SimplyFinance - Next Time Buyer

Tips for Next Time Buyers

2007-08-12T23:00:00Z

Just as with any other product, buying a home is subject to varying interest rates and conditions. That’s why as a next time home buyer you need to be careful about the deal you opt for. In this article we provide some helpful tips and tricks to help you navigate the housing market to find the best mortgage deal for you.

Here are some tricks to get you started:

Contact various lenders: When it comes to finding a mortgage deal, there are several types of lenders willing to offer you competitive rates. For example, there are thrift institutions, mortgage companies, commercial banks, as well as credit unions. All of these will be providing you with varying interest rates, along with negotiable terms and conditions. As a next time home buyer, you need to contact different kinds of lenders. You could even contact a mortgage broker who will act as a middleman to arrange for different transactions between you and the lender. Sometimes the situation may be confusing as certain financial institutions operate both as lenders and brokers. Brokers do not lend any finance; they just negotiate the transactions. Be sure to identify which agencies act as both to avoid confusion.
Cost: The next most important consideration is the cost or the rate being offered by your lender. Being a next time home buyer, you need to find the most competitive rate being offered, so that you save money. You are entitled to a no obligation quote from each mortgage lender. This will help you ascertain which is the best deal out of the lot. Also be sure to check if the rate is fixed or adjustable. This will have significant impact on your monthly mortgage payment. For adjustable rates, be sure to ask how it will impact your loan and monthly payment. Also check on the Annual Percentage Rate (or APR) because it usually takes into consideration fees such as broker fees, points and credit charges.
Down payment: Usually most mortgage lenders will ask for a 20% down payment on the value of the house. However, as a next time home buyer you need to confirm this so as to be able to calculate your finances and budget accordingly. Some lenders may just require just a 5% down payment.
Write down all costs: As a next time home buyer you are entitled to ask the mortgage lender to write down each and every cost associated with the loan. You can then be in a better position to negotiate and bargain on the fees. You may even ask your lender to reduce some of the costs involved to secure a lower rate.
Get a survey done: There’s nothing worse than buying a home only to realize later that a significant amount of your savings will go into renovating it. That’s why it’s so important to get a professional survey done even before you buy the house. There are plenty of structural engineers and architects whose services you can hire. They will be able to inform you better on the structural damages in the building. If you know these costs, you'll be able to incorporate them into the loan itself.
Tips to negotiate: Being a home buyer is all about acting like you have been there and done that. There are some tricks to negotiate that can help give the impression that you know what you’re talking about.

Do not look anxious: This is a dead giveaway, and if the seller comes to know how much you want the home, he might just hike up the rate.
Do not lose your temper: This will just rub the seller the wrong way. It’s best to be polite, no matter how stressed or anxious you maybe.
Negotiate in person, not on the phone: This helps you get an idea of their attitude based not only on their voice, but on their body language and other subtle details that you would not otherwise be shown on the phone.

If you'd like help finding the best mortgage deal for you, fill out a short contact form, and a SimplyFinance representative will contact you and introduce you to a mortgage broker that will work with you and search to find the best mortgage deal available.

CLICK HERE TO APPLY FOR A MORTGAGE TODAY!

How to Find the Best Next Time Mortgage

2007-08-12T23:00:00Z

Have you ever been turned down for a mortgage, and now you want to try to get another one? Chances are you’re not alone. Most people suffering from a poor credit history tend to get declined the first time they apply for a mortgage. However, to avoid chances of the same thing happening to you, there are a few things you could try.

Steps to Getting the Perfect Mortgage Deal

Every individual has his or her own unique needs. Therefore there is no such thing as a ‘perfect’ mortgage deal that meets everyone's requirements. What may be good for one person need not be the best deal for another. That’s why it is so important to assess one’s individual requirements and goals first before taking the plunge.

