Adverse Mortgages May not Benefit the Consumer Warns Mias
(ContentDesk) March 22, 2006 -- MIAS (the Mortgage and Insurance Advisory Service) is concerned that the boom in the sub-prime or adverse credit mortgage market will not necessarily translate into a better deal for consumers.In the past, the worst excesses of the sub-prime market could be summed up as, the miss-selling of the most expensive and complex mortgages to some of the least affluent and financially-astute people.With so many high street lenders moving into this sector, including Alliance & Leicester and new arrivals such as DB Lending funded by Deutsche Bank, MIAS would hope that this would change. However, the old adage that increased competition is always a good thing for customers, because it brings down prices, may not apply in the adverse credit market. Commenting, Alistair Good, Managing Director of MIAS (http://www.mias-ltd.co.uk ) said: The increased profit margins of the adverse credit sector must be hugely tempting to high street lenders. But amidst this flurry of product launches, a note of caution must be sounded: Some of these lenders have limited experience of what is an incredibly complicated market. With so many lenders with little prior experience moving into this sector, there is a real worry that levels of service could plummet. Outlining his reservations, Alistair Good said: This is of particular concern, because lenders helpdesks need to know their lending criteria inside-out, to enable mortgage applications to be processed quickly.
As it is, lenders frequently misadvise on regular high street deals - adverse credit, or bad credit mortgages (http://www.mias-ltd.co.uk/adverse-credit-mortgages.htm ) are far more complicated. If the wrong information is given to the advising broker, it could be catastrophic in situations where mortgage offers must be approved quickly for example, if a re-mortgage is needed in order to prevent a repossession. Commenting, Roger Milbourn, Director of MIAS, said: MIAS believes that fast processing is often essential for adverse credit mortgages (http://www.mias-ltd.co.uk/adverse-credit-mortgages.htm ), but more importantly these mortgages should only ever be recommended in the first place as a stepping-stone to high street lenders and good credit. Establishing long-term affordability is therefore key; otherwise a vicious circle can easily occur, whereby a customer grappling with high mortgage repayments falls into arrears which in turn, locks them into further expensive adverse deals in the future. For further information, please contact:MIAS Ltd0845 833 0878Managing Director: Alistair Good???alistair @ mias-ltd.co.ukDirector: Roger Milbourn?????????roger @ mias-ltd.co.ukNotes to Editor:The Mortgage and Insurance Advisory Service (MIAS Ltd) is a firm of impartial mortgage advisers, offering a comprehensive service to clients seeking residential and commercial mortgages and mortgage protection.Founded in 2002, MIAS has quickly gained a reputation for providing straightforward, impartial mortgage advice matching clients up with some of the most competitive deals around. MIASs experienced mortgage brokers (http://www.mias-ltd.co.uk ), have expertise in all sectors of the mortgage market and look after the whole transaction from beginning to end, making the process as smooth and as headache-free as possible..
First Time Buyer Mortgages ? Transforming Homeless into Property Owners
Having just settled in life, you are finding the rentals putting too much of a burden on your finances. Nevertheless, you continue the payments thinking that purchasing a home would be practically impossible. There are many expenses that one has to necessarily make in order to just make a bare subsistence. Though the list differs with each individual as each has a subjective concept of the necessities, it is difficult to accumulate enough savings to pay for a house.The following characterises most of the first time buyers. However, a surprise awaits them in the form of first time buyer mortgages that accept first time buyers with their inherent characteristics of financial weakness.It is wrong to believe that first time buyer mortgages are like any other mortgages, and have been so named by lenders to attract attention.
A first time buyer mortgage is designed primarily for the people who are buying homes for the first time. The method combines the features of mortgage along with...
First Time Buyer Mortgages ? Transforming Homeless into Property Owners
Mortgages > First Time Buyer Mortgages ? Transforming Homeless into Property Owners
An Introduction To Mortgage Loans
Mortgage loans are financial loans taken for real estate properties that the borrower has to repay with interest within a fixed period of time. A mortgage loan requires some sort of security for the lender. This security is called the collateral and in most cases, it is the real estate property itself for which the mortgage loan has been taken. Since the property itself is kept as the collateral, no further security is needed.
The person who lends the mortgage loan is called the mortgagee, while the person who borrows the loan is called the mortgagor. The mortgagee and mortgagor are bound by the mortgage loan agreement.
The agreement entitles the mortgagor to receive a financial loan from the mortgagee. The promissory note in the agreement secures the mortgagee, which entitles them to the collateral and a promise made by the mortgagor to repay the mortgage loan in due time. In the USA, the typical period for a mortgage loan may be 10, 15, 20 or 30 years.
Mortgages > An Introduction To Mortgage Loans
What are the main types of mortgages that are available?
These days there are hundreds of different types of mortgages: fixed, variable, capped, discount, base rate tracker, offset, repayment only, interest only, and these can also include a variety of options such as the ability to take payment holidays, or avoiding redemption penalties, the list goes on.
Choosing the best mortgage for a person's particular circumstances can be difficult, and it is essential to know what the various terms mean prior to making any final decisions on which mortgage provider to go with.
A fixed rate mortgage has a rate of interest which is charged at a set pre-determined rate for a specified period of time.
This means that while the fixed rate period remains in effect, even if the banks general base rate were to significantly change, the interest rate charged on the mortgage will remain unaffected.
Variable rate mortgages have an interest rate which can be altered by the lender at any time, usually in line with...
Mortgages > What are the main types of mortgages that are available?