Remortgage Tips - Page 3 of 6 - Remortgage, mortgage & finance advice

How Working from Home Can Affect your Mortgage

Working from home is a common dream for many people. Eliminating a lengthy commute and a boss peering over your shoulder can make many workers more productive and satisfied with their working environment. Telecommuting has become far more common, and many new entrepreneurs are thriving by running their own businesses. Ecommerce solutions and constant connectivity have made it easier than ever to work from home. Yet there are financial implications that must be considered before you take the plunge, affecting insurance, taxation, and housing.

Mortgage Implications

Whether you’re thinking about taking out a new mortgage or remortgaging your existing one, you’ll need to think about these issues. In most cases, those who telecommute from home one or two days a week or who run a business website in their spare time won’t need to worry about this. Yet when you work primarily from home, it can change how your residence is classified. The Council of Mortgage Lenders recommends that you let your mortgage company or landlord know when you are working from home.

The reason why lenders may be interested if the property is going to be used for business or not is because this will help distinguish whether it needs to be classified as residential or commercial. In most cases, if you are working from a home office, the mortgage would still be classified as residential. Generally, if over 40% of the property is used for commercial purposes, it would garner a corresponding commercial mortgage rate. This would be the case for those who run a consulting practice or workout studio out of the bottom floor of their house, for example. Another option is to move into a live/work unit. These also have different mortgage rates to consider, and may be more difficult to find financing for.

Home and Contents Insurance

Working from home could also have an impact on your home insurance rates. Some insurance companies will view home workers as higher risk, because they might have more expensive equipment kept at home. This will depend on the type of business you run. A small ecommerce company can be run from your home laptop, for example, which wouldn’t make your property any more of a liability. Yet if you are running a printing business that also offers web design services, you might have expensive design and printing equipment on the premises that could raise your insurance rates. Businesses that involve customers visiting the home may also need to purchase public liability coverage in case of accident and injury lawsuits.

On the other hand, some insurance companies will see home workers as presenting less risk, because the house is less likely to be broken into if there’s someone there all day. It’s best to compare and contrast all of your mortgage and insurance options as a home worker before you sign any contracts. Different lenders and insurance companies will see telecommuting in different ways, which could potentially work out to your advantage.

Advantages and Disadvantages of How to Find the Best Mortgage

By Sergio

When remortgaging it is important to look around at the best mortgages. You may find that some are reserved for first time buyers, but you should be in apposition to find some better deals.

If you have a property that has some equity in it, then you may be a more attractive prospect to lenders. They will know that they will definitely get their money back should they have to repossess and sell. If you have always made your mortgage payments, you will also have a good credit record which will be very much in your favour as well.

Despite this, the banks are not too keen on lending at the moment and therefore there are not that many good deals to choose from. You may need to negotiate and hunt hard to find something good. Some people might like to use a mortgage broker or financial advisor to help them. It is worth bearing in mind that these will either charge a fee or try to get you to take a mortgage that earns them the most commission. They may also be tied with a certain lender. A comparison website can have the same sort of problem as they earn commission if you click through a company that they recommend and therefore tend to only recommend ones that earn well. There are companies that do not appear on these and that you can only approach directly so you may be better to do your own research.

It is always a bit of a gamble when you change mortgages to know whether you have made the right decision. You need to decide whether the rate is the best and whether it will stay good or not. You can always change again, but this will cost money in fees and so you do not want to do this too often.

Mortgage rates are unpredictable. They may change with the base rate and they may not. You can choose from fixed, variable and tracker and pick between repayment and interest only. There is always a lot of research to do, to decide which type of mortgage as well as which specific mortgage to choose and so it is sensible to take your time to make the right choice for you.

Consider why you want to change, what you want to improve and who can help you with that. Spend time looking at what is available and this will help you to be able to make a well informed decision.

The Costs of Remortgaging

By Sergio

Many people decide to remortgage because they have spotted a cheaper interest rate. This can be sensible thing to do, but it is important to take in to the account that there are costs as well.

Your current lender may charge you money to close your account with them and move it elsewhere. Find out from them whether they do. You will also find that the new lender will have an administration fee. This will vary considerably between lenders and so you also need to find out what this is.

Then you need to work out how much you will save when you change lenders. Consider the difference in interest rate and how much your monthly payments will go down as a result. Then work out how many months you will have to make payments to be able to save the amount of money that you will have to pay out in fees to switch lender. Then consider what might happen if you then see a cheaper lender. Will you want to switch again and will you have made back the money that you had to pay out in switching.

