The remortgage deals especially short term deals have become expensive by the last year. This is because of the credit crunch. But one can find the remortgage deals easily. One can find the remortgage lenders easily in the loan market. But one should think about looking for the remortgage deals. The individual should compare the fees and charges of the different lenders. There are many lenders which provide the loan at very low interest rates. It saves the money of the borrower. Compare the rates and apply for the best deal. The lenders can provide the loan on discounts to the borrower’s. If one already has deal better than the previous mortgage deals, then it is better way to save a lot of money. It may lower the interest rate of the borrower.
By obtaining the good mortgage deal one can save lot of money. One may pay off the entire loan amount on time if the mortgage deal is taken up. Nut take the expert advice to get the best remortgage deal. They will that which deal is best for the borrower and affordable. Research the market thoroughly to get the wide range of remortgage quotes. The best experts put forward all the remortgage deals and their requirements so that the borrower can gather all the information and compare the quotes of various deals.
Remortgage shows the signs of the competition again. When the borrower is taking the remortgage deal then he/she needs to be honest that whether the borrower can do the around shopping for the next remortgage deal or not. The borrower can take the remortgage deal through online as well. The applicant has to fill up the form online. To know the source is the best way to protect our self from the bad remortgage advice. Find out the remortgage deal which is fast. Many remortgage providers can entice the new customers with the advice, rates and tips.
Source
Monday, December 28, 2009
Tuesday, December 15, 2009
Mortgages and Remortgages: the Perplexing Riddle of Supply and Demand
The economy has been subject to a large degree of speculation over the last quarter following whispers of an anticipated recovery and tentative signs in isolated sectors of the financial world. Not without exception, the markets for mortgages and remortgages have been under particularly intense scrutiny as the health of the property markets have typically been utilised in a barometer capacity in gauging the overall health of the economy.
Subsequent to news released today by the Council of Mortgage Lenders, there has been a significant slowing down of the increase in demand for mortgages. Donna Green discusses the statistics released and investigates the expert opinion on issues that are likely to arise as a consequence of this reflection on the market situation.
There have been several sets of information pertaining to the health of the property market, in particular the much debated growth of the mortgaging sector amidst a general set of fluctuations within the economy. With the Council of Mortgage Lenders publishing statistics that suggest the mortgaging market is experiencing an increase in demand in a stable demeanour, it echoes the warnings issued by Connells Survey and Evaluation.
The concerns being voiced over the stability of this reported growth in the property sector are predominantly rising as a result of the potential that the market could stagnate. The statistics published by Connells Survey and Evaluation purport that the underpinning of growth and recovery within the demand for mortgages is arising from existing property owners as opposed to first time buyers. These findings are supported by figures documenting a 75 per cent increase in valuations requested on properties in the third quarter of 2009 compared with the quarter three of 2008.
The Council of Mortgage Lenders have detailed the alternative should a stagnation of the market be avoided: the recovery of the market is predicted to be subject to particular peaks and troughs throughout the next twelve months. Following the noted growth of the market in the last twelve months, the poor recovery of remortgaging and equity release markets, combined with an increasingly strong requirement for at least 25 per cent deposits highlights that concessions in the mortgaging market will need to occur for the whole market to recover successfully.
The CML have cited that analysts expect the next twelve months to witness a decrease in the mortgage lending sector of between six and seven per cent, with isolated recovery of this downturn predicted to take a further two years subsequent to this. In order for the economy to sustain these fluctuations in the market, the sector is required to relinquish a great deal of the tentative stability attained with a pragmatic approach to the housing markets in their entirety.
It is crucial, should an individual wish to explore the possibility of applying for a mortgage or a remortgage to seek independent, professional mortgage or remortgage advice so as to obtain a comprehensive overview of the economic health of the property markets.
Source
Subsequent to news released today by the Council of Mortgage Lenders, there has been a significant slowing down of the increase in demand for mortgages. Donna Green discusses the statistics released and investigates the expert opinion on issues that are likely to arise as a consequence of this reflection on the market situation.
There have been several sets of information pertaining to the health of the property market, in particular the much debated growth of the mortgaging sector amidst a general set of fluctuations within the economy. With the Council of Mortgage Lenders publishing statistics that suggest the mortgaging market is experiencing an increase in demand in a stable demeanour, it echoes the warnings issued by Connells Survey and Evaluation.
The concerns being voiced over the stability of this reported growth in the property sector are predominantly rising as a result of the potential that the market could stagnate. The statistics published by Connells Survey and Evaluation purport that the underpinning of growth and recovery within the demand for mortgages is arising from existing property owners as opposed to first time buyers. These findings are supported by figures documenting a 75 per cent increase in valuations requested on properties in the third quarter of 2009 compared with the quarter three of 2008.
The Council of Mortgage Lenders have detailed the alternative should a stagnation of the market be avoided: the recovery of the market is predicted to be subject to particular peaks and troughs throughout the next twelve months. Following the noted growth of the market in the last twelve months, the poor recovery of remortgaging and equity release markets, combined with an increasingly strong requirement for at least 25 per cent deposits highlights that concessions in the mortgaging market will need to occur for the whole market to recover successfully.
The CML have cited that analysts expect the next twelve months to witness a decrease in the mortgage lending sector of between six and seven per cent, with isolated recovery of this downturn predicted to take a further two years subsequent to this. In order for the economy to sustain these fluctuations in the market, the sector is required to relinquish a great deal of the tentative stability attained with a pragmatic approach to the housing markets in their entirety.
