Mortgage Advice For First Time Buyers

You are ready to buy your first home, fantastic. I thought I would offer some advice to you, things you may or may not have thought of yet. Many people want to buy a home and feel ready but don’t fully realise everything that is involved. It’s great to have your own home and invest in your future however a home is a massive responsibility to take on.

Replacing throwing away ‘dead’ rent money with an investment is great but your home can be possessed if you can’t keep the mortgage repayments up, planning is key to ensure you know what you are getting into and you make the right investment.

Demand certainly outpaces supply in the mortgage market. Mortgage lenders are willing to lend however only to those who are low risk. Your credit score is important; it’s worth checking this before you start applying for a mortgage as they can be anomalies that could make the difference between approval and decline of a mortgage.

The most important mortgage advice first time buyers is to save! As lenders are now much more cautious with their lending and wish to reduce their risk, the larger deposit you have the more likely you are of being approved and at a lower rate of interest.

There are government schemes that help first time buyers get their first property. In Scotland there is the LIFT scheme where the government will take a equity stake in your property in return for putting up money. This scheme is aimed more for those on lower incomes but it is certainly worth looking into, there may be a different scheme in your area.

Use all the resources available to you, the internet is good for mortgage information, giving you explanations of term, calculators to help you work out what you can borrow and what you can afford. Mortgage brokers can offer very valuable mortgage advice to first time buyers, which many do without broker fees. You benefit from their market knowledge, assistance with applications, support through the process and help you avoid common mistakes.

Final piece of mortgage advice, don’t just go to your bank for a mortgage, search around for the best value mortgage with the best terms for you.

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Get Fee Free Mortgage Advice For Help With Your Next Mortgage

The mortgage market has changed a lot over the last year. No longer can we get mortgages without a deposit or be able to borrow money so easily. I think the days of easy credit are long gone. Many banks have paid the price for their poor lending decisions, one famous bank has gone under in the states and many have been bailed out by their governments around the world. Nowadays if you are a homeowner and you want to find one of the better deals you have to understand the new rules. Lenders are only going to offer you a mortgage if your credit file is very good. Any defaults, even something small like a missed phone bill payment could be the difference between approval and a declined application.   However there are experts providing mortgage advice. Mortgage brokers can offer you the most up to date mortgage advice. They will know the current market conditions and for the area your home is in and if you want to move or buy can provide expert advice for the area you want to buy your new home.   Many offer their service for free. Those interested but not ready to go ahead with a mortgage can benefit from fee free mortgage advice. Those offering their services without a fee are just as good as those who do ask for a fee.   A mortgage broker can run you through the mortgage products on the market including any deposits you may need to put up. They can help you throughout an application, completing the application and following it up and highlight issues that you may have overseen that require attention.   For anyone looking to apply for credit you should ask for a credit report. There are three main credit agencies used in the UK. Asking for your credit file from one or all three will cost only a few pounds. If there are any errors on your report ask the company in question to fix it, many credit agencies will let you contact the company through their online services.

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Is now the right time to sell your home and move? Mortgage Advice

The news so far is that some Estate Agents have indicated that the property market looks to be stabilising. The average value of a UK home has fallen by 17.7% during the last year from £194,953 to £160,327 according to the Halifax. This means that the average house has lost £30,000 in the last year. The Bank of England’s Monetary Policy Committee has cut their interest rates from 5% in September 2008 to 0.50% last month. A typical Standard Variable Mortgage rate has dropped from 7% in September 2008 to 2.50% this month.  Interest rates have never been this low!

It’s a buyers market!

You may be deciding to trade up or trade down the property ladder at the moment. But you need to consider that first house price are depressed at present, homeowners are struggling to sell their homes, estate agents are not selling many properties, the market is erratic to say the least, Mortgage Lenders just don’t have the stomach to lend money and the mortgage market is stagnant. It’s a daunting time to be selling a home or property but a great time to be a buyer –it’s a buyers market!

The market place is littered with private residential homes, repossessed properties and buy-to-let properties for sale. Properties are up for sale for a multitude of reasons from homeowners desperately trying to downsize to control costs to an influx of repossessed homes.  The opportunity to bag a bargain has never been better and the bargaining power is firmly In the hands of the buyer.