It can sound complicated but basically you need to make sure that you are making a significant saving before switching. There is also always a risk that the lender may change their rates or someone else may become cheaper. You can never predict this, but it is something to bear in mind, especially if you are moving to a fixed rate.

As well as financial costs, there is also a hassle with changing mortgage company as you will have to change the direct debuts and things like that. Some people do not like doing that sort of thing and other people do not mind it. You may also find it stressful and there is always a chance that things may go wring and there is a mess for you to sort out. It should go smoothly, but there could be situations where it does not.

So you need to not just look simply at the interest rates when you are considering remortgaging. You need to also think about the other costs such as fees and your time. Consider whether it will make a significant difference and remember your reasons for remortgaging in the first place. Although it is sensible to be well aware of your options and to try to find the cheapest deal possible, you do need to consider the costs.

Remortgaging – Finally Some Good Deals Around

By Sergio

The most up-to-date official figures show the volume of lending to borrowers looking to remortgage actually dipped in December but if you are looking to switch onto a more competitive deal then now may be the time, with rates continuing to tumble.

According to the Bank of England, banks and building societies lent to 28,196 remortgage customer, down about 500 on the month before but – reassuringly – still above the six-month average.

Sometimes it can be tempting to read too much into statistics we read in the press. Yes they are a useful indicator of banks’ appetite to lend but it does not tell us anything about whether or not we will get accepted with a particular lender or what rate we might get.

Moreover, the static number of remortgage deals is likely to be as a result, in part, of a lack of consumer confidence in the mortgage market. Put simply, many people still believe lenders do not want to lend and are still nursing their wounds in the aftermath of the financial crisis.

This isn’t true. Talk to any lender or mortgage broker in the UK and they will tell you there is money to lend and they want to lend it now more than any other point in the past five years.

The Government has done its best to give banks a crutch and access to cheap funding and it seems to be working. Banks and building societies now feel more confident in lending to customers, which has resulted in a rate-war as they try to get business on their books.

These rate cuts have not only been for those looking to purchase a new home. In fact, some of the cheapest products in most best buy tables are remortgage rates. Take, for example, Santander’s 2.24 per cent two-year fixed rate deal, which is available to those with a 40 per cent deposit – this is only available to remortgage customers and is right up the top of the best buys.

Startlingly, 73 per cent of the £1.1 trillion of existing mortgages are on some form of variable rate or another – compared to 27 per cent on fixed rates. If you are about to switch to your lender’s standard variable rate then now is the time to start looking around for a better deal, especially with rates falling as much as they have.

While base rate is still at 0.5 per cent you could find yourself better off staying on your SVR, if you are on a low SVR, but many others could make substantial savings by remortgaging with another lender – especially as a raft of lenders have increased their SVRs in recent months.

Remortgaging can save you money by switching to a cheaper rate but it can also be useful as a way of raising money by releasing equity in your home, which is useful if you want to consolidate debts or make home improvements. However, be aware of the risks of securing more debt against your home.

It is also worth noting that there may be fees involved in remortgaging so do the sums before you decide to proceed. There will probably be an arrangement fee to consider – which can often be up to £2,000 – and any legal/valuation costs. Bear in mind that if you decide to roll the fee into the loan then you will pay interest on top of it so if you are able to pay the arrangement fee up front then it will save you money.

Obviously if you are looking to remortgage you have gone through the mortgage process before – it goes without saying – but it is a good idea to seek out independent advice in order to ensure you get the best deal for your circumstances.

Asbestos in Houses

By Sergio

If you find asbestos in your home, then you could worry about your health but also how much it will cost to get it removed and replaced. Asbestos can have serious health effects and removing it is something that you have to get experts to do and therefore this can be expensive. You will also have to pay to have something put in its place.

It is worth being aware that it could be possible to claim compensation if you find asbestos in your home. This asbestos compensation would cover the cost of any medical treatment that you or your family have had to have as a result of poisoning from the asbestos. It is also possible that you will be able to get money towards the cost of replacing it as well.

No one likes the thought of their family being poisoned in their own home and this is why it is now possible to get compensation if this has happened. The person who owns the house or the builder could be liable to pay compensation for any illness that has occurred to you or a family member.

It is easy to make a claim as well. There are companies that specialise in this sort of thing and so you just need to contact them. They will be able to tell you whether you have a case and how much compensation you are likely to get. This will help you to decide whether you think it is worth going ahead and claiming compensation. It could be a significant amount of money.

