mortgages

Financial Planning and Management

With the current economy, it is necessary for individuals to be very precise in their budgeting and financial planning. This will ensure that you do not find yourself in deep financial crisis. From a student to the working class community, a sound financial plan is essential so that at any one point, your expenses are never higher than your income. Apart from the need to meet daily expenses with the limited income, financial planning also helps in making long term decisions that shape and determine our future.

Obtaining Funds for Your Business

Being materialistic is human nature, as we all want to be rich so that we can enjoy the finer things in life. If you want to get that dream car or dream house, your blood and sweat should earn that for you as there are no shortcuts to success. When starting a business, getting the needed funds to get your business to take off can be difficult. It is important for you to first understand the lending market for you to be sure to approach the lending institutions that best understands your needs. The growth and diversified services of the lending market have provided tailored services for every individual who needs funding.

OneimageMortgages

A good mortgage plan is also among the most sought things as it is every person’s dream to own a good home. With time, people get tired of paying rent every month and all one wants is a nice backyard where you can enjoy a nice quality time with friends and family. For you to be eligible to receive a mortgage, you have to show that you have the capability to handle your money. Your level of debt reflects how responsible you are in handling your finances. How you pay your bills without forfeiting will also show that you have no credit problem and you will easily qualify for a mortgage.

Holidays and Vacations Aftermath

Having a good financial plan will also cushion you during holiday’s aftermath like after Christmas, a summer vacation and many other holidays. There is always the crisis that most people face when kids are going back to school as normal life resumes after the holidays. Making a good budget and saving for the holidays will always make sure that you are not in debt when you need money the most. From a business perspective, a drop in profits is experienced during low seasons as well. Many malls, shop outlets and supermarket chains witness a drop in customers at specific seasons of the year. Budgeting in this economy is necessary to make sure that such market shocks do not affect your business.

Professionalism

There are many reliable and credible financial advisors out there who will give you expert advice in multiple fields. Whether you need advice in personal finance, budgeting, handling inflation and other basic lifestyle tips, you should seek the help of professional financial advisors. One of such experts is Buddy Loans, a UK based lending firm that is authorized to carry out its activities by the Financial Conduct Authority. The company also has a very informative blog where you can keep yourself updated with latest in financial industry including some really professional infrographics.


What Are Some Typical Eligibility Requirements For Mortgages?

If you’ve ever been denied financing for a mortgage you know how deflating it can be. You may feel ready to move onto the next step and own your own home, but lenders don’t see you as a good investment for whatever reason, and it’s not a nice feeling at all.

However, before you get too bent out of shape about it, it’s probably a good idea to look at the situation a little more analytically and less emotionally. Emotions tend to get in the way when you’ve been denied for a mortgage. Keep in mind it has nothing to do with you personally, and it’s all about business.

A Business Decision

When a lender decides not to approve your mortgage, it is a business decision. It’s easy to get caught up in the thought of big corporations flexing their muscles and squashing the little guy, but think of it as if the lender is a person. If someone lends somebody else money, they want to do so feeling confident that they’ll get that money back someday.

You would be reluctant to lend someone money if you weren’t confident they could pay it back, and a big lender is the same. If your credit score or a handful of other factors aren’t what they’d like to see, you may be denied. And remember, the numbers, current situation and your history are all they have to go by when making a decision. Take a look at some of the typical eligibility requirements to make sure everything is in order.

Good Credit Score

A decent credit score is usually one of the requirements when looking for a mortgage. It doesn’t have to be perfect, but each lender will have a number in mind that they’d like yours to be before they give the green light. Credit score is affected by things like not paying your bills and debts, bankruptcies, consumer proposals and similar things.

Income

This one may seem a little obvious, but steady income is definitely a must if a lender is to believe you will make good on your mortgage. And the longer you’ve been at a particular job the better. It’s never a bad thing if you make a lot of money, but your income in relation to how much you owe is more important. A high income with even higher debts won’t do you any favors.

Low Debt Levels

And that is why your debt levels should be low in comparison to your monthly income. Your debt to income ratio must meet the current requirements or a lender will determine you can’t add to that debt amount and still make all your payments. Remember, they are in the business of making money.

Minimal Credit

Too much debt can put the brakes on your mortgage approval and so can too much credit. If you have multiple credit cards or lines of credit, they may be seen as your ability to run up a large amount of high interest debt. You might be the most responsible person around and have no intention of ever doing that, but the lender doesn’t know that. All they see is that you have the potential to use lots of credit. Talk it over with your mortgage broker ahead of time and consider closing a few outlets if necessary.

