Remortgages could save homes

2012 could be the year when more homeowners seek out remortgages as a way to manage their finances. It was hoped that mortgage rates would come down after the cut in interest rates, but homeowners have been disappointed by the fact the Bank of England only cut interest rates by a quarter of a point in December 07. Finding a more competitive mortgage or remortgaging to release equity is one way of dealing with overstretched finances.

Remortgages set to increase

As well as mortgages, those with saving accounts have suffered as saving rates have been cut for a second time. It seems whether you are saving or borrowing it’s a no-win situation. The mortgage squeeze has been discussed for months, as experts predict increasing repossessions as affordability is put to the test as fixed rate mortgage contracts come to an end. Lenders have raised their mark-ups on new mortgage products and have in general increased the deposit lenders need to get a new mortgage. But about 1.2m people are expecting to opt for remortgages in 2008.

Remortgages pay off debt

Remortgages are popular ways of switching products to get better rates, whether on new homes in Bristol or old cottages in the Cotswalds. Brokers are still predicting rates could fall so it’s worth thinking about remortgages and keeping an eye on competitive products. Remortgages can also be crucial in helping those struggling in the credit crunch to pay off debts. A high profile news story is that of the Lawlor family who have to remortgage their multi-million pound home to pay creditors massive debts. Liam Lawlor was a business tycoon who it was thought made a fortune from property before his death as a result of a car crash in Moscow last October. It seems his finances were not as abundant as thought. Remortgages offer a way to release equity without being forced to sell because of escalating deb. The pressures of debt during the credit crunch means remortgages offer much needed financial buffers for all social classes in society.

Credit or negative equity – the remortgage risk

Remortgages are only profitable however if the house in question has risen in value. Luckily, many homeowners who bought early have benefited massively from the property boom of the last decade. This means they have a financial buffer in their bricks and mortar if they are struggling with debt, but it could also spell bad news for those homeowners whose homes devalue and may even lose money in the predicted, up-coming recession.

Sell House Fast – The Mortgage Wobble

If you feel the housing market is on shaky ground, a sell house fast scheme may help.

The housing market has gone through a devastating dip. Many have had to opt for sell house fast schemes or deal with repossession. Others are finding they’re hanging on by their fingertips as their finances take a battering. Sell house fast schemes have burgeoned as a result of the housing crisis and UK recession. And the past year or so has been a wakeup call to many about the illusion that property is a safe bet. Get help with a fast house sale @ House Buyer Bureau.

The Renting Resurgence

At one point a property was one way of cashing in – a sure-fire money maker. But now many homeowners find themselves with mortgages that are more expensive than the value of their home as property prices have dropped. The result – an expensive mortgage they can ill afford with no hope of profit or even in some cases, positive equity, on the horizon. Sell house fast schemes are one way of walking away quickly from an unwanted and overly-expensive mortgage.

Housing Market Speculation

The press has been peppered with news reports and speculation on the housing market recovery. But for each positive news story there seems to be a negative, such as the recent headline in The Telegraph: ‘Housing market bounce looks on shaky ground’. Of course the housing market has months of the year where sales traditionally slow down, but for homeowners wanting to sell their house fast, it can be bad news. Sell house fast schemes could offer a way out for those stuck with expensive mortgages and desperate to move but unable to find a buyer.

 Sell House Fast – Stop Repossession

Some economists say there may be more repossessions and sell house fast schemes in the future, warning that the stabilisation we’ve seen in the market recently is temporary. Predictions have been made that property prices will start falling again – alongside rising unemployment, for some their problems have only just started.

Freedom from Property Debt

The rise in renting as an alternative to home ownership could be seen in some ways as a reaction to the doom and gloom the housing market has spawned. Renting is ‘the new elastic in the market’ allowing families and individuals more choice and flexibility in their lifestyle choices. Selling a house fast and switching to renting is one way of embracing a lifestyle that doesn’t have to contend with the dark clouds of debt that a mortgage and difficult housing market can threaten you with.

Mortgages Dorset: Importance of the FSA

There has been much talk of late about the new mortgage regulations which were introduced by the FSA last year but what does this mean to you as a consumer? Will these regulations affect you and are the individual areas within the UK, such as Dorset, affected in different ways?

