Need to re-mortgage your fixed rate mortgage?
Your not the only one, 1000's of homeowners have or will be coming off their fixed rate mortgage this year and early 2008. Many have been on fixed rate mortgages as low as 4.4% and most will be re-mortgaging on a rate over 1% higher in the next few weeks!
Even with the recent interest rate cut by the Bank of England it is thought that homeowners may soon feel the pinch of 4 rate rises whilst they were safe in a fixed rate mortgage.
It doesn't have to be doom and gloom though!
There are several ways in which you could remortgage on a cheap mortgage with similar monthly payments that you've had before.
High Arrangement Fee & Low Interest Rate
This maybe an option if you have a small mortgage and will benefit from the lower interest rates, although the higher arrangement fee may not justify the low interest rate unless its for a long period.
Fee Valuation & Free Legals
Many mortgage lenders now offer free valuations and free legals for people remortgaging, helping reduce the overall cost compared with paying upfront.
Offset Mortgage/Flexible Mortgage
These tend to allow the borrower to over pay their mortgage or offset savings against the mortgage balance. This can significantly reduce the monthly payments or reduce the term of the mortgage. It also gives the flexibility to withdraw money if required.
The one thing to remember is to seek an independent mortgage brokers advice on the best and cheapest mortgage option for you. Most importantly if your coming off your fixed rate mortgage, seek advice sooner rather than later. If your mortgage changes to a Standard Variable Rate before you arrange your re-mortgage you will see a steep increase in your monthly payments.
Don't give the lender a penny more than you need too!
For more information on the 1,000's of different mortgages on the market and to find a local independent mortgage brokers near you then please visit my website FruitMortgages.com
Monday, 17 December 2007
House prices down 3.2% in December
Rightmove, the property website, reported a "3.2% asking price fall exacerbated by seasonal factors and HIP-avoiding first-time sellers" today amid fears in the market that property prices may continue to fall. There have also been reports that the National Network of Independent Surveyors are advising their members to value properties conservatively fueling difficulties in people getting high Loan to Value (LTV) re-mortgages.
January is set to be a trying time for the British housing market with areas such as Wales being the worst hit.
A growing sector in the current market are Discount Property Purchasers (See article on Discount Purchase Properties) who are seizing the opportunity of distressed sellers and purchasing well below the current market value. The average discount is between 15% - 20% which counts high LTV borrowers out but are a lifeline to homeowners with enough equity in their property.
Mortgage rates may fall again after Christmas but it is still unknown if this will help stable the market in its current condition.
The US Faderal Reserve has started to look into regulating the mortgage market, particularly the Self Cert mortgage sector amid concerns that adequate checks are not taking place.
This will hopefully quell the current credit crunch, although it may stop some people from re-mortgaging, fueling further the dropping property prices.
Overseas US property investment
Overseas investors have started to invest heavily in the US property market as they have predicted that property prices are currently undervalued and maybe a good potential investment.
If you would like to learn more about property investment and mortgages in general why not visit my mortgages a-z website.
To view the full copy of the RightMove.com December price index report click here.
Daniel Morgan
FruitMortgages.com
January is set to be a trying time for the British housing market with areas such as Wales being the worst hit.
A growing sector in the current market are Discount Property Purchasers (See article on Discount Purchase Properties) who are seizing the opportunity of distressed sellers and purchasing well below the current market value. The average discount is between 15% - 20% which counts high LTV borrowers out but are a lifeline to homeowners with enough equity in their property.
Mortgage rates may fall again after Christmas but it is still unknown if this will help stable the market in its current condition.
The US Faderal Reserve has started to look into regulating the mortgage market, particularly the Self Cert mortgage sector amid concerns that adequate checks are not taking place.
This will hopefully quell the current credit crunch, although it may stop some people from re-mortgaging, fueling further the dropping property prices.
Overseas US property investment
Overseas investors have started to invest heavily in the US property market as they have predicted that property prices are currently undervalued and maybe a good potential investment.
If you would like to learn more about property investment and mortgages in general why not visit my mortgages a-z website.
To view the full copy of the RightMove.com December price index report click here.
Daniel Morgan
FruitMortgages.com
Saturday, 15 December 2007
Discount Purchase Properties
There is a growing trend in recent month, in response to a slow housing market, for investors to demand larger discounts on the open market value (OMV). The way it works is buy purchasing the property at a discount and then having a buy to let mortgage on the OMV thus reducing or even eliminating the need for a deposit.
Example
Open market value of property: £100,000
Purchase price: £85,000
Mortgage: 85% of market value: £85,000
However it is not as simple as purchasing at a discount and then taking out a mortgage to finance the project, you need a one day closed bridging loan to facilitate the purchase and then a buy to let re-mortgage to release the value and equity in the property.
I have been carrying out this type of finance for the last 2 months and have seen a sharp rise in demand from investors for this product.
With expectations of the housing market remaining slow in Jan and Feb we should see this type of finance increase dramatically.
