Rumors have been circulating over the last 48 hours that many of the so called 100% - 125% Mortgages may be withdrawn from the market.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
Monday, 22 October 2007
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.
Saturday, 15 September 2007
Northern Rock on a rocky road
NORTHERN ROCK NEWS UPDATE
You have all probably heard hours of news reports regarding the Northern Rock loan request from the Bank of England. I was so interested to see how scared everyone one gets by media gossip and reports from "Experts".
Northern Rock borrows money from the money market (other banks) and offers it to retail customers (me and you) in the form of mortgages, loans and other forms of credit. The public savings in the company amount to very little.
The main reason NR went to the Bank of England was due to them being unable to supply demand for their mortgages.
NR have become a victim of their own success however they have yet to request or draw down a penny from the BoE.
If you remember what happens when the "experts" predict petrol shortages they are usually correct. Not because there are any problems with the oil industry but rather the media scare the public into stocking up. The result is more demand which effects the supply chain.
The same situation threatens to effect the finance industry. If the media continue to report on problems that don't yet exist we may well see the media predicting future events by creating them in the first place.
I suggest that all my readers take stock of the situation and realise that the British finance industry is one of the safest in the world.
If you need advice on your mortgages then remember to visit my mortgage advice portal.
You have all probably heard hours of news reports regarding the Northern Rock loan request from the Bank of England. I was so interested to see how scared everyone one gets by media gossip and reports from "Experts".
Northern Rock borrows money from the money market (other banks) and offers it to retail customers (me and you) in the form of mortgages, loans and other forms of credit. The public savings in the company amount to very little.
The main reason NR went to the Bank of England was due to them being unable to supply demand for their mortgages.
NR have become a victim of their own success however they have yet to request or draw down a penny from the BoE.
If you remember what happens when the "experts" predict petrol shortages they are usually correct. Not because there are any problems with the oil industry but rather the media scare the public into stocking up. The result is more demand which effects the supply chain.
The same situation threatens to effect the finance industry. If the media continue to report on problems that don't yet exist we may well see the media predicting future events by creating them in the first place.
I suggest that all my readers take stock of the situation and realise that the British finance industry is one of the safest in the world.
If you need advice on your mortgages then remember to visit my mortgage advice portal.
Wednesday, 11 July 2007
Fixed, Discounted or Tracker? After effect of interest rate rise.
Since the Bank of England raised interest rates for a 5th time since August 2006 to 5.75% many people across the UK are worried about how high rates may rise.
In my own opinion I don't feel rates will rise above 6%, though I could be wrong.
If we work on my opinion that rates will not rise more than another 1/4% lets see if its still worth people deciding on a fixed rate mortgage.
Currently lenders across the board seem to be encouraging people not to fix their mortgage for less than 3 years by introducing higher fees and interest rates.
The banks are afraid to fix to many of their clients mortgages in case of further rate rises, thus increasing their costs but fixing the borrowers. If you now look at the current fixed rate mortgages available they almost all have a high set up fee running into £1,000's along with higher interest rates, often above 6%.
On the other hand we can now see some very competitive variable rates in the Tracker and Discount arena. Many have rates as low as 5.19% with a lower arrangement fee compared to its fixed alternative.
If we compare these two options we now only have to decide how much we feel rates are likely to rise, very few experts are predicting 4 more rises. If rates rose 1% it would see our earlier deal rise to 6.19% with still lower fees. Remember of course that this 1% rise would happen in four stages over 12 months. By this time the lower rate may have saved you £100's in interest payments.
Another important point to remember is that arrangement fees on non-fixed products is normally below £500 whereas arrangement fees for fixed rate mortgages tend to range from £500 - £1000.
If you have a small mortgage or intend to switch mortgages within say 2 years, a £1000 arrangement fee could be a large % of your loan and increase the amount you originally borrowed.
If you would like to learn more about the different products available or would like to speak to a local mortgage advisor and broker please visit FruitMortgages - Your local independent mortgage brokers.
Mortgages - Local Mortgages Brokers - Mortgages Wales - FruitMortgages.com
In my own opinion I don't feel rates will rise above 6%, though I could be wrong.
If we work on my opinion that rates will not rise more than another 1/4% lets see if its still worth people deciding on a fixed rate mortgage.
Currently lenders across the board seem to be encouraging people not to fix their mortgage for less than 3 years by introducing higher fees and interest rates.
The banks are afraid to fix to many of their clients mortgages in case of further rate rises, thus increasing their costs but fixing the borrowers. If you now look at the current fixed rate mortgages available they almost all have a high set up fee running into £1,000's along with higher interest rates, often above 6%.
On the other hand we can now see some very competitive variable rates in the Tracker and Discount arena. Many have rates as low as 5.19% with a lower arrangement fee compared to its fixed alternative.
If we compare these two options we now only have to decide how much we feel rates are likely to rise, very few experts are predicting 4 more rises. If rates rose 1% it would see our earlier deal rise to 6.19% with still lower fees. Remember of course that this 1% rise would happen in four stages over 12 months. By this time the lower rate may have saved you £100's in interest payments.
Another important point to remember is that arrangement fees on non-fixed products is normally below £500 whereas arrangement fees for fixed rate mortgages tend to range from £500 - £1000.
If you have a small mortgage or intend to switch mortgages within say 2 years, a £1000 arrangement fee could be a large % of your loan and increase the amount you originally borrowed.
If you would like to learn more about the different products available or would like to speak to a local mortgage advisor and broker please visit FruitMortgages - Your local independent mortgage brokers.
