How do I pay my mortgage if I have lost my job?

Now this is the big one! If this is a pre-emptive search and you are still currently working and are just afraid of what might happen in the future, you may consider looking into ASU insurance (Accident, Sickness and UNEMPLOYMENT).

If you have not taken out an ASU plan and have unfortunately become unemployed, you may now be worried about how you will pay your monthly mortgage repayments. This article hopes to go over a few of the basics and give you resources in which to find further information, hopefully this will help to alleviate any unrest that you might be having.

Okay, first, the scary bit! You must do everything within your power to not gain further debt. If the lender/bank believes that you are not trying to tackle the situation and they see you enquiring more debts they may take you to court in a bid to reclaim the property so as to cover their potential losses. If you are already deep in mortgage debts and your lender has stopped being friendly and started with threats of court action and legal procedure then you MUST speak to an appropriately qualified debt adviser, the best way to do this is to speak to citizens advice bureau. Find your closest office HERE.

Now if you are claiming benefits to help cover costs whilst you’re unemployed then you are entitled to help with your mortgage from any of the following benefits:

  • Pension credit
  • Income based Job Seekers Allowance
  • Income Support
  • Income related Employment and Support Allowance

The support you will receive is called housing costs. The biggest problem with housing costs is that it only pays a standard rate of interest; this will not change no matter how high your mortgage interest rate may be. Solely as an example, say your interest rate was 4%, they may only cover 2% (Remember, this is just an example actual rates will vary). Another drawback is that it will not cover any capital repayments on your mortgage; it will only help towards the payment of the interest. It is advisory that you keep your lender in the loop the entire time. If you are seen to be making extra effort in the way of resolving the issue this may set to benefit you if any legal procedure should follow, the lender/court may take a more lenient approach in dealing with your situation if you have done everything in your power to resolve the issue. Citizens advice Bureau advise that you may even want to ask your lender if they would be willing to “accept the housing benefits for the time being until you can make up the full amount at a later date” which is something that is definitely at the very least worth a try.

Now unfortunately unless you are over the age of 60 you will have to wait approximately 13 weeks before your housing costs will be paid, if you are over 60 they can be paid immediately.

Here below are some resources for further information such as mortgage rescue schemes:

If you are interested about enquiring as to ASU INSURANCE products please click HERE for more information. We hope to have helped alleviate any confusion, stress or worry that you may have been encountering. If you would like to enquire about ASU insurance please feel free to call us or contact us via our website HERE.

Now, the legal bit - DISCLAIMER

The information provided is subject to change and although MortgagePro actively seeks to make the information provided on this page as accurate and as concise as possible MortgagePro makes no claims, promises, or guarantees about the accuracy, completeness, or adequacy of its content. We disclaim any liability for any actions incurred from this information, errors or omissions in the contents of this page and you should always seek further professional advice.

Kind Regards,

James

www.mortgagepro.co.uk

Five most common mortgage enquiry questions

A few days ago I asked a good friend of mine Errol Dane the mortgage & Protection executive here at Mortgage Pro and the financial advisor for myself; “What are the most common questions that you receive from our clients seeking mortgage advice?”.  Not only did he give me the questions, he answered them! His answers were so good in fact that I felt duty bound to get him to write them up so that I could then forward them onto you!

Here are Errol’s Q&A’s in his five most common mortgage enquiry questions.

How much will it cost per month?

So you found a house, congratulations! The monthly payments are your most important aspect as this will dictate how much money you left over each month. It is extremely important to remember that 25 years is not the only mortgage term available, in fact, reducing the term by just 1 or 2 years will in most cases make very minimal impact on your monthly repayments. This reduction will however make remortgaging earlier considerably easier, as you have paid less interest and a larger portion of the mortgage balance down. In all cases it is best to round the term down as opposed to up, you will be thankful you did in the years to come.  Do you want it to be £50 per month more now or £750 per month for an extra 2 years!?

How much can I borrow?

Well, this is the big one! It is entirely dependent on income and outgoings. Lenders will reduce your borrowing power by the amount of outstanding debt but this is by no means a simple equation. I strongly advise that you look as deep as possible into this before you decide to look at the open market. You will also find that almost all on-line customer based mortgage websites will have restrictions on their affordability calculators, so it is very unlikely that you will truly see how much you can borrow on an entire market overview. In a non-biased manner, I advise that you speak to an entire market FCA regulated mortgage brokers such as ourselves. This is one of the most effective ways of quickly finding your eligibility on a variety of different mortgage products.

