Mortgage Lenders And Specialist Lending

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685

Summary:
Fierce competition amongst mortgage lenders in recent years has brought about great news for the consumer – The Banks & Building Societies scrapping for business has only resulted in a greater depth of choice and value, for nearly every type of borrower, from those looking to obtain a mortgage for the first time through to those looking to remortgage their existing one.

In todays market, the traditional one size fits all type of mortgage has long disappeared – individual …

Keywords:
mortgage,remortgage,loans,lenders,bad credit,buy to let,self certification

Article Body:
Fierce competition amongst mortgage lenders in recent years has brought about great news for the consumer – The Banks & Building Societies scrapping for business has only resulted in a greater depth of choice and value, for nearly every type of borrower, from those looking to obtain a mortgage for the first time through to those looking to remortgage their existing one.

In todays market, the traditional one size fits all type of mortgage has long disappeared – individual borrowers now have individual requirements and objectives, not to mention individual credit backgrounds too! It is true to say that regardless of your credit history or personal circumstances, there are mortgage products to suit nearly every type of borrower.

If your mortgage requirements are less than conventional, you may experience difficulties securing mortgage finance through the usual channels, by way of approaching the High Street Banks and Building Societies.

Traditional High Street lenders have long been the preserve of those borrowers with impeccable credit records – many of these lenders will be extremely anxious to deviate from their ideal customer profile. In many cases where a borrower has a blemished credit history, an initial computerised credit scoring system will result in an application refusal.

There are a now a huge selection of specialist/sub-prime mortgage lenders, many of whom that are prepared to consider most types of mortgage application – from those with the most severe of credit records, to those self employed borrowers with little or no proof of income.

In many instances, a borrower will find themselves being redirected to the world of specialist lending after having been turned away by a High Street Bank or Building society for whatever reason. These types of specialist lenders, once regarded as a niche market, have become widely recognised throughout the mortgage industry and provide an increasing important role.

Many specialist/sub-prime mortgage lenders may only be accessed through an intermediary such as a mortgage broker, Independent Financial advisor or mortgage network – Customers must first go via these channels in order to access many of these lenders mortgage products.

Self Employed Mortgages

Self employed borrowers have always been treated differently from their employed counterparts. They have always been penalised for their status in the past, usually in the form of higher interest rates, or an interest rate loading. Self employed borrowers are still today perceived by many Banks & Building Societies as a higher lending risk unless you are able to provide backup of your income in form of two or three years of accounts and six months of bank statements.

There are many specialist lenders who recognise the sheer volume of self employed individuals in the workforce, well over four million and thus make a greater effort in accommodating the borrowing needs of such individuals. They may not offer the lowest rates on the market however their mortgages are still competitively priced and can offer greater degrees of flexibility too.

Buy To Let Mortgages

Buy to let remortgage products have long been the preserve of the specialist lender. The buy to let market has attracted a huge number of landlords in recent years as escalating house prices and a greater need for low risk investment has made property a very viable option in which to invest in.

Many of the mainstream lenders have since jumped on the buy to let bandwagon however it is worth considering that specialist lenders often have more experience of the buy to let market.

Approaching a mortgage broker can often be a great place to start in researching your specialist lending needs. As previously mentioned many of the leading specialist lenders are only available through an intermediary however most mortgage brokers will have access to a wide variety of these different lenders.

A mortgage broker may charge you a fee for there services however this can at times be negotiated in light of the fact that most will also receive a commission from the lender on completion of your mortgage application.

You will also notice when doing your research that most of the specialist lenders are in fact lending arms of the major mainstream Banks & Building Societies.

Bad Credit Mortgages And The Options You Have

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533

Summary:
Bad credit mortgages exist. They may be harder to find then those for people with good credit, but they are available if you know where to look. The internet is the best source for finding these mortgages. The internet will also give you the most choices of lenders form which to choose.

Determining what makes a person become labelled a bad credit borrower is really a matter of a few factors. Lenders will consider their credit score. They are looking for the highest score p…

Keywords:
bad credit mortgages,adverse mortgage,debt,finance,real estate,money,bad credit loans

Article Body:
Bad credit mortgages exist. They may be harder to find then those for people with good credit, but they are available if you know where to look. The internet is the best source for finding these mortgages. The internet will also give you the most choices of lenders form which to choose.

