Can Help To Buy … Help Me?

You have probably heard by now about the new government initiative called Help To Buy, which is aimed at getting more people out of rented accommodation and able to purchase a property and get on the housing ladder. The scheme works by working along side mortgage lenders to bridge the gap where a deposit would traditionally be needed.

The scheme allows potential homeowners to borrow up to 95% of the properties value in total, and is applicable to properties valued up to £600,000.

ftb

The government has agreed that it will guarantee up to 15 per cent of the cost of the loan, however with just £12bn from the government put into the scheme, property experts are asking whether or not this will last and whether it is a good idea. Below we have answered some of the questions our blog readers have been asking us, and hopefully we have answered any questions that you may have on your mind about Help To Buy.

Will The £12bm From The Government Run Out?

This is really the question on everyone’s mind, but really it is too soon to tell. It depends on how many mortgage lenders sign up for the scheme, and also how many buyers are accepted.

How Many Lenders Have Signed Up So Far?

To this date 3 lenders have signed up to the scheme. The first 2, Lloyds, which owns Halifax, and Royal Bank of Scotland, which owns NatWest are two banks that are backed by the government, so it is not surprising that they signed up. The third lender to sign up is Aldermore.

What Will Happen To House Prices?

House prices have and will continue to rise, purely due to demand. This is all dependent on the level of funding that the government is willing to lend out.

If you are at all concerned about Help to Buy, whether you are a potential buyer, or a current home owner looking to sell, you can get free information on the scheme here Help To Buy.

There is also free information available at www.topcashoffer.co.uk, or on a mobile try www.topcashoffer.co.uk/mobile/ who are a UK house buying company that provide a very good blog about house prices and the UK housing market.

The Best Tips For Securing a Home Mortgage.

Getting a home mortgage can be a tricky process for people because they have no idea what is required in order to get approved. Anyone can improve their chances by reading reading quality tips about home mortgages such as the one’s in the following article. Read on and get educated in the field of home mortgages.

Avoid borrowing the most you’re able to borrow. The mortgage lender is going to let you know how much you can qualify to get, but you shouldn’t think that’s a number based on how you’re living. Think about your own life, how you spend your money and how much you can really afford and be comfortable.

Once you have chosen the right loan for your needs and begun the application process, make sure to get all of the required paperwork in quickly. Ask for deadlines in writing from you lender and submit your financial information on time. Not submitting your paperwork on time may mean the loss of a good interest rate.

Take legal advice to help you understand your mortgage terms. Even those with degrees in accounting can find it difficult to fully understand the terms of a mortgage loan, and just trusting someone’s word on what everything means can cause you problems down the line. Get an attorney to look it over and make everything clear.

Do not waste time in your home mortgage process. After you’ve submitted a mortgage application to the lender, this is when your clock start ticking. You have to send any necessary documents for the application process quickly. Any delays could destroy a purchase and cost you your purchase. Get an expected completion date, and then keep in touch with the lender periodically until your loan completes.

Reducing your debt as much as possible will increase your chances of being approved for a mortgage. If you are not in a good financial situation, meet with a debt consolidation professional to get out of debt as quickly as possible. You do not need to have a zero balance on your credit cards to get a mortgage but being deeply in debt is definitely a red flag.

Make sure that all of your loans and other payments are up to date before you apply for a mortgage. Every late payment you have is going to impact your credit score, so it is best to pay things off and have a solid payment history before you contact any lenders. You could even try bridging finance.

Make sure that you collect all your personal financial documentation prior to meeting a mortgage lender. You will need to show proof of income, bank statements and all other relevant financial information. If you have what you need before you go, you will get approved much quicker than you would have otherwise.

In the area of home mortgages is often becomes complicated to anyone who doesn’t understand what lenders require in order to get approved. The tips in the above article should have shown you the basic information that anyone can use to better the approval chances. Study the tips again, and use them the next time you’re in search of a home mortgage.

Home Mortgage Tips from Global Valley Journal

The key to getting a great home mortgage is doing the right research first. You need to know the advantages and disadvantages of your different mortgage options to make the right choice. That means you have to take the first step to learn more. The tips in this article are a great start to getting a great home mortgage plan.

Communicate openly with your potential lender, even if your financial situation is not good. While some folks lose hope when things go awry, smart ones take action to negotiate new terms. Instead, be honest with your lender to see if there are any options available.

Before you refinance your mortgage, make sure you’ve got a good reason to do so. Lenders are checking applications more closely than ever, and if they don’t like the reasons you’re looking for more money, they may decline your request. Be sure you can accommodate the terms of the new mortgage, and be sure you look responsible with the motivations for the loan.

Line up your budget appropriately, so that 30 percent or less of your income goes to the mortgage. If it is more than that, you may have trouble making the payments. You will find it easier to manage your budget if your mortgage payments are manageable.

Try getting pre-approved for a mortgage before you start looking at houses. This will make the process a lot easier and you will have an advantage over other buyers who still have to go through the mortgage application process. Besides, being pre-approved will give you an idea of what kind of home you can afford.

When you decide to apply for a mortgage, make sure you shop around. Before deciding on the best option for you, get estimates from three different mortgage brokers and banks. Although, interest rates are important, there are other things you should consider, the overall cost being the main one.

Although using money given to you as a gift from relatives for your deposit is legal, make sue to document that the money is a gift. The lender may require a written statement from the donor and documentation about when the deposit to your bank account was made. Have this documentation ready for your lender.

Be sure to keep all payments current when you are in the process of getting a mortgage loan. If you are in the middle of the loan approval process and there is some indication that you have been late with any payments, it may affect your loan status in a negative way.

As stated above, you have to do some research before you decide on a plan for something as important as your home mortgage. Reading the advice in this article was a great start to learning more about home mortgages. Research your options a little more to make sure you are getting the best mortgage possible.