Mortgage Approvals Rise Thanks to UK Lending Schemes

Loans (Photo credit: zingbot)

Mortgage approvals are on the rise in the UK, particularly for first-time home buyers. The increased number of approvals indicates resurgence in consumer confidence, along with an increased availability of products. Since most of the approvals were attributed to first-time home buyers, much of the credit for the increase can be attributed to government lending schemes, such as Funding for Lending, the NewBuy, and the Help to Buy schemes. 

These schemes have made it easier for people to enter the housing market due to a variety of incentives. Furthermore, because so many of the mortgage approvals are driven by high loan-to-value borrowers (meaning those borrowers putting forward a low deposit in relation to the size of the mortgage), many are further crediting this high LTV rate to the mortgage thaw instigated by the government lending schemes. We will look at why consumers are getting back into the property market, and specifically at how the government funding schemes are fueling the increased demand.

Higher Mortgage Approvals

After the 2008 financial crisis, mortgages became much more difficult to get. Many banks were warier about who they lent money to in an effort to avert another financial disaster. At the same time, property prices continued to rise. As a result, homebuyers were stuck: they could no longer qualify for mortgages, and even if they could, they couldn’t afford the payments on those mortgages. The housing market stalled, as did the economy.

Lending Schemes

The government’s lending schemes were designed to overcome this predicament. The three main lending schemes, Funding for Lending, the NewBuy, and Help to Buy, all have their own unique structures and regulations, but they all share the same purpose: to make mortgages easier for people to afford. The Funding for Lending scheme in particular has helped fuel much of the increased approval rate. 

Under the Funding for Lending scheme, cheaper funds are delivered to lenders, thereby mitigating the risk those lenders take on by approving mortgages for borrowers with smaller than average deposits. Likewise, the NewBuy and Help to Buy schemes work on a similar basis, with the government either paying the lender a certain portion of the property’s value, or contributing a portion to the borrower’s deposit. As a result, mortgage rates are being driven down, and first-time home buyers no longer need to save up for years on end in order to make a deposit on a home. In some cases, the government may even contribute up to half of a borrower’s deposit.

The housing market is a huge driver of the economy, and without people buying houses, the economy fails to grow. News that mortgage approvals are on the rise are encouraging not just for first-time homebuyers, but for all UK consumers. The increase in mortgage approvals, however, is due to more than market forces; it is largely driven by government lending schemes that mitigate the risks of lending for lenders, while decreasing the overall deposits borrowers have to put forward. While it is unclear if mortgage approvals can continue to rise without such government assistance, this current news is certainly encouraging for the foreseeable economic future.

Harry Davis is a former bank teller. He still likes to keep up with money matters, and then posts his findings for others to read. You can learn about the financial planning service at Moneyvista.com.

Finding the Best Mortgage Rates

Finding the perfect house may be difficult, but choosing the right mortgage loan can prove to be even more challenging, especially for first-time borrowers  While the mortgage process may seem daunting, finding a knowledgeable broker can conveniently simplify and expedite the process. A mortgage broker will help you navigate the mortgage system and will match your financial needs with a suitable mortgage from a selection of lenders. The key is choosing the right broker. Similarly, choosing the right mortgage lender can be an overwhelming and frustrating process. By understanding some simple mortgage terms, knowing the right questions to ask, and comparing mortgage quotes from multiple companies can better enable you to find the best mortgage loan possible for your particular financial situation. 

To narrow down your search for the best mortgage rates, brokers, and lenders, this article will highlight three tools that will help simplify your search for the best mortgage loan available. 

Brokers vs Lenders 

To start, it is important to identify the difference between a mortgage broker and a mortgage lender. Many people do not understand and often confuse the difference between the two parties. Essentially, a mortgage broker is a loan provider who serves as a liaison between you and mortgage lenders. A mortgage broker offers the loan product of various lenders, while a mortgage lender provides the actual loan money. Many lenders, though not all, are associated with banks. As a loan seeker, you can either apply for a mortgage at the bank you use for your checking and savings accounts, or you can shop around to see which lenders offer the best interest rates and terms. 

Mortgage brokers do not loan money, instead, they work with you to help you find appropriately-matched mortgage loans. Typically, a mortgage broker will learn about your particular financial situation and then shop around for the best loans from lenders offering the particular type of loan you need. Brokers usually work with numerous lenders, attempting to match the right lender with your profile. Since they have so many lenders from which to choose, brokers are more likely to find loans for borrowers with special needs, such as bad credit, than individual lenders. It is beneficial to explore all your options and to meet with multiple mortgage brokers and lenders so you can determine where you would be best served. 