If you have sold your home and have a 15% to 40% deposit to put down on a new property then you are in a wonderful negotiating position – the market is in your favour. It means that you can negotiate strongly for a remarkable deal as you can probably move fast with the purchase and the mortgage lenders will be more willing to lend to you money due to the size of your deposit.

If you’re a first-time buyer and have a deposit of around 10% and enough money to cover stamp duty, solicitors’ fees, search fees and other associated fees then you should be in a good position to bag a bargain in the current climate.

I was talking with clients of mine who had decided to sell their three bedroomed home and downsize. Their current home is on the market for £215,000 and they have a relatively small mortgage of £35,000. I asked what a smaller home would cost and they said around £175,000. They intended to keep their £35,000 mortgage and save the difference of £40,000 from the sale of their home and the new house purchase.

They told me that their home had been on the market for sale for the last eighteen months. They had seen a few potential buyers who were making very low offers. They asked for my advice and I said that unless they really need the money from the sale of the house they should take their home off the market as the housing market will bounce back in the next five to ten years and it would be better to sell a house in a buoyant market than a stagnant market.

Look for the best mortgage deal

If decide not to move then you should consider remortgaging your home to a better interest rate before interest rates start to rise again. The best mortgage deals around at present are available for anyone looking for a mortgage of less than 85%.

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Is Now the Right Time to Sell Your Home and Move? | Mortgage Advice

The news so far is that some Estate Agents have indicated that the property market looks to be stabilising. The average value of a UK home has fallen by 17.7% during the last year from £194,953 to £160,327 according to the Halifax. This means that the average house has lost £30,000 in the last year. The Bank of England’s Monetary Policy Committee has cut their interest rates from 5% in September 2008 to 0.50% last month. A typical Standard Variable Mortgage rate has dropped from 7% in September 2008 to 2.50% this month. Interest rates have never been this low!

It’s a buyers market!

You may be deciding to trade up or trade down the property ladder at the moment. But you need to consider that first house price are depressed at present, homeowners are struggling to sell their homes, estate agents are not selling many properties, the market is erratic to say the least, Mortgage Lenders just don’t have the stomach to lend money and the mortgage market is stagnant. It’s a daunting time to be selling a home or property but a great time to be a buyer -it’s a buyers market!

The market place is littered with private residential homes, repossessed properties and buy-to-let properties for sale. Properties are up for sale for a multitude of reasons from homeowners desperately trying to downsize to control costs to an influx of repossessed homes. The opportunity to bag a bargain has never been better and the bargaining power is firmly In the hands of the buyer.

If you have sold your home and have a 15% to 40% deposit to put down on a new property then you are in a wonderful negotiating position – the market is in your favour. It means that you can negotiate strongly for a remarkable deal as you can probably move fast with the purchase and the mortgage lenders will be more willing to lend to you money due to the size of your deposit.

If you’re a first-time buyer and have a deposit of around 10% and enough money to cover stamp duty, solicitors’ fees, search fees and other associated fees then you should be in a good position to bag a bargain in the current climate.

I was talking with clients of mine who had decided to sell their three bedroomed home and downsize. Their current home is on the market for £215,000 and they have a relatively small mortgage of £35,000. I asked what a smaller home would cost and they said around £175,000. They intended to keep their £35,000 mortgage and save the difference of £40,000 from the sale of their home and the new house purchase.

They told me that their home had been on the market for sale for the last eighteen months. They had seen a few potential buyers who were making very low offers. They asked for my advice and I said that unless they really need the money from the sale of the house they should take their home off the market as the housing market will bounce back in the next five to ten years and it would be better to sell a house in a buoyant market than a stagnant market.

Look for the best mortgage deal

If decide not to move then you should consider remortgaging your home to a better interest rate before interest rates start to rise again. The best mortgage deals around at present are available for anyone looking for a mortgage of less than 85%.

