I’m not just talking about using a mortgage calculator to work out what the monthly payments will be but how to make use of a calculator that shows the ‘amortization’ or monthly & yearly breakdown of payments and balance as well as the difference an overpayment could make. Anybody who has any exposure to mortgages will know there are several options available which include fixed rate deals, trackers or lender’s ‘standard variable rates’. Fixed deals last for a set number of years and for those set years the interest rate stays the same. Tracker deals may offer an interest rate that
Read More

After several years skirting around the field of financial services I finally decided to obtain the necessary qualifications to provide mortgage advice, in 2007. Yep, I became a qualified mortgage adviser about 6 months before the industry collapsed. It was a fun time. Like many advisers, when the mortgage enquiries started to dry up, I started looking more closely at protection products like life insurance, income protection etc. and for the last few years that’s where I have been focusing my efforts (I even have some testimonials from happy customers!). At one time I toyed with the idea of taking
Read More

Interest only mortgages first came to our attention alongside the infamous endowment policy (but that’s another story), but whilst endowments are no longer popular because of their poor returns and inflexible properties, interest only mortgages have remained a firm favourite with homeowners, mostly because it is cheaper to pay interest only instead of capital and interest. Now they are coming of age and lenders as well as borrowers are beginning to realise that the monthly savings have been a false economy. Many borrowers who said they had an investment vehicle such as an ISA or a pension were not telling
Read More

A bit of a shocker of a headline! House prices to stay flat for 10 years! That was the headline I read for an article I received today based on discussions from the BSA conference. I don’t know why I only received this today when the conference took place in April and I’m not sure how ‘on the pulse’ the delegates are at the ‘British Sociological Association’ when it comes to the wonderful world of finance and mortgage lending. The article didn’t exactly say who had made this claim but it did reference a Mr Robert Parker, head of strategic
Read More

From the ashes of disaster grow the roses of success. The problem is the ground isn’t very fertile and nobody’s watering the bed. We’re in a recession again albeit more of an economy that is ‘bouncing along the bottom’ than a sharp drop and I don’t think the title ‘double dip’ is strictly accurate either. Too much time has passed since the last recession and it is barely a ‘dip’ this time around. It is plain to see however that the outlook is still pretty grim. National Australian Bank has announced the loss of jobs at Yorkshire and Clydesdale Banks between
Read More

This isn’t one of my own but a useful tidbit nonetheless. I have some thoughts and ideas floating around for some original articles but January has started with a boom and free time is hard to find! So here’s something someone else wrote! Newcastle Building Society has launched two competitive mortgage schemes to help first time buyers (FTB) with a low deposit take their first steps to owning their own home.  With recent research highlighting that affordability for first time buyers is at the best level since before the credit crunch the Newcastle’s new products may be a timely introduction.
Read More

A new product that has appeared on the mortgage scene is being called a 100% LTV Family Guarantee Mortgage. This has been designed for families who wish to help their children get on the property ladder. As the name suggests, a family member must provide a guarantee and that guarantee must come in the form of security on their property and must cover at least 25% of the child’s new mortgage. What’s more, the security on the family member’s property must not take the total combined liability of all the secured debt (mortgages, loans etc.) above 75% across both properties. eg: Parents have
Read More

Equity release; a term met with instant distaste and fear, however this out-dated approach could may well be having an impact on how people view their financial options during their retirement years with many having little knowledge and understanding of how it truly works and what rules have now been put in place to regulate the industry. Equity release could be a way to alleviate the stresses for many retirees who are struggling on low pension plans and reduced state benefits, coupled with the rising costs of day to day living. If you’re wondering about equity release and a little
Read More

I found it quite bizarre when in my inbox dropped an email with a limited 7 day offer on some mortgage rates from Abbey. It’s the kind of marketing I’d expect from a closing down furniture shop! A 7 day only offer on a mortgage product?! Is this the shape of things to come? Now what could the reason be for such a limited time offer…? Are Abbey a bit worried they’ll get mobbed with applications and struggle to handle the enquiries if they open the offer up for longer? Or do they only have access to a limited amount
Read More

My mortgage has been on my lender’s Standard Variable Rate (SVR) for over a year now and once again the Bank of England has announced that the Base Rate is to remain at 0.5% for the 23rd month running. So here I sit, safe in the knowledge that for another month my mortgage repayment will stay the same. The big question is, how much longer will it stay this way? The talk of rate rises has been a buzz for sometime and as more time passes the louder the buzzing seems to be getting. Markets were suggesting a 25% chance of rates rising today
Read More