Mortgage Features - Loan, Mortgage, Remortgage, Secured
Getting stung by fees
There seem to be an endless list of fees when taking out a mortgage, some of which can be avoided by shopping around. These include booking, administration or arrangement fees, which may be charged when the mortgage is being set up. Valuation fees will be charged when the lender decides to value your home. Legal Fees are also a must as you will need a solicitor to make the process of a new mortgage or remortgage official. Mortgage Indemnity Guarantee (MIG) or Higher Lending Fee may also be charged if you only have a very small deposit or you have none at all. However, some of these fees may be discounted or withdrawn as an incentive to sign up to that mortgage product. Valuation fees in particular may be free, refunded or discounted as an incentive.
TIP: Most customers should avoid products with MIG fees.
TIP: Some fees may be refunded, so look out for the offers. However, a product with waived fees may carry a higher rate than one without and will probably cost more in the long-term.
Are you sure about insurance
Many lenders will offer or include buildings and contents insurance. Some lenders will also offer Mortgage Payment Protection Insurance (MPPI), which will cover you for accident, sickness or unemployment (ASU). As is the case with many financial products, you may be able to get a better deal on insurance from somewhere else, such as an independent broker.
Risky business
If your credit history is not something to shout about, you may find getting a mortgage a little tough going. This will include anyone who has mortgage arrears, where they fall behind in their payments, has been bankrupt, has a County Court Judgement (CCJ) against their name or has defaulted or made late payments. However, there is a whole market for people in this position, and it is growing by the year. Your rate may depend on how many marks you have against your name or how long they date back As you would expect though, the rates are going to be higher than standard mortgage rates because of the presupposed risk involved.
Self-employed people or self-certified borrowers who do not offer proof of earnings are also likely to pay more, as once again, they fall under the higher risk category.
Back to Homeowner Loans
Would you like to know more?
The Basics | Making Your Mortgage Work | Mortgage Features | Other Mortgage Types
Related Articles
|
Homeowner Loans - Industry Boom Forecast After Recession |
|
Industry Boom Forecast After Recession
As the UK economy continues to contract and shrink, with some forecasts predicting that the economy will shrink by 3.5% in the coming year, and with the fabled green shoots of recovery continuing to prove illusory, it might be premature to start to consider what...
Read Full Article »
|
|
|
Homeowner Loans - Is Britain Going Back To Its Roots - Seeds Are Worth More Than Gold |
|
Is Britain Going Back To Its Roots - Seeds Are Worth More Than Gold
It is a little known fact that in a time of recession lipstick sales boom. It is true. In Britain at the moment unemployment might be fast rising, economic growth continues to shrink at an accelerating rate and consumer confidence...
Read Full Article »
|
|
|
Homeowner Loans - What If I Go Into Negative Equity? |
|
Negative equity occurs when the market value of a property falls below the value of mortgage and other loans secured on that property. Until the onset of the so-called "credit crunch" that started in the sub-prime mortgage market in the United States in the middle of 2007, house prices rose much faster...
Read Full Article »
|
|
|
Homeowner Loans - Is a Secured Loan Better for a Homeowner? |
|
A secured loan, as the name suggests, is "secured" against an asset. In other words, secured against something of value such as a property, motor vehicle, etc. that a lender can take possession of and sell to recover any outstanding amount if a borrower defaults on the loan. The provision of security...
Read Full Article »
|
|
|
Homeowner Loans - Homeowner Loans |
|
Homeowner Loans
Secured loans explained
It’s easy to get confused by financial jargon. So what exactly are secured loans?
It’s not easy trying to navigate the choppy waters of loans. But if you don’t understand the different kind of loans available and what that means for you, it could end...
Read Full Article »
|
|
View All Articles
Useful Financial Links
Please find below some links that you may find useful from JST Financial. These links are to external sites and will open in a new window.
If you know of any other links that you believe may be of use to our visitors, please contact us.