Is now the right time to sell your home and move? | Mortgage Advice

The news so far is that some Estate Agents have indicated that the property market looks to be stabilising. The average value of a UK home has fallen by 17.7% during the last year from £194,953 to £160,327 according to the Halifax. This means that the average house has lost £30,000 in the last year. The Bank of England’s Monetary Policy Committee has cut their interest rates from 5% in September 2008 to 0.50% last month. A typical Standard Variable Mortgage rate has dropped from 7% in September 2008 to 2.50% this month.  Interest rates have never been this low!

It’s a buyers market!

You may be deciding to trade up or trade down the property ladder at the moment. But you need to consider that first house price are depressed at present, homeowners are struggling to sell their homes, estate agents are not selling many properties, the market is erratic to say the least, Mortgage Lenders just don’t have the stomach to lend money and the mortgage market is stagnant. It’s a daunting time to be selling a home or property but a great time to be a buyer –it’s a buyers market!

The market place is littered with private residential homes, repossessed properties and buy-to-let properties for sale. Properties are up for sale for a multitude of reasons from homeowners desperately trying to downsize to control costs to an influx of repossessed homes.  The opportunity to bag a bargain has never been better and the bargaining power is firmly In the hands of the buyer.

If you have sold your home and have a 15% to 40% deposit to put down on a new property then you are in a wonderful negotiating position – the market is in your favour. It means that you can negotiate strongly for a remarkable deal as you can probably move fast with the purchase and the mortgage lenders will be more willing to lend to you money due to the size of your deposit.

If you’re a first-time buyer and have a deposit of around 10% and enough money to cover stamp duty, solicitors’ fees, search fees and other associated fees then you should be in a good position to bag a bargain in the current climate.

I was talking with clients of mine who had decided to sell their three bedroomed home and downsize. Their current home is on the market for £215,000 and they have a relatively small mortgage of £35,000. I asked what a smaller home would cost and they said around £175,000. They intended to keep their £35,000 mortgage and save the difference of £40,000 from the sale of their home and the new house purchase.

They told me that their home had been on the market for sale for the last eighteen months. They had seen a few potential buyers who were making very low offers. They asked for my advice and I said that unless they really need the money from the sale of the house they should take their home off the market as the housing market will bounce back in the next five to ten years and it would be better to sell a house in a buoyant market than a stagnant market.

Look for the best mortgage deal

If decide not to move then you should consider remortgaging your home to a better interest rate before interest rates start to rise again. The best mortgage deals around at present are available for anyone looking for a mortgage of less than 85%.

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Practical Mortgage Advice for Borrowers Following Recent Events

After an extremely volatile week the financial markets are being capped with incredible events especially coming from government announcements and intervention. With the news coming so quickly here is a recap of the recent events and how they impact mortgage borrowers:

1. Fear about the safety of money on deposit with banks folding or going on brink of collapse. This loss of confidence has caused bonds to lose some or all of their value in certain cases. This news has resulted in money quickly pouring out of stocks and bonds and into U S treasuries.

Impact to borrowers: preventing “lockdown of the markets” with government involvement. Currently people are willing to pay money not to lose principal or basis in their investments…not even worrying about a return on their investment. With the government rushing to back investments and restore trust this means lower rates for borrowers.

2. Government guarantee of market funds. Treasury Secretary Hank Paulson announced the US Government will guarantee money market funds.This action is helping settle the markets and as a result stocks were up last yesterday and rallying again today.

Impact to borrowers: rate volatility from day to day based on current news.

3. Fed makes a decision to support currently unsellable mortgage debt. The mortgage mess has so much uncertainty that investors do not want to buy the investments regardless of the performance level. The government has stepped in as a buyer providing liquidity to investment groups that are holding these securities and keeping them afloat while they to recover.

Impact to borrowers: stabilizing long term impact on fixed rates.

Are these the last changes we will see in the mortgage market?

If the last few years have taught us anything it is that there are more changes to come. At Trusted Mortgage Advice we believe that ultimately the financial markets will determine their own outcome – and that common sense will ultimately prevail.

We see a return to mortgage basics – borrowers will need good credit, a bit of money saved and will need to invest in their own homes.

But at the end of the day government intervention is going to be a necessity here. Why?

