Mortgages and Remortgages - Which One Will Suit My Circumstances?

By Andy Silk
If you're using a mortgage to buy your home but are not sure which one will suit your needs best, read this handy guide to mortgage types in the UK. Taking out a mortgage has never been easier.

Fixed Rate Mortgages - the lender will set the APR (Annual Percentage Rate) for the mortgage over a given period of time, usually 2, 3, 5, or 10 years as an example. The APR for the mortgage may be higher than with a variable rate mortgage but will remain at this 'fixed mortgage rate' level, even if the Bank of England raises interest rates during the term of the mortgage agreement. Effectively, you could be said to be gambling that interest rates are going to go up, above the level of your fixed rate mortgage interest rate. If this happens, your mortgage repayments will be less than with a variable rate mortgage.

Variable Rate Mortgages - the lender's mortgage interest rate may go up or down during the life of the mortgage. This usually happens (though not exclusively) soon after a Bank of England interest rate change. Most people consider that opting for a variable interest rate mortgage is best done when interest rates in general are likely to go down. They can then take advantage of these lower rates when they occur. It's a bit of a gamble but if they are right, it could really work in their favour.

Tracker Mortgages - have a lot in common with variable interest rate mortgages in that the APR of the mortgage can go up or down over the term. The key difference between a tracker mortgage and a variable interest rate mortgage is that the lender will set a margin of interest to be maintained above the Bank of England base lending rate. So, as the Bank of England, in line with monetary policy, raises or lowers the base lending rate of interest, so the tracker mortgage interest rate will follow. Over the lifetime of the mortgage, it could be said that the borrower will neither be better off nor worse off because of interest rate fluctuations.

Repayment Mortgages - you will be required to pay a proportion of the capital element of the mortgage (how much you originally borrowed) together with a proportion of the interest that will have accrued on the capital element, with each monthly repayment. In recent years, repayment mortgages have become highly popular over the previous favourite - endowment mortgages. This is because, unlike endowment mortgages, as long as you keep up your monthly repayments, you are guaranteed to pay the mortgage off at the end of the agreed term. Monthly repayments may possibly be a little more expensive but many borrowers say that at least, they have peace of mind.

Interest Only Mortgages - very common amongst borrowers who are looking to secure a second property. The reason being, with an interest only mortgage, the borrower will only be required to make monthly repayments based on the interest element of the mortgage. The lender will require the capital element to be repaid at the end of the term of the mortgage. Again, as with variable rate mortgages, this could be regarded as being a little bit of a gamble because the borrower is hoping that the property will be worth at least as much at the end of the term of the mortgage, as it was at the beginning, allowing it to be sold and the capital element of the mortgage to be paid off. Any capital gain on the property (although possibly subject to tax) is yours. It could be argued that experience tells us that property prices rarely go down in the long term, but it can never be guaranteed.

Capped Mortgages - a combination of the fixed rate mortgage and the variable interest rate mortgage. A cap or ceiling is fixed for a set period of time. During this period, if interest rates in general rise, above the capped interest rate, the borrower will not pay anything above the capped level. Correspondingly, if interest rates fall, then the rate of interest charged by the lender, will also fall so it could be argued that the borrower gets the best of both worlds. It could also be said that a capped rate is like having a set of brakes on your mortgage, but beware, the lender is also likely to charge a redemption penalty on this type of mortgage, making it less portable than some of the other options available.

Discounted Rate Mortgages - here, the lender may offer a reduced level of interest to be charged over a set period at the start of the mortgage term. Many first time buyers or people who expect their salaries to rise considerably during the discounted rate period opt for this type of mortgage but it should be noted that the reduced rate period will come to an end and when it does, the monthly mortgage repayments to the lender may rise sharply. The lender may also charge a slightly higher rate of interest compared with other types of mortgage over the rest of the term of the loan in order to recoup the monies that they have foregone during the discounted rate period. There's no such thing as a free lunch!