It is crucial, should an individual wish to explore the possibility of applying for a mortgage or a remortgage to seek independent, professional mortgage or remortgage advice so as to obtain a comprehensive overview of the economic health of the property markets.
Source
Sunday, November 15, 2009
Young homebuyers face legal action and bankruptcy after off-plan flats plunge in value
One of Britain's biggest housebuilders, Berkeley Homes, is threatening to sue customers for up to £100,000 each after they failed to honour sales contracts.
The developer has already taken their deposits of up to £60,000 a time, meaning many have lost their savings.
Now 83 buyers say they will be forced to make themselves bankrupt if they are pursued for more money.
The buyers are paying the price of a gamble they took when property values appeared to be rising inexorably.
In 2007, as the market soared, hundreds agreed to buy flats from Berkeley Homes at Caspian Wharf in Docklands, and Royal Arsenal Riverside in Woolwich, that had yet to be built - known as buying off-plan.
They bought these homes, now finished, for set prices of up to £600,000 and each paid a 10 per cent deposit.
They hoped the properties would have risen in value when it came to paying the balance two years later.
But as the credit crisis sparked a slump in the housing market, the finished apartments are now being valued at up to 40 per cent less.
The problem has been made worse by banks pulling 90 per cent mortgage deals and refusing to lend the buyers enough to complete on the original deals.
As a result, 83 of them have been forced to default on their contracts. Most are private homebuyers, not investors.
Berkeley Homes is legally entitled to keep their deposit and sue them to recover the difference between the original price agreed and the price at which the property can now be sold.
Berkeley chief executive Tony Pidgley has now written to housing minister John Healey urging him to lend buyers government money to buy the flats - or, alternatively, force nationalised banks to make larger loans.
The Government has refused to get involved in what it sees as a contractual dispute.
Many buyers claim they have been asked for financial information which they fear the company is using to assess how much money they could recoup from suing them.
The Standard has seen letters Berkeley has sent buyers, suggesting they ask richer family members to remortgage their homes to raise the cash.
Steven Dowd, 30, and Helen Glanfield, 43, were forced to default and forfeited their £80,000 life savings.
In 2007 they paid deposits on two two-bedroom flats in Caspian Wharf valued at £375,000 and £415,000.
Berkeley has now put the properties on the market at much lower prices, and written to them warning it will pursue them for as yet undecided "damages". Given current market values, this could total £160,000.
Mr Dowd said the stress has ruined his health and left him struggling to hang on to his job. "We have no more savings," he said.
Nick Raynsford, former housing minister and MP for Woolwich, where many of the buyers live, said he had discussed the issue with Berkeley.
He said: "While homebuyers have legal obligations, it is unreasonable to expect them to bear the full financial loss without assistance from the housebuilder.
"I sincerely hope Berkeley Homes will seek fair solutions which do not harshly penalise individuals who bought in good faith more than a year ago."
A Berkeley Homes spokesman said all buyers had received legal advice about their obligations before exchanging contracts and the firm was continuing "an open dialogue".
He added: "Berkeley Homes has asked purchasers to appreciate they cannot be released from contracts or offered price reductions.
"Manifestly, this would be unfair to those who have been able to complete."
Source
The developer has already taken their deposits of up to £60,000 a time, meaning many have lost their savings.
Now 83 buyers say they will be forced to make themselves bankrupt if they are pursued for more money.
The buyers are paying the price of a gamble they took when property values appeared to be rising inexorably.
In 2007, as the market soared, hundreds agreed to buy flats from Berkeley Homes at Caspian Wharf in Docklands, and Royal Arsenal Riverside in Woolwich, that had yet to be built - known as buying off-plan.
They bought these homes, now finished, for set prices of up to £600,000 and each paid a 10 per cent deposit.
They hoped the properties would have risen in value when it came to paying the balance two years later.
But as the credit crisis sparked a slump in the housing market, the finished apartments are now being valued at up to 40 per cent less.
The problem has been made worse by banks pulling 90 per cent mortgage deals and refusing to lend the buyers enough to complete on the original deals.
As a result, 83 of them have been forced to default on their contracts. Most are private homebuyers, not investors.
Berkeley Homes is legally entitled to keep their deposit and sue them to recover the difference between the original price agreed and the price at which the property can now be sold.
Berkeley chief executive Tony Pidgley has now written to housing minister John Healey urging him to lend buyers government money to buy the flats - or, alternatively, force nationalised banks to make larger loans.
The Government has refused to get involved in what it sees as a contractual dispute.
Many buyers claim they have been asked for financial information which they fear the company is using to assess how much money they could recoup from suing them.
The Standard has seen letters Berkeley has sent buyers, suggesting they ask richer family members to remortgage their homes to raise the cash.
Steven Dowd, 30, and Helen Glanfield, 43, were forced to default and forfeited their £80,000 life savings.
In 2007 they paid deposits on two two-bedroom flats in Caspian Wharf valued at £375,000 and £415,000.
Berkeley has now put the properties on the market at much lower prices, and written to them warning it will pursue them for as yet undecided "damages". Given current market values, this could total £160,000.
Mr Dowd said the stress has ruined his health and left him struggling to hang on to his job. "We have no more savings," he said.
