May 2007 Archives

  • Fixed Rate Mortgage
    Posted on 01 May, 2007
    A Fixed Rate Mortgage is a mortgage that has a set interest rate for a specified term. You will pay the same amount of interest for the agreed upon period. The fixed term usually runs between one and five years. Typical Borrowing Amount Lenders will allow you to borrow up ....Continue Reading >>
  • Interest Only Mortgages
    Posted on 02 May, 2007
    Interest Only Mortgages involve the borrower only repaying the loan interest until the end of the mortgage term. Because you do not repay the capital debt, the mortgage amount remains the same. AdvantagesPayments are lower because you are not paying off the capital debt part of the mortgage. This gives ....Continue Reading >>
  • Homeowner Loans
    Posted on 02 May, 2007
    A homeowner loan is for people who have their own home with a mortgage. The loan is secured against your home. Because your home is used as security for repayment, homeowner loans are often called secured loans.AdvantagesA homeowner loan allows you to borrow an amount based on the equity in ....Continue Reading >>
  • Remortgages
    Posted on 02 May, 2007
    A remortgage involves changing an existing mortgage to another mortgage lender. Remortgages usually take place to lower the amount a borrower is currently paying on a mortgage. Borrowers are not contracted to stay with their original lender for the length of the mortgage. You can move to another lender at ....Continue Reading >>
  • Lenders are withdrawing fixed rate mortgages
    Posted on 03 May, 2007
    Many mortgage lenders have started to withdraw their fixed rate mortgage deals in preparation for the possible Bank of England interest rate rise in May.The UK inflation rate rose to 3.1%, which is higher than many city analysts predicted.  It is common practice for lenders to withdraw mortgage deals when ....Continue Reading >>
  • House prices still rising
    Posted on 04 May, 2007
    Figures from the Nationwide show prices rose by 0.9% in April and brings the annual rate of house inflation to 10.2% and according to the Halifax, the average house price is now around £194,000.However many analysts predict the slowing down in house price rises over the coming year. The number ....Continue Reading >>
  • Bad Credit Mortgages
    Posted on 04 May, 2007
    Almost everyone dreams of owning a home. If you have financial problems, acquiring a mortgage may seem like an impossible task. If you have a bad credit rating, you may still be able to get a mortgage. One option that might be available to you is a mortgage known as ....Continue Reading >>
  • First Time Buyer Mortgages
    Posted on 05 May, 2007
    First Time Buyer Mortgages involves borrowers seeking a mortgage for the first time. A mortgage is a long term secured loan taken out to buy a residential property. A mortgage is secured by the property. The lender can sell your house if you do not pay the loan. Mortgage LendersLenders ....Continue Reading >>
  • Personal Loans
    Posted on 06 May, 2007
    Most people, at some point in life, will need the assistance of a loan to make an expensive purchase. A personal loan is a loan that is not secured against your property, but against your personal credit rating. This type of loan is often called an unsecured loan. Loan Providers ....Continue Reading >>
  • Six year high for Bank base rate
    Posted on 11 May, 2007
    The Bank of England put up interest rates as expected by a quarter percentage point which now puts the rate at a six year high. The current rate is now 5.5%. Michael Coogan from the Council of Mortgage Lenders said “This rate rise was a certainty even before it happened”. ....Continue Reading >>
  • Interest rates rise and house prices remain strong
    Posted on 12 May, 2007
    The housing market remains buoyant even after the last four interest rate rises, with the national average annual house price raise in April at 8.5%. There remains however a large gap in the increases with house prices in London accelerating by an annualised 13.3% in the three months to march. ....Continue Reading >>
  • Fixed rate mortgages becoming popular
    Posted on 14 May, 2007
    The fixed rate mortgage has become extremely popular with the British public with around 60 to 70% of mortgage borrowers already on a fixed rate mortgage. With a fixed rate mortgage you agree to pay a fixed rate of interest over an agreed period of time. There is now a ....Continue Reading >>
  • Buy To Let Mortgages
    Posted on 15 May, 2007
    A buy to let mortgage is a loan to buy property for the purpose of renting it out. Housing growth, a UK population surge, and a growing student population, have motivated many people to invest in buy to let. Buy to let mortgages can be a good investment, but research ....Continue Reading >>
  • Cash Back Mortgages
    Posted on 15 May, 2007
    A cash back mortgage deal involves a lender giving the borrower a lump sum of money either before paying for a new home, or after making the first monthly payment. The amount of cash given depends on the deal. Most lenders will normally give 5% cash back on the amount ....Continue Reading >>