Determining what makes a person become labelled a bad credit borrower is really a matter of a few factors. Lenders will consider their credit score. They are looking for the highest score possible or as close to the highest score. They will also look at the amount of the loan requested and how it compares to the value of the home.

They are wanting a home that is worth more than or equal to the amount being requested. Next they consider the person debt to income ratio. This will tell them if the borrower can afford the loan.

Once all of this information is tabulated the lender gets a clear picture of the borrowers financial state. They should be able to determine how risky this loan would be and they will base their decision upon it.

Once you have determined you are considered a bad credit borrower then you should start looking specifically for bad credit mortgages. You will want to shop around. You will want to read all the terms and conditions. You should understand that a bad credit mortgage is very costly and you will end up paying more interest and fees than with a traditional loan.

Make sure to shop around. There are plenty of good lenders, but there are also those who will take advantage of the vulnerable position you are in. Watch out for excessive fees and extremely high interest rates, which are signals of a bad lender. As long as you shop around, though, you should have no problems avoiding bad lenders.

It is also a very good idea to approach a number of large and reputable mortgage brokers. Such brokers have access to a large number of lenders that are not available on the high street to general public, but only through intermediaries and brokers.

Many such lenders specialise in finance for people that have a less than perfect credit history. These lenders are ideal. Just make sure you find out upfront how much the broker is going to charge.

There is a way to benefit from a bad credit mortgage. Once you obtain the mortgage and you make regular, steady payments you will be building credit. You will be able to establish a better credit rating and possibly refinance for a better loan. Using a bad credit mortgage to your advantage is a great thing that can really help you out in the long run.

Bad credit mortgages should be seen as a way to rebuild credit. They may cost a lot upfront, but in the end they are well worth it. For many people a bad credit mortgage is the only way they can afford to buy a home. It is the only way they can get funding, so they use it to their advantage, build up a good payment history and then try for a cheaper, traditional loan down the road.

Mortgage Sales, Overcoming Objections

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351

Summary:
I’m sure you are familiar with hearing “I’m no longer interested,” or “I just closed on my loan last week.”

Keywords:
Sales, marketing, loan officer, mortgage, leads, telemarketing, skills, training, blog, selling, internet mortgage lead

Article Body:
As a loan officer, it is important to keep your pipeline full at all times. For this reason, it goes without saying, that you should be taking as many applications as you can throughout the week.

Obtaining leads to be turned into applications can be obtained in a variety of ways. Such as, networking, customer referrals, family, friends, mortgage lead providers, etc.

Another method, probably the most dreaded in every sales force, but also very necessary to keep app’s coming in is cold calling.

We all know the feeling of rejection over the telephone, but it is very important to maintain your persistence and overcome these obstacles.

I completely understand that there is no way to overcome the objection of a customer hanging up on you. My only advice would be to not dwell on it, or take it personally, just move onto the next call.

Keep in mind, for a lot of people, purchasing or refinancing a home is a huge financial undertaking in a person’s life. Perhaps the biggest, so be understanding if they seem defensive or get cold feet.

I’m sure you are familiar with hearing “I’m no longer interested,” or “I just closed on my loan last week.”

For starters, don’t even give the customer the opportunity to give you an objection.

Remember, you are the expert, so you do the talking.

Your opening line should be something like this:

Hello Mrs. Jones, my name is Susie Smith and I understand that you are interested in a mortgage. I have some great products that I believe would fit your needs and budget. If you don’t mind, I would like to take just a few moments to go over them with you.

This approach immediately takes the pressure off of the customer, and nine times out of ten they will be willing to listen.

Remember, it is all in the approach and the tone of your voice, smile when you talk, it will reflect in your voice. And be nice, relax your customer, make them comfortable, and you are half way there.

Is An Interest Only Mortgage A Good Idea?

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521

Summary:
If you are going to take out an interest only mortgage, make sure that the funding method you use is safe, and that you have contingency plans if the fund is insufficient to pay back the capital.

Keywords:
Mortgages,mortgage,uk,home loan,loans,loan,uk,compare,adverse,credit,debt consolidation

Article Body:
If you are looking for a home but you know that paying a mortgage will be a severe drain on your finances, then perhaps you should look at getting an interest only mortgage. If you are unsure about what an interest only mortgage is and how it can help you, then this article can provide you with some useful tips on getting an interest only mortgage.

What is an interest only mortgage?