Nick Raynsford, former housing minister and MP for Woolwich, where many of the buyers live, said he had discussed the issue with Berkeley.
He said: "While homebuyers have legal obligations, it is unreasonable to expect them to bear the full financial loss without assistance from the housebuilder.
"I sincerely hope Berkeley Homes will seek fair solutions which do not harshly penalise individuals who bought in good faith more than a year ago."
A Berkeley Homes spokesman said all buyers had received legal advice about their obligations before exchanging contracts and the firm was continuing "an open dialogue".
He added: "Berkeley Homes has asked purchasers to appreciate they cannot be released from contracts or offered price reductions.
"Manifestly, this would be unfair to those who have been able to complete."
Source
Wednesday, October 28, 2009
S&P sounds alarm for Northern Rock
Standard & Poor's sounded the alarm on some of Northern Rock's mortgage assets, warning of a possible hike in bad debts as consumers struggle to make repayments.It says that arrears in the Rock's Granite vehicle - which contains £29.4bn of mortgages that have been 'securitised' and sold on in the debt markets - have climbed to 4.67% from just 0.44% at the start of the credit crunch in September 2007.
The credit rating agency has placed 101 different classes of loan notes in the Granite portfolio on watch for a possible ratings downgrade.
It is concerned about the high loan-tovalue ratios and the fact that this may have attracted borrowers who were less able to afford the repayments.
S&P says 'we believe that a significant proportion of the underlying [mortgage] pool may come under increasing payment pressure, ultimately leading to increased realised losses'.
It is also worried that borrowers will have limited options to remortgage when their fixed-rate offers come to an end because all lenders have been tightening criteria on loans.
Northern Rock's first-half results showed its total mortgage book was £62.3bn including Granite at the end of June.
At that time, 3.92% of its customers were more than three months in arrears, above the 2.39% industry average.
Source
The credit rating agency has placed 101 different classes of loan notes in the Granite portfolio on watch for a possible ratings downgrade.
It is concerned about the high loan-tovalue ratios and the fact that this may have attracted borrowers who were less able to afford the repayments.
S&P says 'we believe that a significant proportion of the underlying [mortgage] pool may come under increasing payment pressure, ultimately leading to increased realised losses'.
It is also worried that borrowers will have limited options to remortgage when their fixed-rate offers come to an end because all lenders have been tightening criteria on loans.
Northern Rock's first-half results showed its total mortgage book was £62.3bn including Granite at the end of June.
At that time, 3.92% of its customers were more than three months in arrears, above the 2.39% industry average.
Source
Thursday, October 15, 2009
Fee-free deals to help first-time buyers
First-time buyers are finally being given the chance to get decent mortgage deals without paying sky-high application fees - a privilege that until recently has been reserved for well-heeled remortgage customers with plenty of equity in their homes.Application fees have risen steadily since the start of the credit crunch.
Typical costs from High Street lenders are now £995 - though some online or phone banks such as First Direct, and regional lenders such as Nottingham Building Society, have deals with application fees of £1,498 and £1,495 respectively.
It's not even that easy to ease the pain of high fees by adding the application cost to the loan.
Many lenders no longer allow this for new buyers and will ask them to pay the fee up front. (Mind you, this is probably a good thing as paying interest on a fee for the life of a mortgage almost triples its original cost).
But at last a handful of big-name lenders are offering fee-free deals to first-time buyers and existing owners who want to move up the housing ladder.
The interest rates on offer are higher than on the mainstream fee-carrying alternatives, but not so much higher to make them an automatic bad choice.
In general, experts say that anyone who needs a mortgage of less than £100,000 is likely to be better off on a low or no-fee deal even if the interest rate is slightly higher.
The larger a mortgage gets, the more important it is to find a very low interest rate, even if this means paying a high fee.
Those bucking the trend include Alliance & Leicester, Britannia and Northern Rock and are all worth looking at if you want a no-fee option.
A&L, for example, has a best-buy four-year fix set at 5.09% with a £995 fee. Its fee-free alternative is set at a relatively modest 0.5% higher at 5.59%.
Britannia has fee-free fixes for both five and ten years, at 5.59 and 5.69% respectively. They are both set no more than 0.5% above the rates it offers for people paying £999 application fees.
Northern Rock's premium for a no-fee deal also comes in at under 0.5% on most loan-to-value scenarios.
The lenders' generosity does have its limits, of course. Big deposits are required for most of the fee-free options - 30% for Alliance & Leicester, for example.
The other thing to bear in mind is that, at the moment, most of the fee-free deals are offered only on fixed-rate mortgages.
However, HSBC is one of the few banks to extend the option to trackers. They are offering firsttime buyers with 25% deposits a fee-free tracker at 3.29% over the Bank of England base rate for the life of the loan. If you pay £799 you get base plus 2.45%.
With all trackers it is important to remember that today's low payments will shoot up if interest rates rise. That's why trackers are rarely recommended for first-time buyers who normally need payment security as they face up to the full costs of being a homeowner.
Source
Typical costs from High Street lenders are now £995 - though some online or phone banks such as First Direct, and regional lenders such as Nottingham Building Society, have deals with application fees of £1,498 and £1,495 respectively.
It's not even that easy to ease the pain of high fees by adding the application cost to the loan.
