mortgagehintsandtips1

Hsbc have this week launched a besy buy discount rate currently at a rate of 1.99%. this is a variable rate mortgage directly linked to the Hsbc variable rate. The bookeing fee for this mortgage is £1199. Please go to www.hsbc.co.uk to find out more!!!

With all the good news over the weekend of mortgage lending increasing to 15billion for July. Then the slowing decrease in car production and the general increase of sales throughout the retail sector everyone is smiling. These are really good signs that there could be recovery in the economy at last. The American economy is showing positive signs also and the French and German economies are apparently out of recession, brilliant news!

Well not so much for your variable rate mortgage im afraid! Recovery in the economy will unfortunately mean that the bank of England base rate will start to increase sooner rather than later. For all of us on trackers and variable rates this is going to mean an increase.

WHAT DO I DO?

Now and over then next few months is prime time to be thinking of moving onto a fixed rate to GUARANTEE you take advantage of the few lower fixed rates that are available out there!

SO MY TIP FOR TODAY IS TO START TAKING ACTION AND LOOKING FOR A GOOD FIXED RATE BEFORE IT IS TOO LATE!!!

Before you go out house hunting it is a good idea to find out how much of a mortgage you can afford? How much can I borrow?

In my experience this will be different depending on which provider you decide to use, my advice would be to sample the market to get an idea. Get a spread from across the market of mortgage lenders try a few of the high street banks eg HSBC, BARCLAYS etc.. Then try the building societies as well eg Nationwide. These are just examples and many others are available! I would also suggest looking online, many companies have ‘HOW MUCH CAN I BORROW’ calculators online which will give you an idea of what is available to you. You should then be able to print this off, or visit the branch or office any they should provide you with one, this will then be handy to show any potential estate agent.

Always be realistic when house hunting, mortgage lenders aren’t lending as freely as they were a year or two ago so you may be a little suprised with what is available to you.  The thing to remember is that if you can prove that you can afford it, by this i mean show monthly income through bank statements etc then there is a good chance you will be able to obtain the mortgage.

If you have any queries or comments on this subject your input is welcome.

Be honest from the start, dont try to hide any borrowing or other outgoings. These will  be picked up when your advisor is looking through your bank statements. If not they will be picked up when a credit search has been carried out with an agency such as Experian(link opposite.

Dont go over your overdraft or credit card limits, this can effect your chances of getting a mortgage accepted!

Ok before anyone actually goes out there to get a mortgage it is vitally important that you have all of the relevent paperwork ready. My tip for this would be to buy youself an A4 folder or ringbinder. Not exactly rocket science but a very useful tip. You will need the following paperwork as a standard,

1. 3 MONTHS PAYSLIPS IF EMPLOYED, OR 3 YEARS ACCOUNTS IF SELF EMPLOYED
2. 3 MONTHS BANK STATEMENTS (FOR ALL ACCOUNTS TO BE CONSIDERED)
3. IDENTIFICATION AND PROOF OF ADDRESS
4. FULL DETAILS OF ALL OUTGOINGS
5. DETAILS OF ANY ADDITIONAL INCOME TO BE CONSIDERED
6. DETAILS OF THE PURCHASE PROPERTY
7. DETAILS OF ANY OTHER LENDING
8. INFORMATION ABOUT ANY EXISTING INSURANCE POLICIES

The above should be enough when  looking to borrow on a personal basis for an empoyed person, I will post further information in the coming days with regard to partnerships, self employed etc..

I hope this helps with any questions you had about paperwork requirments for mortgage applications, please ask if you have any other questions.

Hello,

A major worry for many people who are on any type of variable rate mortgage is how much will my mortgage increase per month if interest rates increase?

The longer the base rate stays at 0.5% the more of a concern this becomes. People are becoming used to paying low mortgages, but unfortunately this wont be the case for too much longer. Eventually the base rate is going to increase and this means mortgage rates are only going to go up and up.

I have found a really handy FSA webpage moneymadeclear (link posted on page) which has a cracking calculator showing you how much your mortgage wil increase when rates start to increase. Please have a look as this is a very handy tool when looking to budget for the future!

Hello im here to try and help you find out everything you need to about mortgages.

I have started ths blog because I am fed up of reading countless amounts of false information under the umbrella of advice! There is a lot of true information out there, but there is also a lot that is untrue.

Over the following posts I will point out the basics that you need to know and try to help were I can. Please contact me at mortgagehintsandtips@gmailcom with any questions you may have and I will find the answers for you.

So please watch this space for my first post.