SimplyFinance - First Time Buyer

How to Find a Cheap Mortgage

2007-07-25T23:00:00Z

How can I get a cheap mortgage rate?

The best way to get a cheap mortgage rate is to shop around on the internet. With over 5,000 mortgage lenders all fighting for your patronage, you will have a good number of mortgage rate offers to choose from.

While surfing the web for the cheapest mortgage rates you’ll realize that there are lot of good deals out there from which to choose the one that best suites your particular financial situation. You may choose to get a shorter list of cheap mortgage rates with the help of a mortgage advisor who will narrow the results down for you. Taking into account the pros and cons of each particular deal, you can find the best and cheapest mortgage rate for you. Seeking expert advice from a mortgage counselor is the only way you can be sure you've made exactly the right decision.

Why are lenders offering cheap mortgages?

The base interest rate is set by Bank of England. Depending on interest rate fluctuations, England’s entire economy may be affected. Lenders always keep their interest rate marginally above the base rate set by the Bank of England.The base interest rate is reviewed by the Bank of England regularly, but each individual lending company has to make a decision on how they want to adjust their mortgage rates.

With an increased number of lenders providing mortgage services like online applications, online calculations, home visits, and toll free assistance, a competition has begun to provide the best mortgage rate and the best service in order to attract borrowers. This competition among lenders to provide cheap mortgages is necessary for them to be able to survive in the competitive online market. Mortgage lenders are just waiting to provide you with cheap mortgages and great service. All you have to do is visit their sites, provide them with your information, and someone from their team will call you back to further discuss your options.

If you'd like assistance finding the best cheap mortgage rate for you, take a minute to fill out this simple questionnaire, and SimplyFinance representative will contact you shortly to introduce you to a mortgage broker. This mortgage broker will search the available mortgage deals to find the best cheap mortgage rate deal for you. Why wait? It's quick, simple, and you're under no obligation to SimplyFinance or to the broker we put you in contact with.

CLICK HERE TO APPLY FOR A MORTGAGE TODAY!

Credit Crunch Putting Strain on First Time Buyers

2008-02-21T00:00:00Z

According to a recent study by the Royal Institute of Chartered Surveyors (Rics), consumer confidence in the economy is at a ten year low, and the decisions of four of top UK mortgage lenders to pull their 100%-plus mortgage products last week did nothing to bolster the public's confidence.

This latest affect of the credit crunch is going to put a strain mainly on first time home buyers and on first time buyers who are looking to remortgage. More and more lenders are becoming increasingly wary of who they are lending to and of the amount of risk involved with lending to them. Due to this, lenders are beginning to pull a number of their high risk products off the market. Among these is the 100%-plus mortgage.

The 100%-plus mortgage is meant for first time buyers. It is a 95-100% mortgage with an additional unsecured loan tacked onto it. This type of mortgage allows first time buyers to get on the property ladder by affording them enough money to not only purchase their home but to give them enough money for the deposit on their property or for necessary home improvements that need to be made right away. The advantage of this type of mortgage is that it covers all the associated costs with buying a new home, but the con is that lenders allow new borrowers to get in a bit over their heads by offering them an additional unsecured loan on top of their mortgage.

Alliance & Leicester was the first lender to pull their 125% PlusMortgage this past Tuesday. Director of mortgages at Alliance & Leicester, Stephen Leonard, said that the current market condition is the reason for taking their 125% PlusMortgage off the market.

Coventry Building Society was next to pull their MOREgage product from the market on Friday of last week. Colin Franklin, head of sales at Coventry, said that applications for this product had dropped to a negligible number and that it was no longer cost effective for Coventry to offer their 100%-plus mortgage product to borrowers.

Abbey Mortgage and Godiva Mortgages followed suit later on Friday when they stopped offering their 100%-plus mortgage products. Birmingham Midshires is still offering their 100%-plus mortgage product, but they say they're considering pulling it this week. Northern Rock also continues to offer their 100%-plus mortgage product, but they've raised rates on the product to a level that is less competitive than it used to be. Analysts believe that once the bank is publicly owned, they will pull the product as well due to the sensitivity and controversy associated with this type of mortgage.

