Mortgages London | Mortgages in London

Posts Tagged ‘London Free Mortgage Advice’

Borrowers with a bad credit history make up 14 per cent of mortgage applicants according to a recent report, and are more likely to pay a much higher interest rate than their more money savvy house-buying counterparts. However, a bad credit rating is not necessarily the fault of the borrower, and as such anyone wanting to take out a home loan should seek free mortgage advice to save money and rectify a bad borrowing reputation.

To make sure that you can access the best mortgage deals possible for your London home, speak to mortgage advisors about turning your high risk lending status in to a low risk. Advisors are currently telling borrowers that they need to prove to lenders that they are capable of managing debt. Contrary to logic, financial institutions offer the best rates to those who have existing debts rather than someone who has never had to borrow before. With a credit card or personal loan a borrower can demonstrate that they are capable of making continuous payments. It is essential that no payments have been missed to ensure you have a good credit rating.

If it transpires that you have a bad credit rating because of situations beyond your control, for example through redundancy, divorce or even applying for loans unsuccessfully, a mortgage advisor can help you better your credit rating, and even negotiate a favourable mortgage deal on your behalf. Although there are some lenders that have mortgages tailored towards those with a less than favourable credit history, the market is actually beginning to become competitive again and differences in interest rates less extreme. A good advisor will be able to overhaul your entire financial portfolio, transforming your profile from high risk to low risk.

This advice is not just for those looking to buy a home in London; free mortgage advice is available from any high street lender in the UK. However, the prices of London properties are much higher than elsewhere in the country and therefore more difficult for those with a bad financial reputation to purchase at a reasonable interest rate.

For London buyers, free mortgage advice is in abundance from brokers who want to sell a product regardless of whether it is really the right package for the borrower. An interest only mortgage is one such option that is often touted as being in the borrower’s favour. We all want to reduce our monthly outgoings and save a bit of cash for a rainy day, but opting for an interest only mortgage could in fact cost more than you imagine in the long run if not managed properly.

There are, of course, instances where an interest only mortgage is the best option, either as a temporary respite when times are hard, or for those whose circumstances mean a windfall is coming their way to pay off the remaining mortgage debt, or a large proportion of it. Unfortunately, many borrowers fall into the interest only trap to discover that they get used to their new budget and find it difficult to get back to normal repayment terms. This often results in the debt remaining untouched once the interest is cleared, and ultimately costing the borrower more to pay off, or worse still, the borrowers has to resort to selling the property to clear the debt.

Those offering free mortgage advice in London are advising that borrowers should switch to interest only for a limited period and only if they are in serious danger of losing their home through missed repayments. This mood in the mortgage market is being backed by the lenders themselves as Northern Rock have just announced that an interest only option will only be available to borrowers with over 25% equity in their home. This works to not only discourage those who don’t need to reduce mortgage repayments from falling into cheap repayments for longer than necessary, but it also helps protect the investment made by the lender.

Another incentive is to offer those who keep to repayment terms a lower rate of interest than the interest only option. Currently repayment plan interest rates stand at 2.59% for a tracker, and 4.69% for a fixed rate, compared to interest only of 2.79% and 4.89% respectively. If you own a London property or are considering investing in one, make sure you get free mortgage advice that won’t end up costing you your home in the long run.

The recent scandal over a London mortgage broker who knowingly submitted false applications has created somewhat of a stir in the industry, but mortgage experts are still urging the public to seek free mortgage advice from as many sources as possible. The Financial Services Authority have stated that with the culprit in question now banned from working in the finance industry, the mortgage market is a safer place for Londoners looking to secure a mortgage.

Whether you plan to approach a bank, building society or an independent broker, having facts and figures to hand that you have researched yourself can not only speed up the process of finding the right mortgage, but it can also prevent being mislead by a less than honourable advisor. One of the best ways to find out what is happening in the industry is to research online. There are hundreds of websites and forums that have up to the minute free mortgage advice and information about the London property market and of course, the ever changing interest rates that affect mortgages.

At the moment mortgage interest rates are around 5%, which is relatively low, but with an election coming up, there are fears that these rates could rise considerably. As such, Londoners are being advised to apply for 30-year fixed rate mortgages. Fixed rate mortgages have always been seen as the safe option, but there is always a chance that interest rates will fall, leaving someone tied into such an agreement greatly out of pocket. However, fixed rate terms do bring peace of mind.

With political uncertainty on the rise in the UK, homeowners and potential property buyers want some security over their finances. London properties that are either homes or have been bought as an investment need to continue to rise in value to prevent falling into negative equity, and if the interest rates are high, it is much more likely. As such, taking advantage of relatively low interest rates with a fixed rate mortgage could be the best way to secure a roof over your head and invest money wisely.

If you are thinking of buying a property in London, free mortgage advice is priceless. We all know that buying a home can be expensive, time consuming and emotional, and we also know that there are deals out there that may not be in the buyers favour. Understanding the jargon that comes with understanding the finances is essential if you have any chance of making your own mind up about the type of mortgage that is best for you and for your budget. Understanding the range of offers out there from banks, building societies and brokers will arm you with precious knowledge to make sure that the mortgage you choose is the best for your individual circumstances.

London is a popular city, it is also big and has just about every type of home available to buy, from a houseboat to a one bedroom studio and luxury town houses. Depending on the area of London you want to move to, the type of property you want to buy and the funds you have available, there are a selection of offers for those who know where to look. The key to finding the right mortgage for a London property is to do your research from the wide variety of sources available and get your advice for free.

One of the greatest resources for free mortgage advice is online. As we all know, the internet holds a wealth of readily accessible information and as such, competitively priced deals are up for grabs. Compare rates between the top companies, and find out what incentives are available if you have a large deposit, as these often reduce rates considerably and can mean that certain arrangement fees are reduced too. One of the many benefits of researching online is that there are forums full of advice, and sometimes warnings about mortgage deals on the market. Although this information is useful and there are plenty of people to offer free advice, if you have questions, it is often advisable to speak to an advisor from a reputable mortgage provider.

Going to a bank or building society to discuss the mortgages available in London means that you will be able to get answers straight from the horses mouth as it were. Going in armed with information you have found online however is essential. You must bear in mind that any broker at a particular establishment will want to sell you one of their company’s mortgages. These may indeed be competitively priced, and the right deal for you, but it is better to take the chance to ask for the free mortgage advice available about terms, conditions, repayments, and more importantly what the ‘too good to be true’ deals really mean. This is your chance to ask about any technical terms you don’t understand and to get a greater understanding about the wider world of mortgages generally. Remember that knowledge is priceless, and advice is available for free.