  • Commercial Mortgages
    Posted on 16 May, 2007
    Unless you are very wealthy, starting a business usually involves acquiring a mortgage. A commercial mortgage is a loan secured against a commercial property. This type of mortgage is used to finance a property purchase for business ventures. For commercial mortgages, the maximum term is normally twenty years. Advantages Most ....Continue Reading >>
  • Inflation falls but has it for you
    Posted on 16 May, 2007
    Inflation in April was 2.8%, down from 3.1 per cent in March, according to the Office for National Statistics. The chancellor of the Exchequer Gordon Brown said “I believe we are right to maintain our view that directly targeting inflation is the way forward,'' the chancellor told business leaders in ....Continue Reading >>
  • The continued rise in popularity of Buy-to-let Mortgages
    Posted on 17 May, 2007
    The Buy to let market is continuing to prove popular with the British public, buy to let mortgages now accounting for around a fifth of financial advisors business. The Council of Mortgage lenders has released recent figures which reveal that buy to let mortgages now account for around 11% of ....Continue Reading >>
  • When to choose Current Account Mortgages
    Posted on 17 May, 2007
    Within the last ten years, current account mortgages have become a very popular choice for people seeking to buy a home. Basically, a current account mortgage is like having a large overdraft. How Current Account Mortgages Work A Current Account Mortgage allows you to consolidate your overdraft, mortgage, and personal ....Continue Reading >>
  • Equity Release Mortgages - An Introduction and Guideline
    Posted on 18 May, 2007
    Equity Release is when homeowners release the money they have secured in their home. Arranged and approved by your solicitor, releasing home equity means that you maintain the right to live in your home rent free for the rest of your life. Your home is purchased through the value of ....Continue Reading >>
  • President of the World Bank quit
    Posted on 18 May, 2007
    Paul Wolfowitz will now quit his post as President of the World Bank on 30th June. He has faced widespread calls for his resignation after it was revealed their may be a conflict of interest over a pay rise and promotion given to his girlfriend. Paul Wolfowitz who was a ....Continue Reading >>
  • The self-employed are still positive about their future
    Posted on 19 May, 2007
    It has been reported that even after the latest base rate rise the self-employed are growing in confidence about their financial future. The self-employed now play an increasingly important part in the UK economy with the number of people self-employed still increasing in numbers. There are many advantages to be ....Continue Reading >>
  • Islamic Mortgages
    Posted on 19 May, 2007
    What is an Islamic Mortgage? The main principle behind Islamic mortgages or finance is that any form of interest is forbidden. Under Sharia Islamic law, wealth should only be generated through legitimate trade and investments in assets, and not from making money from money; therefore the charging of interest is ....Continue Reading >>
  • Self Build Mortgages
    Posted on 20 May, 2007
    With a substantial increase in UK housing costs, more people are looking into building their own home. A self build mortgage may be the ideal choice. The self build mortgage, also known as advance stage payment mortgage, is a home mortgage where you buy a plot of land and finance ....Continue Reading >>
  • Self-Certification Mortgage
    Posted on 20 May, 2007
    In recent years, there has been an increasing trend of more people entering the field of self-employment. Although there are numerous benefits to self-employment, many potential borrowers have encountered problems when seeking to buy a home. Many of the self- employed have difficulties providing a sound proof of income required ....Continue Reading >>
  • Shared Ownership Mortgages
    Posted on 21 May, 2007
    A shared ownership mortgage, or shared equity, refers to buying a percentage of property under a mortgage and paying the rest to a traditional housing association or local authority. Some building societies are now starting to offer the shared ownership mortgage. How Shared Ownership Works The buyer will be offered ....Continue Reading >>
  • How Parents can help First Time Buyers
    Posted on 21 May, 2007
    With property prices at record levels it is getting increasingly difficult for first time buyers to get on the housing ladder. However this also means that many parents are sitting on property which has large equity and low mortgage payments. Many parents are now helping the grown up children get ....Continue Reading >>
  • Variable Rate Mortgages
    Posted on 22 May, 2007
    Variable rate mortgages are mortgages based on the standard variable rate offered by lenders. It is variable because it is linked to the Bank of England base rate. As well, it is the rate you are automatically switched to when your initial mortgage agreement period ends. How Lenders Decide on ....Continue Reading >>
  • Why Should You Remortgage?