How much deposit do I need?

This is driven by the price range of the property that you are looking for and equally importantly the type of purchase that you intend on making. There are normal purchases, New builds, Shared ownership, shared equity, buy to let, right to buy, remortgaging and second property. These all have different pros and cons and will therefore have different T&C’s and different requirements for deposits.

How to choose the best mortgage deal?

This is a difficult one! And it really depends on the amount being borrowed. Most mortgages under £150,000 would be better suited to a slightly higher interest rate as long as no additional lender arrangement fees are added, as these can be a percentage of the property value. You then have to consider how long is the term for the product that you are choosing and analysing the impact of the monthly repayments for both options. This can be a minefield to work out on-line as there will be no order except that of the interest rates; which is not the best judgement of a products true value and one that can potentially cost you money.

Should I always go to my bank for financial needs?

Would you shop around for your car insurance? Then you should absolutely be doing the same for your mortgage! Don’t assume that because you are a customer of your bank that they will give you the best possible mortgage product across the entire market. Unfortunately you as an individual are not that important to the banks, however, one of the advantages of utilising a mortgage intermediary is the ability to shop around. This means you will be paying the mortgage provider who is willing to lend you the best available mortgage deal. Furthermore the mortgage processing and paperwork is then dealt with solely by a mortgage broker such as ourselves; no more chasing your mortgage application.

A huge thank you to Errol Dane for providing the content of this article and for being a constant resource of essential and valuable information, you are always very helpful! If any of you would like to contact him directly please email him at errol.dane@mpro.co

As always we here at Mortgage Pro hope that we have helped to provide you with genuine and quality advice. If you would like to contact us for further help enquire HERE at the Mortgage Pro website, call us on 0845 345 4445 or even chat to us via webcam, just click the allow button in the Java box below and you will be contacted via webcam in seconds!

Kind Regards,

James

MPro

www.mortgagepro.co.uk

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Why should I remortgage my home?

This week we have decided to give you eager home buyers some great and useful information on why you should look at remortgagingyour home.

The three most Common reasons for a remortgage are:

The reduction of monthly repayments

This is done by securing a greater interest rate, sometimes from a different lender. If you are currently paying your lender’s Standard Variable Rate (SVR) you may consider remortgaging, as it is very possible that your lender will be able to offer you a much better rate, potentially holding many flexible benefits. If your lender does not offer a greater mortgage rate you could even consider switching your mortgage to a different lender. Although you may have to pay early repayment charges, you could still set to save money in the long run by switching your mortgage.

Raise capital/money

If your personal circumstances have changed, for example the property value has increased or your income has been raised, then you may be able to remortgage for a larger loan. Raising a little extra capital means you will have extra money for larger outgoings such as weddings and home improvements. In many cases it is much easier to remortgage and use the extra cash on home improvements such as a loft conversion than it is to move to a house with an extra room.

Pay off the mortgage earlier

By switching your mortgage and reducing the interest rate, you may be able to afford to pay off the loan much quicker than if you were on the SVR. Especially if you combine this with the tips from our previous article “Get your mortgage paid off faster!”A mixture of these could set to save you a colossal amount of time and money on your mortgage.

Our next article will be a detailed guide on the best way to go about your remortgage, check back here this time next week and let us help you further. We hope to have provided some insight as to why remortgaging can be a great idea, but remember to always think very clearly and thoroughly before you embark on taking out any loans against your home. Thank you from here at Mortgage Pro if you need further help and assistance please click allow in the Java box below and chat to one of our consultants, or if you prefer call us on 0845 345 4445.

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Regards,

James

www.mortgagepro.co.uk

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Get your mortgage paid off faster!

We understand that you want to save money on your mortgage, the best and most effective way to do this is to pay it off as quickly as possible. Unfortunately there is no ‘quick fix’ and we here at Mortgage Pro understand that it is not an easy task. To help you out along the way here are three great tips and ideas for helping you to achieve a mortgage free lifestyle that little bit sooner.

Pay your monthly repayments bi-weekly

This is a great way of paying off your mortgage sooner. The fact is that there is only 12 months in a year, there is however 26 fortnights in a year. So if you divide your monthly repayments by two and pay one half every two weeks you will effectively be paying for 13 months as opposed to twelve. Over a 25 year mortgage you could save yourself 25 months worth of payments and take over two years off of your mortgage!

