You Can Remortgage

Rebuilding bad credit

2008-02-28T05:49:00.000-08:00

Rebuilding Bad Credit
The following general information may help you better understand how credit ratings and credit records are determined. It does not constitute financial advice and you can contact us directly for further information , help and advice on the process of how to rebuild bad credit.

How creditors determine to give or not to give credit

Lending companies and institutions use a number of different processes to decide whether or not to offer credit. If you have been told in the past you cannot have credit you can apply again, to the same company or a different one. It is important to understand that you have no right to be given credit and credit companies have no obligation to explain why credit has not been given (commonly known as having bad credit). However some companies may provide this information.

Bad Credit - Credit Scoring

Credit scoring works by awarding points for areas such as employment, wages, marital status and the area where you live. Credit is usually given if you score enough points. When applying for credit, it is a requirement for you to be told if this method is used. If your application for credit has been turned down, you can request the main reason for this and for the determination to be looked at again by the credit company. You should provide to the credit company any extra information which you think is relevant.

Credit reference agencies

A credit reference agency compiles information on your financial status from county court judgments and High Court judgements (known as court decrees and Debt Arrangement Schemes (DAS) in Scotland), bankruptcy details, the electoral roll and records of payments from previous agreements. If you have a financial connection to other persons living at the same address they may be included in the payment record. If other persons are included in the payment record this may affect the decisions on whether or not to grant credit to you. If your application for credit was denied due to information from credit reference agency records, you can request that the credit company let you know which credit reference agency was used. After finding this out you can then pay for a copy of the records from the credit agency. If you find something on your record which is incorrect or misleading, e.g. persons on your file with which you have no financial relationship, you can also request to be considered as a separate individual even if you have some financial relationship with another person or persons. You should always remember you have no right to be granted credit. The major credit reference agencies can be contacted as follows:

Equifax plc Credit File Advice Centre PO Box 1140 Bradford BD1 5USUK Tel: 0870 010 0583 Website: http://www.equifax.co.uk/

Experian Limited Consumer Credit Help Service PO Box 8000 Nottingham NG80 7WFUK Tel: 0870 241 6212 Website: http://www.experian.co.uk/

Call credit plc Consumer Credit Services team PO Box 491 Leeds LS3 1WZUK Tel: 0870 060 1414 Website: http://www.callcredit.co.uk/

For further information and advice call on 01202 254092

Prevent Home Repossession

2007-12-20T04:32:00.000-08:00

The Royal Institute of Chartered Surveyors (RICS) has predicted that house prices will remain broadly unchanged in 2008. Despite this they believe that repossessions could rise from 30,000 to 45,000 a year. The Repossessions Advice Centre advise homeowners to act immediately to any repossession situation and explore the options available. Paul Fletcher, Director of the organisation said " There are options available, so its far better to address the situation before it happens, to really sit down and budget yourself for the next year."

Jerome Thompson from you-can-remortgage, explained " homeowners should go to lenders to explain the situation but there is little point in commiting to a payment plan unless they are sure that it is affordable. I do not advise burying your head in the sand, the problem wont go away but taking early advice and producing a budget plan for the next year before approaching the lender, could avoid a huge number of repossessions."

www.you-can-remortgage.co.uk

Sub prime lending

2007-09-13T03:34:00.000-07:00

Most of us have noticed the media reportage of the US sub prime sector crisis. Following 17 interest rate rises since June 2004 defaults on mortgage payments have become common, especiallly in the "sub prime" sector where affordability limits were already stretched. Borrowers in this sector just do not normally have the resouces to fund interest rate rises. This has led to reduced income for sub prime lenders and because these lenders are funded by large investment banks, these are also affected. Hence the wobble on the stock markets.

So how does that affect us this side of the pond? The UK sub prime market has grown enormously over the last few years. From a starting point of just three or four specialist lenders there are now 31 sub prime lenders known to the author. Almost anyone has been able to obtain a mortgage despite poor credit histories or employment status, although this ususally means paying more for the privelage. Whilst the housing market has been booming and homeowners have seen large increases in equity, the sub prime market has been a sought after cash cow for lenders.

As the UK sub prime sector starts to look more like that in the US, lenders have started to react by increasing rates, usually by at least 0.5%. Other lenders are reducing the amount they are prepared to lend against the property valuation (LTV), or have reduced the amount of defaults or other credit problems that they are prepared to accept.