How to Find the Best Brokers 

To find the best broker it is important to get specific. Anyone seeking a loan has a different loan purpose, be it commercial or residential. This key information can be a factor in deciding which broker to work with. Similarly, when seeking help from a broker you should research each type of mortgage to see which is right for you. Each one has its own set of pros and cons, and choosing one that first your financial situation can help create better plans for the future. Check out the tool below to help you search for the right mortgage broker:

Mortgage Brokers

How to Find the Best Lenders 

To find the best lender it is important to assess loan type, mortgage loan programs, closing costs, and company reputation. Researching the necessary loan type is important for both brokers and lenders as explained above. There are several types of loans to choose from such as adjustable rate, fixed rate, home equity loans, and hybrids. Mortgage loan programs are typically overlooked, but they can offer you special deals or lower rates. Closing costs and reputation should be factors in your decision as working with a company that has excellent personnel and has been in business for years could seek to benefit you. You must also ensure that you will be paying reasonable closing costs, which are various fees charged by those involved with home sale. Check out the tool below to help you search for the right mortgage lender:
 

Mortgage Lenders

How to Save on Your Mortgage Payments 

For most homeowners, a mortgage payment accounts for about 30 percent of their monthly income. If you’re determined to stick with your budget, take time to trim some of those housing expenses. You can free up some extra cash each month by reducing your monthly mortgage payment and then reconfiguring your budget to better manage your household’s monthly expenses. It may be helpful to make a large lump sum payment to pay down your mortgage, shop around for better rates, extend the life of the loan, or ask your lender about the Home Affordable Modification Program (HAMP). These steps and these tools will help you narrow down the search for the best rates, brokers, and lenders when seeking a mortgage loan.

4 Questions Every Borrower Should Ask Up Front About Their Mortgage

When applying for a home loan, be sure to consider the initial costs and interest, as well as the terms and conditions of the loan before signing the contract and close escrow. As a home buyer age 50 or older, it is imperative that you know the terms of your loan before you enter into a contract that is not designed to benefit you. 

As a side note, once you have the basics down, it's simple enough to find a GTA mortgage rate comparison service online, so there's no need to worry about that. Getting the fundamentals down is absolutely vital before locking in a loan, so make sure to do thorough research. 

With so much focus put on interest and monthly mortgage payment, many new home buyers forget to ask the important questions up front. Here are four vital questions to ask after you receive an approval and accept a home loan. 

What are the Costs of Obtaining the Loan? 

Just because the lender offers a competitive interest rate does not mean that the difference of 0.5% interest will offset the initial costs of obtaining the loan. One question all borrowers should ask the lender before accepting an offer for credit is how much are origination fees, discount fees to lower interest, the appraisal, the credit report, administrative fees, document prep fees, closing costs, title insurance, and any other fee the lender charges upfront. 

All lenders are required to provide a Good Faith Estimate, which details the out-of-pocket closing costs necessary just to get the loan. Compare these estimates and keep these figures in mind before making a decision. 

How Long Will It Take Me to Break Even if I Buy Discount Points? 

If you have the option to buy discount points to lower your interest rate, it is important to do the math to determine if buying these points is going to pay off based on the length of the mortgage. When you are buying a new home, the best way to determine if the discount points will really offer you a discount is to divide the upfront cost of the points by the amount you are saving monthly with the lower rate. 

This will show you how many months it will take you break even. You can determine if you will be staying in the house long enough for the discounted rate to pay off. 

Is there a Pre-Payment Penalty? 

Some mortgage loans have terms written into the contract that restrict you from paying your mortgage off early without being charged a pre-payment penalty. A pre-payment penalty is a common term built into a loan contract to ensure the lender earns a reasonable amount of profit in interest for extending credit. 

To prevent a borrower from refinancing as soon as the loan goes through, the lender may charge a percentage of the remaining interest due to borrower to close the mortgage contract. Review how long the penalty is valid and determine if the fee is fair compared to the common fees that other lenders charge. 

How Long will it Take for the Lender to Fund the Loan? 

You need to know the average funding times so that you know how long to lock in the rates. Today, most lenders require you to lock in your rates so that you can avoid falling victim to a sudden rate increase before the loan closes. 

The average funding time frame ranges between 20 and 45 days, but in some seasons funding can take longer. Find out the anticipated turnaround time and how long funding will take to protect your interests. 

When you are applying for such a large loan like a mortgage, you need to look past interest and monthly payments and assess the terms and conditions of the loan. By asking the right questions, you can avoid entering into a contract close to retirement that will not benefit you long-term. 

About the Author: Marley Thomas is a freelance finance and real estate industry blogger. He takes pride in providing consumers with the best research upfront, so they can feel confident in making the right decision for themselves.

When is the Right Time to Buy a House?

Knowing when the right time can be to buy a house can depend on a number of different factors; you need to be aware of changes in the UK property market, as well as of the availability of different mortgages. At the same time, it’s crucial to consider your short and long term personal finances, and whether you’ll be able to buy a house and then be able to build up its value over time. There are also some timing issues that need to be worked out when deciding on a house purchase. 


While the UK property market is still not out of recession, the continued resilience of the London market and the capital’s house prices is having a gradual impact on nationwide prices, with London having experienced a 0.7 per cent increase in property prices in February. Other rises in house prices have been down to some fluctuating sales costs, which are going through a period of gradual improvement and stalling - the average price for a house in the UK is around £213,710 which represents a small growth on previous years. 


You should also be aware of the different schemes set up by the Government to help first time and existing house buyers to lower the costs of mortgages and get them onto the property market. The most recent of these schemes is Help to Buy, which will offer house buyers a 20 per cent deposit loan on top of their own 5 per cent contribution - these loans will be interest free for the first five years, and set at a rate of 1.75 per cent thereafter. The Government are similarly offering home buyers a guarantor scheme for mortgages, with banks being encouraged to offer higher value loans. 