The FSA (Financial Services Authority) introduced regulations within the mortgage business on the 31^st of October 2004. This means that every mortgage lender you deal with today should be FSA registered and should comply with the FSA regulations. As a result this means that all the advice you receive from a professional mortgage adviser should be honest and within your best interests. This is a tremendous benefit to you as a consumer as it means that you can be sure that the advice being given to you is upfront and you should no longer have to try to second guess any hidden loopholes.

The main regulations introduced are as follows:

• The advice given to you should be clear and accessible

• You must be provided with an Initial Disclosure Document (IDD) which outlines the type of service which they provide and also with a Key Facts Illustration (KFI) which explains the different suggested mortgages in terms of charges and risk factors.

• The KFI should follow the standardized format in order to make it easier for you to compare different mortgages

• The mortgage contract, in particular the pricing information, must be outlined in a clear manner so that you can understand it and there should be no hidden charges, tie-ins or penalties http://www.fsa.gov.uk/

Mortgages Dorset: The mortgages basics

As you can see from our site, there is a lot of information about mortgages to take on board and it can be difficult to know where to start. What basic information about mortgages do you need to know?

What is a mortgage?
In order to purchase property we often have to borrow money from lenders. This money is then paid back over a fixed period of time. A mortgage is in fact the lender’s security for the money they have lent you. This means they can use the money from the sale of the house should they ever need to recover any debts.
Is there more than one way to pay back the money borrowed?
Yes, there are a few basic ways to pay back the lenders: a Repayment Mortgage, an Interest-only Mortgage or a Flexible Mortgage.
Repayment Mortgage
With this type of mortgage you can pay back a set monthly amount of money which will consist of the actual money you borrowed (the capital) plus a share of the interest on the money you borrowed. At the end of the agreed period of time (usually 25 years) you will have then totally paid off the mortgage. This is considered to be the least risky type of mortgage repayment.
Interest-Only Mortgages
As the name of this type of mortgage repayment states, the monthly repayments made to the lender only cover the interest owing on the amount of money borrowed. This means that you do not pay off any of the capital you have borrowed. Therefore, at the end of the fixed period of time (usually 25 years) the actual money borrowed (e.g. the capital) remains the same as when you first borrowed the money. You must find a way of saving the money in order to pay off the outstanding money at the end. There are a number of options for doing this including paying into an investment fund (ISAs being an example of this)
Flexible Mortgages
This allows you to pay a different amount of money every month dependant on your monthly salary. This is particularly used by people who have a fluctuating monthly income.
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingMoney/Mortgages/index.htm

Mortgages Dorset: First time buyer’s Mortgage

Mortgages often cause stress in experienced people looking for the best remortgage deals, so what chance have first time buyers got? Are you a worried first time buyer? The rising house prices, not only in Dorset but also throughout the UK, have caused a great deal of concern for most of us. However, for many first time buyers thinking about taking out their first mortgage, the rising house prices are making them nervous about even looking into buying their first houses. In fact, it might not be as daunting as it first seems. So, what do you really need to know about getting your first mortgage?

There is a solution to most things in life and getting your first mortgage is no exception. If you are prepared to do a little research and ask for advice you will find that there will be a mortgage to suit your personal needs. Recent surveys suggest that more and more first time buyers are using the Internet to do this initial research, so why not follow their lead? Initially you should be researching:

·         Houses prices in the UK in general

·         Deciding upon which area you would like to live in, e.g. Dorset

·         The prices in that desired area (and whether this is affordable)

It is then essential that you sit down and work out how much money you have for the deposit and how much you will be able to afford to spend on your mortgage repayment each month.

Armed with these pieces of information you should then seek the advice of an independent mortgage adviser.  Here are a few guidelines for how to tackle this initial meeting:

·         Don’t be afraid to ask questions

·         Ask about special deals for first time buyers

·         Make sure the adviser gives you a range of mortgages to chose from

·         Check if you might be able to use your parents as guarantors for your mortgage

The main thing is to be up-front and honest. Remember; a good, professional Mortgage Adviser will do their up most to find the best deal out there for you. At MEM Mortgages this is certainly our top priority. We aim to provide all of our customers with the best mortgages out there so that they will come back to us again and again. If you are a first time buyer and want to discuss any of the above or you would like to know where to go from here on in simply give us a ring and one of our experienced advisers will be more than happy to help.