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Best Loans & Mortgage Providers
you for visiting our Loans and Mortgages Section. Here we have
provided you with listings and direct links to the
major national financial companies, Banks, lenders, and Mortgage
Brokers in the UK. Our objective is to show you
the best deals as possible in the Mortgages, Credit and Lending
Markets. At present, we have provided links to the institutions that we
are affiliated with. As we grow and get more affiliations and/or
partnerships, we will be adding more links of many nationally known
organizations. In the meantime, it is
you will find what you are looking for. On left you will be
able to navigate for your needs, be it car insurance or home insurance
mortgages etc. Please take your time to explore.
In UK, the availabilty and various types of
mortgages has increased highly over the past few years. However, it is
also a fact that it has brought complexity as well. It has also brought
in fierce competition, which has in turn benefited customers with
attractive mortgage products. There are thousands of mortgage products
to choose from. The question is how does one ensure which is good,
better and best. The advantages and disadvantages and any other legal
technicalities could become another problem. So how do you solve
Employing a licenced, independent mortgage broker
who have access to the entire UK mortgage services, like a supermarket.
Most use computerised system to search a best competetively suited
mortgage product that matches your status. Depending on your financial
and/or marital status, income, credit score and history, a suitable
mortgage, remortgage, second mortgage or buy-to-let mortgage can be
made available. If you are a first time buyer and cannot qualify for
the required amount of mortgage, then other schemes can be made
available to you i.e. buying with friends, equity share mortgages,
parent guarantee schemes and 100% shared ownership mortgages. It will
cost you a fee to engage a broker but in long run it can pay dividends.
Not only you save time, but you get a better selection from many
hundreds of different schemes, rates etc. The writer here was once
working for a large national brokerage firm and therefore his knowledge
is based on experience of 30 years.
These can be of two types. Independent or
Representetive. An independent advisor can be classed more similar to a
mortgae broker, but not entirely. He would have connections and
resources of placing your mortgage business with many institutions,
however they are more experienced in financial aspects of investments,
pensions, life insurance etc. A representetive would be representing
one particular institution and therefore would be recomending/selling
mortgage product of that institution or group. Many high street banks
and Building societies have a financial advisor on their premises.
Many estate agents offer services of placing mortgages. Some have
inhouse advisors or some have seperate mortgage division. There are
some estate Agents who have ties with some mortgage brokers to whom
they would recomend you.
As long as you know and have basic knowledge, one
can surf the internet and search the best mortgages. Many mortgage
providers have made their presence on the net.
you begin, there are important issues that you need to understand:-
how mortgages are regulated and sold. There are some things you need to
know and consider before you can go out looking for a mortgage.
It is a requirement of Financial Services Authority, the regulatry body
in UK, where lenders have to provide you a document or fact sheet,
namely keyfacts. It is adviseable that you read the keyfacts prior to
entering into a mortgage contract and/or choosing a mortgage
broker/financial advisor. The keyfacts outlines the features of the
mortgage product, the cost and type of service you are being offered.
This document will also assist you to compare mortgage products or
services from different lenders. Also, ensure that the company you are
dealing with is authorised by the FSA. If they are not authorised you
will not have access to complaints procedures and compensation schemes
if things go wrong.
Basics to consider when choosing a mortgage lender: -
customer service and trust
After all, you have to deal with this lender for many years to come! -
Use recommended sources of potential mortgage lenders or brokers
- Publications - Many publications (newspapers - especially Sunday
papers, magazines, internet articles, ezines etc) these days publish
financial and money editorials. Read and refer to them as many times
they rate mortgage and loan deals from various banks and lenders. One
such magazine we can recomend is Which? magazine. 30 Days Free trial to
Which? magazine - Click Here.
A mortgage is simply a loan with your house as security. How much you
can borrow depends on your income (or incomes, if there's two of you)
and your regular outgoings. So start by working out what leaves your
account every month.
Type of Mortgage
There are two basic types of mortgages: repayment and interest-only.
With a repayment mortgage your payment to the lender gradually pays off
the amount you've borrowed plus the interest. Your mortgage is
guaranteed to be paid off at the end of the mortgage period.
With an interest-only mortgage you just pay off the interest over the
term of the mortgage, which means you need to have a way of paying off
the capital (the amount you originally borrowed) at the end of the
mortgage period. Usually, you plan to build up a fund in parallel (like
a stocks and shares ISA) that will do this. In the past, a popular way
of doing this was through an endowment - a low-cost savings plan - but
poor returns on these have put them out of favour.
