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The credit crunch started almost two and a half years ago, and this has caused many people on Great Britain financial turmoil.

Redundancies have been the main reason for this economic chaos. Many firms have stream lined their work force to cut down on over heads in the hope of emerging from the recession with their doors still open.

Obviously the whole of the UK work force has not suffered in this way, but even some people still in work are earning less now due to such things as working three or four days a week now instead of the usual five.

With all aspects of economic life at home so constantly changing many house holds were anxious to keep one thing in life the same every month.

This one constant was the remortgage or mortgage payment that had to be paid each month.

The popularity of fixed rate mortgages and remortgages soared. This was true whether it was a remortgage which a homeowner can use to get a lower rate of interest or if it is used to obtain more money. A mortgage releases funds to buy a property.

With a fixed rate remortgage or mortgage the payment will not change over the period of how long the fixed rate is set. This was in general from one year to ten years. However most people opted for a four to five fixed repayment period .

Homeowners were content to know that this one financial aspect of their life would stay the same.

Now however some remortgage and mortgage lenders have reduced the interest rates for their variable products while at the same time keeping their fixed rates at the same rate as before.

Fixed rate remortgages and mortgages always did cost more than variable rates but the cost between the two mortgage products is more distinct now.

This has caused a huge fall in requests for fixed rates, as they are simply now considered too expensive, and in the course of the last two months two thirds of those seeking a remortgage or mortgage are choosing a variable rate.

Looking to find the best deal on mortgages, then visit www.championfinance.com to find the best information on mortgage for you.

Comments (0) Dec 02 2009

Remortgages, mortgages and secured loans all form part of what are known as home loans. This being the case means that they are only granted to homeowners.

A mortgage is a form of home loan taken out by either a first time buyer or a home mover to purchase a property.

A mortgage is a home loan product taken out to buy a property.

The amount of mortgage or remortgage that can be raised against a property depends on the amount of equity available on the property itself. Equity is what is left when the mortgage balance is deducted from the actual worth of the property. If a property has a value of 400,000, and the mortgage secured on it is 220,000, the available equity is’0,000.

Before the credit crunch there was availability of 100% mortgages and remortgages with the Northern Rock advancing 125% mortgages which helped towards their downfall.

This is all in the past and 125% LTV remortgages and mortgages no longer exist.The 25% LTV mortgage recently introduced by the Nationwide is only a plan to help existing customers who have no equity in their property due to the current economic climate.

If they owe more on their existing mortgage than the house is worth they can obtain a mortgage on their next property of 125%.

Remortgages of 95% are available from a handful of mortgage lenders, and there is even a little better availability at 90% LTV. This would mean that based on the previous example of a property worth 300,000, the largest remortgage available would be 285,000 on a 95% plan and 270,000 on a 90% plan.

Equity is one of the most important facts that a mortgage lender considers when advancing mortgages and remortgages, and at 60% LTV remortgages and mortgages are available from 1.98% which is the best rate in the history of the mortgage industry.

Another major difference pre and in the middle of the recession is the situation regarding pure self certifications of self employed earnings. Only two building societies even consider self declarations now, but even at the last minute they may require further income proof in official format.

Before the recession many mortgage lenders accepted self certifications of income, and this is in fact caused much of the financial woes, as sub prime mortgages were advanced to those who in reality could never afford to make the repayments.

This were certainly vey lax before, but on the other hand they are perhaps a bit too strict now.

Want to find out more about mortgages then visit Champion Finance’s site and choose the very best mortgage for you.

Comments (0) Nov 15 2009

Yet another secured loan lender has been forced to close it’s doors, the most recent of the many secured loan lenders to go to the wall over the last two years. This secured loan lender is Link Loans who have sadly closed their doors due to being refused any additional funding.

Only days prior to this, the secured loans industry in general felt that Link Loans was bound to be in a precarious situation as their parent company Link Lending had gone into administation due to the refusal of the Bank to continue funding them.

Nobody could really understand how Link Loans could expect to be funded when Barclays refused to fund their parent company and had forced them into administaion. It looked right away that Link Loans were also almost certain to fall.

Link Loans have not been established long, and they had an unusual way of working unlike any other secured loan lender. Link Loans dealt in the intermediary market, that is through secured loan brokers.

When a secured loan broker receives a request from a client to arrange a secured loan for them, the secured loan broker, through his knowledge of the secured loan lenders criteria, knows exactly which secured loan lender fits his clients needs and circumstances.Therefore before even placing the secured loan application with the most suitable lender he knows that the application will reach fruition providing all the facts supplied by the customer are accurate.

The secured loan broker did have underwriting guidelines to follow, as with all other secured loan lenders, but thereafter the rest of the application format was a bit different than it was with other secured loan lenders.

Secured loan brokers had to do a credit check for all the prospective Link Loan customers followed by a Land Registery check at the end of which Link Loans had to be provided with all this information. Link could not approve this or otherwise, but they forwarded the facts to their funders to approve the secured loan application.

When Link Loans heard back from their funders, the secured loan broker was told if their application for a secured loan was acceptable or not.

They were the only secured loan lender who appeared not to have the authority to approve a secured loan application themselves.

Learn more about secured loans. Stop by Liz Moir’s site where you can find out all about secured loan and what it can do for you.

categories: secured loans,homeowner loans,mortgages,remortgages,refinancing,property

Comments (0) Oct 24 2009