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Current Account Mortgage Information A current account mortgage is a type of flexible mortgage product that combines several financial products into one single account. As with any other mortgage product, a current account mortgage will be secured against the borrower’s home. This type of home loan product cannot usually be secured against investment properties. The main difference between a current account mortgage and a standard mortgage product is that this type of home loan will act as both the borrower’s... Divided Opinions Amongst Mortgage Advisers Mortgage advisers are divided in their opinions as to who are the real winners and losers out of the recent interest rate rises. No one could argue that borrowers who have variable rate mortgages have lost out because their monthly repayments have increased due to the extra interest due. However there is debate over whether borrowers of fixed rate mortgage products are better or worse of than before the recent base rate rises. The interest rates set on fixed rate mortgage ... Why Use An Independent Mortgage Adviser If you are looking to buy a property, or remortgage property you already own, you will have the option of searching for a mortgage product by yourself or employing the services of and independent mortgage adviser. There are various factors that you should consider when deciding whether or not to utilise the services of mortgage adviser, not the least of which is the sheer size of the modern day mortgage marketplace. The mortgage market has evolved considerably over the pas... Rise Of The Interest Only Mortgage In the wake of increasing interest rates, interest only mortgage products have become an increasingly popular tool for home owners to control their monthly expenses. Applications of this type of home loan generally rise in number when interest rates begin to increase as home owners fear becoming victims of rising borrowing costs. Mortgage costs are typically the highest expense of the average UK household and it is therefore important for many borrowers to control this cost. ... All About Flexible Mortgages Flexible mortgages were first introduced into the UK to cater for individuals with intermittent working patterns. Flexible mortgages are a recent addition to the home loan market in the UK, although they have been popular overseas for several years. The initial target market for this type of home loan product was people who have irregular working patters such as the self-employed, and people who receive irregular payments such as bonuses and commissions. Typical features i... Should You Apply For A Fixed Rate Mortgage? With so much interest rate uncertainty in the market borrowers are facing a dilemma as to whether they should fix their home loan interest rate or not by applying for a fixed rate mortgage. A fixed rate mortgage will provide absolute security against interest rate rises ensuring that monthly repayments remain constant regardless of what the money market is doing. The interest rate, and therefore the interest payments, on the fixed rate product will remain stable for the fi... All About Variable Rate Mortgages Variable rate mortgages have an interest rate that may fluctuate throughout the term of the loan. Interest rates attached to variable rate mortgages usually move in line with either the Bank of England Base Rate (BoEBR) or the lender’s Standard Variable Rate (SVR) and is quoted as a fixed percentage above one of them. An example of this is a variable rate home loan with an interest rate equalling BoEBR plus 0.25%. Fixed rate mortgages, on the other hand, have a static rate... All About Discount Mortgages Discount mortgages are a type of mortgage product that have a variable interest rate which moves roughly in line with the lender’s Standard Variable Rate (SVR). The discounted interest rates attached to this type of home loan product are genuine and will normally apply for a set period of between one to five years. The discounted interest rate is designed to attract new customers. Once the discount period expires the interest rate will convert to the lender’s SVR which can... Rise Of The 100% Mortgage Product The latest trend in the mortgage market has been an increase in the number of borrowers taking out a 100% loan-to-value mortgage. This means that the loan-to-value ratio of the mortgage is 100% rather than the 85% or less normally attached to more traditional mortgage products. A 100% mortgage can be used to fund the entire cost of purchasing a property, eliminating the need for a deposit. The only costs that are not covered are one-off expenses such as stamp duty, legal f... Help With First-Time-Buyer Mortgages In this day and age of low housing affordability, it is more difficult than ever for first-time-buyers to secure their first home. A shortage of housing stock has lead to a situation in which demand for housing far outweighs supply and this has, in turn, driven prices up and affordability down. Because of this, many first-time-buyers no longer qualify for standard mortgage products even if they are in full-time, steady employment. Lenders have therefore been forced to inve... The Basics Of Shared Ownership Mortgages Shared ownership mortgages are specialist mortgages that are designed to cater for purchasing property through shared ownership schemes. Shared ownership schemes are also known as shared equity schemes and have become a popular method for first-time-buyers to get a foot on the property ladder if they do not have