Mortgages - Local Mortgages Brokers - Mortgages Wales - FruitMortgages.com
Tuesday, 5 June 2007
Introduction to FruitMortgages.com
FruitMortgages.com is an independent mortgage broker specialising in giving advice for First Time Buyer Mortgages, Buy to Let Mortgages, Self Cert Mortgages, Adverse Credit Mortgages, Home Mover Mortgages & Re-Mortgages. We offer a free online resource to people wanting to know more about mortgages and have “Whole of Market” access to lenders giving you impartial advice on current deals and offers. We have a learning section of the site giving advice on Fixed Rate, Variable Rate, Capped Rate, Discount Rate Tracker Rate, Cash Back & Flexible Rate Mortgages. No matter what your circumstances, we can help. The mortgage industry has changed dramatically over the last few years offering products to employed, self employed & Retired people with a range of credit histories. We’ll search & select from thousands of options and advise you based on your current circumstances on an Independent Basis.Contact us now for a Free Quote.
Based in south wales we offer a special face to face advice on mortgages and can arrange for an advisor to come and visit you in your home or arrange for you to pop into one of our offices. Out fees are extremely competitive, often less then £100. Give us a call to find out if you can save money from your mortgage payments.
Based in south wales we offer a special face to face advice on mortgages and can arrange for an advisor to come and visit you in your home or arrange for you to pop into one of our offices. Out fees are extremely competitive, often less then £100. Give us a call to find out if you can save money from your mortgage payments.
Monday, 4 June 2007
Interest rates reach a six year high
Homeowners with a mortgage of £100,000 have seen their monthly repayments rise by £16 on average after interest rates rose on 10 May, the fourth rise since last August. With some experts predicting the Bank of England Base rate will rise before levelling out, homeowners in Wales may soon feel the pinch.
Many local families have already been negatively affected by the rise in interest rates, while mortgages which are not fixed are the most likely to be affected, with some families, paying an extra £83 a month since rates began to rise. A rise to 6% may increase the financial hardship, with the threat of reposition a real possibility.
The Shadow Monetary Policy Committee, a group of economists from academia and financial firms, recently voted to hold interest rates at their current rate of 5.5%. However, three of the eight members want a quarter-point rise now, and Sunday Times Economics Editor David Smith reported an “overall bias to raise rates in the near future”.
My advice to anyone who feels they may have difficulty in keeping up with mortgage payments would be to contact your lender before they contact you. Your lender has a duty of care to advise you on your options with repossession always being the last resort.
Speaking to John Quesy, Director of Shelter Cymru, agreed that higher interest rates will have ab adverse effect on Homeowners with Mortgages in Wales.
By considering the affordability of a mortgage before committing yourself, interest rate rises should not have a detrimental effect on your finances. If you prefer knowing the exact monthly payments you should consider changing to a fixed rate mortgage where payments are fixed for a set period of time.
Daniel Morgan
If you have any questions for Daniel or would like to discuss your mortgage needs please feel free to visit www.fruitmortgages.com, email info@fruitmortgages.com or call 01685 873238.You can contact Shelter Cymru on 0808 800 4444 or visit www.sheltercymru.org.uk.
Many local families have already been negatively affected by the rise in interest rates, while mortgages which are not fixed are the most likely to be affected, with some families, paying an extra £83 a month since rates began to rise. A rise to 6% may increase the financial hardship, with the threat of reposition a real possibility.
The Shadow Monetary Policy Committee, a group of economists from academia and financial firms, recently voted to hold interest rates at their current rate of 5.5%. However, three of the eight members want a quarter-point rise now, and Sunday Times Economics Editor David Smith reported an “overall bias to raise rates in the near future”.
My advice to anyone who feels they may have difficulty in keeping up with mortgage payments would be to contact your lender before they contact you. Your lender has a duty of care to advise you on your options with repossession always being the last resort.
Speaking to John Quesy, Director of Shelter Cymru, agreed that higher interest rates will have ab adverse effect on Homeowners with Mortgages in Wales.
By considering the affordability of a mortgage before committing yourself, interest rate rises should not have a detrimental effect on your finances. If you prefer knowing the exact monthly payments you should consider changing to a fixed rate mortgage where payments are fixed for a set period of time.
Daniel Morgan
If you have any questions for Daniel or would like to discuss your mortgage needs please feel free to visit www.fruitmortgages.com, email info@fruitmortgages.com or call 01685 873238.You can contact Shelter Cymru on 0808 800 4444 or visit www.sheltercymru.org.uk.
Sunday, 3 June 2007
Welcome to my first blog
Hi and thank you for visiting my blog. My name is Daniel Morgan and I'm a 23 year old Mortgage Broker from Swansea in South Wales, UK. I set up a mortgage brokers called FruitFinance Mortgages recently. It is an Independent Mortgage Brokers with whole of market access to over 6,000 mortgages and insurance products. The reason I started the company was to provide good, honest and independent advice to people living in the UK. I have been a first time buyer, second time buyer and investment buyer thus understanding the ups and downs of being a financial consumer. I wanted my company, FruitFinance Mortgages, to provide the things that other did not. Firstly many mortgage brokers/mortgage advisers based in call centres have not got a mortgage themselves. How can an 18 year old part time student living with mum and dad, understand a middle ages man's family needs from a mortgage or insurance product? He can't and more often than not, the client will become frustrated at the mortgage advisers lack of understanding to his situation. My Mortgage Brokers will only have Mortgage Advisers with plenty of Mortgage experience. My website Fruit Mortgages - Independent Mortgage Brokers is a great resource for anyone looking to finance a property via a mortgage. I have also set up a Welsh micro site aimed at clients based in Wales. Mortgages Wales - Cheap Mortgages for Welsh Customers can be a great site for anyone living in Swansea, Cardiff, Newport, Aberdare, Merthyr, Bridgend, Neath or other parts of South Wales, North Wales, West Wales, etc.
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