Reduce Your Mortgage Online

There are different types of mortgage products available in the market. Generally, different types of mortgage products are determined on the basis of repayment method. Each of them have their own pros and cons. Here’s a list of different types of mortgages given below:

1)Fixed Mortgage: It is one of the most common mortgage product. It has a fixed interest rate for a designated time period of 2 to 4 years. They might need a slight premium for the security but it reduces the unaffordable interest payments. They are well protected from rate increases.

The few disadvantages associated with this type of mortgage include early repayment charges. You may not be benefited from the interest rate reductions.  

2)Tracker Mortgage: A tracker mortgage tracks the bank base rate for a particular period of time and by a particular percentage like 0.85% above the base rate. But in certain types of mortgages you may need to pay more if your base rate increases. There can be charges for early repayments. In such cases, budgeting becomes more difficult as monthly payments can fluctuate.

3)Variable Mortgage: Variable rate mortgages are those which you generally opt for after the fixed term has ended. These are known as Standard Variable Rate (SVR). They are usually set up 1 to 2 % higher than the base rate. There are no hidden charges in such cases and you need to pay the current rate only to the lenders. Another advantage is that here you do not need to incur early repayment charges and arrangement fees.

It includes certain disadvantages like the budgeting can become more difficult and you are not well protected from interest rates if they increase. Cheaper alternatives are always available.

4)Capped Mortgage: Capped mortgages are based on the lender’s standard variable rate that has a set limit of 7%. You do not need to pay above the capped rate within a specified period of time, even if the standard variable rate increases. The benefits of such mortgage types include knowing the maximum budget rate. You can make a budget knowing the maximum cost. Interest rate reductions can also be beneficial for you.

The disadvantages that it includes are early repayment charges and higher interest than the comparable fixed rates.

5)Discounted Mortgage: Discounted mortgages offer initial discounts on the SVR lenders. For example, for the first two years there can be 1% discount on the standard variable rate of 7%. There are no hidden charges allowing you to make true savings, i.e., the saved interest is not included in the loan.

The main disadvantage of this type of mortgage includes chances of early repayments. Rates may increase back to the standard variable rate lenders after the discount period ends.

6)Flexible Mortgage: They are available only with specific lenders. Commonly known as offset mortgages, they offset the savings balance or the current account against the mortgage amount. Therefore, you end up paying less interest over the mortgage term. You can make overpayments to reduce the loan faster.

7)Cashback Mortgage: Cashback mortgages are mainly designed to pay a percentage of the loan on its completion. Generally, they are more expensive than the other products and are usually linked with variable rates. Chances of early repayment charges are applicable.

These are the 7 different types of mortgage products available in the market. Refer to the mortgage advisers in Bristol dealing with different types of mortgages.

Michael Hatfield offers some important advice on best buy to let mortgage.

Article Source:http://www.articlesbase.com/mortgage-articles/7-types-of-mortgage-products-1399875.html

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Whether you are living in Bristol or any other part of UK, you may have come across mortgage brokers and wondered how to become one. Becoming a qualified mortgage broker in Bristol is not easy. You’ll have to go through a number of stringent examinations. On-the-job training and relevant years of experience in the financial services industry is an asset in this field.

Certifications for Mortgage Brokers in UK

There are some training institutions in UK that offer courses for becoming mortgage brokers. These include:
1)The Chartered Insurance Institute that offers the Certificate in Mortgage Advice (Cert CII (MP))
2)The Institute of Financial Services offering a Certificate in Mortgage Advice and Practice (CeMAP)
3)The Chartered Institute of Bankers that offers the Mortgage Advice and Practice Certificate (MAPC) (only in Scotland)

Role of the Financial Services Authority (FSA)

The above-mentioned courses are recognized by FSA, which is the main regulatory body for the financial services industry in UK. This rule has been laid down by the FSA itself that all practising mortgage brokers in Bristol or any other part of UK must have completed a certified course.

Eligibility

Anyone can study to qualify as a professional mortgage broker. Even if you don’t have a finance related degree you can pursue a course in mortgage advice.