Are You Extended?

Not being a co-signer on anyone else’s loans is often a factor that results in a mortgage being denied. Even if your child or sibling or friend always pays on time and is in good standing, if they default that lender is coming after you for the balance.

It’s nice to help people out, and if all of your numbers are what they should be you may still be able to get a mortgage, but it is definitely something to consider. If you already have a home and don’t plan on getting another, you have nothing to worry about.

Create a Strategy

One of the keys in the mortgage approval business, is figuring out any potential issues before you dive in with both feet. Don’t just assume that everything is great because you have a job and don’t have a pile of debt. Take a look at possible sticking points and then address them prior to applying for a mortgage.

If it seems like some of the more conventional lenders have an issue with you, think of using a broker who has access to many different lenders. A good mortgage broker usually isn’t bound by certain products or systems and they can often find you the deal that you want.

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The author of the article is Jeremy Benson. He has been writing about finance, mortgage and Canadian law since 7 years. Blogging is one among his greatest passions. Follow him on Twitter@jeremybenson19.


How Can I Improve My Mortgage Credit Report?

There’s a new buzzword around town. And that buzzword is “mortgage credit report.” And it’s definitely in your best interest to pay attention to this new buzzword. Because if you ever hope to buy a home it is vital to know how important these mortgage credit reports truly are.

Mortgage credit reports explained

mortgage_card_explainedSo let’s start off with the basics, shall we? In order to recognize how important mortgage credit reports are, you first have to understand what they are. They really are a basic concept. When mortgage companies are considering you for a mortgage loan (and deciding what interest rate they will charge you), they want copies of all three of your credit reports. If your husband/wife will also be on the loan, they want copies of all three of their credit reports also. That equates to pages and pages to analyze in their loan acceptance process. That takes too much time.

So, in come Mortgage Reporting Companies. Instead of your mortgage lender having to pour over these endless pages of credit reports, they hire these mortgage reporting companies to do that for them. Mortgage reporting companies order copies of your credit reports and consolidate them into one report. This consolidated report created by the mortgage reporting company is called, you guessed it, your mortgage credit report. It is the information found in this report that is used by mortgage lenders to decide your acceptance or denial for your loan, and of course your interest rate. Everything to do with your mortgage loan rests on the information found in your mortgage credit report.

Ways to improve your mortgage credit report

Now that we’re all on the same page of understanding the importance of mortgage credit reports we can get down to the reason why we’re here: discussing how we can improve these reports. First things first, you are probably wondering how to access your mortgage credit report. As of right now, the only way for you to access your mortgage credit report is if you’ve already been issued a mortgage loan. If that is the case, then your mortgage credit report should be included with your closing paperwork.

If you don’t already have a copy of your mortgage credit report, don’t fret. You can start by accessing copies of your normal credit reports from the three major credit bureaus (Equifax, Experian, and Transunion). If you are wanting to improve your mortgage credit report this is probably your best bet anyway, because the information found on your mortgage credit report is pulled from your major credit reports anyway.

Now on to improving these reports. There is no way to go about particularly improving your mortgage credit report on its own. That is because, as explained above, the information found on it is pulled directly from your other credit reports. So if you want to improve your mortgage credit report, then you would go about the same processes and steps that you would use to improve your normal credit reports and scores. As your normal credit reports improve, then so will your mortgage credit report. So, the typical steps that you would use to improve your credit, including paying your bills on time, paying down balances, working with a credit repair company if needed, etc, will all also help to directly improve your mortgage credit report.

That is the good news! You don’t have to take any extra separate steps to improve your mortgage credit report. It really is that basic: if you want to improve your mortgage credit report, then start by focusing on improving your basic credit reports. As you see improvements in your normal credit reports, your mortgage credit report will simultaneously improve. This new and improved mortgage credit report will help you to find easier acceptance on a mortgage loan, as well as lower interest rates for your new home.

This article was contributed by Chase Sagum. Chase writes about credit repair and personal finance issues/opportunities.

Image credit: http://www.flickr.com/photos/68751915@N05/6808984167/


Avoid Bankruptcy with these Helpful Tips

Avoid Bankruptcy with these Helpful Tips

The decision to file for bankruptcy should never be taken lightly and should only ever be considered as a last resort. Dealing with unmanageable debt, before it’s too late, is the key to avoiding bankruptcy. For some great tips on how to regain control of your finances, follow our guide for avoiding bankruptcy below.

