Welcome to The Mortgage Guide UK
The amount of money you can borrow for a mortgage depends on many factors. Income Multiples Conventional mortgages lend a certain amount compared to your income. For example, the traditional mortgage multiple has been 3 times income. However, in recent years lower long term interest rates have meant that banks have been willing to …
Should I Pay off my mortgage with Savings in a Bank? If you are coming to the end of a mortgage contract and have significant savings in your bank, there are many good reasons to use your savings to pay off the mortgage debt – as long as there is no penalty for making an …
According to the Council of Mortgage Lenders, first time buyers are currently, paying an average 20% of their income on mortgage payments. This has increased significantly from 2003, where it fell to 12.3%. But, still lower than the peaks of the early 1990s, when mortgage payments reached 27% of income A lender would be reluctant …
This is a quick reference guide to discovering how much your mortgage payments could be. This assumes interest rates are 6%. Bear in mind interest rates can fluctuate and this will have a big impact on your monthly repayments. These Repayment Calculations assume a standards Capital and Interest repayment Mortgage. An interest only mortgage would …
An increasing number of flexible mortgages allow the homeowner to make lump sum payments, thereby enabling a reduction in mortgage capital. The benefits of making a lump sum payment to a mortgage include: Own a higher % of the house – makes it easier to remortgage Reduce the mortgage term, enabling you to live rent …
Traditionally, mortgage lending has been offered by building societies. However, in recent years the distinction between building societies and banks has been reduced. Many Building societies have demutualised and operate like a bank. The big 5 banks have also increasingly stepped into the mortgage business. The biggest mortgage lender in the UK is the Halifax …
A standard repayment mortgage can take between 25 and 30 years to be repaid. During that time we pay both capital repayment and interest on the outstanding balance. Because the loan is for a long time, it means that the interest payments on a mortgage can be greater than the total capital debt. Through paying …
Note many of the UK’s leading building society demutualised in the 1980s and 1990s. This meant they are no longer non profit making societies but can operate as banks. The Nationwide is the largest remaining building society in the UK. Nationwide Building Society £150,586m Britannia Building Society £32,431m Yorkshire Building Society £16,298m Coventry Building Society …
Inform your insurance company. If you used a broker or third party inform them as well. Keep a note when and who you told and what they said particularly about procedures and means of progressing a claim. If emergency services were called out get a case number or reference from them. Keep a record of …
Continue reading “Claiming Building Insurance – What to do in case of fire or major incident”
These are some of the top 10 mortgage bank and building society lenders in the UK 1. Halifax Building Society (21%) Offers a range of mortgage products from repayment to interest only Halifax has merged with Bank of Scotland to form HBOS. HBOS controversially taken over by Lloyds TSB in Jan 2009 becoming part of …
What is an Annuity? An annuity is a regular sum usually paid in exchange for the immediate payment of a lump sum. They are a common way of purchasing a pension with a lump sum but can also be used to buy an income with a one off capital payment. The lump sum is generally …
Anyone who has an ‘insurable risk’ can take out insurance. That is anyone who stands to lose money in an event during or linked to your occupation of a property. This generally excludes your contents, which may need separate cover. If your rental agreement or lease requires you to take out building insurance then you …
Continue reading “Leasehold and Insurance for Leaseholders.”
Mortgage Payment Protection Insurance (MPPI) is a scheme where for a premium companies will pay your mortgage for a certain time frame. It is advisable for people to take out insurance for mortgage payments so that the risk of home repossession is reduced. When you take out a mortgage, most mortgage lenders will offer mortgage …
What is Professional Indemnity Insurance? If you are in business in a professional, advisory or service related capacity you should consider getting Professional Indemnity Insurance. This is a form of insurance your customers or clients can rely on should there be a need to claim against the work you or your business has done. Typical …
UK house prices have risen over 130% in the past 10 years, for many prospective buyers it feels that getting on the housing ladder is beyond their reach. However despite the extravagant house price levels it is still possible for first time buyers and others on low incomes to be able to get a mortgage …
Continue reading “Help in Getting a mortgage on low income in the UK”
Insure against claims from the public with Public Liability Insurance What Is Public Liability Insurance? This is one of the basic insurance policies all businesses should have in this increasingly claims orientated, litigious society. If members of the public or customers come to your premises or you or your staff go to theirs, even if …
For many years the traditional model for assessing the amount of a mortgage loan was to use a simple mortgage multiplier. Usually the maximum loan for a mortgage would be no more than 3 times a persons salary. However increasingly banks are no longer use this. It is quite common for financial institutions to lend …
Continue reading “Why banks are willing to give bigger mortgages.”
Online Search When Looking for the best remortgage deal it is worth visiting an online remortgage company like moneysupermarket. They look at upto 8,500 different mortgage products. They don’t charge for their services because they get a commision from referring you to the the mortgage company. Remortgage with existing Dealer If you are struggling to …
Refinancing your mortgage in UK (sometimes known simply as remortgaging) involves switching your current mortgage deal to a better offer. Many homeowners wish to look at improving their mortgage situation because it is the most significant part of their monthly outgoings. Even improving your mortgage rate by as little as 0.5% can make a big …
To predict inflation the MPC looks at statistics such as Present inflation data Commodity prices especially oil Manufacturing output prices Nominal wages increase House Prices Levels of Mortgage borrowing Number of Home repossessions Stock Markets Consumer spending and consumer confidence, the level of consumer borrowing is also important Exchange Rates Import Prices (20% of RPIX …
What is a Bridging Loan? As the name implies a bridging loan is only granted to ‘bridge’ the gap until money comes in from another source. This might be from the sale of another property or an advance on a new mortgage. A bridge is a temporary arrangement used to provide finance when you are …
Editors Choice Consumers Association – Which Easy navigation and adverts are only for Consumer Association membership products. Some content is available only to subscribers but free trial period available. Helpful comment ‘Mortgage Exit Administration Fees If you’ve paid a fee in the last six years that was higher than the original fee in your mortgage …
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The number of people with bad credit rating has increased, but, where does that leave people with Bad credit histories? These are some tips to get a better bad credit mortgages. 1. How Negative is your bad credit history? If you have only missed the odd payment or been late with a credit card payment, …
With house prices in the UK continuing to rise above earnings growth, mortgages are becoming increasingly unaffordable. Mortgage payments take a bigger % of disposable income than ever before. For first time buyers it can be difficult to get on the property ladder at all; this is especially true in areas like the South. However …
Continue reading “Compare Mortgage Rates to help Reduce burden of Mortgages.”