A mortgage broker works as an intermediary between the mortgage lender and the applicant. They usually have access to the whole market and are able to offer the best deal to suit your needs.
Unlike a tied or single lender, brokers have access to a wide range of products and can pick the best ones to offer you based on your circumstances. The best mortgage for you is likely to be different to the next applicant, based on credit history, personal circumstances, deposit, debt, and many other factor which affect who will lend to you and how much institutions may choose to lend you.
Mortgage brokers work with applicant to determine an achievable goal, then 'shop around' for the best deal available to the applicant. The best broker to use is one with whole market access. Those who are multi-tied to a handful of lenders will only be able to offer you mortgage deals specifically from those lenders, no others, If your broker has access to the whole of the mortgage market then you stand to find the best fit mortgage for your circumstances.
Mortgage brokers should be unbiased, so you are assured of the best deal for you, not the best deal for them. Occasionally a broker who has a good and/or regular relationship with specific lenders may be offered a preferential rate, as mortgage companies compete for business.
Mortgage brokers can be paid in one of two ways. An independent mortgage advisers they can be paid directly by the mortgage lender upon completion of the mortgage, or the applicant can pay the mortgage broker and they will refund it to you when the lender pays out.
Mortgage brokers can be used in any mortgage situation. They are a great place to start if you are a first time buyer as they can explain all options in detail and as the voice of experience will be able to help you decide the best way forward for your house buying plans. Mortgage brokers can also be used by those moving home, and those planning to re-mortgage. As independent advisors they are also experts in buy to let and let to buy, and can help those with bad credit try to find a mortgage.
All UK brokers should be regulated by the FSA (Financial Services Authority) or must be agents for authorised firms. If your broker cannot prove that they are either of these things, walk away. The FSA was set up to protect the rights of the individual and regulate financial services. It requires firms to be competent in their trade, financially sound, and provide good customer service. If your broker is not part of the FSA you are putting yourself at risk, and may not have access to compensation and complaints procedures.
When looking for advice on mortgages it makes sense to visit a mortgage broker for expert advice. Be sure to research the mortgage brokers in your area, and arrange to visit at least 2 of them to get a full picture of the mortgages which you may be offered. They will also be able to help with paperwork and take over a large part of the arrangements for you.
Philip Loughran writes on a number of subjects from travel to law, automotive to education. For mortgage services in Southampton and mortgage broker Southampton he recommends Choice Financial Solutions.
Unlike a tied or single lender, brokers have access to a wide range of products and can pick the best ones to offer you based on your circumstances. The best mortgage for you is likely to be different to the next applicant, based on credit history, personal circumstances, deposit, debt, and many other factor which affect who will lend to you and how much institutions may choose to lend you.
Mortgage brokers work with applicant to determine an achievable goal, then 'shop around' for the best deal available to the applicant. The best broker to use is one with whole market access. Those who are multi-tied to a handful of lenders will only be able to offer you mortgage deals specifically from those lenders, no others, If your broker has access to the whole of the mortgage market then you stand to find the best fit mortgage for your circumstances.
Mortgage brokers should be unbiased, so you are assured of the best deal for you, not the best deal for them. Occasionally a broker who has a good and/or regular relationship with specific lenders may be offered a preferential rate, as mortgage companies compete for business.
Mortgage brokers can be paid in one of two ways. An independent mortgage advisers they can be paid directly by the mortgage lender upon completion of the mortgage, or the applicant can pay the mortgage broker and they will refund it to you when the lender pays out.
Mortgage brokers can be used in any mortgage situation. They are a great place to start if you are a first time buyer as they can explain all options in detail and as the voice of experience will be able to help you decide the best way forward for your house buying plans. Mortgage brokers can also be used by those moving home, and those planning to re-mortgage. As independent advisors they are also experts in buy to let and let to buy, and can help those with bad credit try to find a mortgage.
All UK brokers should be regulated by the FSA (Financial Services Authority) or must be agents for authorised firms. If your broker cannot prove that they are either of these things, walk away. The FSA was set up to protect the rights of the individual and regulate financial services. It requires firms to be competent in their trade, financially sound, and provide good customer service. If your broker is not part of the FSA you are putting yourself at risk, and may not have access to compensation and complaints procedures.
When looking for advice on mortgages it makes sense to visit a mortgage broker for expert advice. Be sure to research the mortgage brokers in your area, and arrange to visit at least 2 of them to get a full picture of the mortgages which you may be offered. They will also be able to help with paperwork and take over a large part of the arrangements for you.