Switch your lenders

Many people simply forget that they have the option to switch to a product that has a more competitive rate. Be careful however, as you may have to pay exit fees on you current mortgage to switch. Remember also any fees you may have to pay for the new loan, taking into account stamp duty. If you double check the costs of potential fees and compare these with the amount of money that you could save, then it may be worth the effort of switching.

Repay your mortgage as if you are on a higher rate

Firstly you want to make sure that you acquire a loan at the lowest rate possible. Once you have done this start to pay your monthly repayments at a percent or two higher than what they are.  So if you are on a 3% 2 year fixed, pay it as if it was 5%. Not only will this help to pay off your mortgage a little faster, it will also prepare for when the terms of your mortgage change. If as in the above example you are on a two year fixed, after two years you will be switched to the banks ‘standard variable rate’ which will be a higher percentage. But if you have been paying at a slightly higher percentage regardless it may not affect your disposable income too much.

Remember to always seriously consider all of your options before switching or taking a mortgage out and to search the entire market to ensure that you acquire the best deal. If you need further help to save time and money please contact us and we will do all we can to help. We are available by phone (0845 345 4445), via email and even through webcam. Be talking to one of our qualified mortgage advisers in moments, simply click allow in the Java box below.

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Kind Regards,

James

www.mortgagepro.co.uk

How to get the best deal on your mortgage

We strive to always offer clear and UNBIASED advice so here is a brief article on how you can save money on your mortgage. There are three predominant ways of ensuring that you get the best deal, they all have advantages and disadvantages so here is a quick and easy round up of them.

A Mortgage Broker

Using a mortgage brokers such as ourselves is a great way of reducing the workload. Always ensure that any mortgage broker firm that you use offers an entire market overview. This way you get great insight into the vast amount of different lender products that are available on the market. This entire market overview will easily help you to save you a large amount of money. A broker will help you to compare and evaluate the most applicable mortgages for your personal and unique circumstances.

Another clear advantage of using a mortgage broker besides that of saving money is the saving on time and effort. You can organise your mortgage from the comfort of your home via phone, webcam, over email, in office or even getting an advisor sent out to you. All this enables you to do face to face business whilst taking off much of the pressure of searching and comparing.

A decent broker will always be regulated by the Financial Conduct Authority (FCA). These ensure that the financial advisors adhere to the strictest and most professional practises. You can check any brokers that are registered with the FCA via their register number through the FCA website below:

 http://www.fsa.gov.uk/register/firmSearchForm.do

Please by all means check out ours. We are MortgagePro a trading style of The Finance Hub Limited and our registered FCA number is 480862.

The only disadvantage you have from using a mortgage broker is that you pay for the services and advice that you undertake. Although this is may be proportionate to the amount that you can save via using one. Either way, a good mortgage broker will always be clear and honest upon the fees that they charge and should provide a key facts document upfront. This document provides details of everything that you will pay, so be sure that you read and understand this document fully before agreeing to use their services.

Talk to your current bank or building society

If you currently already have a mortgage with a specific bank or building society then it may be possible for you to access special offer rates for your loyalty as one of their customer’s. These can be great ways of saving money, but be very careful. Your bank or building society will only offer you information on their own products; they will not give you an overview of their competitors. So be sure to shop around and compare the information you acquire from your current lender with that of other lenders.

A mortgage comparison table

These can be a great way of comparing the market for things like lending rates and LTV. The only problem with comparison tables is that most can feel like a list of abbreviations and figures. You must consider all of the individual products features and terms and conditions before you can come to an educated decision as to whether the mortgage is the ideal product for your unique circumstances. The key here is to not be pulled in by rates, always read the fine print and do further research into the product.

We hope that you have found this brief article somewhat helpful and please always consider all of your options and financial circumstances before embarking upon a mortgage. If you need even more help and advice please DO NOT HESITATE to CONTACT US. We enjoy providing quality customer service and always provide clear and unbiased advice. You can call us on 0845 345 4445, enquire HERE or even get in touch via video conference, just click allow in the Java box below and you will be connected to one of our advisors in seconds!

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Kind Regards,

James

Mortgage Pro

www.mortgagepro.co.uk

 

Are you struggling to get a mortgage?

There are many reasons that lenders may reject your application for a mortgage. We have decided to shed a little light on the situation, this way, you may better understand your available options or even make some amendments and perhaps bring about changes to your circumstances.

Bad credit score

This one seems obvious, but let’s look more closely. A very common cause of mortgage application rejection by a lender is a bad credit score. Here are different causes for a poor credit score.