So will it still be possible to buy a property, or remortgage, in the future if you have a blip on your credit history? There will undoubtable continue to be lenders specialing in sub prime mortgages and remortgages but consumer choice is likely to be severely reduced in the future. It will be more important than ever to obtain advice from a broker who is truly independent and can access all of the lenders on the market.

Jerome Thompson Cert PFS http://www.you-can-remortgage.co.uk/

Mortgages not repaid in retirement

2007-08-14T03:59:00.000-07:00

Mortgage debt averages £38,000 for pensioners with a mortgage. Scottish Widows research reveals that a fifth of pensioners have not repaid their mortgage by the time they retire.
Commenting on the figures Jerome Thompson from Reef stated " The average age of first time buyers is increasing. Considering the number of borrowers with endowment shortfalls and those on an interest only mortgage, it seems inevitable that the number of pensioners with outstanding mortgages will increase. It is essential that borrowers consider how they are going to repay their mortgage and should talk through their options with their broker."
www.you-can-remortgage.co.uk

House buying slows

2007-08-14T03:46:00.000-07:00

According to July's survey from the Royal Institute of Chartered Surveyors, the number of new buyer enquiries is falling at its fastest rate for the last 3 years.
Meanwhile house prices rose for the 21 st month in a row. The survey also showed that confidence amongst Rics members in sales turned negative for the first time since March 2003 following buyers response to market conditions and a possible rate hike in autumn.
www.you-can-remortgage.co.uk

Advice from Mortgage Brokers Growing

2007-08-14T03:31:00.000-07:00

According to research by Abbey, mortage advice from Brokers is growing in the first time buyer sector.
Samantha Cook from Wiseman Financial Management explained "We are seeing increasing numbers of first time buyers and those seeking a remortgage. It seems that buyers are realising that a good broker can source from across the market place and often obtain exclusive mortgage deals as well."
www.you-can-remortgage.co.uk

Mortgage exit charges -has the con been stopped?

2007-08-10T01:41:00.000-07:00

The financial services regulator, the FSA, has announced that the majority of lenders have either scrapped or fixed their exit charges. The regulator took the view that recent increases in charges were unfair and illegal and gave the industry an ultimatum to rectify the situation or face the possibility of court action.

The city watchdog took action after lenders increased their fees, an example being Alliance and Leicester who raised fees from £195 to £295 in August 2005 , without explanation. An estimated 150,000 customers have been able to claim refunds of unfair charges over the last six months. The refunds are normally between £100 and £200 for every regulated mortgage. Most lenders now charge a fee that cannot be varied or have removed the fee altogether.

Sam Cook of Wiseman Financial Managment told Reef "I am pleased to see the regulator has acted to protect borrowers against unfair charges. The concern remains that lenders will simply recoup any lost income by putting up other charges".

http://www.you-can-remortgage.co.uk/

House prices

2007-08-06T02:24:00.000-07:00

House prices increased by 0.7% in July according to the Halifax House Price Index. The index values average house prices at £198,915 an annual rise of 11.2%

Jerome Thompson from Reef commented "I would expect house price growth to continue to stabalise following the five interest rate rises since last summer. This is the fourth month in a row where growth has been below 1%."

www.you-can-remortgage.co.uk

Bank rates

2007-08-06T02:15:00.000-07:00

The Bank of Engl;and has held rates at 5.75%. The monetary policy committee froze rates following last months raise of .25%.

Jerome Thompson of Reef commented, "There remains a strong likelihood that rates will be raised to 6% by autumn as strong inflationary pressure remains."
http://www.you-can-remortgage.co.uk

House prices stabalise

2007-07-12T07:58:00.000-07:00

Average house prices increased by 1.1% in June with UK house price averaging £197,461. The biggest price rises were in Northern Ireland and Greater London.
www.you-can-remortgage.co.uk

Poor credit rating remortgages and mortgages

2007-07-12T07:40:00.000-07:00

The Financial Services Authority, the financial sectors watchdog, has highlighted poor practise from lenders and advising firms when dealing with clients with poor credit ratings.

In its latest review, weaknesses were found in the assessments made by lenders and advisers, of a borrowers ability to afford a mortgage. As a result The FSA has begun enforcement action against five firms, which it refused to name.

Sam Cook from Wiseman Financial Management stated " It is no good arranging a remortgage to sort out credit problems unless the client can be clearly demonstrated to be better off on a monthly basis. We ensure we carry out a full fact find on our clients to ensure affordability, document everything thoroughly and issue our clients with a suitability letter so that they understand exactly what has been recommended and the reasons for the recommendation."

www.you-can-remortgage.co.uk

Bank Rates Increased

2007-07-06T02:47:00.000-07:00

The bank base rate has been increased to 5.75%.