Are they competitive? The other major factor is the interest rate you
Standard Variable Interest - Most
lenders follow what's called a standard variable interest rate (SVR),
which rises and falls in line with the base rate (the interest rate set
by the Bank of England for lending to other banks). The SVR is usually
about 1% above the base rate.
To attract you, most lenders offer special deals at better rates,
usually for a set period of time. You can compare these deals by
looking in the money sections of newspapers (especially Sunday papers)
and on mortgage comparison websites. These deals take different forms:
- Discounted rates. The lender's SVR is reduced by a set percentage for
a fixed period. So if the deal is 2% off an SVR of 6.75%, you pay
Base-rate tracker - The interest rate you pay is
at a margin just above or below the base rate and moves in line with it
Capped Rate - The interest rate is guaranteed not
above an agreed capped rate, so you know your maximum monthly
repayment. If your lender's standard rate goes lower than the capped
rate, you'll pay less.
Cashback - The lender gives you money back in a
sum or regular payments. This can be handy for moving costs but may not
get you the best interest rate
Fixed rate - Most lenders also offer fixed-rate
the interest rate you pay is set for an agreed period such as two,
three or five years.
The advantage is that you know exactly how much you'll repay each
month, so it's easy to budget. But if the base rate falls below your
fixed rate, you won't see the benefit.
The offset option -
Current account and offset mortgages link your current or savings
account with your home loan, so any money in these accounts goes to
reducing your mortgage and interest debt. They're worth considering if
you're very organised with your money, have savings, and aren't likely
to want to keep switching mortgages to get the best deal.
Other costs like mortgage fees, early redemption and penalties. Lenders
don't want to make it easy for you to run off to another special deal
as soon their offer period is over, which is why they often impose
penalties on borrowers looking to remortgage.
Always check the small print to find out what you'd pay if you wanted
to switch or repay the loan early. Some lenders offer penalty-free
mortgage deals, but the pay-off may be a less competitive interest
It's also worth comparing set-up charges, since many lenders offering
special deals charge an arrangement fee/application fee/reservation fee
of up to £700.
Insurance - Do you
Mortgage payment protection insurance (or accident, sickness and
unemployment insurance) offers peace of mind by guaranteeing that your
mortgage will be paid off if you can't work following an accident,
sickness or unemployment. Rates vary enormously so shop around; don't
just opt for your lender's policy.
Most policies only pay out for a limited period, usually 12 months, and
then only to a set maximum amount. If you have enough savings to cover
a year's mortgage payments, or if you would get decent sick pay from
your employer, it could be an unnecessary expense. More here.....
mortgage is probably the biggest financial commitment we'll ever make,
but once the deal's signed it's tempting to forget about it for good.
Yet lenders are constantly creating new mortgage products and there are
some fantastic offers to be had. Whether you're remortgaging to get a
better long-term deal or to free up some cash, we have outlined below
some points that may assit you in checking that your mortgage is a good
deal and how to change it if it isn't.
Gather all documents like your latest mortgage statement, the terms and
conditions document etc.
Make a note of your lender's phone number, too. Sometimes it's easier
to call them than to dig through the small print. You'll need your
account number handy when you speak to them.
documents in front of you, write down the following numbers:
balance on your mortgage
time left on your mortgage
expiry date of any fixed or discount rates
you're paying the standard variable rate on your mortgage (which is
likely if you've had it a while), there's a good chance you could save
some money by remortgaging.
want the same type of mortgage? You don't have to replace your mortgage
with the same type. If your circumstances have changed, perhaps you
want to be able to pay off lump sums, or predictable monthly payments
have become more important, take the opportunity to look again at your
the hidden cost of switching. Many mortgages come with early repayment
charges, to put you off moving. This will often be a certain number of
months' interest, or a percentage of your mortgage balance. For
example, a 1.5% charge on a mortgage with £100,000 left to
pay would be £1500.
Your existing lender can send you a redemption statement (some will
charge for this). This tells you how much it would cost to pay off your
mortgage on a particular date, including charges. This is the amount
you'll want to borrow on the new deal. Your new mortgage will also come
with some fees. When you work out your costs, include:
higher lending charges
Some lenders will waive arrangement fees for people who are
remortgaging, and might also offer to pay your legal costs.