Too much at stake. With the size of the financial institutions that are failing keeping them afloat may be worth the investment of taxpayer dollars.

Media coverage. With so much coverage of this financial turmoil politicians and regulators will be under tremendous pressure to do something about it.

Mortgage lending still makes sense. So much of today’s problems have been caused by a lack of good judgment shown by both lenders and borrowers over the last few years. At the end of the day American homeownership will survive and credit worthy, responsible borrowers will be able to obtain credit.

The possibility of a recession is still out there and regulators will do everything they can to avoid letting that happen on their watch.

Looking for Advice on Your Mortgage Situation?

With all of the turmoil we recommend making a thorough financial check up including:

Talk to your banker: check the rates on checking and savings accounts to ensure you get the best pricing.

Talk to your financial advisor: Make sure your investment strategy doesn’t need to change based on current events.

Talk to your insurance agent: It never hurts to ask if you can save money on home, auto or health insurance.

Talk to Trusted Mortgage Advice: Don’t let a mortgage company convince you to take a deal that doesn’t feel right. We will help you evaluate your loan and make sure you are getting the best deal possible.

Independent Mortgage Advice Is The Best Mortgage Advice

There are many different types of mortgage loans on the market from tracker mortgages, fixed and variable rate, buy to let, shared equity mortgage to name but a few. First time buyers and existing home owners can get independent mortgage advice to explain these terms as well as tell them all about the mortgage market which has changed a lot over the last twelve to eighteen months.

Even if you have thoroughly researched the available products and have a good understanding of the different terms, there are over 1,000 different deals available from over 100 lenders. That is a lot of leg work to do to find the best deal.

You can get independent mortgage advice from a mortgage broker. There are brokers that will search the whole of the market for you to ensure the best deal is found. Plus they can offer their expert advice to you and often for free. So whether you are serious about looking for a mortgage now, are due to remortgage soon or even if you just curious if you are able to get a mortgage in the current climate a mortgage broker can help.

Before selecting a mortgage broker for your mortgage advice do ensure you first of all ask that they will search the whole of the market. Secondly check if there is a fee. If you are happy to pay a fee for their service great but there are many great fee free mortgage brokers who offer a service which is just as good. If you do go with a fee free mortgage broker you do have the option of walking away if you aren’t comfortable with the service provided at any point.

In addition to independent mortgage advice, mortgage brokers are often able to get exclusive deals, have good relationships with the lenders so can help you with your application at every stage as well as chase it up and assist you with all your queries. The best part of course is the mortgage broker will do most of the work for you so you can concentrate on finding the perfect home!

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How to Find Good Mortgage Advice in a Difficult Market

So what’s the real story?  Does a crisis really exist?  Clearly the mortgage industry is going through a serious “cleansing.”  Lenders are closing their doors, Wall Street is treating mortgage backed securities like the plague, and borrowers are struggling to make loan payments.

If you listen to the TV folks you’ll be stirred into a bona fide panic.  But is it a real crisis or is it a natural business cycle?  I believe the answer is “no.”

Starting in 2001 after the 9/11 attacks the real estate and mortgage industry reaped the benefits of falling interest rates.  And while many people in other industries suffered through tough economic times anyone in the mortgage business had the best years (financially) of their lives from 2002 – 2005.

And anytime there is money to be made there will be a flood of people looking to cash in – and the mortgage industry was no exception.  People from all walks of life jumped in to become loan officers, processors, and managers as the industry reached higher levels than it could sustain long term. 

According to Wholesale Data, the number of mortgage brokerages in 1997 was around 33,000 nationally.  By 2005 it had ballooned to more than 55,000.  Double the number doesn’t sound too bad – but the study shows the real problem:  the market share of mortgage brokers was 64% in 1997 but had dropped to 58% by 2006.  Twice the numbers of people were competing for a smaller percentage of loans.

The logical next step with so many people competing for smaller parts of the pie was for everyone to cut standards and rates to try and get what they can.  Then came the advent of “easy money” with high loan to values, reducing credit restrictions and increased risk across the board.  Again not good.