Devise a Money Plan

The reason why most people become in debt is simply because they are spending more than they are earning. Understanding the incoming and outgoing of your money can help you to determine where you are spending too much and where you could be saving. Create a budget that outlines your expenses for monthly, weekly and daily intervals. Creating the most straightforward approach to understanding your money is the key to success.

Take Steps to understand your Finances

Money calculators and professional advice can help you to better understand your finances. While budgeting is a step in the right direction, for better understanding your finances, taking measures to compare existing loans and investments can help you to save a great deal of money. If you’ve had the same personal loan and credit cards for many years, for instance, you may be surprised by what is now on offer in the market. Finding better value loans and credit cards can save you thousands of dollars each year.

Understand Bankruptcy

While in some cases bankruptcy is unpreventable, it is important to understand the seriousness of filing for bankruptcy. In Hollywood movies, bankruptcy is often glamorised, making it appear to be a win-win situation for people struggling financially. The reality is, however, that bankruptcy comes with many consequences that may affect your life for many years to come. If you do become bankrupt, many of your assets are likely to be sold, such as your house, motor vehicles and any shares you might own, including assets which have been purchased with another person.

As aforementioned, sometimes bankruptcy is unavoidable, but understanding the consequences can help you to see the importance of staying out of debt.

Create a Plan of Action

Plans are basically useless until they are put into action. Creating a budget and analysing various loans is great, but you must take the steps to ensure that changes are being made. Your budget, for example, will only be successful if you stick to it. If you are having trouble maintaining your new budget, make a plan to talk to a debt solution specialist who can assist you in creating a budget that works for you.

Determining your financial goals and planning around these will help you to discover what needs to be done. There are a number of different ways to eliminate existing debt, so be sure to explore every avenue. Debt consolidation lenders can provide invaluable assistance for reducing your debt, while saving you thousands of dollars each year, through decreased interest rates and lower repayments. Once you have devised your plan of action, it is time to set the wheels in motion.

Tara Blair is a personal finance, business and travel writer from Brisbane, Australia. She says that the decision to file for bankruptcy should never be taken lightly and she recommends people consider looking at debt consolidation lenders as a solution to their problems.


Tips to Consider When Choosing A Professional Mortgage Broker

Tips to Consider When Choosing A Professional Mortgage Broker

The decision to use the services of a professional mortgage broker is a wise one. A broker can assist you in shopping around to find the best loan terms possible for your upcoming purchase and refinance loan request. This can help you to save money on your loan over the long run. Further, a broker can also walk you through the entire loan process to ensure that you enjoy a smooth, simplified transaction. As beneficial as a broker can be to your purchase or refinance loan request, ultimately, finding the best professional to work with can enhance these benefits. When selecting the right broker to assist you, keep a few key factors in mind.

The Broker’s Specialty

Applying for a mortgage loan may seem like a cut-and-dry process on the surface, but the fact is that there are a wide range of loan programs, property types and special considerations that make many loan requests unique. Consider, for example, that the loan request of a person who has excellent credit and who is refinancing their home may be far different than the loan request of a person with mediocre credit who is buying a duplex home to use as an investment property. Some brokers have specialized in certain types of loan requests, and you may find it beneficial to work with a mortgage broker whose specialty is suited for your loan request.

The Broker’s Experience and Background

While there typically are licensing requirements in place that must be met before a person can become a broker, the fact is that some brokers have considerably more experience and education in this area than others. For example, some may have a degree in business or finance. Others may have a real estate license, or they may have a decade or more of real-life work experience in the industry. Choosing a broker with experience can provide you with the best results possible from your loan request. You can typically research a broker’s experience, educational background, industry certifications and more online. They may have a social media account that has details about their background, or you can visit the company’s website for specific information.

Friendly and Helpful Rapport

Perhaps one of the most significant factors to consider is the broker’s desire to help you find the best loan possible. While it is unfortunate that some brokers will only make a minimal effort to find a loan that meets your needs, others will go above and beyond to ensure they find you the best loan possible for your needs. This involves taking time to listen to your needs and to learn more about your loan request. By looking for a broker that takes the initiative to service you during the initial stages of the loan process, you can more easily find comfort in knowing the broker will walk you through the entire process with the same attention to detail.

There are numerous mortgage brokers who you can choose to work with for your purchase or refinance loan request. While you could draw a name out of hat, you will enjoy better results throughout your loan process when you keep these tips in mind and make the best choice possible.