the funds necessary to pay for the deposit required for more traditional mortgage products. At present there are only a few lenders who offer shared ownership mort... Buy-To-Let Mortgage Brokers While most mortgage brokers need to be registered with the Financial Services Authority in order to advise clients on residential mortgages, no such rule exists for buy-to-let mortgages. This is because buy-to-let mortgages are regarded as commercial loans and the Financial Services Authority does not regulate this type of finance. Regardless of the fact that a mortgage broker does not need to be registered to advise on buy-to-let mortgages, if you are applying for a buy-t... High Demand For Mortgage Brokers The mortgage intermediary market is facing a potential recruitment crisis due to a lack of graduate mortgage brokers entering the industry. Unlike many other professions, such as accounting or banking, the mortgage industry does not have a structured recruitment process designed to attract new mortgage brokers. At present, the industry is awash with mortgage brokers in their 40s or 50s who are nearing retirement and who have little interest in applying new directives from ... Mortgage Brokers Banned From Cold Calling Prior to 2004 there was little regulation for mortgage brokers conducting business in the UK. Anybody could call themselves a mortgage broker, regardless of whether or not they held the necessary qualifications, and they could source clients and conduct their businesses in any way they chose to. However the Financial Services Authority introduced a strict regime of regulation on 31 October 2004. Mortgage brokers were forced to obtain industry approved qualifications and co... Advantages And Disadvantages Of Using A Mortgage Broker When searching for a home loan, you will be faced with the decision of whether or not to use a mortgage broker. There are advantages and disadvantages to using a mortgage broker instead of applying for a home loan directly with a lender. One of the main advantages is that independent mortgage brokers have access to, and knowledge of, the entire UK mortgage market. Mortgage brokers are able to advise which lenders will consider your case and which lenders and products are u... Information Only Mortgage Brokers Independent mortgage brokers are generally regarded as an excellent source of advice when searching for the right mortgage to finance or remortgage a property. Independent mortgage brokers are not tied to advising clients to use particular lenders and home loan products. Instead, they have access to all mortgage lenders and products available on the market. In addition to independent mortgage brokers, there are tied mortgage brokers. Tied brokers are similar to independent... Lenders vs Mortgage Brokers When looking for a mortgage you may be faced with a decision as to whether you should use the services of a mortgage broker instead of applying for a home loan directly with a lender. One of the main reasons why you should use a mortgage broker is that they have access to a much wider range of products than an individual lender does. Mortgage advisors who work within bank branches are tied to the products that the bank offers and cannot advise on products offered by other ... The Basics Of Tracker Mortgages There are several different types of methods for interest to be charged on mortgages. Tracker mortgages have a variable interest rate that moves roughly in line with the Bank of England Base Rate (BoEBR). Another popular type of interest rate is a fixed rate which does not move in line with the base rate. The interest rates on tracker rate mortgages are quoted as a fixed percentage above the base rate and will normally exist for a short period, although it can be attached ... Cap And Collar Rate Mortgage A capped rate mortgage has an interest rate that cannot rise above a pre-determined level for a specified period of time. After the capped rate period expires, the interest rate of the mortgage reverts to the lender’s Standard Variable Rate (SVR). A cap and collar mortgage is similar to a capped rate mortgage except that is also has a lower limit, beneath which the interest rate cannot fall over a specified period of time. The upper limit is called the “cap” and the lower ... Peace Of Mind With Fixed Rate Mortgages Fixed rate mortgages offer borrowers the ability to help budget for household expenses more accurately because they have an interest rate that remains constant for an agreed portion of the overall term of the mortgage - typically between one and five years. Unlike variable rate mortgages, the interest rate charged on fixed rate mortgages will not be influenced by changes in either the Bank of England Base Rate (BoEBR) or the lender’s Standard Variable Rate (SVR). Instead, ... All About Repayment Mortgages When applying for mortgages borrowers have the choice of obtaining interest only or repayment mortgages. Interest only mortgages require the borrower to only pay the interest charged each month on the mortgage. The balance of the mortgage remains the same throughout the entire term of the loan. With repayment mortgages, the monthly payments to the lender comprise an element of interest charged and an element of capital repayment. As long as all the repayments are made on t... Vast Array Of UK Mortgages The market for UK mortgages has greatly expanded over the past few decades. In the past there were only a few high-street lenders who offered home loans in the UK. Today, however, there are thousands of different UK mortgages