Here are some guidelines to follow while shopping for the best next time mortgage deal:

Order your credit report: Most people do not realize that their credit report might be marked with several defaults, notices or CCJs without their even knowing it. Even a small error on your report could cost you significant losses in terms of the mortgage payment you would eventually pay. Therefore, it would be prudent to get a copy of your credit report from the respective agencies and assess it thoroughly. If you do find any inaccuracies or errors, try and rectify them before going for a best next time mortgage deal. If the inaccuracies are not fixed, you might risk being declined a mortgage finance altogether.
Keep a tab on interest rates: Mortgage interest rates are as dicey as the weather in London. They fluctuate with frequency, and it's quite hard to predict what they'll do next. There are several factors that determine the current interest rate. Having an idea of these indicators can help you determine if the rate is going to rise or fall. You can then make a more informed decision about the best next time mortgage deal. Some of the factors that determine the rate include:

Gross Domestic Product (GDP): This refers to the total output of goods and services as a result of labor. A rapid increase in GDP can signify inflation while a negative growth can mean lowering of interest rates.
Consumer Price Index (CPI): This refers to the average change in the prices paid by consumers for a fixed amount of consumer goods as well as services. Similar to the GDP, the rapid rise in CPI tends to result in rising interest rates and a decline results in lower interest rates.
Producer Price Index (PPI): This indicates the average change in the rate of selling price of goods received by domestic manufacturers of goods and services. Higher PPI indicates rising interest rates while lower PPI indicates lowering of interest rates.
Employment situation: This is two-fold in nature. One refers to the unemployment rate while the other refers to the ratio of payroll employment. Lower unemployment rate can result in higher interest rates and vice versa.
Housing starts: A higher rate of housing starts indicates a high interest rate and vice versa.

Educate yourself: While shopping for te best next time mortgage deal, it’s imperative to have sufficient knowledge of the various types of mortgages. It’s quite similar to shopping for vegetables without knowing the different types of vegetables available. If you do not have sufficient knowledge about mortgages, you risk being taken for a ride by some of the lenders. You may also not be in a position to bargain and get the best deal possible.
Financial objectives: As mentioned earlier, every person has his or her own unique financial objectives. That’s why it is essential to do a self-assessment of your own goals. Questions like:

What is the duration of stay in the new house you plan to buy?
How much monthly payment on the mortgage can you afford?
Do you have sufficient amount for paying an initial deposit?
Is it important for you to pay off the mortgage as soon as possible?
Is your income stable and regular or does it fluctuate?

Getting the answers to these questions can help you identify the best kind of next time mortgage deal for you. It will also help you save more money in the long run.

If you'd like to get started finding a the best next time mortgage deal for you, take a moment to fill out our short form, and one of SimplyFinance's representatives will contact you to introduce you to a mortgage broker that will work with you to find the best next time mortgage deal available. In addition, they'll be able to answer any mortgage questions you may have. Give it a try! It's quick, easy, and you're under no obligation to take the quote you're given.

CLICK HERE TO APPLY FOR A MORTGAGE TODAY!

Types of UK Mortgages

2007-07-26T23:00:00Z

Selecting a mortgage can be a perplexing and time consuming task. UK mortgage lenders offer a variety of loan packages under different names with different interest rates, up-front costs, and fine print terms, all of which are subject to change quite frequently. In order to find the best UK mortgage rate for your particular circumstances you need to gather a lot of information and do some research into the different types of UK mortgage payment options. If you don’t have at least a little background knowledge going into the whole process, the variety of different offers may leave you feeling dazed and confused. There are many different types of UK mortgage options available, each with their own advantages and disadvantages.

Remortgage A remortgage is the process of taking out a new mortgage to pay off the balance of your existing mortgage in order to get a better UK mortgage rate. You can either switch lenders completely or you can renegotiate with your existing lender.

