How homebuyers can get the best from the latest interest rate cut
January 8, 2009 by admin
Filed under Mortgage Articles
First time buyers David Hollingworth of mortgage broker London & Country says it is possible to get a mortgage with a 10% deposit but the cost will be high: “You can easily be looking at the high end of 6% on fixed rates at a 90% loan to value ratio, and even then you will have to be a pretty sparkling borrower.” The best deal on offer yesterday for borrowers with just 10% to put down was a loan from C&G fixed at 5.69% for two years. Prospective borrowers can reduce the amount they have to pay by building up as big a deposit as possible (try saving in a regular high interest savings account).
How To Get A Fast Remortgage And Clear Your Problems
December 26, 2008 by admin
Filed under Mortgage Articles
The number one place to start your hunt for a fast remortgage is the Internet, where you will find several firms who can not only offer a remortgage fast, but directories who can let you do some comparison shopping for the best deal in a fast remortgage.
Lets look at one site and see what they ask of you and their turnaround time. The first thing most online fast remortgage professionals will want to know is how much progress you have made securing the remortgage on your own. They may ask, for example, if you have tried to ********* with your current lender, and if so have you been turned down.
Theyll want to know if youve already received a letter of intent to repossess, or if that is your fear. Theyll ask if you have defaulted on a mortgage or just been arrears and if this is keeping you from securing a remortgage so far.
Youll need to let these fast remortgage experts know if youve been late with several mortgage payments or if youve actually missed payments.
The fast remortgage specialists will also need to know how fast they must be - do you need it today, this week, or sometime this month, for example. You also need to explain why you want the fast remortgage.
If, for example, its not a repossession issue might it be to secure additional money for things like college tuition or home improvement, might you just want to improve your credit history, or might you be attempting to find a better mortgage rate.
Essential pieces of information a fast remortgage lender will need, besides your name and contact, are the name of your current mortgage lender, the amount of the original loan as well as the current outstanding debt, the rate you are paying for your mortgage, your monthly payment, the original purchase price of the mortgaged property, its current market value, and the amount you wish to borrow now.
The typical fast remortgage site we chose to peruse also includes a handy mortgage calculator. On this calendar, right online, you enter the total money figure you need to borrow, the number of years you wish to take to repay the mortgage, the annual interest rate (either what you seek or what you know you can reasonably find), the way that interests are calculated (12 meaning monthly, one meaning annually), and then all you do is ask the calculator to come up with a monthly payment amount.
You can also use the calculator in reverse, by determining how much you can afford to pay each month on your fast remortgage, determine the rate you are commonly finding, and see how much you can comfortably borrow.
You can also use this to determine what rate you must find in order to stay within budget for the money you must borrow on your remortgage. Clearly, for a fast remortgage, the Web is the place to start.
A third of second home owners own less than a quarter of their home
November 29, 2008 by admin
Filed under Mortgage News
A third of second home owners have mortgages of 75 per cent loan to value or higher, with a fifth owing more than 90 per cent on their home, according to a survey of holiday home owners conducted by holidaylettings.co.uk. Furthermore, three quarters paid more than £100,000 for their second home and 37 per cent have euro mortgages.
These figures tie in with nearly half (43 per cent) of the same survey respondents stating they let their home to paying guests ‘out of necessity to cover mortgage repayments and running costs’. Furthermore, the number of holiday home landlords entering the lettings marketplace has grown 84 per cent in the last 12 months when compared to the previous six.
The hard cash reality of owning a second home, whether in the UK or overseas has hit home in 2008. For example, a €200,000 interest only mortgage on a 6% deal will cost the home owner around €1,000 per month. Paying this via a currency transfer from pounds to euros would in 2007 have been at a rate of around 1.45 euros to the pound, equating to £690. Based on the current pound to euro exchange rate of around 1.2 it would cost £830 – a monthly increase of almost £140 expenditure.
Ross Elder, managing director of holidaylettings.co.uk comments: “It has been a tough year for any second home owner with a mortgage, which in part explains the growth in the number of owners letting out their properties in the first 10 months of the year. However, I believe there is also a transition of appreciation for the added value a second home has, not just as pension or capital gains income, but ongoing rental income.”
Which is best Adjustable or Fixed Mortgage?
November 6, 2008 by admin
Filed under Mortgage Articles
There may not be a wrong or right answer to the question above. Both options have their good and bad points. Before you even look at houses, you should take a few minutes to look into both and what they have to offer you and your family.
If you are planning on living in your new home for less than 5-7 years, an adjustable mortgage is absolutely worth considering. Starting you out at a lower interest rate can definitely save you some of your hard earned cash every month. An ARM (Adjustable Rate Mortgage) also will put you in consideration for a larger mortgage, thus allowing you to splurge on that larger home you are wanting. Take time to run the numbers through a mortgage calculator to see where the payments will end up.
However, ARM’s can definitely have a down side as well. After the honeymoon period is over, the interest rates can spike well over 10.00% over time. This can cause your once coveted dream rate to become your worst nightmare.
If you decide you want to play it safe, a fixed mortgage is right up your ally. Giving you complete control, you know exactly how much you will pay every month for the life of your loan. This allows you to budget your finances and plan for your future much more efficiently.
Although a fixed mortgage may be the simplest option, it could bring a little headache down the road. When rates have dropped and you are still stuck with your trusty rate for another 20 years, you may want to consider refinancing. This will require more paperwork and additional costs associated with appraisal and closing. You also will have no initial rate cuts as you would with an ARM.
Take time to run the numbers through a
mortgage calculator to see where the payments will end up. Your best option is to take an honest look at your budget and set a definite amount you don’t want to exceed. This will help when it comes time to pick out a beautiful home while keeping your feet planted firmly on the ground. Whether you decide an ARM or Fixed mortgage is best is pretty much just a personal preference.
Guest Post by David Kent of Buyers Agency, Real Estate Agents by visiting www.buyersagent.net