available from dozens of different lenders – many of which are specialist lenders operating in niche markets. A gradual change in the composition of the UK’s workforce over the past few decades has lead to substantial changes in the market for home... Low Take-up Of Current Account Mortgages Flexible mortgage products such as current account mortgages have not been as popular as first expected despite their many benefits to borrowers. While current account mortgages are relatively new to the UK market, experts have suggested that their take-up rate should be higher. Flexible mortgage products are extremely popular overseas because they can help borrowers reduce their mortgage term by several years. This type of product originated in Australia and is sometimes ... The Next Step For UK Mortgages After a long period of low interest rates, soft lending criteria, and a strong property market, UK mortgage products have enjoyed a period of prosperity as never before. However, several incidents have occurred recently which have thrown the market into disarray. The steady increase of the Bank of England base rate over the past twelve to eighteen months has gently eased the rampant property market. Buy-to-let investing has begun to fall out of favour with novice investors... UK Mortgage Fees Rise UK mortgage fees have risen considerably in the past few years despite low interest rates and high levels of mortgage market competitiveness. The rising UK mortgage costs include both the fees applied to the mortgage upon application and upon redemption. The cost of applying for a UK mortgage has risen considerably in the past three years alone – in addition to a steady increase prior to this period. The hike in application fees has occurred despite UK mortgage lenders cas... Interest Only Mortgages Under Attack With home affordability at an all time low, the number of UK mortgages applied for on an interest only basis has risen steadily over the past few years. This is because interest only mortgages are cheaper to maintain in the short-term as the monthly repayments are smaller. There is no requirement to pay off the balance of an interest only mortgage product during the term of the loan. When the term of the home loan reaches its conclusion, however, the borrower must repay th... Non-Refundable Mortgage Fees Mortgage lenders in the UK are beginning to introduce non-refundable application fees as a way to bolster their revenue. By applying a non-refundable fee to a mortgage application, the lender will ensure that they receive some form of revenue regardless of the outcome of the mortgage application. Historically, mortgage applicants in the UK have been refunded the fees they pay to the lender if the application is unsuccessful. This leads to a situation in which the applicant... Off-Set Mortgages Overview Offset mortgages are a type of flexible home loan product that allow borrowers to reduce the interest charged on their loan balance by offsetting the balance of any savings they have accumulated in a specified deposit account. For example, an offset mortgage that has a balance of £350,000 could be offset against a deposit account that has a positive balance of £80,000. The interest that will be charged to the borrower will be calculated on the net balance of £270,000 inste... A Guide To Stepped Mortgages With interest rates on the rise property owners are searching for ways to save money on their mortgages. Monthly repayments have been steadily growing due to a gradual increase in the Bank of England base rate and those on variable rate mortgages are feeling the pinch. With regards to interest rates, there are two types of mortgages – variable rate and fixed rate. The interest rate attached to variable rate mortgages, and therefore the repayments due each month, fluctuates... Tips On Avoiding Mortgage Problems When times are good, times are very good. When times are bad, homes are repossessed. It is safe to say that the good times are over for home owners who have a mortgage to pay off and like clockwork the repossession industry is shifting up a gear. The ability to sustain repayments on a mortgage can change rapidly. There are many home owners who have secured properties during the past few years who are now facing the prospect of losing their homes because they can’t keep up ... High Mortgage Fees For First-Time-Buyers Mortgages are not without their pitfalls and the first-time-buyer mortgage market is no different. First-time-buyers who are not able to put down a deposit on a property are being hit with huge fees and higher interest rates by some leading lenders. While banks and building societies seem to be helping first-time-buyers get onto the property ladder by issuing special mortgages that lend up to 100% of a property's value, borrowers are being forced to pay higher lending fees... What Mortgage Advice Should You Look For? When you’re looking to buy your first house, or possibly re-finance your existing mortgage, there are a whole host of mortgage advice options open to you. Some are better than others, however, so you need to know what type of advice you need for your individual requirements. As a guide, the basic information you should be looking for include: Which One is Right for You? With so many different types of mortgage available, it can get pretty mind-boggling when all you want... The Benefits Of Using A Mortgage Broker Buying a house can be complicated enough, but trying to sort out which mortgage is best, what the different rates are, etc, can be like trying to