When looking for a mortgage, the right time to get one can depend, then, on how cautious or optimistic banks and other lenders are at any given time; the Help to Buy scheme, which follows previous efforts to raise confidence in the property market, should help reduce risk for lenders. However, the mortgage market is still fairly stagnant, with only marginal increases in borrowing, and more repayments made than new loans taken out in February 2013. 


For most people, then, there is no ideal time to buy a house, but rather a climate of caution that needs to be carefully explored; you’ll need to make sure that your personal finances are strong enough to cover at least a 5 per cent deposit, and that you can cover stamp duty, conveyancing and other fees, which can quickly add up. Look ahead to consider whether your wages and savings can cover monthly mortgage payments and any renovation costs. 


You can make things a bit easier on yourself, though, by looking to buy a new property in Winter-time, where prices tend to be a bit lower as demand falls. Speak to estate agents about offers, and look into options where sellers may be unable to wait until the Spring for a potentially higher price. Similarly, watch out for new mortgage deals and interest rate changes for the start of the new financial year from the 6th of April, if you want to see if banks are willing to lend more at reasonable prices. 

Author bio: Liam writes about finance, from estate agents in Ipswich to mortgage rates. He attends regular finance seminars to ensure he stays on top of the industry.

Five reasons you should use a mortgage broker

Loans (Photo credit: zingbot)

When it comes time to shop for a home loan, individuals and families are not always sure where to start. Should they start looking for a home first and then worry about financing? When should they start looking into a home loan? In order to make the process a little easier, many potential homeowners are looking to mortgage brokers for advice and assistance. They want guidance from someone experienced in the industry. There are five major reasons to consider mortgage brokers when searching for the perfect home loan.

Saving Time Searching for a Home Loan

There are so many different lenders to choose from and shopping around can take days or even weeks. Once a consumer has all of the different information from the lender, it isn't always easy to make comparisons to determine which one is offering the best deal. One might require less closing costs but provide a higher interest rate.

Mortgage brokers save individuals time. The brokers know about all of the available loans, lenders and programs available. These professionals can do all the legwork and research in order to provide the client with a few of the best options available. There is no need for the customer to make multiple phone calls or visit several different locations. 

Specialization

Mortgage brokers focus on one type of loan. They don't research car loans or debt consolidation loans. Because of this, they keep up with the latest information revolving around a mortgage. Banks work with a variety of different loans and a variety of different customers. Instead of specializing, banks attempt to offer many different products to help the most customers. Customers benefit from the focus that mortgage brokers have and the time they invest in researching home loans only.

Large Network of Lenders

With so many lenders working with mortgage brokers, there is a lot of competition to get a person's home loan. It is possible for a broker to get multiple offers for the same loan with different lenders attempting to provide the best deal. The more lenders a mortgage broker works with, the better options their client will have when it comes to a home loan.

One on One Attention for Customers

Getting financial advice from mortgage brokers tends to be easy because of the one on one attention that customers receive. A broker takes the time to research the best option for each potential homeowner. There is less of a chance that a person will get lost in the shuffle when it comes to a mortgage broker when compared to working directly with a lender or banker. 

Motivated to Find the Best Deal

Finally, one of the most important reasons to use a mortgage broker centers on the fact that they are motivated to provide customers with the best deal. If they can't provide a loan that a family can live with, they don't get paid. In order to help the customer and ensure that the loan works out, a broker keeps an eye on the process.

Dane Smith has been presenting financial solutions to readers for the past 10 years. He strives to take financial advice from mortgage brokers and turn it into clear and understandable steps that any potential homeowner can use.

What Is Needed For Retirement

Retirement (Photo credit: Tax Credits)

People should start to think about their retirement needs even at an early age. Before retirement people should be financially prepared. Some people think that it is not necessary to start planning for retirement at an early age. But will find out that retirement will sneak up on you and you will find yourself completely unprepared. So the question of how do I prepare for retirement and how much money will I need to retire remains unanswered. 

How Much Money Will I Need

Many soon to be retirees are more concerned about how much money they will be needed come retirement age. There is no set amount of money that a person should have in order to retire. What you will need depends on what your plans are once retirement comes about. You will need to decide if you want to make any large purchases such as an RV, If you plan on becoming the world traveler and making many trips, or if you just plan on staying in your home and enjoying the life of rest and relaxation.

Not only will you need to figure out what your plans on but also what your day-to-day living expenses will be. Even though you will be retired you will still have your continuing needs. 

Ongoing Debts And Expenses

Another issue to consider when you are trying to figure out how much to set aside for retirement is how much debt you have. You will need to take into consideration how much if anything you still owe on your automobile loans, credit cards or even your mortgage loan. By calculating how much your monthly payments are and how much longer you will have on these payments you can be sure of an approximate amount of money that you will need every month.

Do not forget that you will also have the other monthly expenses to add into your monthly budget as well. These expenses should include any of your ongoing bills such as insurance, utility bills, grocery bills, fuel, as well as any other expense you may have during the month. By including all of these expenses in your monthly budget you should be able to figure out how much money you will need to live on. 