Many lenders no longer allow this for new buyers and will ask them to pay the fee up front. (Mind you, this is probably a good thing as paying interest on a fee for the life of a mortgage almost triples its original cost).
But at last a handful of big-name lenders are offering fee-free deals to first-time buyers and existing owners who want to move up the housing ladder.
The interest rates on offer are higher than on the mainstream fee-carrying alternatives, but not so much higher to make them an automatic bad choice.
In general, experts say that anyone who needs a mortgage of less than £100,000 is likely to be better off on a low or no-fee deal even if the interest rate is slightly higher.
The larger a mortgage gets, the more important it is to find a very low interest rate, even if this means paying a high fee.
Those bucking the trend include Alliance & Leicester, Britannia and Northern Rock and are all worth looking at if you want a no-fee option.
A&L, for example, has a best-buy four-year fix set at 5.09% with a £995 fee. Its fee-free alternative is set at a relatively modest 0.5% higher at 5.59%.
Britannia has fee-free fixes for both five and ten years, at 5.59 and 5.69% respectively. They are both set no more than 0.5% above the rates it offers for people paying £999 application fees.
Northern Rock's premium for a no-fee deal also comes in at under 0.5% on most loan-to-value scenarios.
The lenders' generosity does have its limits, of course. Big deposits are required for most of the fee-free options - 30% for Alliance & Leicester, for example.
The other thing to bear in mind is that, at the moment, most of the fee-free deals are offered only on fixed-rate mortgages.
However, HSBC is one of the few banks to extend the option to trackers. They are offering firsttime buyers with 25% deposits a fee-free tracker at 3.29% over the Bank of England base rate for the life of the loan. If you pay £799 you get base plus 2.45%.
With all trackers it is important to remember that today's low payments will shoot up if interest rates rise. That's why trackers are rarely recommended for first-time buyers who normally need payment security as they face up to the full costs of being a homeowner.
Source
Monday, September 28, 2009
We hunt out the extremely limited sub-prime mortgage options available
The sub-prime mortgage meltdown has been well documented and the UK market has been all but obliterated in the last two years. Many sub-prime lenders simply shut up shop, with others stopping all new lending and existing with a skeleton staff servicing existing clients.
Back in 2007 the sector was thriving with dozens of lenders distributing a vast range of products to borrowers with pretty much any level of bad credit history.
Undischarged bankruptcy? No problem.
Unlimited County Court Judgments (CCJs)? Step right up.
Massive mortgage arrears? We've got just the deal for you.
After all, with house prices booming the lender always had the secured property to fall back on, didn't they?
And rates were keen as mustard, with many bad credit borrowers paying very little more than mainstream mortgagors. It could be argued that the cheap deals on offer gave little incentive to clean up your credit history and get back on track, since there was always another deal to switch to at the end of your current one - whatever your financial problems!
That's not the case anymore though.
Few and far between
If you have a bad credit history, mild or serious, you will struggle to find a deal in the current market - especially if you try to go it alone.
But there are still some sub-prime mortgages available if you go through the right channels, albeit limited to borrowers with very mild credit problems. They are all available though mortgage brokers only, meaning you cannot access these products yourself via phone, online or in a branch. Indeed the lenders operating in the sub-prime market don't have branches.
Who is lending and what's on offer?
Platform Home Loans is part of Britannia Building Society and therefore now part of Cooperative Financial Services.
It is now only offering products to those with the mildest of credit problems in its 'Almost Prime' range. The broker-only lender will accept CCJs per applicant up to £500 providing none are in the last three months and a bankruptcy or IVA discharged or completed at least four years ago. However, it won't accept borrowers currently in mortgage arrears.
Source
Back in 2007 the sector was thriving with dozens of lenders distributing a vast range of products to borrowers with pretty much any level of bad credit history.
Undischarged bankruptcy? No problem.
Unlimited County Court Judgments (CCJs)? Step right up.
Massive mortgage arrears? We've got just the deal for you.
After all, with house prices booming the lender always had the secured property to fall back on, didn't they?
And rates were keen as mustard, with many bad credit borrowers paying very little more than mainstream mortgagors. It could be argued that the cheap deals on offer gave little incentive to clean up your credit history and get back on track, since there was always another deal to switch to at the end of your current one - whatever your financial problems!
That's not the case anymore though.
Few and far between
If you have a bad credit history, mild or serious, you will struggle to find a deal in the current market - especially if you try to go it alone.
But there are still some sub-prime mortgages available if you go through the right channels, albeit limited to borrowers with very mild credit problems. They are all available though mortgage brokers only, meaning you cannot access these products yourself via phone, online or in a branch. Indeed the lenders operating in the sub-prime market don't have branches.
Who is lending and what's on offer?
Platform Home Loans is part of Britannia Building Society and therefore now part of Cooperative Financial Services.
It is now only offering products to those with the mildest of credit problems in its 'Almost Prime' range. The broker-only lender will accept CCJs per applicant up to £500 providing none are in the last three months and a bankruptcy or IVA discharged or completed at least four years ago. However, it won't accept borrowers currently in mortgage arrears.
Source
Tuesday, September 15, 2009
You Can Still Apply For A Bad Credit Loan Or A Bad Credit Remortgage
Many people in the UK are struggling under the burden of a pile of debt because they think that loans which could offer them a glimmer of hope in the dark tunnel in which they find themselves are simply not available. They convince themselves that there is no financial help available. This is simply not correct. There are still funds available for all kinds of loans whether it is a debt consolidation loan, a secured loan, a homeowner loan, a car loan, etc. etc.