Time it carefully
Early repayment charges are usually highest in the first few years of a
mortgage: check to see if waiting a couple of months could mean you pay
less, or avoid them altogether.
online mortgage tools to see if you can get a better deal. Don't just
look for lower monthly payments; the interest rate is the key figure
for long-term savings. Make a shortlist of two or three deals that look
good and get the lenders to send you more information. You haven't
committed to anything at this point.
Refer to your current lender
you've got a pretty good mortgage deal already, then congratulations!
Even if it isn't quite the cheapest, you might decide that avoiding
early repayment charges and a bit of paperwork means it's not worth
switching just now.
If you've tracked down a better deal, it's always worth talking to your
current lender to see if they'll match it. They might even offer to
move you to a cheaper product of their own and waive the fees if it
means keeping your business.
first steps towards saving money
have chosen a new mortgage, the go ahead and complete the application
form from your preferred lender and wait for them to send you a formal
offer letter. If you're happy with the offer, sign and return it.
buy-to-let mortgage is a loan you take out
to buy a property which you intend to rent to
tenants. The mortgage might be a second
charge on your own home or, more usually, it
is secured against the property to be let.
It is a long-term investment which you hope
will generate an income from rents and a
capital gain when you sell the property. But
there is no guarantee that you’ll make a profit
on your investment.
you can borrow
maximum you can borrow is usually
linked to the amount of rental income you
might expect to receive. For example, a lender
might require the projected rental income to
be 30% higher than your mortgage payment.
Typically, you’ll need to pay a deposit of
around 20% of the value of the property.
have either a repayment or an
If you choose an interest-only mortgage, you
should think about making capital
repayments when you can afford to do so to
reduce the amount you’ll need to repay at the
end of the mortgage term.
You might feel this is unnecessary if you
intend to sell the property to repay the
mortgage. However, bear in mind that, if
house prices fall, you might not be able to sell
for as much as you had hoped. And you will
have to make up the difference if the property
sells for less than what you owe - a risk that
increases, the higher the percentage you
borrow. If you sell for a profit, you may have
to pay capital gains tax.
Don’t forget that with a variable rate
mortgage, your costs will rise if interest rates
go up, eating into - or even wiping out - your
income and profit.
risks of buy-to-let
for longer than
you had expected
not rise as much
as you had
expected, or fall
Property is in
might affect your buy-to-let
example, the mortgage payment
rises, you have to make major repairs
to the property, you employ a property
manager and his/her fees rise, and so
on. As a result, your income and your
profit are reduced.
total rental income for that year
is lower than you had expected. At the
worst, you may receive no income for
several months and have to cover your
mortgage payments and other costs
from your savings.
after-tax gain you make when you
sell the property is less than you had
planned or you even make a loss. At the
worst, the proceeds from the sale might
be too low to repay the mortgage in full.
little or no demand from
tenants in the area where you buy, so
it stands empty for long periods or the
only way to get tenants is to charge a
lower rent than you had planned. Either
way, your income is reduced.
do not want to live there or you
have to spend large amounts bringing
the property up to an acceptable
standard. Either way, your income
(and so your profit) is reduced.
may damage the property, fail
to pay rent on time, or upset neighbours.
This may increase your costs,
reduce your rental income and lead to
a need to evict the tenants.
a mortgage with a fixed rate. Your payments will not
go up even if mortgage interest rates rise
realistic: when planning whether the project is feasible,
build in a margin for extra costs and maintenance
realistic: when planning whether the project is feasible,
build in an allowance for empty periods
employing a letting agent to find tenants.
Do not take on a bigger mortgage than you can afford
from the outset that there is no guarantee you will
make a profit when you sell the property
prepared to put off selling the property so you can ride out
any slump in prices
repayment mortgage, so that you are paying off the
loan as well as paying interest
research before you buy - for example, talk to estate
agents, visit and check the distance to shops, local schools,
letting agent to recommend suitable properties -
tenants won’t necessarily want the same type of property as
research before you buy - get a survey of the property
- bear in mind older properties have higher maintenance costs
letting agent to recommend suitable properties and
give you an idea of the rent you might expect
potential tenants, including taking up references. If you
do not have time to do this yourself, employ a letting agency
property under an assured shorthold tenancy. This lets
you evict tenants on two months’ notice with a minimum of
Most lenders will insist you use this type of tenancy agreement.