Healthcare Expenses

Unfortunately when a person is getting close to retirement age the cost of their healthcare will be increasing. After all the older you get the more healthcare needs you will have. It is important to have your healthcare needs taken care of for your future. You would not want to have a major healthcare issue that would take up your entire retirement savings. This could cause you to face some serious money problems later down the road.

Finding your retirement could be a very stressful time in your life that can involve many different decisions that need to be met. It is important to be sure you consider all of your expenses as well as any other expenses that you may think can arise. Once you decide on how much it will take to fund your retirement you can figure out the best time for you to retirement and live the life of rest and relaxation.

Author Bio This article is contributed by Janice Thompson. She is a financial journalist. She says success comes to those who believe in the beauty of their dreams. She gives excellent financial tips on debt, credit card, personal loans for bad credit, insurance and advice on her blog.

Home Loans Possible With the Right Company

Heritage Home Loans has been one of the most successful and reputable home loans companies in the wake of the housing and banking crises of the past few years. With the continued volatility that the federal spending cuts are sure to bring, getting a home loan will continue to be difficult for people without the right connections. 

However, Heritage Home Loans has built up a reputation for helping people precisely when they need it most. With programs for all would be homebuyers in all kinds of financial situations, Heritage Home Loans can easily create financial leverage for a first time homebuyer without much credit or an underwater homeowner who needs to refinance. 

The customer service of the company is also without compare within the industry. Customers of Heritage Home Loans tend to remain loyal because of the human connection that they receive from the company, which has a policy to help any customer who is in need of assistance before simply delegating their account to the foreclosure pile. 

If you are looking for a home loan company that has your best interests at heart, then you owe it to yourself to try the experts at Heritage Home Loan. They will be sure to have both the financing and the answers that you need in order to progress forward in your endeavors.

Boost your Pension with Property Investment

Property market (Photo credit: Alan Cleaver)

Twenty years ago, a carefully cultivated pension plan was your ticket to a comfortable retirement. Sadly things have now changed and with interest rates on savings accounts dismal and pensions performing at an all-time low, it is a good idea to look into alternative ways of generating some extra income if you want to enjoy your twilight years. So is property investment a good idea, or is becoming a buy to let landlord more trouble than it’s worth? 

The State Of The Rental Market

The UK rental market is currently booming. First time buyers are unable to gain a foothold on the property ladder and millions are being forced into rental accommodation as the recession continues to bite. As a result, demand for rental accommodation is far outstripping supply in many areas, which makes property investment a smart move for anyone with some cash to spare. 

How Easy Is It To Get A Mortgage?

Lenders have tightened up their lending criteria considerably since the property market crashed in a spectacular fashion a few years ago. Most now expect borrowers to have at least a 25% deposit, so unless you have the cash, you will struggle to obtain a buy to let mortgage. Lenders will also expect your anticipated rental income to be higher than interest on the loan. 

Will Buy To Let Properties Generate A Good Income?

The average savings account pays less than 1% these days, so even if you have tens of thousands stashed away, you will be lucky if you can generate much income from it. The alternative is to invest in some high-risk schemes, but if this is your retirement pot, you might not want to play Russian roulette with your savings. Buy to let yields are a much better bet in the current market - rental yields do vary, but on average you can expect to see a good 5-6% return on your investment, even taking into account expenses incurred. 

Things To Consider Before Investing In Buy To Let

Buy to let property investment is an excellent solution for a lot of people, but it is not all plain sailing, so before you jump in feet first, you need to think about a few things.

• Location – not all locations are equal. London and the south east generates a far higher rental income than some other parts of the UK, so do your homework before you invest in property in your area. 
• Choose your target market carefully – decide in advance what type of tenant you want to attract. Young professionals, students, families or social tenants: they all have different requirements. 
• Void periods – you will need to factor in periods of time when your property is empty. No tenant means zero income, so bear this in mind. 
• Self-manage or letting agent – managing rental properties requires a time commitment, which might not be convenient, but if you use a letting agent, the service comes at a price. 
• Legal responsibilities – landlords are subject to all kinds of legal requirements, so make sure you are aware of your legal responsibilities before you invest in a buy to let property and advertise for tenants. If you fall foul of the law, you could end up being prosecuted. 

Bio

John is approaching retirement, so he has been looking into ways of maximizing his pension income. He used the compensation he received from www.hardwickmissoldmortgages.co.uk and invested it in a small terrace property in his local area. Now he enjoys a steady income rental from a young professional couple.

6 Effects of the HDFC Home Loan Cuts

Interest Rates (Photo credit: 401(K) 2013)

The Housing Development Finance Corporation (HDFC) has announced that it will cut down its basis points for home loans. This cut has drastically reduced the amount of money you have to pay per month over a period of twenty years. This move has been initiated by the government to help the market recover. This move has made money available in the hands of the people and has some favourable effects. Given below are six effects of these HDFC home loan cuts- 

Money Available In The Hands Of Buyers

The reduction in the basis point by the HDFC has brought down the rate of interest for home loans. This means that you have to pay almost seven or eight lakhs less in total than you would have previously paid on the same loan amount. With less money to repay, buyers are now keener to take home loan in India and buy houses. 

Increased Demand For Real Estate Investment

With the market looking favourable, and the real estate market is looking better, thanks to reduced rates. More people are showing interest in the investing in homes. Property prices are rising and people are trying to buy before the prices rise further and this has increased the demand. 