  • Believe it or not, if you have never borrowed before this may be a cause for your low credit score. Put simply, they do not know whether you will or will not make any repayments. Predominantly because the lenders have no record of your repayment history.
  • Already have a lot of debt e.g. maxed credit cards and a maxed overdraft limit.
  • You currently have or have had a County Court Judgement (CCJ).
  • You have missed or paid late bills, whether these be utilities or the direct debit for your mobile phone.

Low income

A potential lender will look at your income and make an assessment based on what they believe to be your budget. If they conclude that you will not be able to make the monthly repayments then they will reject your application. If this is the reason you have been rejected then it may be beneficial for you to look into a homebuy, firstbuy or even a shared ownership scheme. These have varied terms and conditions and in accordance to your personal circumstances may benefit you greatly.

Self employed

If you are self employed it may be difficult to gain a mortgage because you have to prove what you earn every year. The best advice that can be given here is to speak to a mortgage broker, as a broker will be able to negotiate with lenders that are not available on the high street, increasing the likelihood of a successful mortgage application. Click HERE and speak to one of our mortgage advisors within seconds!

No money for the deposit

If you have no or a small deposit for your mortgage then this will be another likely reason that your mortgage application has been rejected. The probability is that you will need at least a 5-10% deposit for most lender mortgages.

If you can’t afford a deposit for a mortgage the best thing that you can do is to start a savings plan. HERE is an exceptionally useful mortgage calculator. This will help you to set an amount, goal and a realistic date in which to achieve it by.

Failing that you can always get a guarantor mortgage. This is where a close relative (such as parents) agree to pay for the monthly repayments in the event that you cannot keep up with them.

As always I hope that this brief article has helped to shed some light on your personal circumstances. If you need help pushing your mortgage application through CONTACT US NOW. We are ALWAYS here to HELP and with our video conference technology you can be talking to us in seconds. Just click ALLOW in the box below.

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Kind Regards,

James

MortgagePro

www.mortgagepro.co.uk

Mortgage interest rates explained

So your lender keeps throwing abbreviations and numbers at you like “4% two year fixed rate with 70% LTV” and you sit there and wonder “what on earth does LTV stand for!?”. To help with this, we have created a simple list explaining the different types of mortgage interest rates and have written a small and easily digestible description of them just for you. Perfect!

The first percentage in the above example is the interest rate; this is the rate of interest that you will be paying on your outstanding mortgage.  Fixed rate means that this 4% interest rate will stay fixed for two years before it is changed, most likely to the lenders standard variable rate. LTV stands for Loan-To-Value; this simply means what percentage of your property is being financed by the loan. For example, if you have a 70% LTV, this means that 70% of the value of your property is being financed by your mortgage loan. In this 70% LTV example, if your property value is £100,000 your mortgage loan would be £70,000.

Still with us? GREAT! On to the list!

Variable rate

This is a mortgage where the rate can change at the lenders discretion, we repeat, at the lenders discretion. Many things can therefore become a factor including such things as the economy, current market rates and most likely of all, the Bank of England’s base rate. Be careful when taking out a variable rate mortgage and make sure that you can afford your monthly repayments.

Tracker

A tracker mortgage is influenced directly by another interest rate (usually the Bank of England’s base rate). If the bank of England’s base rate drops, your mortgage repayments will drop. If it goes up, your monthly repayments will go up.

Discount rate

This is usually an introductory offer to entice new customers to purchase from a lender; these rates are tied to the lenders standard variable rate. So if the offer is a 4% discount rate and the lender normally charges you 10% you will only have to pay 6%; although if the lenders standard variable rate increases, this will directly affect your interest rate. So, if the lenders standard rate increased to 15% you would now be paying 11% (with the 4% discount rate). It is important to note that it also works on decreases, so if the standard variable rate dropped to 5% you would only pay 1% as your discount rate would stay the same. 

Fixed rate

As is suggested the fixed rate mortgage is where your interest rate is fixed for a certain period of time, for example two years. After this period of time the lender will switch you onto their standard variable rate, this is usually more expensive.

Capped rate

If you are paying a capped rate mortgage you will be paying the standard variable rate of your lender, if this increases you pay more, if it decreases you pay less. The increase however is capped at a certain percentage, so you will never pay more than that capped rate. If you are careful and have calculated a ‘worst case scenario’ rate (the capped rate) then you should be able to prepare for a ‘worst case scenario’ monthly repayment; meaning you are better informed and more likely to keep up with your repayments.