Further Qualifications

Mortgage brokers in UK who have completed one of the several post-graduate courses are easily able to enhance their credentials in the market. A qualification in lifetime mortgages and the Advanced Certificate in Mortgage Advice and Practice are the most important ones in this case.

Experience Matters!

They should also undergo training under the guidance of qualified professional mortgage advisers. Sometimes, financial institutions also sponsor the course fees for their employees who want to pursue such courses that’ll add value to the job. Professionals in this field who are working full time can also study for these courses through distance learning or through private training institutions. However, they have to bear the cost of the course fee, study materials and exams themselves if they are not working for any company.

Employers usually prefer to hire those who have relevant amount of experience in the industry as a financial adviser. However, if you lack experience, a higher level of motivation and people skills can also work in your favour.

Role of a Qualified Mortgage Broker

Once qualified, mortgage brokers in Bristol can opt to become self-employed by starting their own practice. Mortgage advisers in Bristol who are qualified as per the terms set by the FSA are legally authorized to advise their clients regarding:
bank mortgages
residential property mortgages
mortgage brokerage
mortgages in a building society
mortgages related to estate agencies

Continued Learning

After becoming a mortgage broker you can’t stop learning or you’ll lose out in the race for competence. The financial market, especially in UK, has such an ever changing character that it becomes important for mortgage advisers to keep updating themselves professionally. They have to do this by putting in extra efforts through ongoing and structured learning to keep up with the latest developments in the mortgage industry in UK.

Michael Hatfield offers some important advice on best buy to let mortgage.

Article Source:http://www.articlesbase.com/mortgage-articles/how-to-become-a-mortgage-broker-1399878.html

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In general terms, a ‘mortgage’ is a security in terms of real estate that a borrower hands over to the lender in return for a definite amount of money. In case the borrower fails to repay the money, then the mortgagee, that is the lender, has all the rights to sell the property. As far as law related to mortgage on real estate is concerned, it continues along with the property and even if the property is transferred to someone else, then also the lender has the legal right to sell it off and claim the lent out money. A lot of legal complexities are involved in the process and so if you are thinking of letting out a property on mortgage or to strike the best buy to let mortgage, either or both the parties have to seek the services of a mortgage adviser.  

Getting a mortgage loan in Bristol is easy compared to other places in Britain. This is because of the number of good mortgage advisers that one can find in Bristol. Statistics reveal that nearly 66% of people making mortgage applications in Bristol don’t do it through a bank. The bulk applications that get finalised are done through proper mortgage brokers.

Many of us often make the mistake of finalising a deal without taking the proper advice of a mortgage adviser. Mortgage advisers are persons who are specially trained to handle mortgage related deals. They can help one to strike the best deal. Since they are aware of the market and are intermediaries who handle mortgage loans on behalf of an individual or business concern, they are the ones who have the latest information. So, if you are thinking of investing in mortgaged properties or is at the borrowing end, you can obviously take the specialised services of mortgage brokers in Bristol.

As common people, it is not possible for many of us to know the intricacies of a legal agreement. This is where the mortgage advisers in Bristol come handy. The many reasons to hire their services are as follows:

1.A good Bristol mortgage adviser can give serious advice related to the length of the mortgage term, rate of interest, type of repayment, lender service levels and the best rates that are available at hand.

2.They will make sure that you have the rights to the property as long as you want and don’t have to vacate it on a short notice from the law.

3.A proficient mortgage adviser in Bristol will make sure that you have a proper insurance cover in place.

4.They can also guide you in your transactions with the estate agents and take care of all the legal paperwork.

5.They will be involved in constant monitoring of the markets to find the best mortgage property.

6.They will be in charge of handling the lender application form and proper submission of all materials to the lender.

7.A good mortgage adviser will be collecting necessary documents like payslips and bank statements on behalf of the client.

It will be his/ her duty to explain the legal terms and terminologies to both the parties.

Hence, it is quite evident that opting for the services of a professional mortgage broker in Bristol can save both the parties from facing legal hassles in future. They are the best persons to resort to when it comes to filing for Bristol mortgages.

