Mortgage Loan Lottery

I was speaking to a loan valuer recently and he mentioned a bizarre situation that cost a purchaser many hundreds of pounds in fee costs. The Valuer (Bob) was sent a property loan valuation instruction on a Victorian house in the south of England. On inspection Bob noted that the rear kitchen/bathroom wing of the building was constructed in half-brick form, common for the period in that district. Technically this part of the home was below habitable standard notwithstanding these walls had been weather-proofed externally and set internally with a dense render. The ratio of sub-standard wall to cavity full-standard walling was about 20 per cent. Bob prepared his report in accordance with that Loan Company's Valuers Manual and they accepted it and offered the client purchaser loan finance...

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125 Percent Mortgage Loan

So changing circumstances can adversely effect your ability to service the loan. It must also be realized that although you may wish to consolidate unsecured debt for example credit cards and loans you will be placing unsecured debt on to a secured loan. A typical example might be where 95% of the mortgage consists of a secured loan on the property and the rest, the extra 30 % is an unsecured loan. The two amounts will normally be at the same rate which could be for example fixed or variable and both will run the same term. Some terms may stretch to 35 years long. The advantage of a long term is to be able to have lower monthly repayments providing the mortgage is capital and repayment. However the downside would be the large amount of interest you will be paying to a lender over 35 years,...

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Mortgages for Overseas Property

For most people, buying an overseas property is a dream. However, with all the intricacies and complicated procedures with overseas banks, developers and solicitors, a lot of people get discouraged with the concept. However, the overseas property mortgage in the UK has undergone a sudden surge in the recent years. This can be attributed to the growing number of people wanting to buy properties abroad for reasons of settlement or property investment and actually do something to achieve it. The majority of these people are retirees seeking a more peaceful abode, while at the same time enjoying tax benefits. Overseas Investment Mortgages A good number are simple investors who have seen how promising overseas investments are fast becoming. The strength of the pound is a major contributor to...

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Mortgage Brokers - Make Sure You Pick The Right One

Mortgage brokers help people get financing for the purchase of a home. A mortgage broker is an independent agent who can quickly and easily check out many different financing options. A mortgage broker may be of great help to people with adverse credit since they know and understand the industry so well. It is possible to use more than one broker at a time. Using a mortgage broker comes with many advantages. A mortgage broker has connections in the industry and give your financial information to a variety of lenders. They can find the best deals possible easily. When using more than one mortgage broker you can search an even greater variety of lenders and really hone in on the best deal possible. Sometimes brokers are working for a lender. It is wise to be careful when dealing with a broker...

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Government Plans for Mortgage Industry May Help House Prices

Not only Northern Rock sold off its mortgages to international financiers as securities backed by assets, but nearly all UK banks have used the global marketplace to locate cheap funding. Approximately 25% of all UK mortgages were financed with the sale of mortgage backed bonds. Approximately £200 billion worth of UK mortgaged-backed bonds are currently trading. It is fairly likely that your mortgage is actually owned by an American pension fund or an Australian hedge fund. While you were under the impression that you had a mortgage from your local building society. Last summer saw the end of asset-backed securities, causing problems for many mortgage lenders, not just the well-publicised Northern Rock situation. These securities were the source of funds for millions of cheap loans of all...

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No More Mortgage Lender Loyalty

There once was a time when loyalty was rewarded. However times have changed and loyalty to your mortgage lender no longer seems important. These days the average mortgage lender seems obsessed with attracting new business while few seem interested in providing their existing customers with incentives to remain with them. New customers are often drawn into taking out financial products from their mortgage lender because of various incentives that are offered to attract new business. The incentives on offer can include discounts on application fees, discounted interest rates, free valuations, cash backs, and even free gifts. However, it seems that once the relationship between the mortgage lender and the customers moves beyond the honeymoon stage there is little incentive for the borrower...

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How to Apply For a Mortgage Loan

There are several types of mortgage (home-buying) loans offered by lending institutions today and it can be a bit daunting, especially if you've never purchased a house before. Other than choosing your property, the type of loan that you get is the most important decision involved in buying a home. A mortgage loan is merely the remaining balance of the property, minus the down payment, that you will borrow and repay. Depending on your circumstances and the economic climate, your choices are between a fixed-rate loan and an adjustable rate mortgage. The latter are frequently referred to as variable rate, or the more commonly known term ARM. A fixed rate mortgage is one that charges a certain amount of interest, say 6%, and no matter how high or low the national interest rates throughout the...

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