Buy to Let Mortgage A buy to let mortgage allows you to take out multiple mortgages in order to fund the purchase of multiple properties thereby allowing you to grow your property investment portfolio. This type of UK mortgage is useful if you are buying a property with the intention of renting it out. For a buy to let mortgage, your normal income does not calculate into the payments. They are instead based on the amount of rental income you plan to receive by renting the property out.

Debt Consolidation Mortgage Taking out a UK mortgage in order to consolidate debts may be a good way to pay off a number of high interest debts such as credit card debt, personal loans, overdrafts, etc. You can pay off your debt very quickly with a debt consolidation mortgage, but now you will be paying a single mortgage payment for a much longer period of time than you would have been paying your other debt payments. Be sure to consult with a financial advisor before deciding on a debt consolidation loan.

Repayment Mortgage A regular repayment mortgage is the safest and easiest way to make payments on your UK mortgage. Each month, a portion of your payment will go toward the capital payment and another portion will go toward the outstanding interest payment. If you make all of your payments in full and on time, your UK mortgage is guaranteed to be paid off by the end of your loan term.

Interest Only Mortgage An interest only mortgage allows you to make only the monthly interest payment on your loan while the principal amount remains outstanding. Along with making a payment on the interest of your loan, you will also make a payment into a savings investment. At the end of your loan term, the idea is to have enough money in your savings or investment account to pay off the principal portion of the UK mortgage. You may have more than enough to repay the loan, but you may also fall short on your final payment if your investment doesn’t perform the way you expected.

Fixed Rate Mortgage With a fixed rate mortgage, your UK mortgage rate will remain the same so your payments will remain the same for a period of time agreed upon by you and your lender. This type of UK mortgage allows you to be able to plan ahead because you know what your monthly payments will be for a period of time without having to worry about UK mortgage rate fluctuations.

Discounted Rate Mortgage A discounted rate mortgage allows you to pay less than the standard variable rate for a set period of time. Your payment will fluctuate with the UK mortgage market, but for a decided upon period of time, it will remain under the standard variable rate. The advantage of this type of UK mortgage is that you will save money on interest payments for the duration of the discounted rate term.

Capped Rate Mortgage A capped rate mortgage is set up so that your UK mortgage rate will not increase over a set level for a certain period of time. Your lender will set an upper rate or a cap, and if the standard variable rate is higher than the cap, you will not have to pay anything higher than your capped rate. Also, if the standard variable interest rate falls below the cap, your payments will fall below the cap as well.

Second Mortgage A second mortgage allows you to use the equity built up in your home. You can take out an equity loan for up to the total amount of the equity of your home.

Line of Credit Mortgage A line of credit allows you to have more flexibility with your UK mortgage payments. You can pay as much as you want at any given time, and you are then allowed to use the equity you’re building to free up some capital when it’s needed. There are a variety of line of credit mortgages with different combinations of rates and terms. Consult with a UK mortgage professional before committing to a line of credit mortgage because they will be able to help you pick the right loan for you.

Adjustable or Variable Rate Mortgage Adjustable or variable rate mortgages have lower UK mortgage rates, and they are tailored to your different circumstances and needs. An adjustable rate mortgage will save you on overall interest costs, but your payment may fluctuate from time to time as the UK mortgage rate changes.

Conventional Mortgage A conventional mortgage does not require you to be insured by a financial institution because you need to pay at least 25% of the total value of the loan as the down payment.

High Ratio Mortgage For a high ratio mortgage, you will need to have payment insurance by a financial institution because your down payment will be less than 25% of the value of the loan.

Zero Down Payment Options Most lenders will ask you for a minimum 5% percent down payment before proceeding with a UK mortgage. However, there are now lenders that will loan you the entire amount of money with no down payment at all.

Once you know which type of UK mortgage loan you'd like to take out, take a moment to fill out our simple form, and a SimplyFinance representative will contact you shortly to introduce you to a UK mortgage broker that will search to find the best UK mortgage rate and mortgage deal for you.

CLICK HERE TO APPLY FOR A MORTGAGE TODAY!