Increased Buying of Property

Property prices are rising with improvement in infrastructure and development of the outskirts of the cities. In such a scenario it becomes difficult to buy property in good areas of Mumbai, Delhi. These cities have sky high property rates, and therefore investors are looking for property in tier I and tier II cities. The demand for property in these places has gone up after the HDFC’s rate cuts. 

The Young Crowd Is Buying Property

The RBI’s rate cut has favored property investment by the young crowd. The young working class earns a good amount annually and with the slashed rates they can now afford a house of their own. The reduced rate and special offers for woman’s loans, many young women are also going ahead and buying their own property in some of the leading cities of the country. 

Property Prices Are Rising

The reduced rates of loans have increased the demand for property. This in turn has increased the property prices to go up. Prices had taken a hit with low demand, but now that the market is recovering and the investors are increasing their property prices. This has in turn increased the demand for property, so that buyers like you can buy property before the prices rise further. 

Foreign Investment

Reduced rates have brought in investments from international investors. They have realized that India has a strong stable real estate market with a good rate of interest. These foreign investors have taken up some high end projects. This will also attract more investors, both national and international in the future.

These are the six effects of HDFC’s home loan cuts. It is time to make full use of it and benefit from it.

4 Simple Ways to Secure A Mortgage Loan Despite a Bad Credit History

It is very rare for people to always be granted loans. Even those with average credit are still getting denied by banks and other lending institutions. One might even say that it is part of the experiences of growing up. Money doesn’t grow on trees as they say. Why should it be handed out to you that easily?

For those whose names have been marred with a history of bad credit, however, the implications of the rejection are far more severe. Given that they already have a red flag waving over their profiles, the big concern is that they may not get the money they need. The good news is that they can still get a loan despite that bad financial record. They can still show the lenders that they deserve a second chance.

In order to secure a loan, the first thing you should do is to secure all required documents. This is the most basic thing you have to accomplish. Don’t even think about covering up the facts by lying. The lenders will be running a background check on you anyway. If you lie and get caught, then you certainly won’t get that loan approval. Lenders build their business on trust. If they can’t trust you, they wouldn’t want to do business with you. It’s as simple as that.

That’s just the tip of the iceberg, though. Let’s say, for example, you would like to take out a mortgage. However, you’re worried that your application will be shot down on account of your credit history. Here are some more tips that you can use to get that loan despite having bad credit.

1. Be informed about your credit rating – Some people automatically assume that they have a less than ideal credit score. It can be because they previously had a bad experience, or they’re just not sure if their profile fits the kind of loan they are eyeing. However, the truth is that there is a cap as to what is likely to be a bad credit rating.

If you have a score of 620, then that is incontestably a bad rating. If, however, you get something just a little above 620, that’s a little bit more manageable. It’s still not in the safe zone, but at least it’s not so bad as to keep you from actually taking out a mortgage. That is why it is important for you to get your credit report. Knowing just how much you owe should give you a credible strategy for taking out a mortgage loan with a bad credit history. Aside from that, it should also “alert buyers to any credit errors that should be remedied before making any application for a pre-approval or mortgage application.”

2. Don’t dwell on the bad, highlight the good – What this simply means is that you should focus on your other assets. Of course, it’s not to say that you should cover up your bad history with credit. As mentioned above, that’s just going to work against you. Instead, you can put front and center other financial assets. It can be an impressive insurance account, or even a retirement package. While you may not necessarily be liquid at this point, at least there are things for you to look forward to.

3. Show good faith by offering a large down payment - The other thing you must do to secure a loan with bad credit is to project the image that you are in this deal for the long haul. While it may seem like giving out a large sum for down payment is counter-intuitive, it will definitely show the lenders you are invested in the property.

By paying a larger sum upfront, it also puts the lenders at ease because it minimizes the risk for their part. This in turn could help you nab that much-needed loan to fund your needs. Of course, the problem then turns to coming up with that down payment.  You might consider selling a prize possession, or saving your money. Some states, cities and municipalities also have programs that may be able to aid you with a down payment.

4. Make a practical choice – Understandably, you want to get a nice home to move into with your family. Then again, you also have to be realistic about your situation. If you do have a rather ugly credit standing, then don’t even think about getting something that is way out of your budget. Otherwise, you’ll only perpetuate the cycle of having bad credit. It’s not a place you would want to be stuck in at all.

Take a good, hard look at the kind of house you want and its amount. Then figure out how much you can afford to spend. Keep in mind that having bad credit will mean the mortgage will carry a higher interest rate. It’s not exactly fun, but it’s what you’ll have to deal with as a consequence of your record.

Despite that, however, what is most important is that your chances of getting mortgage financing with bad credit is still pretty good. It’s definitely going to take a lot of hard work on your part. You will have to do a lot of convincing, too, so that you can get your loan approved. But as many other people with bad records have proven, having a red flag on your credit record can be overcome. It’s going to make things a lot harder for you, but it does not have to be something that should permanently incapacitate your loaning capabilities. 

Feel free to join the discussion on the matter, or share your insights and comments below.

