The Talk Mortgage News
Tue Oct 2, 2007
Difficult Days
Understanding the Problems facing Everyone
Anyone who has mortgage arrears, CCJs or simply a poor credit score will find it increasingly difficult to obtain a residential mortgage. The problem appears to be that the lenders in this country are finding it difficult to assess risk. As a result of the alleged irresponsible lending in USA and the problems facing a major UK lender some mortgage lenders have increased the rate of interest charged to borrowers and altered the rules or criteria by which they are prepared to lend.
In early September lenders would offer a 95% loan to value mortgage to people with a £490 ccj and defaults without being requested to prove their income. Now many lenders will not exceed 75% LTV in such cases.
If you are considering re-mortgaging your home, and have had some difficulties, please take the time to call Talk-Mortgage.co.uk or simply drop us an email. We specialise in resolving demanding situations and have excellent relationships with lenders that may well be able to assist. Please remember even if you are in the process of re-mortgaging your home you must continue to pay your existing monthly mortgage payments.
Tue Oct 2, 2007
Mortgage Arrears
What action to take - be careful.
Anyone can fall into arrears with their mortgage, even the most responsible people. The causes vary, illness of a partner, the breakdown of a relationship, redundancy and even stress of everyday life. The important question to be asked is ‘What do I do now?’
Well, we at Talk-Mortgage.co.uk would say, first call your mortgage lender, explain the situation and ask for help. You will find that the lender will respond positively to your call and will try to find a way forward.
Don’t go rushing out straightaway to re-mortgage your home, that may well only cost more money with early repayment charges on your existing mortgage product, legal fees and general costs. Think very carefully about adding credit card and other unsecured debt to your mortgage and understand that if you do it will cost you more in the longer term.
Thu Jan 24, 2008
Which way to Go.
Fixed rate or a Tracker Product.
What do I do?
Which one do I choose?
Fixed rate or Tracker?
The answer is which ever you feel best fits your needs.
Fixed rates are a safe bet, you know exact how much your mortgage payment will be over the fixed period of say 2 or 3 years so you can budget for it. That's the plus, the minus is that you will be tied into that product for at least the 2 or 3 years, which means if you change the mortgage within the period you may well have to pay a penalty which may be up to 6% of the amount borrowed depending on the product selected In addition fixed rates historically have been a lettle more expensive than the tracker rates.
Tracker products are usually linked to the Bank of England Base Rate so if that rate increases or decreases so will your payrate and thus the amount you pay each momth.
So it may go up or it may go down!
You don't have any Early Repayment Charges so you can move your mortgage when you wish.
So which way do I jump?
A difficult one to answer and every case is different so think carefully before you choose.