Offset Mortgages - an interesting newcomer to the UK mortgage market, although still comparatively rare in terms of choice and availability. The mortgage is linked to the borrower's current account. Every month, the minimum mortgage repayment is paid to the lender but where there is a surplus of cash in the account after other uses and debts have been paid, this is also paid to the lender. Over the months and years, the borrower can potentially pay off their mortgage much quicker and have accrued much less interest than with other types of mortgage provided that a reasonable surplus is maintained in the current account.

So, to sum up, the UK mortgage market has many types of mortgage; any or all of which may be open to the potential borrower, dependent on their circumstances. If you're looking to take out a mortgage [http://www.feelgoodloans.co.uk/mortgages.php], remember that whilst your broker will take care of the vast majority of the work on your behalf, it may still take around 3 months to complete as there is an enormous amount of work that goes on behind the scenes with solicitors and searches, valuations etc. At least now you're armed with all of tehinformation you need on each type of mortgage available to you.

This article is free to distribute however, please ensure that all links remain as in the original.

For more articles by Andy Silk, visit FeelGoodLoans.co.uk [http://www.FeelGoodLoans.co.uk], specialists in all types of loans and mortgages for UK homeowners and tenants.

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Online Mortgage in UK - Introducing the Best Mortgage Plan Across UK

By Sandra Smith

Add the term 'online' and it will open for you an exhaustive assortment of opportunities. Add online to mortgage and it will have the same effect. So many people want to get mortgage programme and get with it fast. The online mortgage in UK indisputably takes lesser time and simplifies the entire procedure. Online mortgages have furthered favourable association of circumstances for any mortgage hopeful in UK.

The British Banker's Association has put the figure of approved mortgage as 186,442, making mortgage the largest financial obligation. Online mortgage is the largest undertaking and a very integral part of the loan lending industry. The online trend with regard to mortgages has spelled great benefits for the consumers for it has increased competition among the loan lenders. This shift in the business trend towards online mortgages has provided more control in the hands of the homeowners in UK.

There is huge competition between online mortgage lenders. There are numerous mortgage lenders, all trying hard to offer you a mortgage plan. Its direct result is great mortgage rates and repayment options. Online, you can contact multiple lenders for mortgage and this will enable you to compare rates and also provide you with an excellent opportunity to select the mortgage that befits your requirements.

Online mortgages have certainly revolutionized the concept of mortgaging in UK. Internet has introduced people to a new face of mortgage process totally alien previously. A few years ago, a mortgage would have required you to find a mortgage lender or broker who would be ready to do the leg work for you, who would be willing to compose a good mortgage proposal for you. Without the online process, assembling information and drafting loan programmes would be a very demanding job. There was no way that the people could access generalized information about mortgage and interest rates. Without online mortgages, the alternatives were restricted and borrowers would settle for any mortgage lender.

So, what does the online uprising affect for general homeowner in UK? Advantages - in every way.Online mortgage in UK gives you several instruments to not only understand mortgage but also pick up the one mortgage that fits exactly in your financial configuration. All kind of mortgage information is available online which can be easily accessed sitting at home through the computer. You are exposed to hoards of information about mortgage, online.

With online options, you can actually look at the various deals offered by various UK mortgage lenders. Online, you can access financial tools to make mortgage more in sync with your demands. Financial advice, mortgage rates, mortgage calculator, and comparing mortgages online allow you to achieve the best in respect to mortgages.

With online mortgages, it is highly important to know that inadequate or false information would only work against your chances of finding a mortgage. Accuracy while providing details of your employment, your credit history, income and assets would only put you in a favourable light in front of the mortgage lender. This will help in online processing of your loan application and being approved without any setback. However, be prudent enough to offer your personal financial information only when you are filling the mortgage application form.

A UK homeowner while applying for mortgage online should not settle for the company just because it happens to publicize lower interest rates. Borrowers, applying online, must be careful about the website they are applying at. A mortgage offering website would contain a privacy policy. Go through it, if you have time. Also, confirm whether the website actually exists. A genuine online mortgage lender will have real people answering your questions when you call.