Philip Loughran writes on a number of subjects from travel to law, automotive to education. For mortgage services in Southampton and mortgage broker Southampton he recommends Choice Financial Solutions.
With all these options available the good news is that you can find the correct mortgage for you. However this improved choice can seem bewildering and you may miss out on the best option for you through confusion, lack of time or simply having too many choices.In this competitive market it has never been more important to get clear, concise and simple independent advice to help you make the right choice.This guide is designed to help explain some of the options available to you and to let you know how a mortgage broker can make sure that one of the most important choices of your life is the correct one for you.
The Mortgage ProcessWhat is a mortgage?
A mortgage is made up of two parts:The Capital -
This is the amount of money that is borrowed from the lender to purchase the property.The Interest -
This is the interest that the lender charges on the capital until it is repaid at the end of the mortgage term.
Types of MortgageRepayment mortgageEach month your payment to the lender repays some capital and some of the interest. As long as you maintain your payments you can be certain that your mortgage will be repaid at the end of the term.Advantages
As long as the monthly payments are maintained the mortgage will be repaid at the end of the term - no need to worry about investment returns
Ideal if you wish to limit the risk linked to your mortgage
Simple to understand with payments to one providerDisadvantages
No possibility of additional investment returns
If you move house frequently it is difficult to build up equity in the property in the early years, as early payments are mainly interest
Limited possibility of repaying the loan early without increasing monthly payments
Interest only mortgageEach month the payment to the lender repays the interest on the loan. In this way the amount that is owed to the lender remains the same throughout the mortgage term. At the end of the mortgage term the lender will require the original amount of the loan to be repaid. A separate savings vehicle is used to build up enough money to repay the loan.Commonly used savings vehicles are:
Endowments (With profits)
PEPs (Pre April 1999)
ISAs (Post April 1999)
PensionsAdvantages
Offers the potential for additional investment return at the end of the term or the ability to repay the loan early, subject to investment return
The savings vehicle is usually portable when you move house
Choice of a wide range of investments that can be tailored to meet individual needs
Easy to move the mortgage without disrupting the repayment planDisadvantages
The ability to repay the loan is dependent upon the investment performance of the savings vehicle
You are responsible for the repayment of the loan at the end of the term
Two separate payments to track. One to the lender and another to the investment company
'Mix & Match'Many people moving house may already have an endowment plan from their previous loan. Their circumstances may have changed, however, so an additional endowment would not be appropriate for them. In these circumstances, it is usually possible to arrange for a lender to set up part of a loan on an interest only basis, and part on a repayment basis, thus ensuring that the benefits already accrued under the endowment are not lost. Not only that, but the life assurance already provided under the endowment is not lost.This method is becoming increasingly popular for people moving on to their next house.
Endowment Mortgages (With Profit)This type of investment combines a savings vehicle with the life protection needed to repay the loan on death during the term.Bonuses are usually, but not guaranteed to be added to the plan on a yearly basis and once paid these cannot be taken away.In this way the endowment aims to provide steady growth over the mortgage term and provide a lump sum, which should allow you to repay the loan although this cannot be guaranteed and is dependent on investment performance.Advantages
Guarantees to repay the loan in the event of death during the term
Portable and can be moved from mortgage to mortgage
Once bonuses are added they cannot be taken away
Potential for additional returns
Potential to repay the mortgage early
Can combine savings plan with life and critical illness protection if requiredDisadvantages
If surrendered early the return may be less than the premiums paid
No flexibility in premium payments
Term should be for at least 15 years
No guarantee that the mortgage will be repaid. The return is based wholly on the investment performance of the chosen provider
Must have life cover built in whether required or not
A Market Value Reduction (MVR) could apply to your endowment (if with profits) in adverse market conditionsA Market Value Reduction is a reduction applied to unitised with-profits funds where the value of the underlying assets is low. The Market Value Reduction, if any, is applied only when the plan is fully or partially surrendered (for example, on early retirement or transfer to another plan) or units switched into another fund.