An interest only mortgage is a mortgage where you only pay back the interest on the loan, and none of the capital debt is repaid directly. Once you get to the end of the mortgage term, you will pay back the capital payment in full.

How do you pay back the capital?

Although you don’t pay the capital back directly through your monthly mortgage payments, you indirectly pay for the capital. You pay for the capital through an investment fund or other lump sum. So, instead of repaying your mortgage capital each month through mortgage payments, you may monthly payments into an investment fund. Apart from investment funds, the other main ways to pay off the capital are:

· Savings
· Switching to a repayment mortgage
· Another lump sum such as inheritance

What is the advantage of this?

Although you are still making monthly payments into an investment fund, these payments are likely to be a lot lower than the monthly mortgage payments you would pay on a normal repayment mortgage. Your interest only payments will be low each month and so if you cannot afford to pay a lot each month at the moment, an interest only mortgage might be a good idea. Also, the idea is that the money you put into the investment fund will mature and leave you with enough money to pay off the capital at the end of the mortgage term as well as leaving you with some extra money.

Are there risks?

Of course, there are a number of potential risks of getting an interest only mortgage. The first problem is that if you are hoping to pay off the capital by switching to a repayment mortgage later on, you will be paying back a lot more money than if you started on a repayment mortgage. Although you may find it hard right now, getting a repayment mortgage to start with might be a better option. However, the main risk involved with interest only mortgages is that the investment fund you set up will not be enough to pay back the capital at the end of the mortgage term. If you cannot pay back the capital then you could end up losing your home at a time in your life that it will hit you hardest, such as at retirement age.

If you are going to take out an interest only mortgage, make sure that the funding method you use is safe, and that you have contingency plans if the fund is insufficient to pay back the capital. If you do this, then getting an interest only mortgage can be a great way of keeping your payments low whilst you improve your income.

Research Needed To Find Best Remortgage Sources

Word Count:
506

Summary:
There may be a few reasons a homeowner may seek to remortgage their home, but the two primary reasons are to obtain a better interest rate than their original loan, thus lowering their monthly payments, or to get the equity from their home without taking out a second mortgage. When people begin thinking about refinancing their home, they will generally look for the best remortgage deal they can get and while interest rates will be the prime factor, it may not be the only one …

Keywords:
remortgage quote,

Article Body:
There may be a few reasons a homeowner may seek to remortgage their home, but the two primary reasons are to obtain a better interest rate than their original loan, thus lowering their monthly payments, or to get the equity from their home without taking out a second mortgage. When people begin thinking about refinancing their home, they will generally look for the best remortgage deal they can get and while interest rates will be the prime factor, it may not be the only one they will look our for.

When a person buys a home, and makes regular payments, they build equity on the property. The difference between the balance of the loan and the value of the property is the equity and there are many sources willing to offer best remortgage on the amount of equity. However, this puts the property into question if the owner ever decides to sell, meaning they have two separate loans to repay before they can sell. Additionally, when looking at home equity loans, the research may not be as complete in finding the lowest interest rate and can possible hinder saving money altogether.

When interest rates begin to slide, homeowner may contact their original lender about the possibility of refinancing their loan and the process of coming up with the best remortgage payments they can begin. Once they have a quote from their lender, they can then seek other loan institutions for additional quotes and if they find any lower, they can take that back to the original lender and ask them to do better.

Sometimes, to maintain an existing account, the lender may beat the lowest rate offered, or meet it, and sometimes they will refuse. Before walking away to the company offering you the best remortgage rate, consider all the costs associated with refinancing. There may be another appraisal required to determine the value of the property and another investigation into your finances. By staying with the existing lender, they may gloss over some of the requirements, which can cost extra, in addition to processing fees at other lenders.

Whichever lender the homeowner chooses, the cost of the fees, appraisals and other related costs when added to the interest charges should be lower or will not pay to switch loan companies. If refinancing to obtain equity value of the home, the owner may receive the evaluation amount and have the balance, the equity, to use for other purposes. The idea is to obtain the best remortgage rate possible while getting extra cash out of the home.

For those not interested in taking the equity out of the home, simply reducing the interest rate on the original loan can end up saving them thousands of dollars over the remaining life of the mortgage. If they drop their payments by as little as 50 per month, that will save them 600 per year, which can mean a huge savings if there are several years remaining on the loan. Additionally, they will still have the equity in the home for emergencies.