Other things to look out for are upfront fees and read the fine print before you settle on any mortgage deal in UK. Fine print can contain many details that are left otherwise. Ask questions, if you have any doubts. Queries about the online mortgage process - whether there are any fees that will be charged later on, pre payment penalties. If you don't understand anything or are uncertain, clear them before you move on.

How technology affects our life - you know that. How it affects our mortgage decisions - it is evident through online mortgages. With internet we can access various mortgage product, services, connect to almost all mortgage deals available online. It has enabled us to overcome limitations; it has stretched the possibilities of finding a mortgage beyond the local area. If your local area doesn't have a mortgage for you, you can shop; go beyond the local boundaries to find a mortgage in any part of UK. With so many mortgage options available online, the chances of your finding a mortgage are undoubtedly bright.

Loan borrowing is a highly voluntary act. It is such a significant decision that without proper knowledge and understanding it would not be of much help. Sandra smith is making an honest effort in such a direction so that loan borrowing is comprehensible to lay man and thereby he can make a favourable decision that substantiates his financial status.To find Mortgage,first time buyer mortgage,buy to let mortgage that best suits your needs visit http://www.easymortgageuk.co.uk

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Mortgage: Effective Household Investment for Financial Autonomy

By Natasha Anderson

If finances had a copyright, we would have bought it by now. But it is hardly sold anywhere near the place we live. So, when we decide to take a mortgage it becomes highly perplexing for it is something you are not used to. Taking out a mortgage is not like an everyday errand. Mortgage in the simplest terms mean long-term loan used to finance the purchase of real estate. As the borrower, or mortgagor, you repay the lender, or mortgagee, the loan principal plus interest, gradually building your equity in the property. In a mortgage, you can use your property but not the title of it. When you pay the mortgage, you own the property.

You must have heard that interest rates on mortgage are at their lowest. There is no doubt that they are declining, lending new opportunities to homeowners to get the financial funding they require. Mortgage has become more competitive and easy to get. Competition among loan lender is rising therefore it has lot of potential for homeowners. So it is no surprise to know that mortgage is mounting among people.

Today's consumers have many different mortgage types to select from. Mortgages have been flavoured with different interest rates for the benefit of the mortgage applicants. The more recognized mortgage types are fixed, variable and balloon mortgage.

Mortgage has been publicized everywhere as a real good loan plan for every homeowner. However, it is essential to realize that mortgage is in itself a very exhaustive term. There are innumerable sub categories.

Mortgage types are meant to be for your benefit. Two major types of mortgages are available - repayment and interest only mortgage. Repayment mortgage is the traditional, old fashioned mortgage where the property is guaranteed and is yours only at the end of the loan term provided you repay the loan. The monthly payment on Mortgage compiles capital repayment and interest payments. Capital repayments repay the loan amount your have taken. Interest payments provide repayments for the interest on the loan. Every month you keep on paying a little of both the loan and the interest till the whole loan is repaid.

Interest only mortgage is a relatively new term. In an interest only mortgage the capital is not repaid directly. The capital on a mortgage term is repaid at the end of the mortgage term while simultaneous investments are made to an investment fund. The idea is to make this fund flourish so that at the end of the term there is enough money to pay the mortgage and also leave capital for your personal usage. The term 'interest only mortgage' might seem inviting but the capital has to be paid at the end of the mortgage term.

Interest only mortgage comes in all shapes and sizes. However, this kind of mortgage is not meant for every borrower. Each Interest only mortgage is meant to cater to the needs of a specific kind. It is very fundamental to learn about the interest only mortgages before you apply for one. The interest only mortgages are endowment mortgage, individual savings account mortgage, pension mortgages.

In this highly elaborate work structure of mortgages it is pivotal to find the precise mortgage. Precise mortgage type requires some basic steps which begin with knowing what you want. Loan borrower must be very clear about their requirements and their limitations. Once you know which mortgage type to take - make comparisons. Compare the mortgage types. Mortgage is essentially a buyer's market. Shop around. Compare the APR. The real comparison is through comparing the APR, which is the annual percentage rate. The APR takes all the costs into account: the application fee, the mortgage lenders valuation and so on.

