Category Archives: Mortgage

UK Mortgages For Expats

The UK is one of the best places to live, work and invest. As Europe’s financial hub, the UK attracts high net worth individuals and the best minds from all over the world. This has seen property prices skyrocket. In fact, research has shown that property prices in the UK have been growing by double digits. Since property prices are already high, this growth rate gives investors a great return on their investments. Another important point to note about the property market is that occupancy rates in commercial and residential properties are some of the highest in the world. These are just some of the factors that have been driving growth in the UK property market. While it may be easy for UK residents to get a mortgage to buy property, British expats often have a difficult time.

UK Mortgages for Expats

There are many challenges that expats face when they want to buy property. The first is proving their income and credit worthiness. The second is the difficulty in servicing a mortgage using local currency. The third is managing the property while living overseas. There are many other challenges that mortgage lenders have sought to address through their expat mortgages. Most lenders offering expat mortgages in the UK only finance buy-to-rent properties. However, some lenders offer mortgages for residential properties. If you already have an existing mortgage that has inconvenient terms and conditions, you can have the mortgage refinanced as you continue to work and service the credit facility from abroad.

Choosing the Right Expat Mortgage Lender

Obviously, it is important you check the interest rate quoted by a mortgage lender. After all, there is no reason why you should pay a higher rate of interest just because you are an expat. Since rates usually vary from time to time, you may want to choose a fixed rate mortgage to ensure you pay the same rate of interest throughout the term of the loan. Since you are most likely being paid in local currency, the conversion rate to the Pound Sterling may force you to pay more money in the future. For this reason, you may want to consider working with a lender that has a local subsidiary as they can offer the best Forex rates.

Ideally, you should borrow from a lender with a lot of experience lending to expats. Firms that are just entering the expat mortgage lending business may not know the challenges associated with lending to people who live in another country. Furthermore, you may want to work with a mortgage broker who will advise and guide you through the expat mortgage process.

What You Need To Know About Refinance Mortgage

Refinancing refers to replacing an existing mortgage obligation with another one but under different terms. These terms may vary depending on the State of residence or country. The new terms and conditions are affected by political stability, economic conditions, bank regulations, borrower’s credit rating, currency stability and risks. Refinance mortgage is common with residential homes. It is ideal especially if you want to secure a low interest rate as well as pay less loan amount. If you have a home mortgage and good credit score, consider refinancing. The interest rates are currently low and it may pay to refinance.

When To Refinance

finance35003Before you consider refinancing, the following conditions must prevail. Mortgage interest rate must be falling. In this way, you will be lowering the overall cost of borrowing the second loan. Secondly, home values must be increasing. If your mortgage-to-value ratio is low, you may secure your second loan due to increased equity in your home. You can then use the equity to pay off credit card debt, big purchases and other types of loans. On the other hand, you must have been in your home for the early years of your mortgage. This is because early on, the payments cover interests only. As you begin repaying the principal, refinancing is recommended.

Reasons for Refinancing

Borrowers normally resort to refinance their home due to several reasons. For one, refinance mortgage allows borrowers to switch from variable interest to fixed interest rate. Secondly, it helps take advantage of low interest rates which translates to reduced monthly installments and shorter amortization schedule. Individuals with financial distress should consider refinancing in order to consolidate other debts, reduce the monthly repayment amount as well as free up cash. In personal finance, refinancing is considered a better option of managing debts.

Types of Loans Used to Refinance Your Home

There are two types of loans used to refinance home mortgage. They are categorized as either fixed rate mortgage or adjustable rate mortgage. As for the fixed rate mortgage, you pay a constant amount of interest for the entire period of the loan. On the other hand, an adjustable mortgage interest attracts lower interest for the first 5 years after which the interest will change according to the market conditions. This means that you may either pay high or low interest but it is a riskier option compared to the fixed rate mortgage considering the unpredictable market conditions.

Mortgage Refinance Costs

Refinance mortgage expenses varies from one person to another. It depends on credit score, lender, loan amount and interest rates. Be ready to pay these refinance fees when considering a second mortgage. They include: escrow and title fees, lending fees, points, appraisal fees and credit as well as insurance and taxes. These are basically closing costs of a mortgage refinance. Points are used to buy down the interest rate over the entire loan amortization schedule. Be sure to consult with a financial adviser if you do not understand one or more of these costs

How to Shop Around For Refinance Mortgage

When shopping around for the best refinance deal, negotiate with your current lender. Although you may choose another financier, the cost of doing so is much higher. Refinancing with your current lender is better especially if your mortgage is still a few years old. This is because all the fees involved may be removed because the initial paperwork may still be active. Compare different lenders while reviewing their lending terms both in costs and interest rates. This is much easier if you use online platforms like websites and mortgage calculators. Before signing any paperwork, read and understand its contents.

Private Mortgage Advisors Can Ease the Obtaining Of Loans from Private Lenders

Conventional lenders have to contend with a lot of regulations and rules in their lending and this at times can be frustrating for people looking for mortgages to own property. This is where private mortage advisors can be of great help and greatly reduce the formalities of getting loans.

Kochav_HaYam_Housing_Complex,_NetanyaIn the case of private mortgage, the money is not lent by institutions and is most probably obtained from individuals or other people who have got together to float a commercial enterprise. It is best that you source these loans through the services of private mortage advisors who are well versed in the required documentation and procedures that even these private lenders will require. These advisors will have adequate experience of dealing with these private lenders and know their individual strengths, so that their borrower client has the least problems in obtaining the required loan amount. They will be the right ones to advice on acceptable rates and terms for such private mortgage.

There are other roles that such advisors also need to play and a good broker is worth his weight in gold and can lead to substantial saving in any private mortgage deal. They will have complete access to the most detailed list of private lenders or commercial firms who prefer to be in this business. Their experience in dealing with them can always be a good advantage for a borrower, as then he or she will have a wide choice in deciding on the lender and can decide on the various conditions that each lender will have, so that the borrower is able to go with the lender that offers the most suitable terms.

Good private mortage advisors will be aware of the current rates and their contact with various lenders will allow them to advise their client borrower, where they can get the most suitable terms. Some borrowers may look at interest rates to be the lowest, while others may prefer lenders who are more flexible in allowing easier repayment terms, or longer periods of a mortgage. In all cases, advisors are best given the complete financial information by borrowers, so that they can advise correctly on the right private lender to approach for the mortgage. They will need being given full details of repayment resources so that they can come up with the right solution.

Once these advisors have a complete idea of a borrower’s financial history and future capacity, it becomes easier for them to approach the right private lender who will have an interest in making the loans. Many of them will also have a lot of information on homes available and this can at times help them to match a customer’s capabilities to available homes and help to conclude property deals. Their contacts can also be helpful in providing resources for home inspections, without which no property deal must ever be taken up. They will also be good persons to have by your side, during final negotiations, as their awareness of financial capabilities can help.