How To Save Your Mortgage With The Right Bank Account

How To Save Your Mortgage With The Right Bank Account

Most people are fairly indifferent about their bank account. Which is a mistake, really, since the right account can help you immensely during hard times. Especially if you’re dealing with financial conditions that threaten to deny you the opportunity to meet some of your most basic financial needs and goals, at least knowing that your money is at the best possible place can be a great source of support. One of the most typical situations can arise after taking on a mortgage. If you should feel pressured by your bank and be unsure about whether or not you will be able to re-pay the loan, the worst possible thing, meanwhile, is to avoid facing up to your problems. Instead, you should start looking for solutions straight away.

Rekindling Of the Repayment Plan

There are some steps that you can take in order to be on the safe side. The most important aspect of all is to see eye to eye with the bank in formulating a concrete solution and then showing full compliance after both sides have agreed to one. One possible idea is a rejuvenation of the repayment plan, which can entail the bank allowing you to make payment of the past debts as a lump sum after a certain amount of time has elapsed. This is a process that may be tricky to deal with, but can certainly be worth the effort.

Adjustment of the Mortgage Plan

The bank can also, in close co-operation with you, decide to make some changes with regards to the terms of the loan agreement. By making some subtle tweaks, you may be able to pay back the mortgage loan after all and thereby avoid having to enter individual insolvency. In such a case, the bank may even consider eliminating or at least considerably improving some terms that were outlined in the original mortgage plan. Ultimately, the bank has the authority to decide on which options to modify. They might decide to lower the interest rates or extend the term of the loan for some couple of years, for example. Or they may decide to add the past arrears to the current loan balance. Whatever they come up with, however, they will need to take your concerns, needs and financial capacities into consideration as well, since it will eventually be you who’ll have to carry the consequences of the new deal.

Obtain Mortgage Insurance

It may be hard to believe that one can acquire a loan without paying back with interest. And yet, it is possible. If you’ve taken out a mortgage insurance, you stand a far better chance of obtaining a loan from the guarantor without being charged the interest. There are some fees that are incurred through this whole process, but as with the option of rekindling your payment plan, they’re worth it. After all, nothing beats the feeling of knowing that you’re safe from a foreclosure.

As you’ll have gathered from these information, a good and personal contact with your bank is essential for the success of your mission. You can start with making a good impression by taking out a guaranteed bank account instead of your current account. These accounts do not offer overdrafts, which is a clear sign for your creditors that you intend to live more frugally and meet your financial requirements in the future. In some cases, it can even help repair your credit rating. Which only goes to show, again, that the last thing you should do is remain indifferent about which bank account to go for – after all, they really can make a difference.

This article was written by William Masters in association with eccount money, a leading service provider of online bank accounts. Liverpool-born William Masters is known as one of the more unique voices on the scene for finance journalism. Masters lives and works in London.


How Much House can you Afford?

How Much House can you Afford?

mortgage_loanWhen the economy in the United States started to take a turn for the worse in 2008, the housing industry was at the forefront of the problem. Being a bit more specific, it was the mortgage industry that took down a good amount of once-profitable banks, throwing the whole housing industry into turmoil. But how could one industry knock down the strongest economy in the world?

Cause of the Problem

The simple answer would be greed. Both lenders and homebuyers were greedy during the housing boom, as banks often lent money to those who could not afford the monthly payments. Banks and the media sold the idea of the American dream to homebuyers, and approved those same people for amounts that were much higher then they truly could afford. In turn, foreclosures started to pile up at an alarming rate until the banking industry could no longer afford the new amount of failed mortgages.

The good thing about history is that people can learn from the mistakes of those before them and hopefully not make the same ones again. Those who are looking to purchase a home, now that the market is starting to rebound, need to really sit down and analyze their budget to truly make sure that a new mortgage payment is within reason. But there is more to a affording a new home then just the amount of the mortgage.

How Banks Qualify a Lender

Banks use something called a debt-to-income ratio to determine how much of a monthly mortgage payment someone can afford. The ratio takes all of the potential homebuyers secure and unsecured debt, such as credit cards, auto loans and personal loans, and adds up the monthly payments on those. Then, the lender takes the total monthly income of homebuyer to come up with a debt-to-income ratio. If someone’s expenses were $300 from an auto loan, $100 in credit card payments and $75 for a personal loan, the total expenses would be $475. For this example, we will use an income of $4,000 a month, so the ratio would be 475 to 4000, or about 12 percent.