A mortgage broker is a good idea with respect to mortgage. A mortgage broker is a licensed company or an individual that gets the best mortgage plan available at the best possible rates. Mortgage broker signifies convenience. They will do the legwork for you. Usually mortgage brokers don't cost any extra fee because they usually work on the fees given by the mortgage lender. However, sometimes you can get a better deal by going to the mortgage lender directly.

Mortgage and bad credit are very compatible. The only thing a loan borrower can do is to be open and honest about their bad credit status. Hiding your credit status would only go against your mortgage claim, when there are in fact easier ways to get a mortgage with bad credit.

Mortgage is like easy if you make the right choice. Getting a good mortgage is directly dependent on your knowledge of a mortgage. To know every nook and cranny of mortgage can be not possible. Since even the most judicious professionals may also not be aware of some of the mortgage details. However, basic mortgage knowledge will not only protect you against fraud and abuse but also stimulate financial gains. So maybe you don't have the copyright to financial sense; you can still find a mortgage.

After having herself gone through the ordeal of loan borrowing, Natasha Anderson understands the need for good quality loan advice. Her articles endeavor to provide you the wise counsel in the most elementary way for the benefit of the readers. She hopes that this will help them to locate the loan that beseems their expectations. She works for the Uk secured loans web site.

To find a [http://www.ukfinanceworld.co.uk]Secured loan or mortgage that best suits your needs visit [http://www.ukfinancewprld.co.uk]

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Lowest Mortgage Refinance Rates

By Jimmy Wilson
When shopping to lower your loan costs, you want to know the lowest mortgage refinance rates. This will give you the best bank for your hard earned bucks, especially in an uncertain economy. Don't settle for merely asking your local mortgage lenders, you may actually find a better deal online.

Funny thing is about the lowest mortgage refinance rates, you can shop and compare, but if you have a mortgage lender or company you prefer, you can revisit them on rates after you have found the best rate and have them match it. Let's face it, if you were in the mortgage refinance business, you want to get the most from the consumer, but faced with loosing a loan, you will reconsider if you are faced with a smart borrower.

Keep in mind that finding the lowest mortgage refinance rates is not always in the interest rates alone. Mortgage interest rates are only part of the equation. You need to compare discount points as well interest rates. If a mortgage lender has the lowest refinance rates but higher discount points, you may want to pit that mortgage lender against the next closest lender and play one against the other for the absolute best deal.

Any time you are considering refinancing your existing mortgage, the time left on the existing loan is crucial to an accurate comparison in getting the best deal along with the lowest mortgage refinance rates. If you have over half your existing mortgage paid down, you may want to look seriously at a shorter loan payback or possibly just doubling up on a payment at least once a year to give a better payoff time line than merely looking for the lowest mortgage refinance rates.

Seldom will a mortgage lender give you all the facts that will benefit you as a borrower, so make sure you have all the right questions written down, before contacting a mortgage lender. Be sure to ask about discount points, loan origination fees, junk fees, and any other unique charges assigned from each mortgage lender. They are in business to make the most from you, so a smart borrower will do his/her homework first.

Most mortgage refinance deals allow for all upfront costs to be rolled into the new mortgage, so here is a sneaky way to get more money rolled into the new mortgage so that more interest can be collected over the life of the loan. If you can afford to pay out of pocket for the refinance costs, you'll save even more money in the deal. The lowest mortgage refinance rates will generally be quoted from mid-week and toward the end of the week. Monday is a bad day to get mortgage loan rate quotes. Lenders will adjust their mortgage rates downward usually as the week progresses and the process repeats again the following week.

Junk fees are the best place to save yourself some big money. Junk fees are add-on costs for doing business with a specific lender. Each lender tries their best to get more cash from you when you aren't paying attention. Like it was said earlier, the lender is all about making more money for the company instead of helping you. Insist on a list of junk fees. They'll know what you are talking about and will have to come clean with them if they plan on doing business with you.