So is there a need to downsize the mortgage industry and regain control of guidelines and quality standards? Absolutely. 

But what about this crisis – what are the facts?

Fact – Mortgage money is still readily available.  The main difference is that credit qualification has really tightened up in an obvious reaction to the “easy credit” guidelines of the past few years.  There are still options available for 100% financing, low down payment options and rates are still quite competitive.

Fact – Credit worthy borrowers are finally being rewarded.  Lending had reached a point where any and all credit problems (including bankruptcy and foreclosure) were being brushed aside in favor of volume.  These trends never made sense so when they backfire does that constitute a crisis?  A borrower who pays their credit on time and saves money for reserves or down payment can still get a loan.

Fact – The downturn in real estate is a natural cycle.  When you look at the big picture, the real estate industry went through a historic growth cycle created by historically low interest rates.  This growth was fueled artificially by something that cannot be sustained so it shouldn’t be a surprise when the ride is over.

Fact – The mortgage industry needed to be downsized.  Studies show that the number of mortgage professionals more than doubled since 1997.  Anytime an industry sees such an influx of new people you can expect the sort of issues we’ve seen in our business:

lower levels of training and accountability

new players from other industries that don’t quite understand what they are in for

less emphasis on long term relationships

shrinking margins due to increased competition

lower levels of professional standards

Fact – Mortgage guidelines had reached a risk level never seen before in history.  Some tightening of credit standards was inevitable.

Those in the sub-prime market have taken a beating over loose guidelines but the facts are that this issue was industry wide.  Sub-prime in particular was never a “bad” thing if done at the right rate or loan to value.  If credit or income standards were not up to conventional levels it makes sense that you should get a higher rate or lower loan to value than the conventional market.  The problem comes when the non-standard rates and LTVs are just as competitive as conforming products – which is exactly where the market wound up by 2005.

And don’t think for a moment that conforming lenders weren’t pushing the limit.  In order to keep up with competition guidelines loosened for them just as quickly as everyone else.  The shutdown of conforming loan operations and the mortgage insurance losses we have seen over the last 18 months confirm this. 

So with all of these trends the downsizing of the mortgage industry should be seen as a good thing.  Those professionals staying in the mortgage business should be wiser and more professional than ever before.  You can be sure that they want to stay in the business and fully realize what they are in for.

Industry changes bring new solutions

These sweeping changes in the industry have caused mortgage professionals to make some changes.  Buckle up, change your ways or get out!

The industry changes inspired one mortgage broker to come up with a new service – offering mortgage advice for borrowers with loans in process for a small flat fee.  The company, Trusted-Mortgage-Advice.com (www.trusted-mortgage-advice.com) offers to review a borrowers mortgage documents for the loan in process and help them negotiate the best terms with their lender.  It’s a unique twist for a mortgage professional – no bait and switch, no “I can do better” – instead it’s that second opinion that most borrowers go to their friends for. 

With so much uncertainty, so many changes, and so many “bad faith” stories out there I think there is a real need for borrowers to get independent, third party mortgage advice.  So many times in the process borrowers call their friends or family to find out if they are getting a good deal – or if what the broker is telling them make sense.  So going to another lender only assures they promise to beat your current deal.  With Trusted-Mortgage-Advice.com (www.trusted-mortgage-advice.com) they will give you that second look to make sure you get the best deal possible.

Mortgage Advice – More Important Than Ever

If you don’t know there is a global credit crunch, you must have been living on another planet. And if you’re trying to buy a house or get a mortgage, you will be only too aware of its effects on the mortgage market.

Some people decide there’s no point in even looking for a mortgage. Others, especially first time buyers, are completely confused about where to go for a good deal. If you are one of these, it’s really important to get mortgage advice.

So why is getting mortgage advice more important now than ever?

• As banks and other lenders are finding it harder to get hold of money to lend to would-be borrowers, their lending criteria get increasingly stiff – that is, they impose tougher conditions before they regard you as suitable to lend to. You need mortgage advice to show you how you can maximise your chances of finding a suitable mortgage.