ISA MortgageAn ISA (Individual Saving Account) is a very flexible way of saving to repay your mortgage. They do not have a set investment term and contributions may be varied (usually subject to maximum and minimum limits). You can pay on a regular monthly basis as well as making lump sum payments into the plan as long as you remain within the maximum annual limit.They offer a wide range of investment choices and also have several tax advantages.Additional protection such as Life or Critical Illness cover is usually purchased separately.Advantages
Tax efficient savings
No specific term
Potential to repay the loan early
Potential for additional investment return
Flexible premium payments
Portable - can be moved with your mortgageDisadvantages
Separate protection plan(s) required
Return is reliant on investment performance
No guarantee of return
Can only be taken in single name
Pension MortgageThis aims to take advantage of the tax free cash that is available from a personal pension plan. As this involves pension planning as well as mortgage planning it can be a very complicated area to consider.As with all the other options highlighted, there are advantages and disadvantages, however due to the complex nature of Pension Mortgages they should be dealt with on an individual basis and independent advice should be sought.
Hanson Wealth Management are a UK based Independent Financial Adviser. Hanson are the only Mortgage Brokers endorsed by the Police Federation of England and Wales to provide Police Mortgage Quotes
The Mortgage ProcessWhat is a mortgage?
A mortgage is made up of two parts:The Capital -
This is the amount of money that is borrowed from the lender to purchase the property.The Interest -
This is the interest that the lender charges on the capital until it is repaid at the end of the mortgage term.
Types of MortgageRepayment mortgageEach month your payment to the lender repays some capital and some of the interest. As long as you maintain your payments you can be certain that your mortgage will be repaid at the end of the term.Advantages
As long as the monthly payments are maintained the mortgage will be repaid at the end of the term - no need to worry about investment returns
Ideal if you wish to limit the risk linked to your mortgage
Simple to understand with payments to one providerDisadvantages
No possibility of additional investment returns
If you move house frequently it is difficult to build up equity in the property in the early years, as early payments are mainly interest
Limited possibility of repaying the loan early without increasing monthly payments
Interest only mortgageEach month the payment to the lender repays the interest on the loan. In this way the amount that is owed to the lender remains the same throughout the mortgage term. At the end of the mortgage term the lender will require the original amount of the loan to be repaid. A separate savings vehicle is used to build up enough money to repay the loan.Commonly used savings vehicles are:
Endowments (With profits)
PEPs (Pre April 1999)
ISAs (Post April 1999)
PensionsAdvantages
Offers the potential for additional investment return at the end of the term or the ability to repay the loan early, subject to investment return
The savings vehicle is usually portable when you move house
Choice of a wide range of investments that can be tailored to meet individual needs
Easy to move the mortgage without disrupting the repayment planDisadvantages
The ability to repay the loan is dependent upon the investment performance of the savings vehicle
You are responsible for the repayment of the loan at the end of the term
Two separate payments to track. One to the lender and another to the investment company
'Mix & Match'Many people moving house may already have an endowment plan from their previous loan. Their circumstances may have changed, however, so an additional endowment would not be appropriate for them. In these circumstances, it is usually possible to arrange for a lender to set up part of a loan on an interest only basis, and part on a repayment basis, thus ensuring that the benefits already accrued under the endowment are not lost. Not only that, but the life assurance already provided under the endowment is not lost.This method is becoming increasingly popular for people moving on to their next house.
Endowment Mortgages (With Profit)This type of investment combines a savings vehicle with the life protection needed to repay the loan on death during the term.Bonuses are usually, but not guaranteed to be added to the plan on a yearly basis and once paid these cannot be taken away.In this way the endowment aims to provide steady growth over the mortgage term and provide a lump sum, which should allow you to repay the loan although this cannot be guaranteed and is dependent on investment performance.Advantages
Guarantees to repay the loan in the event of death during the term
Portable and can be moved from mortgage to mortgage
Once bonuses are added they cannot be taken away
Potential for additional returns
Potential to repay the mortgage early
Can combine savings plan with life and critical illness protection if requiredDisadvantages
If surrendered early the return may be less than the premiums paid
No flexibility in premium payments
Term should be for at least 15 years
No guarantee that the mortgage will be repaid. The return is based wholly on the investment performance of the chosen provider
Must have life cover built in whether required or not
A Market Value Reduction (MVR) could apply to your endowment (if with profits) in adverse market conditionsA Market Value Reduction is a reduction applied to unitised with-profits funds where the value of the underlying assets is low. The Market Value Reduction, if any, is applied only when the plan is fully or partially surrendered (for example, on early retirement or transfer to another plan) or units switched into another fund.