Author Bio:

Amy Johnson is an active blogger who is fond of sharing interesting finance related articles to encourage people to manage and protect their finances. She also covers topics on how to identify credit card fraud that can help people protect their credit from credit scams.

Steps to Getting in Control of your Finances

For many people, personal finances are a worry - with credit card debts, the worry of mortgage repayments and fear that incomes will fail to keep pace with the cost of living. It's essential to be in control of your finances in these difficult times. We look at ways to stay ahead.

Assess the situation.

The first step to dealing with problem finances is to face up to them. This means taking a deep breath and adding up your debts, from all sources. Once you have done this, categorize them. If you have a mortgage debt, this is less of a concern because it is held against an asset; your home. However, you may still want to check that you are on the most competitive mortgage product that you are eligible for and that your repayments are affordable, as you can make substantial savings just by shopping around.

Personal debts.

If you have non-secured debts, these are your focus area. Non-secured debt is held in many forms; credit cards, personal loans, catalogue debts and overdrafts. They are called unsecured debts, because there is no asset held against them. For example, if you have a car loan - then it's against a car. If necessary you could sell this asset to recoup the loan, or part of it. However, credit card debts usually have no assets attached that could be sold to pay them off, especially if you have an unchecked spending habit.

Do a budget.

When you can see your debts on paper, work out your monthly budget. Assess your income and work out which bills you have every month. Go through your direct debits and see if any can be cancelled. Assess how much money you have after bill payments for your living, shopping, entertainments and other costs.

Decide on a repayment plan.

Your budget will show you where you can save money. Cancel non-essential services, shop around for better deals and downgrade your brands when doing the weekly shop. Set aside a sum each month to repay your debts bit by bit, starting with the most expensive. If you can't find income to do this, work out ways to increase your income or further reduce your outgoings.

Stay motivated.

Nothing feels as good as being debt-free and if you are working towards this goal, you will find plenty of support from national debt charities, online forums and other debt support groups. Seek help if you can't find a way out of your debt and speak to others with similar goals to you. As well as finding great sources of fellow support and motivation, you will start to identify ways of socializing and meeting new people without spending money. 

Once you can change your behavior patterns, switching shopping for new and absorbing hobbies and meeting friends with common goals, you will find new impetus and enthusiasm for your new objectives and be far less inclined to fall back into debt again. With planning, organisation and self-discipline, the freedom of a debt-free life can be yours.

AUTHOR BIO:
Jackie Graves writes regularly on personal finance, debt support and tools such as prepaid credit cards for a range of websites and blogs. She strongly believes in the ability to rebuild a bad credit score.

The Benefits Of A Mortgage Payment Calculator

A mortgage payment calculator can help a person easily and effectively calculate their mortgage payments, and they can customize the prospective mortgage using the calculator to tweak certain aspects of the mortgage. 

Before signing for a mortgage, it's always important to first calculate your payments, and this calculator provides the most comprehensive and effective tool for calculator your mortgage payments ahead of time. 

The Interest Rate 

A person can customize the interest rate of their prospective mortgage when using the mortgage calculator, and as a result, they can easily determine how different interest rates will affect their monthly payments. 

The Overall Length Of The Mortgage 

The duration of the mortgage is an important aspect of any mortgage. While a shorter duration may provide a slightly lower interest rate, the monthly payments are likely to be higher due to the short duration. 



In contrast, a longer duration will likely provide much lower monthly payments because the monthly payments are more spread out. A person can easily determine which type of loan duration will be best for them by utilizing the mortgage calculator. 

The Down Payment Amount 

By using the mortgage payment calculator, a person can decide how much of a down payment they would like to make. While a lower down payment can give a person much more money in the bank, it will likely lead to higher monthly payments. 

A higher down payment may save a person a lot of money in the long run, and it can significantly lower a person's monthly payments and lower the overall amount of the mortgage loan.

6 Tips for First Time Home Buyers

You've finally decided to make one of life’s biggest decisions – buying your first home. No longer will you have to deal with stuffy landlords, exorbitant rent prices, or annoying neighbors—you will finally have a space you can call all your own. Now that you've made this very adult decision, you need to consider a few things before you make one of the biggest purchases you will make in your entire life. Before you buy, you need to ask yourself some serious questions. If you already own property and are looking into purchasing income property, you will also need to do your homework.

Tips for Homeowners 

1. Know Your Budget and Mortgage Basics 

It’s important to know what you can afford to spend before you seriously start looking to buy. It is also equally important to know how much mortgage you qualify for. Look for first time homeowners seminars in your area to get more information or speak to a representative at your bank.

2. Get a Real Estate Agent you Trust

Looking for your dream home on your own can get overwhelming. This is where real estate agents come in. They can help you figure out the logistics of a sale, will negotiate prices for you, and will do all the paper work. It’s important you have a good rapport with your agent and that they know what your needs and wants are. Remember, you are the one who will be living in this home, not them.

3. Make a Smart Offer

Your real estate agent can help you navigate this important step of the purchasing process. This is your time to name a price as well as your conditions for purchasing. More than likely the seller will counter-offer, putting the ball back in your court. Once you come to an agreement, you will go into escrow which means you have 30 days in order to inspect and purchase the property.