It is worth considering making a claim even if the compensation amount is not that much in your opinion. This is because the person who was responsible for the asbestos in the house should be taken to task. They should know that they cannot get away with doing this. It may also make them think about the other houses they are responsible for and check whether there is asbestos that needs removing rom those as well. You could be helping to make a lot of other people healthier who may be unwell but not realise why.

Asbestos can cause chest pain, noisy breathing and swollen fingers. These symptoms could be mistaken for other things and can take a long time to develop so people may be suffering without even realising it. This means the more people that bring awareness to the matter, the better.

IVA’s, Bankruptcy and Mortgages

By Sergio

If you are in financial difficulty and considering bankruptcy, then it is important to understand the consequences of this. It could affect your ability to get a mortgage in the future, as well as other loans.

A mortgage is the only way most people can buy a house. It can be cheaper each month than paying rent and although there will be other expenses such as maintaining the property and insurance, it can still work out as a very good long term place to put money. Many people like to have money tied up in a property so that they can have something to leave behind when they die. However, not everyone is able to get a mortgage.

If you have a bad credit record then it is either impossible to find a mortgage or you have to get one which has an unfavourable interest rate because you are more of a risk. It is therefore worth avoiding financial problems as much as you can. Obviously, this is not always possible, but making sensible decision when you need financial help can make a big difference.

You need to be able to show that you are capable of paying back the money that you owe. Sadly, with bankruptcy, this is not the case, because although your assets are sold to pay back as much as possible, there may just not be enough to cover your debt. There is the option of an IVA, which could help you.

An IVA is an arrangement where you will have all your debts consolidated and then be able to pay it back in manageable amounts. It will take time to clear the debts and in the early stages you may find that you cannot get other loans. However, once you have started to show that you can be relied upon to make repayments, then this could really help you. It can therefore be worth taking some IVA Advice to find out what it would mean for you and how it would help you in the future.

It can be so easy to just think of what will be best for you financially at the moment, but it is very important to thing in the long term as well. Considering the future consequences of your actions could have a huge influence on your future, with regards to many things. We know that money cannot buy us happiness, but having a more financially secure future can help to keep stress levels lower and this will certainly help on the happiness front.

PPI Claims Let You Get Aggressive and Show Lenders Who’s Boss!

By Sergio

Look, standing up for yourself in life is the key to making everything else work for you. If you don’t stand up for yourself you’re going to get crushed. It might not be today, it might not be tomorrow, but eventually…yep, you guessed it. You’re going to get eaten alive. It’s better to make sure that you are always thinking about the bigger picture from start to finish. This means standing up for yourself, fighting for your rights, and getting help when you really need help.

One way to make sure that you get the help that you need is to seek out experts. Experts love to help people anyway, and there’s something rewarding about making someone’s life a lot easier than it was before. You just need to figure out how you’re going to get started.

This is naturally based on the problem that you’re facing. PPI claims? Yes, you can make that happen. You can get the best PPI claims sorted out by top notch legal teams that are just standing by to help you.

Remember that this is an industry that runs on contingency fees. This means that there’s no upfront cost to have to deal with. If you are already struggling to pay your bills, the last thing you want to feel is blocked out by something being out of your reach. You will need to realize that everything is in your reach if you go through the right channels.

Can you fight PPI? If you work with the right people, you can fight just about anything. However, if you insist on doing everything on your own, you’re going to have problems. You’re going to find stress. You’re going to find times that you wish that you could just give up. Don’t fall into that trap.

It’s better to break out and realize that the PPI specialists have a lot more experience than you in this regard. This means that it’s the perfect time now to really make sure that everything is set up properly. There’s no need to worry and fuss anymore about your PPI premiums. The PPI claims company will get them back for you, with interest attached. Now that’s what we call winning, don’t you? It’s the perfect time to reach out to a specialist that can make things happen, so don’t delay — do it now while it’s on your mind!

Remortgages – Why remortgage?

By Sergio

A remortgage involves a simple switch either of lenders and/or of mortgage product. For example, you could change mortgage lender and/or you could take on a different mortgage product offered by your current lender.

Remortgaging is on the increase as savvy borrowers become aware of cheaper mortgage products – some estimates indicate that nearly a third of new borrowing is for remortgaging purposes.

The attractiveness of remortgaging is often the potential to access lower interest rates resulting in lower monthly mortgage payments.