Many people with a good credit rating are of this belief, so what about the others with a poor, or even an extremely poor rating? They struggle on thinking that no lender would as much as grant them a second look. Due to the present economic climate their household income has been reduced due to overtime hours having been cut or one household member only now working part time hours for example. For the first time in their life they, through no fault of their own, have defaults registered against their name due to making late payments on their credit cards and loans. In the process of robbing Peter to pay Paul, some mortgage payments have been missed resulting in mortgage arrears being registered against them with credit reference agencies such as Equifax and Experian. They struggle on and no longer have the priviledge of enjoying a really good night's sleep. This is giving yourself needless torment. Granted if you are a tenant it will be virtually impossible to get help with your financial struggle,as unsecured lender, Welcome Finance, who specialized in sub prime loans is no longer lending. However if you are a homeowner bad credit loans are still available.
The interest rates are actually quite high, but who can expect anything else to be the case when these adverse credit loans are available to homeowners with unlimited adverse points registered against them? The oldest UK secured loan lender, which in 2002 became known as Prestige Finance, are offering bad credit loans to homeowners at up to 60% LTV, that is, loan to value, and up to 55% LTV for the self employed. At this LTV up to a maximum of four missed mortgage payments in the course of the past year are acceptable. If however the four missed payments occured in four consecutive months the application will have to naturally be referred for prior approval to the bad credit loan lender.Unlimited adverse in mortgage arrears, defaults, CCJ's are accepted at 50% LTV. This means that if your property is worth £300,000 and your mortgaqe balance is £120,000 you can borrow up to £30,000. The bad credit loans are available from £5,000 minimum to a maximum loan of £30,000.
Self certification of income is available for those who are self employed. However if this self employed individual has more than four months mortgage arrears, an accountant's certificate is required to back up the self declaration. Therefore for those crushed under a heavy mountain of debt these bad credit loans are a God send, and offer the poor suffering homeowner a much needed breath of relief, and should see them through the credit crunch when their working hours return hopefully to normal If repayments are kept up, and remember to make sure that you can afford the repayments, and that the loan will 100% alleviate your financial situation,you will in the future , be eligible again, with this tidying up of your debts and credit,thanks to the bad credit loan, to apply for status finance for loans, credit cards, etc.If it is a remortgage that you prefer,the good news is that bad credit remortgages are still available and these offer you the same life altering peace of mind changes as do the bad credit loans.
Two of the main bad credit remortgage lenders are Platform &The Mortgage Works. They also accept self declarations of income for the self employed, but be warned that they do reserve the right to ask for back up proof of income in the form of an accountant's reference or even full accounts. Both these types of bad credit borrowings should enable you to come out of the tunnel at the end of the credit crunch in a healthier state than you are in at present, that is in a healthier state financially and also in your mental well being. Just make sure before applying for either of these bad credit loans that you can afford the repayments, and that they will definately help your financial struggles, and take you out from under the burden of debt. The apply for the bad credit loan, and enjoy your new peace of mind.
Source
Many people with a good credit rating are of this belief, so what about the others with a poor, or even an extremely poor rating? They struggle on thinking that no lender would as much as grant them a second look. Due to the present economic climate their household income has been reduced due to overtime hours having been cut or one household member only now working part time hours for example. For the first time in their life they, through no fault of their own, have defaults registered against their name due to making late payments on their credit cards and loans. In the process of robbing Peter to pay Paul, some mortgage payments have been missed resulting in mortgage arrears being registered against them with credit reference agencies such as Equifax and Experian. They struggle on and no longer have the priviledge of enjoying a really good night's sleep. This is giving yourself needless torment. Granted if you are a tenant it will be virtually impossible to get help with your financial struggle,as unsecured lender, Welcome Finance, who specialized in sub prime loans is no longer lending. However if you are a homeowner bad credit loans are still available.
The interest rates are actually quite high, but who can expect anything else to be the case when these adverse credit loans are available to homeowners with unlimited adverse points registered against them? The oldest UK secured loan lender, which in 2002 became known as Prestige Finance, are offering bad credit loans to homeowners at up to 60% LTV, that is, loan to value, and up to 55% LTV for the self employed. At this LTV up to a maximum of four missed mortgage payments in the course of the past year are acceptable. If however the four missed payments occured in four consecutive months the application will have to naturally be referred for prior approval to the bad credit loan lender.Unlimited adverse in mortgage arrears, defaults, CCJ's are accepted at 50% LTV. This means that if your property is worth £300,000 and your mortgaqe balance is £120,000 you can borrow up to £30,000. The bad credit loans are available from £5,000 minimum to a maximum loan of £30,000.
Self certification of income is available for those who are self employed. However if this self employed individual has more than four months mortgage arrears, an accountant's certificate is required to back up the self declaration. Therefore for those crushed under a heavy mountain of debt these bad credit loans are a God send, and offer the poor suffering homeowner a much needed breath of relief, and should see them through the credit crunch when their working hours return hopefully to normal If repayments are kept up, and remember to make sure that you can afford the repayments, and that the loan will 100% alleviate your financial situation,you will in the future , be eligible again, with this tidying up of your debts and credit,thanks to the bad credit loan, to apply for status finance for loans, credit cards, etc.If it is a remortgage that you prefer,the good news is that bad credit remortgages are still available and these offer you the same life altering peace of mind changes as do the bad credit loans.