4. Get a Home Inspection

During the escrow period, it is your responsibility to get a home inspection. During this inspection a trained professional will check every inch of the property to make sure it’s safe and sound and ready for purchase. If they find any issues (mold or other deficiencies the seller did not mention), you can still retract your offer.

5. Read Before You Sign

Like all things in life, it is always crucial to read the fine print before you sign any agreement. It is also important to get everything in writing and avoid verbal agreements. Your banker and real estate agent can help walk you through any language or steps you are unsure of.

6. Cover all Angles on Your Income Property

Income property is property that is bought with the intention of renting or leasing. It is a higher risk than owner occupied properties, but can be beneficial in helping you off-set the costs on your own home and bring in extra income. Before purchasing a residential or commercial income property you need to do your research. Know your rights as a landlord and see if the time and money put into the property will put you out ahead in the long run.



Angie Picardo is a staff writer for NerdWallet, a personal finance website dedicated to helping homeowners find the best credit cards.

Finding a Mortgage Refinance Advisor

Finance (Photo credit: Tax Credits)

A mortgage refinance advisor is known by several names. In some places, the said profession is also called as mortgage broker or mortgage loan officer. When finding a mortgage refinance advisor, you can use the internet to make the search much easier.

The rates charged by an advisor may vary greatly, so it is highly advised that you shop around. Interest fees and closing costs can affect the price that you have to pay for professional services. However, if you’re dealing with head injury claims, or perhaps you want to purchase a new car and repair some areas of your house, you will need all the money you can get. The best refinance advisor can help you get through and solve your problems right away.

Steps to Follow

When finding a mortgage refinance advisor, there are important considerations. You can follow the steps below to find the best in the industry:

• Use the internet to locate a local refinance advisor that lives within driving distance. By doing so, you can easily schedule for an appointment and meet with the mortgage refinance advisor.
• You have to pick one whom you’re comfortable with. You can create a list of recommendations and references. From there, you can check their credentials. You can even conduct a background check since that is very easy these days.
• Make comparisons especially in terms of fees and charges. The lowest or highest rates do not necessarily mean that you’ve found the best deal. You have to make sure that you’re getting the best services at the most reasonable rate.
• Make sure that you settle all your financial obligations on time to avoid problems. Refinancing should only be considered when there is a dire need for it.

As long as you follow these steps you can never go wrong. You will find a professional you can trust and one that will be able to help you obtain refinancing.

It is best to choose at least four refinance advisors. They will assess your current situation and determine the best solution to your financial problems. Whether you have good or average credit, you can easily obtain refinancing if you have a knowledgeable advisor to help you out.

Some things are better left to professionals especially if it concerns finances. Many people are going through rough times these days. Refinancing with cash is possible or you can also refinance the home or property at a lower rate. Either way, you can address your financial issues.

If this is your first time to consider refinancing and you don’t know the process, a mortgage refinance advisor is all you need to back up your efforts in making the most out of your financial situation.

Why don’t you ask for references from friends or colleagues that may have used the services of a mortgage refinance advisor in the past? These people can help you out. If you are unable to get references, you can always shop around online. Don’t pick the first professional that you find, be sure to look around and compare.

Author Bio:  Barlow Robbins is one of the larger law firms in the South East region with a thriving portfolio of private and commercial clients. We provide a full range of legal services to clients ranging from Commercial Property Contracts, Corporate Tax, Dispute resolution, Insolvency, Mergers & Acquisitions, Notary Public, Family Law, Head injury claim and Personal Injury & Clinical Negligence.

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Real Estate In A Thriving Port

The first places to benefit from economic recovery are often the cities which are involved in the import and export of the things that the consumer is once again demanding. In the case of the USA, a good example is the port of Baltimore in Maryland. Anyone looking to invest in the future could certainly do worse than this Eastern Seaboard City where the demand for real estate should be high in all but the very extreme of circumstances.

The demand created by the subprime mortgage lending has gone and for a time there was uncertainty in the market, but real estate has always proved a sound investment in the medium term. Developments such as Baltimore New Homes provide such an opportunity. The prices in the market are now realistic; there is no way that someone buying a new home should ever find them in negative equity.

Maryland’s unemployment rate is below the national average and the expectation is that now that slow growth is being recorded each quarter, unemployment will fall further. Everyone aspires to ownership and there is new real estate in every price range to satisfy those aspirations. Most people have to start small and in later life may revert to that, but there are homes to suit even large families, so every demand is covered.
Baltimore New Homes reflect the modern concern with energy. Several energy saving features can save as much as 30% on an annual energy bill compared to a comparable size property built a few years ago. Not only is that good news for the owners’ pocket but also for the environmental lobby.

The modern day builder provides more than style and design; financing a new build through a mortgage can be done using many builders’ contacts with a property initially secured with a small deposit. There is also advice available on furnishing a property once it is completed. There are examples onsite to provide some ideas and the details of the companies supplying the contents.

The process of buying Baltimore New Homes may begin by people looking on the internet at the options and locations available. That certainly gives an idea of styles and prices before any visit to the location to discuss things further. It is certainly a wise decision to opt for a builder that has been in construction for a long time. That provides security and of course a company that has come through the recent difficult years has thereby proved its resilience and strength.