The rise comes as no surprise following last months narrow victory for the moderates on the Monetary Policy Committee resulting in no increase to the rate.

It is widely anticipated that rates will rise to at least 6%

Jerome Thompson of Reef stated "the current rise means that homeowners will be paying an extra £16 a month for a typical variable rate £100,000 mortgage. It seems likely that there is more pain on the way and if homeowners are not already on a fixed rate mortgage they should consider changing to one. Most lenders have increased their fixed rates but a broker can often still find a competitive rate suitable to the borrowers circumstances."

www.you-can-remortgage.co.uk

The best mortgage ?

2007-07-03T03:07:00.000-07:00

Homeowners do not always resource the best mortgage on offer according to a new survey. A study by money supermarket reveal that 29 % of borrowers chose a mortgage from their existing provider. Forty-three per cent of British homeowners do not compare all mortgages on the market before buying a product, with just one in five borowers comparing deals across several lenders.

The survey also revealed that 82 per cent looked for low interest rates and only 41 % looked for low or no fees.

Samantha Cook of Loanwise explained " By not taking into account fees, borowers could be paying as much as £2,080 worse off by simply concentrating on the lowest rates. A mortgage broker is able to source from across the market place and will take into account all of the clients details and requrements. The borrower should be made aware of the true cost of the borowing.

House sales increasing

2007-06-27T01:58:00.000-07:00

House sales have increased despite gloomy fortellings by much of the media. Property transactions rose by 11% in the last month according to the latest survey of property transactions from HM Revenue and Customs. House sales in England and Wales rose from 146,000 in April to 157,000 in May. This compares with last years totals of 148,000 in May. Overall, the number of properties changing hands is up 11% in the last three months compared with the same period last year.

Jerome Thompson from Reef explained " The figures should be treated with some caution because there is no doubt that the expected introduction of Home Information Packs in June caused a rush of sellers trying to beat the deadline. An added factor is the expectation of interest rate rises which may have driven some buyers to sort their mortgages before further increases by the Bank of England."

www.you-can-remortgage.co.uk

Tony Blair's legacy : Housing price boom ?

2007-06-22T05:30:00.000-07:00

During Tony Blair's prime ministership, house prices have risen from an average of £68,000 in May 1997, to £197,000 today, leaving the typical home buyer having to borrow £125,000. This compares with average borrowing of £47,000 when TB took office.
Average interest rates in the last ten years stand at 5.9% compared to 8.8% in the previous decade.

How have you been affected by the last ten years? TELL US YOUR STORY.
Jerome Thompson http://www.you-can-remortgage.co.uk/

No deposit mortgages

2007-06-14T06:42:00.000-07:00

Increasing house prices mean that nearly half of first time buyers have insuficient savings for a deposit to buy a property.

Council of Mortgage lenders figures show that first-time buyers accounted for nearly 45% of all purchases 10 years ago but fell to 36% last year. The figures reveal that it has never been harder for first-time buyers to place that first foot on the property ladder, with average house prices at £179,935 in England and Wales.

Unable to borrow enough using the traditional three times income multiple, borrowers are turning to brokers to source funds from more imaginitive lenders. A few Lenders have responded by introducing 100% mortgages and in some cases a combination of a mortgage with an unsecured loan at up to 125% of the property value. Income multiples have also increased with up to 5 times single or joint income available. Other lenders have introduced lending which also takes into account parents income.

Sam Cook from WFM explained "If you are renting or if you want to be a first- time buyer, you should talk to an independent mortgage broker. They can explain all of the costs involved in buying your first home and establish if buying is an affordable alternative to renting. We provide a fee free consultation to see whether buying is possible."

Jerome Thompson www.you-can-mortgage www.you-can-remortgage

Rents rising.

2007-06-13T06:23:00.000-07:00

The supply of rented properties could not keep up with demand in May according to the latest figures from ARLA.
Rents rose for the forth quarter for each type of property. Periods where properties lie unoccupied have fallen to an average of 24 days.

Why RENT when you could BUY?