If you have the time and the need to refinance is not based on a critical time to get your current monthly debt reduced immediately, watch the mortgage rates for a couple of weeks and see how the same lender will fluctuate their mortgage interest rates in a given week. If there is not a sizeable market shift for outside reasons, like a quarterly report or national news upset, you'll see what days to target locking in the lowest mortgage refinance rates.

To help you see more about getting the lowest mortgage refinance rates, take a look at: http://wealthsmith.com/mortgage-refinance.htm

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Essential Facts About Home Loan Mortgage Refinance

By Anupriya Jain
One should apply for home loan mortgage refinance only if refinance is really required. Once you decide that you need mortgage refinance, you can review various options. Every individual has different circumstances. Different mortgage loans are suitable for different borrowers. Accordingly, you should select a refinance.

Factors That Affect Your Home Loan Refinance:

There are many factors that you should consider before selecting a loan refinance. Before mortgage refinancing, you should review factors like the total loan cost, number of years that you plan to stay and term of your mortgage. You should calculate the difference of interest amount you would have to pay during the loan period. The most important factor is the amount saved during the loan term. All these factors are interlinked. Giving more importance to one factor over others can change the situation in your favor. For example, sometimes you can save thousands of dollars by converting to a better loan term. Then you should not worry about a low interest rate. Depending on the factor that is more beneficial, you can select a suitable mortgage refinance.

Steps To Obtain A Suitable Home Refinance:

To obtain an appropriate home loan mortgage refinance, you need to take various steps. These will help you to decide and get the best possible option:

1. You should establish a good payment record with your existing financier. Proper credit records make you eligible for a low rate refinance. Your application is usually rejected if you have a poor payment history.

2. You should not depend on only one lender. Compare home refinance quotes from several lenders. This way you will be able to select an appropriate mortgage loan that will be financially favorable to you.

3. You should decide on the right time and utility of a refinance on your home. Just because the mortgage refinance rates are declining, you should not apply for refinancing mortgage.

4. You can use online refinance calculator to evaluate various options. Also, you can discuss with family and friends and benefit from their experiences with refinancing.

You should review every aspect in detail. Do not take a hasty step that can affect you adversely.
You can select a refinance quote from many quotes offered by different lenders. Usually, mortgage refinance is available in two types. You can either select a home mortgage refinance quote based on fixed rate interest or a quote based on adjustable rate mortgage (ARM). Both types of home refinances have their distinct advantages and disadvantages. Select a home loan mortgage refinance quote that suits best for your requirements and budget. [http://www.mortgagerefinanceloan101.com/home-loan-mortgage-refinance.html]Home loan mortgage refinance is of use to you only if you really need it. Once you decide that it is essential, you should know a few facts that are important before going in for refinance. For more information on home mortgage refinance rate, you may visit [http://www.mortgagerefinanceloan101.com]mortgage refinance loan.

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5 Proven Mortgage Refinance Tips For Lower Fees and Costs

By Juhani Tontti
By handling these costs wisely, you can make your mortgage refinance tips even more effective and save remarkable sums in your monthly payments. The structure of your mortgage refinance loan, PMI avoiding and an ability to buy lower interest rates are the ways.

1. Mortgage Refinance Tips - Close Credit Card Accounts.

What credit cards have to do with your mortgage refinance tips? A lot! When you close inactive credit card accounts, you can improve your credit score, which means lower interest loans possibilities to you.

This is wise to do by a letter to the credit card company. In this way you will have a document, if there is a need to handle the issue later on. As a second step you have to check your credit report after 30 days to make sure, that it includes the comment that your credit card accounts have been closed by "Customer`s Request".

This is important, because this report can be seen by other lenders later on, so they see that you have done the closing and not the company.
Remember to correct all the mistakes, which can affect your future possibilities to get a loan.

2. Mortgage Refinance Tips - Avoid Hidden Cost Of PMI:

PMI, private mortgage insurance, can hit you, if you do not do the refinancing right. Why? Around 30 % of the people, who will refinance their home loan take certain part of their home equity as a cash to pay home improvement or paying some other big costs.

By paying off credit cards or improving your home, this can be extremely smart, but if you borrow more than 80 % of the home equity, you must pay PMI, private mortgage insurance, which can be hundreds per every year.