A new home is the single biggest purchase most people will make in their lives so it has to be right. It makes sense to give the process a good deal of thought before proceeding. Where there are obvious signs that the city is flourishing, that employment opportunities are good and the real estate demand is strong, most of the ingredients are pointing to proceeding to buy Baltimore New Homes. A builder with many years’ experience is certainly a wise choice to select for building that dream home.

Steve Smith is a freelance writer based on the South West Coast of Turkey. He writes on an extensive range of subjects with many projects relating to the USA, its politics and the current economic climate whether it is the housing market such as Baltimore New Homes or the financial and employment trends in recent years.

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Mortgage Loans Rates: What You Need to Know

mortgage document (Photo credit: TheTruthAbout)

Nowadays, the US home owner market is recovering from its depression 3-4 years ago when home buying was at record lows and people’s mortgages were getting foreclosed because of the terrible shape the economy was in. To help give the economy a boost, the Federal Reserve has been buying mortgage bonds and offering attractive mortgage rates to people in the market for buying a home. Throughout last year, the mortgage rates stayed below 4% and were as low as 2.6% in some cases. Of course, every state and location in the country has different mortgage rates, so you should look to see what the rates are like in your intended location. However, although the economy is on the mend, the home market is still in a good situation for buyers because mortgage rates continue to be low. 

However, before you rush out to buy that dream home you think you can afford now, there are a few more things you should know about mortgage rates. Your mortgage rate never comes without strings, so knowing about the fine print is important before you make any commitment. All across the country, several home owners suffered from foreclosures due to being unable to pay off their mortgages, so you need to make sure that you get a mortgage rate that your income and financial position can sufficiently pay. 

In general, the longer your lease, the higher your mortgage rates. The average 30 year loan has a mortgage rate of 3.32% right now. The 15 year loan has significantly lower mortgage rates. However, shorter loan terms mean higher recurring loan payments, so you have to see whether your wallet can afford that. You may get a better mortgage rate, but making a larger payment may not be possible for you. The other important thing to consider with a mortgage rate is the down payment involved. The best mortgage rates usually come with the highest down payment, so the amount of hard cash you have in the bank right now could be an issue. You could get a great mortgage rate if you can make a large down payment, but that is not possible for every person in the market for a house. 

If your down payment falls below a certain percentage of the total loan amount (usually 20%), you can also get slapped with a private mortgage insurance, which is basically an addition to the interest rate you are already getting. This will jack up your overall mortgage rate because you are viewed as a risky borrower by the bank if you cannot make the minimum down payment. 

Compared to 1984, when mortgage rates were on the order of 14%, today’s rates of 3 to 4% may seem incredibly tempting to many people looking to buy a home. This may well be the time for you to purchase your dream house, but make sure that your down payment and mortgage rates are friendly to your wallet over the years. Make sure to take in account any unexpected expenses that you may be faced with over the years and leave yourself with enough savings for a rainy day. 

About the Author:
The guest post was brought to you by 411ForCash.com

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The Scoop on Buy To Let Mortgages

Property market (Photo credit: Alan Cleaver)

Many individuals today know property investment can be a very profitable proposition, and landlords all over the UK are making large sums of money, both in terms of rental income and rising equity value in their property. 

For many interested in buying property to rent out there are special mortgage programs called “buy to let mortgages” available. When looking around for a buy to let mortgages keep in mind that you should thoroughly analyze these mortgages as you would any other mortgage, since you want locate a mortgage lender that is offering very competitive interest rates. 

A good place to start comparing buy to let mortgages is the Internet. You can do your research from the comfort of your home and you have flexibility and convenience in your favor. Researching these mortgages through the Internet will give you the opportunity to familiarize yourself with the industry before making any financial commitments. 

In doing your research you will see that the interest rates on these mortgages are slightly higher than on traditional mortgages, even though the difference in rates usually isn't that significant. You will probably have to put down a larger deposit on a buy to let mortgage, with some lenders requesting as much as 25% of the property value as down payment, so you may need to have quite of bit of money on hand to get your mortgage. 

Remember, mortgage brokers are well qualified and trained professionally. Therefore, they are well-versed on the way buy to let mortgages function, and they have access to all kinds of mortgage programs in the UK. You will probably pay a fee to the broker for his services, but this may be a good deal if they can find for you a mortgage at a good interest rate. 

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Just as in any type of mortgage, the requirements for eligibility will vary based on many factors including your financial status, your credit history and your rating. When lenders decide how much money you are eligible to borrow for this type of mortgage, some lenders will consider regular income, as well as any rental income expected from the property, while other lenders may only consider the potential rental income. From your perspective, be sure to confirm what your monthly repayments will be based on the mortgage amount and the amount of your down payment. Also, be sure to check the fine print for any details, any obscure fees or setup costs, so that you will know exactly what you are required to pay. 

As part of your mortgage you will be required to purchase insurance for the building and its contents, particularly if you are offering a remodeled property. Just make sure your insurance will cover fire, vandalism, water damage, or any type of loss you can contemplate. You want to be sure the building is covered for any catastrophe.

 
Since buy to let mortgages have increased in popularity in recent years, numbers of individuals are getting on board. It has become a very competitive market with lenders offering a wide range of deals to tempt potential property owners, so it is essential not to go for the first buy to let mortgage that is presented to you because there might be a cheaper one around the corner.

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