How To Beat The Mortagage Crises

There is no doubt that the UK mortgage market has been hit by the so-called credit crunch. There are also signs that the housing market is slipping back (Spring 2008). But whereas many people are looking on the gloomy side, there will be some canny people who will make some profitable property purchases now.

With the lack of funds available in the mortgage market, the result has been that many lenders have pulled some of their most attractive products. There are now less than half the mortgage products available compared to the summer of last year. This will mean that many first time buyers will find it hard to get a mortgage. And a house buying chain could collapse because one person in the chain can no longer get the deal that they were relying on.

But in every situation like this, there are shrewd investors out there who will turn a problem into an opportunity. As house sellers become more desperate to sell, there is the opportunity to negotiate a bargain. It's not just professional property investors that are able to do this; it's the ordinary person on the street too.

It just takes a little lateral thinking. Say you are a first time buyer that was going to rely on a 100% mortgage because you have no deposit. These type of mortgage products are no longer available. For many, this would be the point that they give up. But could you approach your parents to help with a deposit? There are still deals out there that will allow this. You could then start some negotiating with sellers and get a well-priced property. In this market you may well end up buying a house at a significantly reduced priced compared to even 6 months ago.

Discover how to get the best mortgage deals in the UK by visiting http://www.ukmortgagefacts.co.uk. Get the list of mortgage lenders in the UK.

Article Source: http://EzineArticles.com/?expert=Paul_Elms

Advantages and Disadvantages of 100% Mortgages

Author: michael sterios

In this day and age of rising costs and low housing affordability, various schemes have arisen to assist first-time-buyers get onto the property ladder. One is these is 100% mortgages, which provide enough funds to the borrower to purchase a property outright.





This eliminates the need for a deposit as 100% of the property’s purchase cost is funded by the lender by way of a mortgage. Essentially 100% of the value of the property is mortgaged, leaving no equity in the property on the date that it is purchased.





The main benefit of 100% mortgages is that the borrower will not be required to put down a deposit. This can allow people with only a small amount of savings, such as first-time buyers, the opportunity to get a foot on the property ladder.





Instead, any savings that have been accumulated can be used to pay for purchasing costs such as legal fees, stamp duty, and mortgage application and brokerage fees. Any remaining funds can be saved for furnishing and fitting out the property and to keep aside as an emergency fund.





While the prospect of not having to fund a deposit may be attractive, 100% mortgages have several terms and conditions that mortgages of lower Loan-to-Value (LTV) ratios do not.





These include a higher interest rate, a higher loan balance resulting in more interest to pay, a limited number of lenders to choose from, stricter lending criteria, tie-ins and early repayment charges, and mortgage Indemnity Guarantees (MIG) or Higher Lending Charges (HLC).





In addition to these extra terms and conditions, 100% mortgages also enhance the risk of negative equity. Negative equity occurs when the value of a property is less than the balance of all finance, such as mortgages and secured loans, held over it. A decline in the value of the property below this balance will result in negative equity.





Despite the disadvantages, 100% mortgages have become popular in recent years due to rapidly increasing property prices and the inability of first-time-buyers to save for the deposit necessary to apply for more traditional mortgage products.





More recently, mortgages with LTVs higher than 100% have begun to emerge. These mortgages also provide cash-back funds to the borrower to help pay for purchasing costs such as stamp duty and legal fees.





While high LTV mortgages can provide a short-term solution for getting a foot on the property ladder, careful consideration should be given before applying for 100% mortgages, or higher, as they can be risky.

About the Author:

Visit UK Mortgage Source for up-to-date news on Mortgages and to contact a mortgage advisor near you

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The 100% Mortgage

How To Successfully Apply For 100% Mortgage

Author: lee johnson

For most people at the moment, getting a 100% mortgage at the present is very difficult due to the finance companies not being very eager to offer mortgages. Even big businesses are finding it hard to raise capital. So what can you do to improve your opportunities of raising the capital which you need for the mortgage?

The initial thing you can do to improve your position is to take a glance over the current state of your finances to see what the bank will be looking over when they process your form.Firstly try and get a deposit together to illustrate you are serious about your position. Most people if they make sacrifices on their costs by balancing their needs buys versus their instant buys you will manage to collect some money.

This will make your form look more potentially attractive since you are balancing some of the risk of the loan yourself and this may help your chances.If this is not possible, then you need to apply for a full mortgage.

http://www.100-mortgage.com

This means the bank lends you all of the mortgage value and you give back the bank the capital over the agreed time span. This can be aided by yourself in order to help your chances. Put yourself in shoes of the lender and look at your form objectively and unbiased. If you were the bank, would you offer a mortgage to yourselves and take the risk?

If your answer is no, you need to illustrate why you wouldn't! Look to see if there is doable updates, then amend them to boost your chances. Once you have changed them it may be worth leaving the application for a couple of months for the changes to now begin showing. Ensuring the house is a good opportunity risk should also be thought about since should you default on the mortgage and the bank will need to be able to reclaim their investment.

About the Author:

Lee Johnson -
Struggling To Get A Mortgage


100% Mortgage

Article Source: ArticlesBase.com - How To Successfully Apply For 100% Mortgage

Where Can I Get 100% Mortgage

How To Get A 100% Mortgage

Author: lee johnson

In the current climate, finding finance to get a mortgage may seem like it is impossible. So finding a bank to cover 100% mortgage seems like an impossible task. Or so we are lead to believe... There are infact banks lending and they will continue to do so, it is their business after all and their market is money, savings, lending, borrowing and mortgages!

100% Mortgage

In which case you need to ask what do you need to do in order to be successful in your request to get a 100% mortgage? You need to stop and think outside your own wants and thoughts for a moment. Climb into the shoes (boots or slippers!) of the bank manager and what they may be looking for in an investment. Think very carefully, if you were interviewing new customers applying for credit, what potential would you be interesting in seeing to convince you to lend?

100% Mortgage

Good character?
Great payment history?
Job stability?
Funds available to make repayments?
Investable Property


Give it a few moments thought and consider the mortgage from the other side. In order to have a chance, look at yourself on paper and see if you can see what they are looking for. Do you find you do not match the criteria they are after, then there are 2 options open to you. Try to continue to apply and risk being refused on your applications, or you can take control and ensure you offer the bank your best shot at what they are looking for in a new mortgage customer by making sure each of these items on the list are the best you can get them to be.

100% Mortgage

Remember, to borrow the whole 100% mortgage is asking the bank to taketake all the risk in your investment, and you can't expect them to do that without surveying and wheying up the risks in the equation, after all would you do it?! So make sure you, your credit and the property are all A1 on paper and ensure you have the best chance.

About the Author:

Lee Johnson
100%" target="_blank">www.100-mortgage.com">100% Mortgage

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