Around 20,000 borrowers take out a 100%-plus mortgage annually. These first time borrowers will have a hard time finding an affordable remortgage deal now because of the lack of similar mortgages available now. Similarly, many potential first time buyers may be turned off to buying if they are unable to get a 100%-plus mortgage because they may be counting on the additional funds from the unsecured loan to make the deposit on their property. With the decreased availability of and higher interest rates on first time buyer mortgages, it is going to be hard for people to start climbing the property ladder.

Of 123 prime lenders, only 28 are currently offering 100%-plus mortgages. This is compared to November of last year when 41 of the 123 lenders offered this type of product.

Louise Cuming of MoneySuperMarket.com said, "With so many prominent lenders exiting the 100%-plus mortgage market this week, consumer confidence is going to be knocked again...It is disappointing that lenders are adding to the panic."

If you would like help finding a lender that is still offering a 100%-plus mortgage, take a moment to fill out a short form, and a SimplyFinance representative will put you in touch with mortgage brokers that will work with you to find the best mortgage deal for your needs.

CLICK HERE TO APPLY FOR A MORTGAGE

Tips for the First Time Home Buyer

2007-08-13T23:00:00Z

Buying a home for the first time in the United Kingdom can be very intimidating, mostly because of the expense involved. So what is a first-time homebuyer to do? Here are some home buying tips for UK residents to help their first time home buying experience go as smoothly as possible:

Know that buying a house is not as easy as it looks. You have to weigh the advantages against the disadvantages involved in buying a home for yourself and/or your family. If you find that the disadvantages are too much to bear compared to the potential advantages, then you may want to consider renting instead.
One disadvantage of buying a home is the relatively steep price of new homes in the UK market (which is increasing even as we speak). The need to have enough income or savings for future repairs of your new property should also be a consideration. Keep in mind the reduction in your individual mobility. Once you own a home, you are less free to move or change occupations. Finally, keep in mind the possibility of negative equity if the price of your home decreases in the future (meaning you would have to shoulder total payments that are higher than the actual price of your home).
Some advantages to owning your own home include having a large financial asset, being able to change your property to your liking, and you no longer have a nagging landlord that requires you to keep your property up to his standards.
Get to know how to compute for your borrowing capacity. Factors which come into play here are the size of your current income, your ability to pay a deposit (as well as the size of the deposit), your credit history, and the interest base-rate maintained by the Bank of England.

There are other home buying tips you should know that pertain to selecting your first home:

Acknowledge that there are three major points to bear in mind when searching for a good house. These are location, type of property, and size of property.
Location may be the most important factor when you're considering making a huge investment on the real estate property. For example, if your potential home is close to means of transportation such as a tram route or a railway station, the developer may be able to command a higher price for the property because the new owner stands to save much by commuting to work using the public transit. Similarly, if the property you are looking at is near tourist landmarks such as a royal estate, then consider the possibility that the price will go up once inquiries are made. You may also have to compete against many other people for the purchase of the prized property.
Consider the type of property you have in mind. Young couples without children may be content with a condominium unit which has adequate parking, elevator service, round-the-clock security, and housekeeping. However, if you already have children, then perhaps you prefer a bigger property such as a two-story residential home with a garden for your children to play in. If you know exactly what you need (as opposed to what you initially want), then you stand to be in a better position in the end.
Consider the size of the properties you're looking at. Size is closely related to type of property, but it takes the analysis of your needs one step further. So you want a condominium? How big should the unit be? A one-bedroom unit with kitchen? Or do you need two bedrooms? Or supposing you are looking for a full house, how many bedrooms and bathrooms should the house have? Is a bungalow enough, or does it have to be a much bigger house?
Certainly every potential homeowner knows to examine the property he is eyeing before putting down his money. Considering the size of your investment, you may want to get an expert opinion from someone who knows about real estate (perhaps a surveyor) before you agree to buy a property.

Though buying a home can be daunting your first time around, it is not an impossible task. Hopefully, these home buying tips have helped you find your way somewhat through the home buying process.

If you'd like help finding a mortgage once you've found your dream home, take a moment to fill out this short form, and one of SimplyFinance's representatives will put you in touch with a mortgage broker who will answer all of your mortgage questions before they search the mortgage market to find the best mortgage deal for you based on your particular financial circumstances.

CLICK HERE TO APPLY FOR A MORTGAGE TODAY!