If you are interested in learning more about this type of finance then please feel free to give me a call or email me and I can explain how I can help build you a large property portfolio with little if any money down.
Daniel Morgan
Independent Mortgage Broker
info@fruitmortgages.com
07815161734
Example
Open market value of property: £100,000
Purchase price: £85,000
Mortgage: 85% of market value: £85,000
However it is not as simple as purchasing at a discount and then taking out a mortgage to finance the project, you need a one day closed bridging loan to facilitate the purchase and then a buy to let re-mortgage to release the value and equity in the property.
I have been carrying out this type of finance for the last 2 months and have seen a sharp rise in demand from investors for this product.
With expectations of the housing market remaining slow in Jan and Feb we should see this type of finance increase dramatically.
If you are interested in learning more about this type of finance then please feel free to give me a call or email me and I can explain how I can help build you a large property portfolio with little if any money down.
Daniel Morgan
Independent Mortgage Broker
info@fruitmortgages.com
07815161734
Interest rate drop to 5.5%
Interest rates dropped to 5.5% last week which was a welcome from most of the finance industry. Mortgage brokers, Lenders & Borrowers have all been sensitive to the market in the last 6-8 weeks due to a slow down, if not fall, in house prices and a high LIBOR rate which has made it difficult to source money on the open market. Although the LIBOR rate is still high compared to 3 months ago we are all hoping the drop in the Bank of England base rate will encourage Lenders to lower their interbank rate.
The obvious advantage to home owners is that many on a variable, tracker or discount rate will see their monthly payments reduce over the next few weeks. HBOS, owners of HALIFAX, and Nationwide were both the first to announce it had reduced its interest rates on their tracker and variable products.
However hopes of a change in the current housing market would be possibly over optimistic, a 1/4% change in interest rates save or cost around £40 a month on the average home. There is likely to be a re-index in the British housing market before anyone will see an increase in house sales. January and February should be extremely trying times for the UK.
The only market I can foresee growing will be the Bridging Loan and Discount Property Purchases market as they move in to purchase property from Distressed Sellers, people who cannot sell their home on the open market.
Not to be one for doom and gloom: The only thing to fear is fear itself. The market has a funny way of correcting itself and although it is likely house prices may fall in the near futurem, there is no real concern of a return to the 90's.
Enjoy your Christmas,
Daniel Morgan
Independent Mortgage Broker
FruitMortgages.com
The obvious advantage to home owners is that many on a variable, tracker or discount rate will see their monthly payments reduce over the next few weeks. HBOS, owners of HALIFAX, and Nationwide were both the first to announce it had reduced its interest rates on their tracker and variable products.
However hopes of a change in the current housing market would be possibly over optimistic, a 1/4% change in interest rates save or cost around £40 a month on the average home. There is likely to be a re-index in the British housing market before anyone will see an increase in house sales. January and February should be extremely trying times for the UK.
The only market I can foresee growing will be the Bridging Loan and Discount Property Purchases market as they move in to purchase property from Distressed Sellers, people who cannot sell their home on the open market.
Not to be one for doom and gloom: The only thing to fear is fear itself. The market has a funny way of correcting itself and although it is likely house prices may fall in the near futurem, there is no real concern of a return to the 90's.
Enjoy your Christmas,
Daniel Morgan
Independent Mortgage Broker
FruitMortgages.com
Wednesday, 7 November 2007
End of 100% Mortgages?
I'm finding it ever more difficult to source 100% mortgages in the current market.
Where as 5 years ago most first time buyers had a deposit of 5% or more, in today's sky high property prices clients are struggling to come up with the deposit.
100% mortgages, a relatively new, mortgage product in the UK were aimed at solving this problem. They would often allow first time buyers the ability to purchase a property without the need of saving for a deposit. They are even mortgages offering 125% of the loan amount.
Unfortunately with the current credit crunch effecting the LIBOR mortgage rate and banks fearing mortgage arrears many lenders have either withdrawn from the market or increased the checks made on borrowers. It is a very difficult time for first time buyers and this will undoubtedly have an effect at 2nd and 3rd time sellers.
My advice to first time buyers is to save for 6 months and come up with 5%, if your not in an ability to save a deposit the question will be raised on how you can afford mortgage and insurance payments along with all other associated costs such as furniture, conveyancing, etc.
Where as 5 years ago most first time buyers had a deposit of 5% or more, in today's sky high property prices clients are struggling to come up with the deposit.
100% mortgages, a relatively new, mortgage product in the UK were aimed at solving this problem. They would often allow first time buyers the ability to purchase a property without the need of saving for a deposit. They are even mortgages offering 125% of the loan amount.
Unfortunately with the current credit crunch effecting the LIBOR mortgage rate and banks fearing mortgage arrears many lenders have either withdrawn from the market or increased the checks made on borrowers. It is a very difficult time for first time buyers and this will undoubtedly have an effect at 2nd and 3rd time sellers.