Two of the main bad credit remortgage lenders are Platform &The Mortgage Works. They also accept self declarations of income for the self employed, but be warned that they do reserve the right to ask for back up proof of income in the form of an accountant's reference or even full accounts. Both these types of bad credit borrowings should enable you to come out of the tunnel at the end of the credit crunch in a healthier state than you are in at present, that is in a healthier state financially and also in your mental well being. Just make sure before applying for either of these bad credit loans that you can afford the repayments, and that they will definately help your financial struggles, and take you out from under the burden of debt. The apply for the bad credit loan, and enjoy your new peace of mind.
Source
Monday, August 24, 2009
Beware the house snatchers as lenders get tough on bad debt
As the recession continues and job losses mount, the lengths lenders will go to in order to recover unsecured debts are increasing, exacerbating the already difficult situation for those in debt and, even, putting borrowers' homes at risk.
The Citizens Advice charity reported last week that the number of "charging orders" being taken out by credit-card, personal-loan and hire-purchase providers had surged.
A charging order is a county court order which secures a consumer credit debt against a property, converting it from an unsecured debt into a secured one. "When you have a charge on your property, it becomes a different status of debt. There is more at stake," says Beccy Boden Wilks, a spokeswoman for the charity National Debtline. Because the loan, no matter what its size, is now secured against your property, failure to repay it could potentially result in the loss of your home. However, "just because someone has applied for one or is threatening to get a charging order doesn't immediately mean you are going to lose your house," she says. "There is a legal process to go through."
The lenders, though, deny that they are scrambling to take out charging orders. Helen Saxon, a spokeswoman for the Finance and Leasing Association, says: "If anything, lenders are doing more in the credit crunch to help people who are in debt. What our members want is for people to repay and they are always open to negotiate. Charging orders are always going to be the last resort when all else has failed."
But the organisations at the sharp end, which are busy counselling those in debt trouble, don't agree that lenders are using charging orders as a "last resort". Peter Tutton, (right), a social policy officer for Citizens Advice, believes lenders are using them as means of ratcheting up the pressure on already hard-pressed consumers. "There is an inherent unfairness in creditors using charging orders. If someone is making an offer of repayment, using these orders to get them to pay more than they can afford constitutes a form of harassment."
Mr Tutton, is concerned that there is no minimum financial threshold for obtaining a charging order, leaving people at risk of losing their homes over very small sums of money.
In one instance, the charity reported that a woman in Wiltshire was threatened with a charging order over a debt of just £680. Other cases cited by the charity involve lenders telling debtors that they will go for a charging order as a negotiating tactic to try to force them to pay more of their debt off.
It's easy to see the cold logic behind charging orders. Generally, borrowers tend to prioritise debts secured against their property over unsecured ones, meaning that a lender with a charging order stands a better chance of getting their money first.
Being forced to sell your home is the worst-case scenario, but a charging order can have other detrimental effects in the short term. It will, for example, prevent borrowers from being able to remortgage in order to release equity to pay off their debts. "You're probably going to find it harder to remortgage your property," says Ms Boden Wilks, "because of the reduced amount of equity and because of the effect the order has on your credit rating as you have defaulted on the repayment requirement." Lending criteria are tighter than ever, making it difficult to remortgage if your credit record is squeaky clean, let alone if you have County Court Judgments against you.
There are several defences you can use against a charging order. If you own a property jointly and it is your partner's debts that would be secured against the house, you can petition the court not to put a charging order on the joint property. You can also argue that a charging order would unfairly prejudice one of your creditors over the others.
What's more, if you are in negative equity, your debt may not be covered by the value of your house, so you can argue that a charging order would be futile. Regardless of which defence you pursue, you must continue to offer to negotiate repayments. As Mr Tutton says: "If you are doing what you can, getting advice, paying what you can afford to on your debts, then you shouldn't suffer further enforcement action, costs and pressure."
If your defences fail and a charge is put on your property, you can request restrictions on it. These vary but, as an example, if you have young children, you can request that a lender not be allowed to pursue an order of sale until they reach a certain age, protecting you at least in the short term from losing your home. The same rules can apply if someone with a disability lives in the property.
You can also argue in court that instead of a charging order, an instalment order should be imposed. This is when the court decides that you should pay a certain amount of money each month towards your debts. If you agree to an instalment order, the charging order should be set aside, giving you breathing space.
If this doesn't work, the next stage following a charging order is an order of sale. This forces the debtor to sell their property in order to repay their debts secured against it by the charging order. Again, the key according to the debt charities is to continue to negotiate with the creditors to see if there is any way to head off the sale of the property. In such a scenario, it is best to seek the help of an adviser at one of the debt charities who can even negotiate on your behalf or at the very least advise you as to what to say and do next.
Charging orders are not the only tactics being used by unsecured lenders faced with mounting bad debts: "In these tough economic times, more people can't afford their repayments, so we are seeing a diversification in the enforcement of debts," Ms Boden Wilks said.
Popular tactics used include referring borrowers to debt-advice lines, some of which will charge them for the help. As a rule of thumb, people in debt trouble would be best sticking to free independent advice services such as Citizens Advice, National Debtline and the Consumer Credit Counselling Service.