pick your way through a minefield. That’s why using a mortgage broker is such a good idea, and one that more and more homebuyers are starting to do. Whereas previous generations of home buyers were content to simply arrange the mortgage through their banks, today’s buyers are different. With the Internet offering new ways for peo... A Guide To 100% Mortgages In this day and age of rising costs and low housing affordability, various schemes have arisen to assist first-time-buyers get onto the property ladder. One is these is 100% mortgages, which provide enough funds to the borrower to purchase a property outright. This eliminates the need for a deposit as 100% of the property’s purchase cost is funded by the lender by way of a mortgage. Essentially 100% of the value of the property is mortgaged, leaving no equity in the proper... Care Needed With Mortgage Rescue Firms Home owners who are struggling to keep up with their mortgage repayments are being hounded by so-called “mortgage rescue firms” who promise to save potential evictees from home repossession. The cost of borrowing has increased considerably over the past year due to rising interest rates. Previously low mortgage repayments have increased significantly for some home owners, particularly if their mortgage contains a variable interest rate or a discount rate period that has ex... What Is A Mortgage Lender? In the UK, there are many different types of mortgage lender, each offering something different from the other. This choice has led to a lot of confusion on the part of anyone looking to buy a house, especially since it’s so important to get your decision right first time. Contrary to popular belief, a mortgage lender doesn’t just give you the money for your house and that’s it. They also offer a wide range of services and advice that can help you choose what package is be... Self-certification Mortgages Explained With the uncertainty of the job market in the UK today, more and more people are turning to working for themselves. While this can be a positive step in that it means you don’t answer to anyone but yourself, it can also open up another set of problems. The biggest problem faced can be getting a mortgage – with no fixed income or payslip, it’s more difficult to be accepted. This can be overcome, however, with a self-certification mortgage. The good news is that more lenders... Your Guide To Getting A Mortgage With buying a house the biggest single financial outlay you’re likely to make in your life, making sure you get the right mortgage for you is extremely important. However, with a little bit of forward planning and some research, as well as making use of the experts in the home-buying market, buying your own home can be an easier proposition than you might have thought. Where to Start The first thing you need to decide is how you want to arrange your mortgage. There are ... What Is A Mortgage Advisor? Much like a broker can help you find the best companies and finance, etc, a mortgage advisor can also help you find the best option for you. He or she can also help you in the application process, and offers an excellent service for anyone buying a house. The main difference between a mortgage advisor and broker is the training and expertise needed to do each job. As well as the advice a mortgage advisor can give you when it comes to buying your house, they can also offer:... UK Mortgages For The First Time Buyer With the cost of houses and property continuing to rise, UK mortgages are also becoming more expensive. For first-time buyers, this is more of a problem than for those already on the property ladder. With the average cost of a new home now almost £200,000, it’s almost becoming an impossibility to get your first mortgage. Thankfully, there are options available to you, as well as numerous companies who specialise in this particular market. From helping you find the best typ... 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 lend... Types Of UK Mortgage Fraud At one point or another most people in the UK have heard the term “mortgage fraud” before. While most people may consider mortgage fraud to be the domain of professional con artists and hardened criminals, this is not necessarily the case. Mortgage fraud encompasses a wide range of activities and a growing number of otherwise law abiding UK citizens are committing the crime at least once in their lifetime without being aware of it. Below is a list of several activities ... How To Qualify As A Mortgage Broker Mortgage Brokers and the FSA In order to qualify as a mortgage broker in the UK an individual must pass a series of exams offered by one of two training institutions. In addition, the prospective broker will be required to receive a satisfactory level of on-the-job training and experience within the financial services industry. The financial services industry in the UK is regulated by the Financial Services Authority (FSA). A mortgage broker who wishes to advise their c... A Brief History Of Buy-To-Let Mortgages Evolution of the Buy-to-Let Market Investing in property is a relatively new phenomenon in the UK. Prior to 1990 rental properties were dominated by the Government. The private rented sector only began to emerge once the Government changed its housing policy in the 1980s and mortgage lenders began to introduce specialist buy-to-let mortgages. During the post-war period of 1945 to 1980, the UK Government did not favor the private rented sector. A number of housing polici...

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