• Obviously there is a much more limited choice of mortgages available than there was a year ago, or even a few months ago. Most of us know someone who has been in the process of applying for a particular mortgage, only to find that product is suddenly withdrawn. Not only does this mean they have to start all over again, but they might well lose the house they were after. This is less likely to happen if you have taken mortgage advice first, as the adviser is more likely to know which are the safest products.

• Taking advice from a whole of market mortgage adviser, even if it means paying a fee, is the best way to make sure you get the right deal. A lot of products are more competitive when obtained via a broker than when obtained from the actual lender – this is because lenders often give brokers advantageous terms because of the business they bring them. On the other hand, in the current market, some lenders are keeping some competitive products to themselves and not making them available through brokers. A whole of market mortgage broker will be able to source the best deal for you, wherever it may be found.

• There are so many different factors to weigh up when choosing your mortgage that it’s extremely complicated to sort it out on your own. The one with the apparently lowest rates may not be the best one – you have to look at charges, redemption fees, and factors such as whether interest accrues daily, monthly or yearly, and whether overpayments are accepted. You also have to be sure that the rate initially offered by the lender is the rate you will actually get, rather than being a “headline rate” or “typical rate”. Plus of course you have to decide whether or not to go for a fixed rate mortgage, and whether an interest-only or repayment mortgage is more suitable for you. It can be difficult and stressful and this is where taking mortgage advice can really help you.

With the situation changing every day, virtually everyone is confused – you’re not alone! But if you take whole of market mortgage advice, you will find the person who is best placed to know how things stand at any given time and to guide you to the best solution.

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Seeking Out Mortgage Advice

Whether you are a first-time-buyer purchasing your first home or an existing home owner looking for a remortgage product, it is important to seek out expert mortgage advice to ensure you secure the right home loan for your personal circumstances.

Evolution of the UK Mortgage Market

The UK is often referred to as having the most sophisticated mortgage market in the world. A wide variety of mortgage products are now available from dozens of lenders where only a few lenders existed before.

Mortgages are now available to people with all kinds of credit histories and employment situations and are also available to purchase property for investment purposes. This situation is vastly different to several years ago when only a few lenders offered prime mortgage products to people with stable employment.

The UK home loan market has therefore evolved considerably in only a few short years and the need for expert mortgage advice has never been greater. Advice on mortgages is no longer the sole domain of overbearing bank managers and because of this the financial intermediary industry has flourished.

Mortgage Advice Providers

Because of the increased sophistication of the mortgage market it is wise to seek advice from either an independent mortgage broker or financial adviser when searching for your next home loan.

Independent mortgage brokers have specialist software that can scan the entire mortgage market in minutes, helping them to provide quality mortgage advice that will help you choose the right product for your individual circumstances. The right mortgage advice can help you save money over the term of the loan, whether it is for a buy-to-let property or your own home.

Likewise, independent financial advisers (IFAs) can sometimes provide advice on mortgages as well as ancillary finance products such as insurance and pensions. Often these products go hand in hand with mortgages so it can be a good idea to receive mortgage advice from an IFA if you have one already.

If, for example, you are looking to purchase or remortgage a buy-to-let property your IFA may be able to provide you with advice on which mortgage products to apply for in addition to any investment advice they may provide to you.

If you are seeking a mortgage for your own home your IFA may be suitable for providing you advice on both your home loan and your home and contents insurance. You may also use the opportunity to receive advice on life assurance product or mortgage and income protection insurance.

Where to Seek Mortgage Advice

Finding a mortgage broker or IFA who can offer you mortgage advice has never been easier. There are thousands of registered mortgage brokers and IFAs in the UK, many of whom advertise on the internet and in the local press. There is also a wide range of online and offline directories which contain listings of mortgage brokers in most local areas. However, with the ease of communicating over long distances these days, it is not always necessary to receive mortgage advice from a local mortgage broker.

You may also seek out referrals from friends of relatives. Mortgage advisers and IFAs sometimes specialise in different fields of financial advice which means that not all advisers will be suited to providing you with information on the specific issues you are seeking advice on. A positive referral from a friend or relative may therefore save you the time and hassle of finding an adviser yourself and reduce the risk of inappropriate advice.