Many creditors who want to cut their losses and recover as much of the debt as possible will sell on debts at a reduced price to debt-collection agencies. These agencies will then pursue you for the debt. However, the interest rate, cost of the debt and any other details should not change. The only exception is if it is written into the terms and conditions of your original agreement that in the event the debt is sold on, the new lender has the right to modify your contract. Changes to your contract may be unlikely, but the tactics used by your new lender could be more aggressive. According to Citizens Advice, many of the charging orders it is encountering are being brought by firms which buy up debts from mainstream lenders.
Other options available to creditors are applying for an order of information, a third-party debt order, or an attachment of earnings order.
The order of information obliges you to appear in court (if you do not, you will be held in contempt) and give information about the state of your finances. The aim is to discover if you have any funds with which to repay the debt and allow creditors to decide the best course of action to recover the money.
The third-party debt order is used to obtain funds from elsewhere if a lender discovers you have a savings pot or other available funds, including, in some cases, a pension.
An attachment of earnings order allows the creditor to draw your repayments directly from your salary. Lenders can also use a court order to instruct bailiffs. However, this is used less frequently than many assume as it is rarely a successful way of recovering debts due to laws preventing bailiffs gaining entry into properties.
Source
The Citizens Advice charity reported last week that the number of "charging orders" being taken out by credit-card, personal-loan and hire-purchase providers had surged.
A charging order is a county court order which secures a consumer credit debt against a property, converting it from an unsecured debt into a secured one. "When you have a charge on your property, it becomes a different status of debt. There is more at stake," says Beccy Boden Wilks, a spokeswoman for the charity National Debtline. Because the loan, no matter what its size, is now secured against your property, failure to repay it could potentially result in the loss of your home. However, "just because someone has applied for one or is threatening to get a charging order doesn't immediately mean you are going to lose your house," she says. "There is a legal process to go through."
The lenders, though, deny that they are scrambling to take out charging orders. Helen Saxon, a spokeswoman for the Finance and Leasing Association, says: "If anything, lenders are doing more in the credit crunch to help people who are in debt. What our members want is for people to repay and they are always open to negotiate. Charging orders are always going to be the last resort when all else has failed."
But the organisations at the sharp end, which are busy counselling those in debt trouble, don't agree that lenders are using charging orders as a "last resort". Peter Tutton, (right), a social policy officer for Citizens Advice, believes lenders are using them as means of ratcheting up the pressure on already hard-pressed consumers. "There is an inherent unfairness in creditors using charging orders. If someone is making an offer of repayment, using these orders to get them to pay more than they can afford constitutes a form of harassment."
Mr Tutton, is concerned that there is no minimum financial threshold for obtaining a charging order, leaving people at risk of losing their homes over very small sums of money.
In one instance, the charity reported that a woman in Wiltshire was threatened with a charging order over a debt of just £680. Other cases cited by the charity involve lenders telling debtors that they will go for a charging order as a negotiating tactic to try to force them to pay more of their debt off.
It's easy to see the cold logic behind charging orders. Generally, borrowers tend to prioritise debts secured against their property over unsecured ones, meaning that a lender with a charging order stands a better chance of getting their money first.
Being forced to sell your home is the worst-case scenario, but a charging order can have other detrimental effects in the short term. It will, for example, prevent borrowers from being able to remortgage in order to release equity to pay off their debts. "You're probably going to find it harder to remortgage your property," says Ms Boden Wilks, "because of the reduced amount of equity and because of the effect the order has on your credit rating as you have defaulted on the repayment requirement." Lending criteria are tighter than ever, making it difficult to remortgage if your credit record is squeaky clean, let alone if you have County Court Judgments against you.
There are several defences you can use against a charging order. If you own a property jointly and it is your partner's debts that would be secured against the house, you can petition the court not to put a charging order on the joint property. You can also argue that a charging order would unfairly prejudice one of your creditors over the others.
What's more, if you are in negative equity, your debt may not be covered by the value of your house, so you can argue that a charging order would be futile. Regardless of which defence you pursue, you must continue to offer to negotiate repayments. As Mr Tutton says: "If you are doing what you can, getting advice, paying what you can afford to on your debts, then you shouldn't suffer further enforcement action, costs and pressure."
If your defences fail and a charge is put on your property, you can request restrictions on it. These vary but, as an example, if you have young children, you can request that a lender not be allowed to pursue an order of sale until they reach a certain age, protecting you at least in the short term from losing your home. The same rules can apply if someone with a disability lives in the property.
You can also argue in court that instead of a charging order, an instalment order should be imposed. This is when the court decides that you should pay a certain amount of money each month towards your debts. If you agree to an instalment order, the charging order should be set aside, giving you breathing space.
If this doesn't work, the next stage following a charging order is an order of sale. This forces the debtor to sell their property in order to repay their debts secured against it by the charging order. Again, the key according to the debt charities is to continue to negotiate with the creditors to see if there is any way to head off the sale of the property. In such a scenario, it is best to seek the help of an adviser at one of the debt charities who can even negotiate on your behalf or at the very least advise you as to what to say and do next.
Charging orders are not the only tactics being used by unsecured lenders faced with mounting bad debts: "In these tough economic times, more people can't afford their repayments, so we are seeing a diversification in the enforcement of debts," Ms Boden Wilks said.