ISA MortgageAn ISA (Individual Saving Account) is a very flexible way of saving to repay your mortgage. They do not have a set investment term and contributions may be varied (usually subject to maximum and minimum limits). You can pay on a regular monthly basis as well as making lump sum payments into the plan as long as you remain within the maximum annual limit.They offer a wide range of investment choices and also have several tax advantages.Additional protection such as Life or Critical Illness cover is usually purchased separately.Advantages
Tax efficient savings
No specific term
Potential to repay the loan early
Potential for additional investment return
Flexible premium payments
Portable - can be moved with your mortgageDisadvantages
Separate protection plan(s) required
Return is reliant on investment performance
No guarantee of return
Can only be taken in single name
Pension MortgageThis aims to take advantage of the tax free cash that is available from a personal pension plan. As this involves pension planning as well as mortgage planning it can be a very complicated area to consider.As with all the other options highlighted, there are advantages and disadvantages, however due to the complex nature of Pension Mortgages they should be dealt with on an individual basis and independent advice should be sought.
Hanson Wealth Management are a UK based Independent Financial Adviser. Hanson are the only Mortgage Brokers endorsed by the Police Federation of England and Wales to provide Police Mortgage Quotes
Since the invention of the internet, finding top mortgage lenders has proven to be a lot easier. However, it will still take some time and effort on your part to wade through all the information that is provided to you online. By taking your time over this aspect of searching for mortgage lenders then of course there is a greater chance of you finding a loan that meets your requirements and that you can afford.
As you do carry out your search for such lenders, there are certain things you should be focusing on. This includes the rate of interest they charge, how long the loan is for and what are their requirements in relation to you qualifying for their loans. Keeping this information in mind will ensure that you then find exactly what you need.
So where should you be looking for top mortgage lenders? Below we take a look at some of the options to consider.
1. Speak To Your Bank
In many cases this should be your first port of call when it comes to finding the right lenders. By having a working history with them they can better advise exactly, what sort of mortgage, you should be going for and why. Plus even if your credit history isn't absolutely perfect they will understand why and of course are more than willing to help you with getting what you need.
2. Speak To The Real Estate Agent
These people should have their finger on the pulse and so can help any potential customer to achieve their goals. However if you are intending to ask for their assistance when it comes to finding top mortgage lenders ask what they will be paid (commission) for referring you to them. If you don't you may be surprised when they ask for payment for carrying out the search for you.
Looking to Refinance your mortgage?
Visit our site for information on subprime mortgage lenders and find out how they can help you today. By Naomi Smith
As you do carry out your search for such lenders, there are certain things you should be focusing on. This includes the rate of interest they charge, how long the loan is for and what are their requirements in relation to you qualifying for their loans. Keeping this information in mind will ensure that you then find exactly what you need.
So where should you be looking for top mortgage lenders? Below we take a look at some of the options to consider.
1. Speak To Your Bank
In many cases this should be your first port of call when it comes to finding the right lenders. By having a working history with them they can better advise exactly, what sort of mortgage, you should be going for and why. Plus even if your credit history isn't absolutely perfect they will understand why and of course are more than willing to help you with getting what you need.
2. Speak To The Real Estate Agent
These people should have their finger on the pulse and so can help any potential customer to achieve their goals. However if you are intending to ask for their assistance when it comes to finding top mortgage lenders ask what they will be paid (commission) for referring you to them. If you don't you may be surprised when they ask for payment for carrying out the search for you.
Looking to Refinance your mortgage?
Visit our site for information on subprime mortgage lenders and find out how they can help you today. By Naomi Smith
Many times throughout our lives it seems the most well laid out plans don't even work out the way we planned. All of your life you have been doing the best you could possibly do, however its tough to save money for retirement when life keeps throwing you curve balls. Do you need money to help your grandchildren? What about the medical expenses that keep piling up? Perhaps you lost your job and have no income at all to cover bills? Whatever the situation is, please know that there is a way out of this debt if you are over the age of 62.
Over the age of 62? Have equity in your home? Then you may qualify for a reverse mortgage. This particular type of mortgage enables you to cash in on your equity without selling your home, moving away, etc. Its possible to then use the money or cash you get to pay down the bills, or perhaps completely pay off all of your bills. Maybe you can relax for once in your life and take the weight of the world off your shoulders by knowing that your bills are being taken care of.
Well, I'm sure I have your attention by now and you may be questioning yourself about reverse mortgages and how they work. If you remember how a traditional mortgage, then you know that you make payments to the loaner. With reverse mortgages, the opposite is true. You get money from the lender and are able to remain in the home until you become deceased or no longer maintain your residency.