A remortgage could also allow you to release equity from a property – normally a very cheap way to borrow for things like home improvements and to finance the purchase of a car. A cheaper borrowing facility could also allow you to consolidate credit card and other debts, normally charged at higher interest rates.

Remortgage tasks

The tasks involved are similar to those outlined for mortgages. The mortgage lender will require a surveyor’s valuation report and there are legal processes to be undertaken by your solicitor. It is in many ways less involved, especially on the legal side, and less expensive than taking on a new mortgage. There is no stamp duty to pay and the legal fees are less expensive overall. It is important to regularly review your mortgage to ensure that you are getting the best and most appropriate deal to suit your circumstances.

Independent Advisers can provide you with a mortgage health check to ensure that your current mortgage product is the most appropriate for your circumstances. They will often be able to provide access to mortgage products that are not available directly from mortgage lenders.

Speed up the Purchase of Your Home with Online Conveyancing Services from In-Deed

By Sergio

Are you excited about the house that you just discovered is available for purchase? You’re not alone. One of the most exciting points of life is finding the house that you’re going to call home for a while. Buying a home is a great way to invest in yourself. No matter how much the market swings up and down, you can rest easy knowing that your home is safe. There’s nobody that can kick you out as long as you make your payments. This means that your family has a secure home to grow up in. There’s a lot of things that you will need to do before you get to the point where you can just put your key in the door and walk into your new home.

Don’t get discouraged — the steps aren’t as cloudy as you might imagine.

For example, you can turn to the online conveyancing services from In-Deed. This will turn over the complicated task of research to trained professionals that can work through it faster than you can on your own. If you don’t know the ins and outs of conveyancing, then it’s best to let someone else handle it, right?

Absolutely! You can speed up the purchase of your home through the online process, since there’s less back and forth. It’s essentially a matter of just telling them what you need to accomplish, and letting them step in. You may have to cede over some legal rights for the duration of the purchasing period, but that’s okay. It’s all going to bring you closer to the goal that you really want to have.

You definitely need to think about online conveyancing when you’re on a pressing deadline to purchase a home. Trying to get things up and running may be tricky when here’s a time deadline that has to be observed, but that doesn’t mean that you have to deal with less quality or a slowdown in getting things done.

Talking with a conveyancing lawyer cuts out the clutter and gets you focused on the end goal.

If you have dreams of going to your home in a timely fashion before it’s snapped up by another buyer, then it’s time to take action. Don’t let fear or nervousness keep you from getting what you want. Get a free quote from In-Deed, and then follow up from there! Good luck!

A Lifetime Mortgage Is a Very Popular Equity Release Strategy

By Sergio

If you’ve worked hard all your life and you really want to turn your retirement years into really good ones, you have to check out the lifetime mortgage scheme. It’s a way to release the equity in your home, which isn’t a bad thing at all. When you think about it — why wouldn’t you want to release the equity that’s trapped in your home? If you aren’t planning on moving and you love your home, it gives you the best of both worlds.

Keep in mind that there are a lot of details that you’re going to have to iron out before you really get in too deep. Indeed, you need to make sure that you’re always thinking about how much equity this will actually pull out of your home.

The important thing to also note is that you will not get 100% of the equity. The lifetime mortgage company you choose will reserve a portion of the equity for other purposes, because your equity could change over time. What they’re actually doing is giving you a big loan, to be repaid with the sale of your home. If you have already notified your heirs of what you’re doing, then this isn’t a problem. The money that you receive from the lifetime mortgage scheme is going to be tax free, which is another good benefit.

If you’re going to get into lifetime mortgage / equity release schemes, you will definitely want to make sure that you are shopping around for the right company. They should be giving you a fee schedule as well, so you know what fees are involved. A qualified advisor will be on hand to answer any questions that you might have.

Can this really give you the extra money that you’re looking for? Absolutely! You can get it in a lump sum, or monthly payments over time. It’s completely up to you.

Again, this is something that you will want to talk about with your family. Not only will you have to talk about it when your spouse in order to get the equity release scheme underway, it also makes sense to discuss it with your children. It dramatically changes the value of the estate, since your home will not be on the table.

The most common question that we get in connection to equity release schemes is straightforward — will it actually affect where I live? Not at all. That’s the real power of these schemes — you get to keep your home and live there without having to make anymore payments. After all, this program appeals to people that have already paid off their homes — why would they want to pay rent all over again? Those days are definitely behind you at this point.

Again, be sure that you’re reading the fine print of any offer that you accept. That’s going to be the best way to make sure that you are doing the right thing for your own needs. Good luck!