Popular tactics used include referring borrowers to debt-advice lines, some of which will charge them for the help. As a rule of thumb, people in debt trouble would be best sticking to free independent advice services such as Citizens Advice, National Debtline and the Consumer Credit Counselling Service.
Many creditors who want to cut their losses and recover as much of the debt as possible will sell on debts at a reduced price to debt-collection agencies. These agencies will then pursue you for the debt. However, the interest rate, cost of the debt and any other details should not change. The only exception is if it is written into the terms and conditions of your original agreement that in the event the debt is sold on, the new lender has the right to modify your contract. Changes to your contract may be unlikely, but the tactics used by your new lender could be more aggressive. According to Citizens Advice, many of the charging orders it is encountering are being brought by firms which buy up debts from mainstream lenders.
Other options available to creditors are applying for an order of information, a third-party debt order, or an attachment of earnings order.
The order of information obliges you to appear in court (if you do not, you will be held in contempt) and give information about the state of your finances. The aim is to discover if you have any funds with which to repay the debt and allow creditors to decide the best course of action to recover the money.
The third-party debt order is used to obtain funds from elsewhere if a lender discovers you have a savings pot or other available funds, including, in some cases, a pension.
An attachment of earnings order allows the creditor to draw your repayments directly from your salary. Lenders can also use a court order to instruct bailiffs. However, this is used less frequently than many assume as it is rarely a successful way of recovering debts due to laws preventing bailiffs gaining entry into properties.
Source
Monday, July 20, 2009
More Brits buying property abroad to escape credit crunch
A rising number of Brits want to escape the credit crunch are hoping to up sticks and move abroad but are being thwarted by the stagnant housing market which won't allow them to sell their current residence.
Those who have had enough of the credit crunch and the bad weather are looking to leave in search of sunnier climes, according to research from overseas property specialists HiFX, but many are having their dreams dashed when they find that they cannot shift their UK property.
This is bad enough, but what's more pressing is that the VISAs they arranged in preparation for the move abroad have a shelf life and the clock is ticking while people look for a buyer before their VISA expires.
The number of people enquiring about relocating to another country spiked by 30 per cent in the first half of this year compared to the same time last year, HiFX said, but those who have successfully emigrated has risen by only 10 per cent.
The UK's largest international removal company, Anglo Pacific, has reported similar figures, with a dramatic increase in the volume of interest but making little gain on the number of people that are actually relocating.
John Payne from Anglo Pacific commented: "This is evidence that there is a real and growing desire by many to emigrate, particularly as 2007 was a record year for the number of people we relocated. However our actual bookings for removals year to date are down on last year".
"Bearing in mind that 2007 was a record year for emigration, the fact that even more people are looking to move abroad this year shows that there is now a very real desire to escape some of the problems in the UK economy." said Mark Bodega, director at HiFX.
"However the problem that many people are being confronted with is a simple one - they cannot sell their UK property and, without this equity from the sale of a house, they don't think they can fund their dream move and so are putting their move off."
For frustrated British homeowners who are finding their plans scuppered by the UK property market and unable to afford a property abroad, HiFX recommends that they consider remortgaging their home until conditions improve, rather than hanging on for a buyer.
Émigrés could release just enough cash from their home to fund the first 12 months of their life abroad, and then re-evaluate the situation in a year's time, it suggests.
"Once you have decided to move abroad is can be incredibly frustrating to find that you can't because you're struggling to sell your UK property." Mr Bodega added. "There is a lot to think about when emigrating but it may be worth deviating from your original plans and considering holding onto your UK property until the market picks up."
Source
Those who have had enough of the credit crunch and the bad weather are looking to leave in search of sunnier climes, according to research from overseas property specialists HiFX, but many are having their dreams dashed when they find that they cannot shift their UK property.
This is bad enough, but what's more pressing is that the VISAs they arranged in preparation for the move abroad have a shelf life and the clock is ticking while people look for a buyer before their VISA expires.
The number of people enquiring about relocating to another country spiked by 30 per cent in the first half of this year compared to the same time last year, HiFX said, but those who have successfully emigrated has risen by only 10 per cent.
The UK's largest international removal company, Anglo Pacific, has reported similar figures, with a dramatic increase in the volume of interest but making little gain on the number of people that are actually relocating.
John Payne from Anglo Pacific commented: "This is evidence that there is a real and growing desire by many to emigrate, particularly as 2007 was a record year for the number of people we relocated. However our actual bookings for removals year to date are down on last year".
"Bearing in mind that 2007 was a record year for emigration, the fact that even more people are looking to move abroad this year shows that there is now a very real desire to escape some of the problems in the UK economy." said Mark Bodega, director at HiFX.
"However the problem that many people are being confronted with is a simple one - they cannot sell their UK property and, without this equity from the sale of a house, they don't think they can fund their dream move and so are putting their move off."
For frustrated British homeowners who are finding their plans scuppered by the UK property market and unable to afford a property abroad, HiFX recommends that they consider remortgaging their home until conditions improve, rather than hanging on for a buyer.
Émigrés could release just enough cash from their home to fund the first 12 months of their life abroad, and then re-evaluate the situation in a year's time, it suggests.
"Once you have decided to move abroad is can be incredibly frustrating to find that you can't because you're struggling to sell your UK property." Mr Bodega added. "There is a lot to think about when emigrating but it may be worth deviating from your original plans and considering holding onto your UK property until the market picks up."
Source
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