Primarily speaking, the reverse mortgage loan must be paid off when you die, or no longer consider it home. You should become familiar with the rules, risks, and rewards before you dive in too deep. Most importantly, the reverse mortgage pros and cons. Being over the age of 62 is a must, and this rule remains true even if the house is jointly owned you both must meet this requirement. A great thing about these types of loans is that the loan is not based on income as with a traditional mortgage. Lenders don't even look at your income. Another great thing is the IRS entitles you to tax-free ROI.
There are a few different types of reverse mortgages. We will try and describe as many in this article as we possibly can. The first one is a Single Purpose Reverse Mortgage. This particular loan has low costs associated with it and unfortunately is not available everywhere. They can usually only be used for home repairs, improvements to the property, or to pay taxes and such. You must meet income requirements for this loan. Your income must be low in most cases. The second type of reverse mortgage is whats called a Home Equity Conversion Mortgage, which stands for HECM. These loans often have high costs associated with them consisting of origination fees, servicing fees, closing costs - however these loans are widely available. They also have no income requirements and can be used for any purpose whatsoever. These loans are federally insured so you must meet with a counselor who is approved from thew government who will explain the consequences of taking out a reverse mortgage. Your loan options are bountiful. You have the option of receiving monthly payments, line of credit, or you can actually claim both if you truly want to. These types of loans are available in all 50 states.
While many factors are involved, one thing remains the same - there are many reverse mortgage pros and cons. You should arrange a meeting with a government approved counselor who will go over reverse mortgages how they work and steer you in the right direction to make an informed decision. Many variables can influence how much money you will receive, such as the age of the homeowner, location of the house, interest rates, appraised home value, etc.
To find out the reverse mortgage pros and cons, visit Pam's site today. You can find out what today's reverse mortgage disadvantages are right now before you make any rash decisions.
Over the age of 62? Have equity in your home? Then you may qualify for a reverse mortgage. This particular type of mortgage enables you to cash in on your equity without selling your home, moving away, etc. Its possible to then use the money or cash you get to pay down the bills, or perhaps completely pay off all of your bills. Maybe you can relax for once in your life and take the weight of the world off your shoulders by knowing that your bills are being taken care of.
Well, I'm sure I have your attention by now and you may be questioning yourself about reverse mortgages and how they work. If you remember how a traditional mortgage, then you know that you make payments to the loaner. With reverse mortgages, the opposite is true. You get money from the lender and are able to remain in the home until you become deceased or no longer maintain your residency.
Primarily speaking, the reverse mortgage loan must be paid off when you die, or no longer consider it home. You should become familiar with the rules, risks, and rewards before you dive in too deep. Most importantly, the reverse mortgage pros and cons. Being over the age of 62 is a must, and this rule remains true even if the house is jointly owned you both must meet this requirement. A great thing about these types of loans is that the loan is not based on income as with a traditional mortgage. Lenders don't even look at your income. Another great thing is the IRS entitles you to tax-free ROI.
There are a few different types of reverse mortgages. We will try and describe as many in this article as we possibly can. The first one is a Single Purpose Reverse Mortgage. This particular loan has low costs associated with it and unfortunately is not available everywhere. They can usually only be used for home repairs, improvements to the property, or to pay taxes and such. You must meet income requirements for this loan. Your income must be low in most cases. The second type of reverse mortgage is whats called a Home Equity Conversion Mortgage, which stands for HECM. These loans often have high costs associated with them consisting of origination fees, servicing fees, closing costs - however these loans are widely available. They also have no income requirements and can be used for any purpose whatsoever. These loans are federally insured so you must meet with a counselor who is approved from thew government who will explain the consequences of taking out a reverse mortgage. Your loan options are bountiful. You have the option of receiving monthly payments, line of credit, or you can actually claim both if you truly want to. These types of loans are available in all 50 states.
While many factors are involved, one thing remains the same - there are many reverse mortgage pros and cons. You should arrange a meeting with a government approved counselor who will go over reverse mortgages how they work and steer you in the right direction to make an informed decision. Many variables can influence how much money you will receive, such as the age of the homeowner, location of the house, interest rates, appraised home value, etc.
To find out the reverse mortgage pros and cons, visit Pam's site today. You can find out what today's reverse mortgage disadvantages are right now before you make any rash decisions.