Michael Hatfield offers some important advice on best buy to let mortgage.

Article Source:http://www.articlesbase.com/mortgage-articles/reasons-to-hire-mortgage-advisers-in-bristol-1399880.html

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UK mortgages are funded entirely by credit unions, banks and other financial organizations. The market for mortgages in UK is very competitive, which has led to a variety of mortgage products that are available for borrowers in the country.

Most of the UK mortgages operate on variable interest rates, generally determined by the Bank of England. As the market is very competitive, lenders often offer the borrower certain terms when they are able to pay the rate which differs from the variable rate. Sometimes, lenders offer their borrowers a fixed interest rate for a specified period of time, before they need to start paying for the variable interest rates. Among such things, another common incentive is the discounted rate.

A discounted rate is such a rate which is lower than that of the variable rates. These discounted rates are applied for a specified number of years, which are established by the lenders. These offer true saving without any hidden charges, which means that the interest saved is not added to the loan.

Some lenders in UK offer capped rates for mortgages, having the maximum interest rates which the borrower is required to pay at any time within the term of the loan. In case of capped rates,  there are many early repayment charges. It basically has higher interest rates than those of comparable fixed rates.

At the same time, some lenders offer cash back incentives that are based on the percentage of the amount borrowed from the principal. For example, borrowers who took almost $100,000 with the 5% cash back incentive, will receive around $5000 at the end of the mortgage. These are mainly designed to pay the percentage of the loan after its completion and are usually linked to the variable rates. But from here budgeting can be difficult as early repayment charges are applicable. Cash back should be repaid if the mortgage is redeemed within the period of early repayment charges.

To meet the different needs of lenders in UK, they offer various competitive rates. These rates usually have pre-payment penalties. It means that the borrower is required to pay a certain amount of money, if they pay the mortgage off prior at the end of the term of the loan.

Self certification is another common type of mortgage. Such UK mortgages are for those who are employed but with no proof of their income. Till the borrower gives a down payment and borrows an amount which is lower than the amount of the home, the lender can offer them a self certification mortgage. Such mortgages generally have higher interest rates than those of normal mortgages. This is because of the amount of risk is involved in this for the lenders.

Another common type of mortgage in UK is tracker mortgage. Basically it tracks the base rate of the Bank of England which has a specified percentage for a certain period of time. One can benefit from it as the base rate decreases.

UK mortgages are of different types, each having its own pros and cons that helps a broker to deal in them.

Michael Hatfield offers some important advice on best buy to let mortgage.

Article Source:http://www.articlesbase.com/mortgage-articles/uk-mortgages-1399882.html

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If you are considering applying for an FHA mortgage then you need to remember that the FHA does not actually carry the loan themselves but rather they are the ones who insure it. As you will soon discover FHA mortgage lenders act independently of the FHA and so the terms and conditions they offer will vary from one lender to the next.

So if you want to ensure that you get a good rate on your FHA mortgage there are certain things you should do. Below we take a look at just what some of these are.

1. Don’t limit yourself to making enquiries about mortgages to just one FHA lender. Instead contact several, which although may seem time consuming could actually end up saving you money over the long term of the loan. Remember the more you have the compare then the more informed decision you will be able to make as to which of the FHA mortgage lenders offers is going to be most beneficial to you.

2. If you are someone who doesn’t have the time to carry out the necessary research to compare the various FHA loans offered by different lenders use an intermediary service if you want. These people for a small fee will do all the work including contacting the lenders and filling out the forms and questionnaires required in order for the lenders to then determine whether you qualify or not.

3. As you read through all the information provided including the fine print make sure that you understand fully what has been written down. Should you at all be confused or not understand any particular wording within the document then immediately ask the lender to provide you with clarification. This is crucial when it comes to knowing whether the interest rate on the loan is a fixed or adjustable one.

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Article Source:http://www.articlesbase.com/mortgage-articles/fha-mortgage-lenders-how-to-find-the-best-rate-1401139.html

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