Second Mortgage

So you have a lump sum and would like to use it to help reduce you mortgage.

Would it be better to use the money and pay off a chunk of it in one go or spread it over a few years of monthly overpayments?

If you’re sure you won’t need to dip into this money again, then you would save more money by paying off in one chunk. You’ll effectively be saving 6% every year on what you pay off (and paying off more of your principal, which will save you yet more in turn), whereas if you put the money on deposit you’ll earn maybe 5% but pay only 4% after tax (unless you have ISA capacity spare). Read the rest of this entry »

What’s adverse credit and how can it affect you?

Normally mortgage companies salivate for your business, but if you’ve a poor credit history they’re more likely to spit. They want to lend you the money, and reap the cash in safety.  Any hint of risk and they run or raise the price.  It’s not personal, just the result of computer predictions of your behavior.

Adverse credit can mean anything that doesn’t follow the usual pattern.  It used to mean you were forced to pay hugely over the odds, but increased competition’s changing things.  Read the rest of this entry »

What determines the size of mortgage you get and how you pay it off?

How do you switch a mortgage from property to property?

There are generally two things will determine how much mortgage you get:

1. Obviously, how much the property you want to buy is. If it’s £100,000 and you have £10,000 yourself then you’ll need a mortgage of £90,000. Typically, most lenders will only lend you a maximum of 95% of the property value (i.e. £95,000 in the example above) but some are 99%, some 100% but expect to have to pay them extra for this. Read the rest of this entry »

What documents you need to provide to get a mortgage in the UK?

Are you wondering what documents mortgage lenders will ask you to dig out to prove your earning, address etc.? Are the document requirements any different for online banks/lenders?

First you need a broker to find the best mortgage compatible for you. Go by recommendation. He / she will tell you to bring your passport and proof of income documents. If you want to save time get your own credit search done then you don’t have to wait so long for confirmation and offer. Read the rest of this entry »