Most banks want the homebuyer to satay under 36 percent, including the new home mortgage. FHA loans, or Federal Housing Association loans, will stretch the percentage to 41 percent; however, they require the borrower to take out additional mortgage insurance on the loan. So, in the scenario above, that homebuyer could qualify for a payment up to around $1,000 a month, since that would bring the debt-to-income ratio to around 36 percent.

Hidden Costs in Owning a Home

Even though a person may qualify for a mortgage of a certain amount, that doesn’t always mean that they should max out the amount they were approved for. Besides the mortgage payment, a homebuyer has a lot more to consider when purchasing the home. First, they will have to purchase homeowner’s insurance, raising the cost immediately. Also, utilities may be more expensive at the new home compared to the old one, especially if the home is larger. Plus, if they are renting now, they may not have to pay all the utilities, but if they pay a home, all the utilities will be their responsibility. Finally, a new homebuyer needs to understand that the new home may have large, unexpected repair bills like a leaky roof or foundation. If they are smart they will have the problem fixed the right way by a pro like Tredent Contracting and it can put a strain on the budget unless they are prepared for it.

If a homebuyer truly wants to make a smart decision to avoid foreclosure, they should make a budget and come to a number they are comfortable with before even being approved by a lender. Then, as long as the lender approves the buyer for the predetermined payment, the homebuyer will be more comfortable knowing they can afford the payment. The main point for them to remember is to stick to their budget and not get caught up in the emotions of finding the “perfect” house and over spending.

Owning a home is still the American dream, and it is still within grasp for those who make wise decisions with their money. A buyer just needs to be smart and realize what they can afford before they jump into owning a home. When buying a home, the buyer just needs to make a conscientious, calculated decision, and they will be able to enjoy their home for years to come.

Bought the perfect home but can’t manage the lawn? That’s why Aaron Gordon writes on behalf of Champion Yard Service, where their services include Seattle lawn mowing.


The Benefits of Reverse Mortgages

The Benefits of Reverse Mortgages

Reverse mortgages are way for retirees to release part of their home equity in the form of either a monthly payment, cash lump sum, line of revolving credit or a combination of all three. These mortgage products have grown in popularity since their creation and now there are over 600,000 loans outstanding at the moment. Although a reverse mortgage may seem like the ideal solution for anyone looking to release some capital from their house and fund their retirement, there are still some significant risks that you should fully understand before you buy. Before we delve into some of these unexplored risks, it is worth recapping on just how reverse mortgages work as well as their benefits and how they are helping hundreds of thousands of retirees finance a comfortable retirement.

The aim of many home owners is to have their mortgage paid off by the time that they retire so that they outgoings are significantly reduced and they have more cash to spend. Although this makes complete sense from a financial planning point of view, some retired home owners find that they are actually asset rich and cash poor which means they have little spare capacity for enjoying their retirement. This is why decades ago a financial product was launched that meant that those over 62 years of age who own a significant percentage of their home (over 30%) could release some of that equity to find their retirement.

There are currently about 70,000 reverse mortgages issued every year even though only 2-3% of eligible American home owners are estimated to be eligible. One of the main reasons for this is that there are significant feel associated with reverse mortgages that means that such a product is only suited for those who plan on living in their home for a long time. If you borrow a small amount over a short time horizon then your fees as a proportion of your loan total will be high upon closure. Having said that, if you borrow over a long period of time then these fees (although often high) can be rolled into the cost  of the reverse mortgage and so can be paid back upon closure.

One of the reasons that reverse mortgages are so popular is that they are non taxable and also don’t impact your Medicare or social security benefits. You also retain ownership of your home until the point of closure and also because there are no monthly fees to pay monthly on the actual loan principle then retirees are free to spend their cash on things other than debt servicing.

How much you can borrow for a reverse mortgage depends upon several eligibility factors. In general, the older that you are, the higher the amount of equity you own in your home and the smaller the amount that you actually still owe on the property, the greater the amount that you will be able to borrow.

One of the best ways to use a reverse mortgage is if your current property has appreciated in value. Instead of taking out a loan secured against the new value of your home you can use a reverse mortgage to release that equity in a controlled manner to help pay for things like home based care, home repairs/improvements or health costs depending on your needs and the financial product that you opt for. Single purpose home reverse mortgages are mortgages that have one purpose specified by the lender and as such they are usually the cheapest options as they pose less risk for the lender. They are not provided by many banks but are a good way of releasing the capital tied up in your house if you know that you need cash for a specific purpose only.