My advice to first time buyers is to save for 6 months and come up with 5%, if your not in an ability to save a deposit the question will be raised on how you can afford mortgage and insurance payments along with all other associated costs such as furniture, conveyancing, etc.
Monday, 22 October 2007
The end of 100% Mortgages?
Rumors have been circulating over the last 48 hours that many of the so called 100% - 125% Mortgages may be withdrawn from the market.
With the current credit crunch effecting many finance companies it seems the risks involved with lending on top of the secured mortgage may outweigh the benefits.
It is already close to impossible for people with adverse credit to obtain 100% mortgages unless they opt for an adverse credit mortgage from Future.
The main players being BM Solutions, Northern Rock & Mortgage Express who all offer over 100% mortgages by securing a 95% mortgage on the property and then offer an unsecured loan up to £30,000.
Interest rates for these specialist products have increase faster than the current base rate in recent years with some being over 2% more than base. 100% mortgages often tend to have higher fees attached such as booking fees, valuation fees and arrangement fees. All of which makes this type of lending the most expensive on the market.
I will update this blog when I receive news on the current situation with Future offering 100% later this week. I hope for the sake of client needing such lending that the mortgages will still be on offer.
Much of the entry level properties in the UK are currently purchased by buyers who obtain 100% mortgages due to having insufficient deposits. If these clients can no longer obtain finance for the property purchase it will be a potentially dangerous situation for the UK housing market.
Search the whole market now for 100%-125% Mortgages Wales.
Mortgage Quote
With the current credit crunch effecting many finance companies it seems the risks involved with lending on top of the secured mortgage may outweigh the benefits.
It is already close to impossible for people with adverse credit to obtain 100% mortgages unless they opt for an adverse credit mortgage from Future.
The main players being BM Solutions, Northern Rock & Mortgage Express who all offer over 100% mortgages by securing a 95% mortgage on the property and then offer an unsecured loan up to £30,000.
Interest rates for these specialist products have increase faster than the current base rate in recent years with some being over 2% more than base. 100% mortgages often tend to have higher fees attached such as booking fees, valuation fees and arrangement fees. All of which makes this type of lending the most expensive on the market.
I will update this blog when I receive news on the current situation with Future offering 100% later this week. I hope for the sake of client needing such lending that the mortgages will still be on offer.
Much of the entry level properties in the UK are currently purchased by buyers who obtain 100% mortgages due to having insufficient deposits. If these clients can no longer obtain finance for the property purchase it will be a potentially dangerous situation for the UK housing market.
Search the whole market now for 100%-125% Mortgages Wales.
Mortgage Quote
Sunday, 21 October 2007
A new way to learn about finance.
FruitMortgages.com, a new internet based mortgage portal designed to aid UK consumers make informed choices on their mortgage and insurance need.
The website offers users information on the different types of mortgages available such as Fixed Rate Mortgages and Tracker Mortgages. It also offers information on the different types of mortgage holders such as first time buyers, adverse credit mortgages, re-mortgage buyers and buy to let mortgage investors.
FruitMortgages.com offers access to independent mortgage brokers who have whole of market access to the latest mortgages. The mortgage broker can then offer mortgage quotes based on the clients circumstances.
FruitMortgages.com is aimed to connect people searching for a mortgage quote with independent mortgage advisers in the UK.
“I wanted to create a website where users can learn about the different types of mortgages available and have the ability to speak directly with a qualified independent mortgage broker.” said Daniel Morgan the Founder of the website.
The company would like to eventually offer users the ability to search for mortgages on the website and apply online. Currently users can gather information and request a call back from a qualified mortgage adviser. The mortgage adviser can then either meet with the client or produce a mortgage quote over the phone.
The website covers the whole of the UK through a network of over 1800 IFA’s and Mortgage Advisers.
As the usage of the internet continues to grow it will be interesting to see how online mortgage portals such as FruitMortgages.com shape the future of the UK mortgage industry.
The website offers users information on the different types of mortgages available such as Fixed Rate Mortgages and Tracker Mortgages. It also offers information on the different types of mortgage holders such as first time buyers, adverse credit mortgages, re-mortgage buyers and buy to let mortgage investors.
FruitMortgages.com offers access to independent mortgage brokers who have whole of market access to the latest mortgages. The mortgage broker can then offer mortgage quotes based on the clients circumstances.
FruitMortgages.com is aimed to connect people searching for a mortgage quote with independent mortgage advisers in the UK.
“I wanted to create a website where users can learn about the different types of mortgages available and have the ability to speak directly with a qualified independent mortgage broker.” said Daniel Morgan the Founder of the website.
The company would like to eventually offer users the ability to search for mortgages on the website and apply online. Currently users can gather information and request a call back from a qualified mortgage adviser. The mortgage adviser can then either meet with the client or produce a mortgage quote over the phone.
The website covers the whole of the UK through a network of over 1800 IFA’s and Mortgage Advisers.
As the usage of the internet continues to grow it will be interesting to see how online mortgage portals such as FruitMortgages.com shape the future of the UK mortgage industry.
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