Further information about
of Mortgage Lenders
Tel: 020 7440 2255; www.cml.org.uk
Buying to let; Thinking of buying a residential
property to let?
of the Deputy Prime Minister
Tel: 0870 122 6236; www.odpm.gov.uk
Booklet 97 HC 228 B Assured and assured
shorthold tenancies: a guide for landlords
Local tax offices (see Phone Book)
IR150 Taxation of rents - a guide to property income
CGT1 Capital gains tax - an introduction
Association of Residential Letting Agents
Tel: 0845 345 5752; www.arla.co.uk
Landlords Association Ltd
Tel: 0845 666 5000; www.rla.org.uk
RLA Information Pack
Secured, Unsecured & Bridging Loans
banks and lenders are happy to lend money for certain purposes secured
on the colleteral of your home by way of a second charge. The rates
vary from lender to lender and offered on longer term basis, up to 25
years. A prudent lender like banks may want to know the purpose of the
loan. It could be a business loan, or to buy car, holiday etc. Some
lenders lend for any purpose or for to repay expesive borrowings like
credit card debts, often termed as debt consolidation. Most lenders
tend to restrict the overal total borrowing, i.e. first and second
mortgages, not to exceed 70% of the value of the house. Say, your house
is worth £250,000 and you have a first mortgage of
£100,000. The maximum you can borrow by way of a second
mortgage is £75,000. There are other lenders who may lend
higher, however, their interest rates do not come cheap. Remember,
before securing other debts against your home, your home may be
repossessed if you do not keep up repayments on your mortgage.
Unsecured loans or personal loans are loans where lenders have no
colleteral security. These loans are offered on higher rates, and in UK
there are many lenders. All these lenders have websites and in most
cases you can apply on line.
a short term Bridging Loan. In the event you need to acquire a property
(commercial or residential) immediately before any property dealer
grabs it, such loan is handy. You have no cash and to generate cash you
have property to sell, for which time is the essence. Until the time
your property gets sold, a bridging loan is made available in order you
can aquire the new property. The loan is secured by lender on the
property you already own and is for sale. Usual lending criteria is 65%
of the bricks and mortar value of your property.
Due to shorter duration of loan, commonly up to 6 months, higher
interest rate charge is payable. Many lenders offer such facilities and
therefore, it is advisable to compare different loan packages to obtain
lower interest rates. There are no monthly installments
involved and only interest is paid during the bridging loan duration.
When your property is sold, the principal amount of the loan is repaid.
Such short term bridging loans can be made available to the needy
borrower within 24 hours. Quick and fast decision is one of the prime
attraction feature of the loan. In conclusion, such bridging loans
provide the required finance at the right time when you are looking to
secure an acquisition of a new commercial/residential property. Also
such loans can be useful to cater for auction purchases, capital
raising, Investment, Refurbishment, Refinancing and speculative deals.
You can find many Bridging Loans providers on the internet. Spend time
to surf and visit many such wesites. Make comparisons as regards to
interest rates and other conditions. Get the the best.
Bad Debt Bridging Loans
bridging loans are secured form of loans. The collateral here is the
property being sold. Lenders are ready to accept the following as the
& semi-commercial properties
with planning permission.
sale process is already initiated while applying for the loan, the loan
will be termed as closed bad debt bridging loan, otherwise it will be
called as open end bad debt bridge loan.
is restricted to 70 % of the bricks and mortar value of the property
being sold. If your property is already mortgaged, the amount of debt
is deducted from this amount. The repayment period goes up to a maximum
of 2 years for a bad debt bridging loans. These loans allow the people
with bad credit to easily get the approval as these loans are no credit
check loans. Individuals and companies, CCJ's and arrears, discharged
bankrupts, IVA's, self-employed etc
used for buying property, a bad debt bridging loans can be used to
cater any of your personal but immediate purpose which could be
acquisitions, auction purchases capital raising investment property,
refurbishment refinancing and/or speculative deals. You can search
through dozens of online loan websites that may offer you free online
quotes. Many sites have comparison tools that could help you in finding
a loan deal and you can easily apply for the bad debt bridging loan.
Repair Credit Score through Bad Credit Car
problem is common these days. If you are one of the victims of bad
credit and also facing problem in availing loans from the financial
market to buy a car, in such condition bad credit car loans is best
option for you. Bad credit car loan is the product of the bad credit
market fund which is especially designed to cater all people facing
debt problem. Bad credit car loan also help the people in
re-establishing their credit score by making duly and timely payments.
carefully before securing other debts against your home. Your home may
be repossessed if you do not keep up repayments on your mortgage.
provided here does not constitute financial advice and should not be
used as such.
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cashback when you remortgage with the West Bromwich Building
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your mortgage with the West Bromwich building society. You can use it
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