There are however some significant risks to reverse mortgages that you should be aware of. Most providers will require you to keep your home in good repair, pay your property taxes and purchase home insurance. If you fail to keep to the terms of their lending then this may force and early closure of your agreement and you may be forced to pay back the value of the loan, plus interest and fees much sooner than you anticipated. For most people this would require selling the property in question and trying to find a smaller house after the reverse mortgage has been paid off.

If you would like any more information on reverse mortgages then the FTC.gov internet portal has a wide range of resources aimed at clarifying the different types of reverse mortgages as well as the benefits and risk factors involved. If you would like more information regarding home insurance, then over 50’s specialist Castle Cover was able to help me find a home insurance that catered to my needs.

Thank you for reading


Types of Mortgages in Singapore

Types of Mortgages in Singapore

Ever get confused by the massive amount of home loan packages that bankers sent you? In Singapore, there are more than 20 banks and financial institution that proves mortgages to home owners and the total amount of packages that they have would probably come up to about a hundred.

In general, home loan packages can be break down into 3 main types, fixed rate, variable rate and interbank market pegged.

1. Fixed rate

Your mortgage rate is fixed for a certain period of time, say 2years, 3 years or 5 years at a certain rate. The interest rate on your home loan reverts back to a variable rate after the fixed rate term. Typically the bank will required you to be locked in with them during the fixed rate period.

2. Variable Rate

Your mortgage is pegged to a bank’s variable board rate (BR) minus a certain discount, example. BR 4.5% – 3.2% = 1.3%. The discounts off the Board rate are usually tiered down in the latter years. You typically enjoy greater discounts within the lock in period with the bank.

3. Interbank Market pegged: Sibor and SOR.

Also a class of variable rate, but offers full transparency to borrowers as your mortgage rate is pegged to the interbank market rate.

Sibor stands for Singapore Interbank Borrowing Rate and SOR stands for Swap Offer Rate. Both rates are publicly available in the newspaper and the internet. Banks charge a certain mark-up spread over the Sibor or SOR rate. The Sibor / SOR rate is the cost of funds while the mark up spread is to cover bank’s operating cost with the nett of it as its profit.

Article by Keff : Mortgage Supermart Singapore. For a discussion on the best financing solutions for your Home loan financing, visit us at www.sgmortgagesupermart.com.


Mortgage Loans Explained – Advice for First-time Buyers

Mortgage Loans Explained – Advice for First-time Buyers

Taking out a mortgage can be a difficult process for first-time buyers. Representing a loan tied to the value of a property, which is paid back with interest over a fixed amount of time, a mortgage is essential to buying a house. Banks and credit agencies may be less likely to approve a favourable rate of interest, while you may also find yourself tied down to a long term deal. Most mortgages will include either a fixed rate for a limited time, which will then become a standard variable rate, or will be capped and relative to changes in national interest rates.

It is important to be careful to get the right kind of mortgage for the property that you want, as well as understanding how you might be able to benefit from other schemes targeted at reducing mortgage pressures for new buyers. Buying a house with a mortgage loan consequently requires you to think about some of the following approaches and issues

1 – Shopping Around

As with any kind of finance, it is important to shop around as much as possible for the right mortgage deal. Advice should be sought from a number of different banks and credit agencies, while it is also recommended that you spend time using online valuation sites and price comparisons to make sure that you are receiving the best mortgage deal. At the same time, be aware that most credit agencies and banks are having to raise their standard interest rates as the result of the economy, and that you will often have to compromise to get the right kind of mortgage from a lender.

2 – Know the Details

Never enter into a mortgage contract without understanding how much you will be expected to pay, and what the terms and conditions are. A fixed rate mortgage might seem like a sensible choice, but may require a higher initial deposit, as well as being likely to become a variable rate mortgage after a few years. If deciding to take on a mortgage where the interest rate is tied to national base rates of interest, you also need to be aware of the risks of investing in the future of the economy.

3 – Understand Other Costs

As well as paying into a mortgage, you will have to add on a number of other costs associated with buying a property. These costs can range from everything from surveying and conveyancing fees through to valuation costs, and stamp duty taxes.

4 – Look Out for Support Schemes

There are a number of schemes aimed at first time home buyers. Perhaps the most notable recent addition to these schemes has been NewBuy, whereby the Government and builders will act as co-guarantors for a mortgage loan, allowing you to pay a higher deposit and agree a long term deal. The Government benefit from stimulating the housing market, while builders can receive assurances of long term new home building. While these contracts can lead to long term payments and the same vulnerability to interest rate changes, they do offer one way to get onto the property ladder.

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