Co-buying? Then make sure to sign a Deed of Trust.

With first-time buyer deposits at an all time high, more and more people are
considering co-buying. That’s because co-buying brings the obvious advantage of
pooled resources, enabling you to buy straightaway rather than waiting several
years until you’ve saved enough to buy alone. But whether you’re buying with a
friend, family member or a property mate that you’ve met through a specialist
site like www.propertymates.co.uk - co-buyers should be sure to draw up a Deed
of Trust to protect themselves.

The prospect of being a homeowner is exciting, but first you need to think ahead
and work out an exit strategy for that time when one of you wants to move on. A
Deed of Trust covers all those ‘what if’ scenarios. It’s a legally binding document
that spells out individual share of ownership and what happens should one of
you meets a new partner and decides to move out. We recommend that you take
separate legal advice.

Points for considerations:

• Co-owners are jointly and severally liable for the mortgage. This means

that if you can’t pay your share, then your co-buyers are responsible for
not only their own share of the mortgage but yours too.

• It’s normal for co-owners to have the option to buy out the other’s share.

With this in mind, you need to have preset conditions as to how the
property will be valued. One possible solution is to take the average of
three estate agent’s valuations.

• Most couples buy as joint owners, meaning they both own the whole

property. Co-buyers should buy as tenants in common which states the
individual share of ownership.

• The advantage of being tenants in common is that you can will your share

to a member of your family rather than it going to the co-owners.

For more information about co-buying visit www.propertymates.co.uk

UK: Mortgages up 25% in March

The number of mortgages advanced for house purchase increased by 25% in March this year, compared with the previous month, according to the Council of Mortgage Lenders (CML).

The number of first-time buyers rose by 27% over the same period, while remortgage numbers increased by 23%.

However, the CML warned that remortgage figures remain weak, and are expected to stay this way for some time.

Mortgage lending also recorded a 45% year-on-year increase, marking the ninth consecutive month of annual increases.

Michael Coogan, director general of the Council of Mortgage Lenders, said: “Today`s figures indicate there is currently some momentum to house purchase lending, but for the sake of the future health of the housing and mortgage markets, the new government will need to focus on the critical issue of funding and how to address the issues arising from the repayment of the emergency support provided during the financial crisis.”

Read more @ www.ThinkMoney.com

Ask basic mortgage questions before you choose a lender

If you want to get a loan to purchase your home, you have to go to the mortgage lenders. You need to shop for different lenders and choose the one that suits you the best. Before choosing a lender, you should ask him some mortgage questions. If the answers are satisfactory, then you can start your deal with him.

The most important mortgage questions that you should ask your lender are:

• What is the type of interest rate on the mortgage and can it be readjusted over the loan period?
• If I can’t afford 20% down payment, is there any offer of low down payment? Do I need to have a PMI?
• What will be my options if I want to go for refinance?
• How much will be my interest rate lowered if I buy discount points?
• What will be the charge towards origination and closing costs?
• Will I be able to pay off my loan before the loan term? Will there be any prepayment penalty?
• What are the things covered (like, principal, interest, property tax, homeowner’s insurance, etc) in my monthly mortgage payment?
• When can I lock-in my interest rate and do I have to pay any charge for this?
• Is there any offer of getting grants or tax-relief or any other benefit?
• Will you give me a detailed break-up costs related to third party vendors, like, cost for appraisal, credit report, taxes, recording fees, lender’s title policy, etc?
• Will the lender guarantee the GFE (Good Faith Estimate)? Will the GFE contain all the costs of your loan?
• Is there any special mortgage for the first time buyers? (You can ask this question if you’re buying home for the first time)
• How much time do you take for processing the loan and get it approved?

You should have satisfactory answers from the lender before you finalize to get the loan from him. You should ask the basic mortgage questions mentioned above to different lenders and after scrutinizing their answers choose the one who is the most suitable for you.

Shapps calls housing target a con

Grant Shapps, shadow minister of housing, has called Gordon Brown’s pledge to build 3 million homes by 2020 a con.

Your Move sees surge in year-on-year rental demand

The number of new rental leases beginning in October is 53% higher than the same time last year, reveals data from lettings agent Your Move.

Beckett calls for house builders to keep building

Housing minister Margaret Beckett is urging the house building sector to remain on task and continue building in the face of the economic downturn.

Pink launches general insurance referral service

Pink Home Loans will now provide a general insurance referral service to its network members.

MPs’ expenses: investigation into ‘collusion’ over mortgage claims

Parliamentary authorities, overseen by Michael Martin, the Speaker, gave secret permission for some MPs to over-claim for thousands of pounds in home loan interest in deals that led to the systematic abuse of the taxpayer-funded expenses system.

Ben Chapman, a Labour MP, admitted on Sunday night that he was allowed to continue claiming for interest payments on his entire mortgage after repaying £295,000 of the loan in 2002.

Read more

Mortgage rescue claim is rejected

A woman was rejected by the government’s mortgage rescue scheme despite being the “perfect candidate”, according to financial advisers.

Donna Parsons was told that under the Mortgage Rescue Scheme the government would buy her home, pay off her debt and rent her home back to her.

But despite showing four bank letters threatening repossession she had not been sent one from her mortgage lender.

“There is just no flexibility, it must be notice from the lender,” she said.

Read more

Could you defer your mortgage payments?

Homeowners struggling to meet their mortgage debt could be offered lower monthly repayments as part of a new government and banking initiative.

The Homeowners Mortgage Support (HMS) scheme is being offered by 10 banking groups and building societies, with other institutions lined up to join the scheme soon.

The scheme means that borrowers who suffer a temporary loss of income could cut their mortgage interest payments by up to 70% for up to two years.

Read more

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