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Hot Topics
- Income Multiples Explained
- If you are an employee, the majority of mortgage lenders will calculate the maximum size of a mortgage loan based on your salary.
- What are Variable Rate Mortgages?
- A variable rate mortgage is when you pay a standard variable rate (SVR) that changes in line with the Bank of England's base rate. The SVR is usually between 2% and 4% higher than the Bank of England's base rate, but this will vary from lender to lender.
- What Are ISA Mortgages?
- If you take out an intrest only mortgage your lender will expect you to put in place a ‘financial vehicle’ capable of repaying your mortgage at the end of the mortgage term.
- Commercial Mortgages
- A commercial mortgage is probably the best way to finance the purchase of buildings and land for business purposes, it provides the most flexible and affordable finance solution. Commercial mortgages are specialized due to the fact that the lender has a legal claim over the property until the loan has been repaid in full.
- What Happens If I Have Bank Defaults?
- If you have failed to meet payments on a credit agreement such as secured loans, unsecured/personal loans, credit cards, store cards or car finances etc, or you have failed to comply with your lender’s requirements, you will be described as having 'defaulted'.
What Happens If There’s A Shortfall At The End Of My Mortgage Term?
There has been a lot of publicity lately about endowment policies that have not been sufficient to pay off the mortgage at the end of the term. As an investment vehicle for new customers, they are virtually obsolete, as with a fluctuating economy there is no guarantee that the resulting balance will cover the mortgage requirements.
In these cases the borrowers have been forced to find the outstanding balance from somewhere else at the end of the term. It is estimated that 3.5 million households are now facing shortfalls of more than £5,000 on their loans.
If you already have an endowment – the best advice is to stick with it. Existing endowments can be used to support a new mortgage with any ‘additional lending’ over the value of the projected maturity balance being covered either by a repayment mortgage or with an alternative repayment vehicle such as an ISA. It is also worth pointing out that historically the returns on endowment policies have been pretty good (provided they go full term). If you cash in an endowment after only a few years it is possible you will receive less than the amount you have invested.
If you are worried that there may be a shortfall – seek immediate advice from a suitably qualified financial adviser. To insure against this pitfall it is best to have savings as a back up just in case.
- Where can i buy a mortgage ?
- How long are mortgages usually for ?
- How Much Is The Valuation Fee?
- Can I Take A Break From Making My Mortgage Repayments?
- How Do I Prove My Income?
- What happens if i want to move home ?
- What happens if i cant keep up the repayments ?
- How much deposit do I need?
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