 We hope that this article has helped to relieve some confusion; we at MortgagePro are dedicated to providing value to our customer’s. So if you need help choosing your mortgage DO NOT BE BULLIED into purchasing with your current lender! If there is a better deal out there we WILL find it. CONTACT US IMMEDIATELY via video conference (click ‘allow’ below) via telephone (call us on 0845 345 4450845 345 445) or even visit our website www.mortgagepro.co.uk for more useful information.

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Kind regards,

James

www.mortgagepro.co.uk

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With lending for mortgages on the up and up, 2013 is set to be a very good time to not just remortgage; but to also make that first conquering step onto the property market. So here is a very useful property valuation widget from Zoopla, it will help you to create realistic expectations for the amount you may need to save and borrow.

If you are a considering aquiring a mortgage please feel free to contact us through our video conference just below. Help and advice is one click away!

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Kind regards,
James Flello
MortgagePro

Why should people use a mortgage broker?

Here at MortgagePro we pride ourselves with being open, honest and friendly. Meaning that we provide our customers with the best mortgage deals regardless of how much commission we may or may not make. WE ARE ALWAYS ON YOUR SIDE! So with this in mind I have generated a small list of the Pros and Cons of using a mortgage broker. Although we are ourselves mortgage brokers, we want this article to reflect our companies values and therefore be as unbiased and as fair as possible.

PRO

TIME

How valuable is your time? If you’re busy working 9-5 Monday to Friday then it becomes very tiring very quickly searching for the right mortgage. Hiring a mortgage broker will save you lots of time and effort. Mortgage brokers will also have many insights into lenders, one of which will be how quick different lenders take to process different loans and mortgages, resulting in the quickest possible turn around for you!

EASIER

Put simply, we do the leg work. Finding a mortgage can sometimes be confusing! Learning terminology, rates, terms and conditions, different features and different insurance policies can be daunting; sometimes it is just easier to pay somebody to do it for you. A great mortgage broker will provide great communication; they should be master of explaining exactly how and why the above involve you. Also trawling through all the latest lender rates and products is not always the most exciting task (trust me, we know, we do it daily!).

UNBIASED ADVICE

A decent mortgage broker will have access to all of the latest deals from all lenders in the market. They should provide fair and unbiased advice on the best and most suitable mortgages for individual clients. This advice should be clear, concise and open; helping customers come to a decision in such a way that they fully comprehend any mortgage or loan that they are about to undertake. This pro should ring true for any financial advice that you seek whether that be from a broker, estate agent, lender or other. You must ALWAYS be able to trust the professional body providing you with financial advice. If you feel you are not receiving the best possible advice COMPLAIN and look elsewhere.

SECURITY

If you feel that the mortgage you have undertaken was based on poor financial advice then you have the right to take legal action and claim compensation. If you undertake a loan on your own however, this may not always be an option.

QUALIFIED

The staff providing legal advice must be trained and qualified to do so. Therefore when you speak to a mortgage broker on the phone or face to face you know that you are receiving professional, quality advice.

CON

COMMISSION/FEE

When you decide to take a mortgage through a mortgage broker you pay for the advice and services that you receive. Mortgage brokers are required to provide customers with a KEY FACTS DOCUMENT detailing all of the fees and commission that they will be charging, so don’t be afraid of any unforeseen charges. Different mortgage brokers charge differently but the two most common are FEES and/or COMMISSION. Fees can either be a onetime fee or a fee that you pay throughout the term of your mortgage. Commission may sometimes be paid by the lender to the mortgage broker depending on the business that they produced through them.

To know whether a mortgage broker is right for you, you first need to ask yourself the following questions. How valuable is advice? How much time will I save? Can they provide me with the best and most suitable loan or mortgage decision? I hope that this article has genuinely helped with your decision. If you have any queries please feel free to call us on 0845 345 4445 or use our online video conference by clicking allow on the box below, you will be connected to one of our advisers instantaneously. We are literally a few clicks away!

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For even more frequent updates why not follow us on Twitter, just click the button ‘follow us’ at the the right of this page in the twitter feed.

If you are a FIRST TIME HOME BUYER why not check out our other blog for useful info: www.firsttimebuyerhelp.tumblr.com/

Regards,

James Flello

MortgagePro

Hypersmash.com

the717:

For those thinking about applying for a mortgage this article provides some good advice on what NOT to do.  This advice comes from the Mint.com Blog.  Mint.com is a great free online/mobile budgeting tool, powered by Intuit, that can securely track your income and expenses.

This article may provide much use for first time home buyers. Also dont forget our other blog. www.firsttimebuyerhelp.tumblr.com