3. Mortgage Refinance Tips - Short Term Loan.

Usually short term mortgage loans offer lower interest rates than the long term ones. This means lighter monthly payments but also shorter payment time. The result is a larger monthly payment, but you can still save thousands later on.

4. Mortgage Refinance Tips - Ask About Fees.

Every mortgage refinance case includes fees, which are costs you do not necessarily remember to ask. They have several fancy names: document prep fees, courier fees, administrative fees etc. And lenders must disclose these costs, fees, within three business days of a mortgage loan application.

Now you can do the following. Request an official list of these fees from every company, you have asked an offer. When you have them all, add the fees to the interest rate of the mortgage loan. You will be surprised, when you notice that the cheapest offer has not the lowest interest rate.

5. Mortgage Refinance Tips - Pay Points.

When you plan to live in your home for many years, you can save money by paying points for lower interest rates. This happens by paying upfront fees by which you guarantee that the interest rates are lower during the rest time of your loan.

Juhani Tontti, B.Sc., Economics.
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Mortgage Refinancing With a Broker: Costly Mistakes to Avoid When Refinancing With a Mortgage Broker

By Louie Latour
If you are considering mortgage refinancing with a mortgage broker, there are a number of things you need to know before signing an agreement. Mortgage brokers can be an excellent resource for finding competitive mortgage refinancing offers; however, you need to be careful to avoid overpaying for the mortgage broker's services. Here are several tips to help you avoid costly mortgage refinancing mistakes when working with a mortgage broker.

Mortgage Refinancing: What Are Mortgage Brokers?

Mortgage brokers are a third party retail outlet for securing mortgage refinancing loans. When mortgage refinancing it is important to understand the how the retail mortgage market works. With the exception of banks and broker-banks (which you should avoid altogether) the retail mortgage market is made up of mortgage companies, online web portals, and mortgage brokers. These retail outlets all work basically the same; mortgage brokers sell mortgages for wholesale mortgage lenders for a commission.

Mortgage Refinancing: How Do Mortgage Brokers Operate?

When you apply for a mortgage loan from a mortgage broker the wholesale lender qualifies you for a certain interest rate and provides the mortgage broker with a written guarantee of that interest rate. The mortgage broker will turn around and reissue the mortgage refinancing interest rate guarantee in their company's name. Do you think the guarantee you receive is the same as the one that came from the wholesale lender? If you said "No!" give yourself a gold star. Mortgage brokers always mark up the interest rate the wholesale lender qualified you for. The wholesale mortgage refinancing lender may have qualified you for a 6.0% loan; however, the mortgage broker marked it up to 6.75% on your interest rate guarantee.

Mortgage Refinancing: What is Mortgage Broker Yield Spread Premium?

The markup your mortgage broker slips into your interest rate when mortgage refinancing is called Yield Spread Premium. Mortgage brokers are compensated with the origination points or fees you pay for mortgage refinancing. Yield Spread Premium is the icing on the cake for many retail mortgage outlets like mortgage brokers. By overcharging you for the interest rate, the mortgage broker receives an additional point for each .25% they mark up on the loan as a bonus from the wholesale lender. In the case above where the wholesale lender qualified you for a 6% loan and your mortgage broker marked up the interest rate to 6.75%, that broker will receive three additional points as a bonus for ripping you off.

Suppose your mortgage refinancing loan was for $200,000, the mortgage broker would receive a $6,000 bonus for overcharging you. The overwhelming majority of homeowners never know they've been ripped off in this manner by the mortgage broker. How can you avoid paying this mortgage broker markup when mortgage refinancing? Homeowners that learn to recognize Yield Spread Premium can avoid paying the markup. To learn how you can avoid paying mortgage broker markup when refinancing your mortgage, register for a free mortgage refinancing guidebook.

To get your free mortgage guidebook visit RefiAdvisor.com using the link below.

Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. For a free copy of " Mortgage Refinancing Broker - What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.

Claim your free mortgage refinance information guide today at: http://www.refiadvisor.com

Mortgage Refinance Information

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