of purchasing a property with no deposit from the purchaser. Likewise, for those who can afford to pay a deposit for their mortgage, you could leave the money in the bank, simply by negotiating your deposit from the seller. Negotiating is a required skill for those building portfolios of properties, what we are talking about in item 3, is using the same technique to purchase your home.
http://www.articlecube.com
First time buyers are the largest group of people who struggle for the illusive deposit, but those people having suffered a relationship break up can find that by the time they have paid off the joint debts and sold the property at a reduced price in order to get a quick sale, then split the proceeds, there is not much left to start again and apply for another mortgage. Also, those who have sold their property to clear mounting debts, and again, once the debts have been cleared there is often very little left to use as a deposit for the next mortgage.
Here are 3 ways of buying a property with little or no deposit saved –
1. Search around new property developments to find a builder who will provide you with a 5% or even 10% deposit for your mortgage. This is referred to as a ‘builder’s gifted deposit’. Not all lenders accept builders gifted deposits but many do and it’s a great way to get you started.
2. If you are employed, you have been in your job for at least 12 months, you are not heavily committed to many loans or credit cards and you have not had any late payments, defaults, CCJ’s or arrears for the last 2 years, then you may be able to access a 100% (no deposit) or 95% mortgage.
3. The third way is popular with investors. Find a property which has been reduced in price or negotiate a lower price, ie, It has a value of Ј100,000 and you manage to buy it for Ј80,000. You have made a 20% saving. You buy the property with a Bridging loan, which is a short term mortgage requiring no deposit. Once you own it, you remortgage the property and you can increase your borrowing from 80% loan to value to 85% or 90%. This would then release 5% or 10% of the equity giving you Ј5,000 or Ј10,000 cash released based on the example above. The Bridging loan would probably cost 2% (Ј2,000), with no deposit required, and for most properties over Ј125,000 there would be stamp duty to pay and the solicitor fees would probably cost around Ј1,000. Releasing just 5% would probably cover all of your fees associated with the purchase and you have just achieved raising a mortgage with no deposit contribution from you.
Clearly, you can see there are ways of purchasing a property with no deposit from the purchaser. Likewise, for those who can afford to pay a deposit for their mortgage, you could leave the money in the bank, simply by negotiating your deposit from the seller. Negotiating is a required skill for those building portfolios of properties, what we are talking about in item 3, is using the same technique to purchase your home.
http://www.articlecube.com
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