For advice on 100% mortgages and buying without a deposit go to www.you-can-mortgage.co.uk

Reef Financial Services

Open Market Homebuy schemes more popular

2007-06-11T03:07:00.000-07:00

The Governments Open Market Homebuy Scheme (omhs) is increasing in popularity after a slow start.
The scheme was introduced in October to help public sector key workers and other eligible individuals purchase a home that would previously have been unafordable. It works by providing two equity loans , each worth about 12.5% of the property value to run alongside a mortgage of 75% of the property value. No interest is charged on the equity loans.
The average purchase price of properties bought through the scheme is around £160,000 with a mortgage of £120,000.
For further information on the scheme, log on to www.housingcorp.gov.uk
Jerome Thompson www.you-can-mortgage.co.uk

Remortgages used to clear debts

2007-06-04T03:18:00.000-07:00

Clearing debts incurred on credit cards, car loans and home improvements account for nearly two thirds of all remortgage enquiries according to Reef Financial Services.

Reef spokesman Jerome Thompson explained " We are contacted by many people who have stretched their financial resources to the limit. Unfortunately not all lenders will conduct a proper fact find into affordabilityand as a result, if any hicup in income occurs it can lead to dificulties. Anyone considering borrowing should ensure that their adviser or lender has explained the full cost of borrowing, that it is affordable, taking into account possible interest rate rises and that they are protected in the event of unforseen events like unemployment or sickness. Adding short term loans to a mortgage is not always the most cost effective or advisable solution and a reputable broker will consider all the options for their clients."

Reef Financial Services www.you-can-remortgage.co.uk

House price growth

2007-06-04T03:08:00.000-07:00

House price inflation for May hit 10.3 % pa according to the Nationwide House price Index.
The last rise in interest rates and the financial market expectation of at least one more is likely to dampen demand on housing and expectations of further house price growth during the rest of 2007.
Jerome Thompson www.you-can-remortgage.co.uk

Landlords unaware of Tenant deposit laws

2007-06-04T02:06:00.000-07:00

The government introduced a Tenant Deposit Scheme in April to protect tenants deposit and provide an arbitration process to resolve problems beteween landlords and tenants. Under the scheme landlords are legally obligated to join a scheme nominated by the government.

Recent surveys showed that just 24% of landlords knew about the scheme and understood its details.

For further information go to www.direct.gov.uk/en/TenancyDeposit/

Jerome Thompson www.you-can-remortgage.co.uk

Remortgage required for those on Standard Variable rates.

2007-05-31T03:08:00.000-07:00

Are you paying too much for your mortgage? Borrowers paying the lenders Standard Variable Rate have seen their repayments rise considerably due to interest rate hikes. In 2003 the average interest rate for a standard variable rate mortgage was 4.19%. By March 2007 this had risen to 6.15% For a borower with a mortgage of £140,000 this is an increase of over £2,700 a year that they have to find.

Sam Cook from WFM commented " Lenders SVR are normally about 2 per cent above Bank of England base rates. We are still finding borrowers who can save considerable amounts of money by switching from a lenders SVR to a fixed, tracker or discounted rate. Normally there are no fees or very small fees charged by the lender to switch. This also applies to any borrower whose mortgage is due to change to a SVR this year."

Do you have the wrong type of mortgage? If you think that you were not given the best deal, tell us about it.

Jerome Thompson www.you-can-remortgage

Endowment Mortgages still cause for complaint

2007-05-25T02:41:00.000-07:00

New mortgage endowment cases made up almost half of the the complaints made to the Financial Ombudsman Service last year.
Walter Merricks, chief ombudsman, said : " this year marked the completion of over 500,000 financial disputes by the ombudsman since we were set up in 2001. Half of these complaints have involved mortgage endowments."
Sam Cook from Reef Mortgages said "Many of our clients are still unsure of the best way to utilise existing endowment plans. It is important that they seek advice to ensure that there are no nasty shocks at the end of their mortgage term."
Jerome Thompson Cert PFS www.you-can-remortgage.co.uk

Home Information Packs Delayed

2007-05-25T02:22:00.000-07:00

In an embarassing climb down, the government delayed the introduction of Home Information Packs by eight weeks. Ruth Kelly announced the delay in the Commons on Tuesday. She also said that Hips will only be needed on houses with at least four bedrooms with the pack being phased in for smaller houses once more energy assessors are trained.
Jerome Thompson www.you-can-remortgage.co.uk

House prices up -- but increases slowing.

2007-05-21T08:13:00.000-07:00

House prices have risen .4% in May, the slowest increase since 2006 and down from 3.6% in April. Average house prices now stand at £237,361; up 13.1 per cent on a year ago.
Jerome Thompsson www.you-can-remortgage.co.uk