    Posted on 23 May, 2007
    More and more people are opting to remortgage. Remortgaging is when current mortgage holders switch their mortgage deal, or mortgage lender, with the expectation of benefiting financially. Reasons to Remortgage Whether you are switching your deal for a better rate, more favorable conditions, better service, or increasing the amount of ....Continue Reading >>
  • Finding The Best Mortgage Rate
    Posted on 23 May, 2007
    The key to finding the best UK mortgage rate is to have a full understanding of all the types of mortgages available. The mortgage you choose will depend on your current financial situation and spending lifestyle. When searching for the best UK mortgage rates, don’t just accept the first rate ....Continue Reading >>
  • Bank Rates Rise Hit Borrowers
    Posted on 23 May, 2007
    UK bank rates have been rising much faster than most financial analysts predicted. Many economists expect that UK rates will continue to increase. Experts note that world economy rates have been rising in an effort to curb inflation. The rise in inflation is seen in part as being fueled by ....Continue Reading >>
  • Home information packs delayed
    Posted on 23 May, 2007
    In a statement made by the Communities Secretary Ruth Kelly to the House of Commons regarding the implementation of Home Information Packs it was stated that they will be delaying the implementation from June 1st to August 1st. The government will also revise the regulations and implement the following changes. ....Continue Reading >>
  • Hot housing market making Bridging loans more popular
    Posted on 24 May, 2007
    The hot property market is making it more commonplace for people to make an offer fast in order to secure their dream home. Estate agents in property hot spots say they see clients placing their property on the market one day and accepting an offer above the asking price the ....Continue Reading >>
  • Graduate Mortgages
    Posted on 24 May, 2007
    Many first-time home buyers are university graduates. If you graduated from a UK university, you may be eligible for a graduate mortgage. Many lenders offer this type of mortgage to graduates employed in a professional career with an income that is expected to rise. Relatively new to the mortgage market, ....Continue Reading >>
  • Key Worker Living Programme
    Posted on 24 May, 2007
    A £690m UK government initiative, The Key Worker Living Programme was created to provide financial assistance for public sector workers seeking to buy or rent a home near their workplace. Eligibility The Key Worker Living Programme helps nurses, teachers, and other key workers who cannot afford housing in certain parts ....Continue Reading >>
  • Maximum Borrowing
    Posted on 25 May, 2007
    Whether you are a first time borrower or re-mortgaging a home, it is important that you maintain realistic borrowing expectations. When calculating your maximum borrowing amount, you have to consider whether or not you can afford the repayments. You need to be aware of the various factors that determines how ....Continue Reading >>
  • Mortgage Protection
    Posted on 25 May, 2007
    Many mortgage holders do not consider the financial consequences of finding themselves in a situation where they were unable to make their mortgage repayments. Mortgage Protection, or Mortgage Payment Protection Insurance, (MPPI) is the insurance that you take out with your mortgage. It will cover your mortgage if are in ....Continue Reading >>
  • Consumer confidence not affected by last interest rate rise
    Posted on 25 May, 2007
    Even the last interest rate rise does not seem to have significantly affected consumer spending. According to latest figures the underlying growth in retail sales remains strong, with just a slight decrease in monthly sales in April. The unadjusted figures for retail sales for the three months to April was ....Continue Reading >>
  • Mortgage lending slows slightly in April
    Posted on 26 May, 2007
    According to figures released by The British Bankers Association mortgage lending went up by 5 billion in April, which is down from figures for March of 5.1 billion. Figures from the Council of Mortgage Lenders showed that the gross mortgage lending was 28.8 billion in April, compared to 31.7 billion ....Continue Reading >>
  • Mortgages with Poor Credit Rating
    Posted on 26 May, 2007
    When applying for a mortgage, it is standard procedure for a lender to have your credit rating checked. If your credit rating is poor, it will be more difficult to obtain a mortgage. High street banks usually avoid customers with a low credit rating. Causes of a bad credit rating ....Continue Reading >>
  • Offset Mortgages
    Posted on 27 May, 2007
    A relatively new product on the UK mortgage market, an offset mortgage allows borrowers to put all their debts in one place. Customers who take out an offset mortgage will link a savings account to a current account. This type of mortgage works by taking advantage of your savings. Instead ....Continue Reading >>
  • Remortgages with Bad Credit
    Posted on 28 May, 2007
    In recent years, more lenders are increasingly offering Bad Credit Remortgages. A UK remortgage with bad credit is when mortgage holders pay off their current mortgage using a new mortgage. The lender uses the same property as security. The term “bad credit”, is a credit rating that describes a person ....Continue Reading >>