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..
Advantages Offered by Bad Credit Mortgages
In today's world, lots of people who are confronted with bad credit situations face serious impediments in obtaining loans and mortgages, as they present little or no financial guarantees to banks and other similar credit institutions. Some of the most common obstacles that prevent people from being accepted in credit programs are the following: missed or late payments for loans, credit cards or store cards; defaults or CCJ's; mortgage arrears; inappropriate conduct of bank account; repossessions and bankruptcy. Once people are faced with one or more of these problems, they are no longer considered to be eligible for obtaining loans or mortgages, losing their financial credibility towards banks and other credit-offering institutions.
Persons who have a bad credit history behind them are commonly rejected by banks and other similar establishments when they apply for mortgages and various types of loans, as these institutions consider many different criteria in the process...
Mortgages > Advantages Offered by Bad Credit Mortgages
Types of Mortgages
Here is a useful guide to the different types of mortgages that are available. A mortgage is a loan you take out to buy property. You can get a mortgage direct from the lender such as banks, building societies and specialist mortgage lenders. Your mortgage is probably the biggest loan you will ever take out, so it is important to get a mortgage that suits you. This will depend on your personal circumstances and your plans for the future.
Many mortgages have hidden drawbacks. Get independent advice before you choose a mortgage. There are two basic types of mortgage, interest-only and repayment. The option you choose is determined by the way you want to repay your loan. There is no hard and fast rule about which is better.
It is a matter of individual preference. Interest only An interest-only mortgage allows you to repay just the interest on your loan, but you have to take out an investment that will mature to pay off the outstanding amount. If your investment performs well...
Types of Mortgages
Mortgages > Types of Mortgages
FHA VA Home Loan Mortgages is strategically aligned with Most Major Banks throughout the United States as well as a large number of mortgage lenders.
(ContentDesk) May 22, 2004 -- Whether you are a Veteran searching for a Veterans Affairs VA Loan or you're searching for a fixed rate on an FHA Loan, we can help you get on your way. Our experienced financial accountants will help you understand the entire process of borrowing with a loan of this type and will be there to answer any additional questions or concerns you may have. More than 29 million veterans and service personnel are eligible for VA financing. Even though many veterans have already used their loan benefits, it may be possible for them to buy homes again with VA financing using remaining or restored loan entitlement.Section 203(k) insurance enables homebuyers and homeowners to finance both the purchase (or refinancing) of a house and the cost of its rehabilitation through a single mortgage?or to finance the rehabilitation of their existing home. Section 203(k) is one of many FHA programs that insure mortgage loans, and thus encourage mortgage companies to make mortgage...
FHA VA Home Loan Mortgages is strategically aligned with Most Major Banks throughout the United States as well as a large number of mortgage lenders.
Mortgages > FHA VA Home Loan Mortgages is strategically aligned with Most Major Banks throughout the United States as well as a large number of mortgage lenders.
Refinancing Adjustable Rate Mortgages
There are many reasons why one might want to refinance an adjustable rate mortgage. One of the most common reasons is to lock into an existing mortgage rate with a fixed-rate mortgage. Because adjustable rate mortgages are considered risky ? depending on what the interest rates are doing ? many people decide to convert their adjustable rate mortgage to a fixed-rate mortgage with the simple act of refinancing the mortgage while the interest rates are low.
Many people go with an adjustable rate mortgage in the beginning to get the lower payments during the first year of the loan, with every intention of refinancing and switching to a fixed-rate mortgage in the near future. This is a very common practice, and it works well for most people. The trick is to refinance and lock into a fixed-rate mortgage when interest rates are low.
Another common reason to refinance an adjustable rate mortgage is to avoid a balloon payment.
Balloon payments often come due every...
Refinancing Adjustable Rate Mortgages
Mortgages > Refinancing Adjustable Rate Mortgages
Commercial Second Mortgages
People use a mortgage to apply for a loan, and some also take a second mortgage to borrow more money. You can apply for a second mortgage to deal with extra cash requirement for large projects.
A second mortgage is an effective real estate device that has been in use for several years. A certain kind of second mortgage is the commercial second mortgage, which can be used in conjunction with a first loan. Your commercial second mortgage will have a shorter repayment duration than the first one. This period is usually about 5 years.
Second mortgage borrowers need to assess their repayment capacity, especially since two mortgages will be repaid simultaneously.
This also implies that the borrowers will have to consider the profitability of their commercial venture beforehand to assess the payback comfort.
You can get a second mortgage with an attractive rate if your credit rating is sound. You will get a free assessment of your financials when...
Mortgages > Commercial Second Mortgages
HELOCs and Second Mortgages: Which One Should I Choose?
Whether you need some extra cash to pay off some credit card debts, or to make some home improvements, home equity lines of credit or second mortgages can be great ways to get started. Many people looking to borrow money often opt for home equity line of credit, or HELOCs, for short. They are a tempting first choice, because they can often give you the much needed cash at a low interest rate. Another advantage to taking out an HELOC, or a home equity line of credit, is that they may provide the borrower with a certain tax break, but you would need to verify this with your lender or accountant.One drawback to HELOCs, however, is the fact that borrowers are expected to put their homes up as collateral. So, it is important that you think this decision through, before finalizing the loan, because you may be at risk of losing your home- and its equity- if you are late or cannot make your monthly payments.
Finally, if you decide to sell your home, must HELOCs will require that you pay...
HELOCs and Second Mortgages: Which One Should I Choose?
Mortgages > HELOCs and Second Mortgages: Which One Should I Choose?
Adverse Mortgages May not Benefit the Consumer Warns Mias
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