Want to buy a home but are confused by mortgages and frightened by financial advisers? Moneymadeclear, the government's independent guide to personal finance, has produced a series of guides and tools for home buyers.
The basics A 30-page guide, Just the facts about mortgages, explains the different types of mortgages and answers common questions. It is available at moneymadeclear.org.uk or by calling 0300 500 5000.
How much you can borrow Guardian Money has an interactive mortgage calculator where you can work out monthly costs. For example, it tells you a £100,000 loan over 25 years at a rate of 4.99% would cost £584.01 a month.
Finding a mortgage Study our best-buy tables or go to moneyfacts.co.uk. If you don't have a large deposit, you won't qualify for the lowest rates. Try the comparison tables at moneymadeclear.org.uk/tables for an unbiased list of providers. If you're not comfortable taking a loan without going into a branch, the best deals on the high street right now tend to be offered by HSBC and Santander.
The other stuff they'll push on you Sales people earn big commission from insurances to cover your loan, such as MPPI, ASU, critical illness and income protection cover. If your job is under threat or your health poor, they will be worth considering. Only buildings insurance is essential. Don't buy it from your lender – try the main comparison sites (moneysupermarket/Confused/gocompare/comparethemarket), and remember to shop around for a new quote every year. Ignore lenders who insist you have to take out their insurance to get a mortgage. You don't.
Solicitors and conveyancing Direct.gov.uk has a guide on the various stages of buying, from making an offer to exchanging contracts. You can use a solicitor, (lawsociety.org.uk), a licensed conveyancer (conveyancer.org.uk), or do it yourself.
After you move in Try the BudgetBrain.com site to work out how much you've got coming in, and your outgoings. There are tips for overspenders.
Staying in control Falling behind with your repayments? Moneymadeclear has a Problems paying your mortgage guide, which explains what you can do, sets out what help is available and answers common questions.
It says: "Speak to your mortgage lender … All mortgage lenders regulated by the Financial Services Authority have to consider your circumstances, and will have procedures for dealing with cases like yours."
วันเสาร์ที่ 18 กันยายน พ.ศ. 2553
Refinancing: Whom Can You Trust?
With mortgage rates falling to record lows this summer and the housing market showing signs of a pulse, refinancing activity is perking up.
It's too bad that so many people are relying on oversimplified advice and bad numbers to decide when to pull the trigger.
The refinancing equation has never been more complicated. While some borrowers are desperate to reduce their monthly payments, others are looking to build equity. Some are even treating their mortgage as an investment vehicle, sinking excess cash into their homes in order to secure a lower rate and cut future payments.
Yet most personal-finance resources these days don't account for situations like these. Even essential factors like tax rates and inflation expectations are often ignored in favor of simplistic calculations.
Many popular Web resources, in fact, are financed by lenders, mortgage brokers or "lead generators" that connect borrowers with banks. At times, their advice can be downright harmful.
That's because of the risk involved. Refinancing generally costs 3% to as much as 6% of the outstanding principal of the loan, with banks levying fees on everything from application fees and title searches to appraisal costs and legal expenses. (Mortgage "points" can add to the total, though they typically help reduce the interest rate and lower overall costs.)
Fees are often murky, too, making comparison shopping difficult. The best way to compare deals, says Melinda Opperman of Riverside, Calif.-based Springboard Nonprofit Consumer Credit Management Inc., is to consult with a housing-counseling agency approved by the U.S. Department of Housing and Urban Development.
Given such costs, you don't want to refinance often. Yet the advice coming from the mortgage world suggests you should be doing it regularly.
One particularly dubious idea gaining prominence is the "1% rule," which used to be the 2% rule when rates were higher. The gist: Refinance when you can knock a full percentage point off your rate.
It's too bad that so many people are relying on oversimplified advice and bad numbers to decide when to pull the trigger.
The refinancing equation has never been more complicated. While some borrowers are desperate to reduce their monthly payments, others are looking to build equity. Some are even treating their mortgage as an investment vehicle, sinking excess cash into their homes in order to secure a lower rate and cut future payments.Yet most personal-finance resources these days don't account for situations like these. Even essential factors like tax rates and inflation expectations are often ignored in favor of simplistic calculations.
Many popular Web resources, in fact, are financed by lenders, mortgage brokers or "lead generators" that connect borrowers with banks. At times, their advice can be downright harmful.
That's because of the risk involved. Refinancing generally costs 3% to as much as 6% of the outstanding principal of the loan, with banks levying fees on everything from application fees and title searches to appraisal costs and legal expenses. (Mortgage "points" can add to the total, though they typically help reduce the interest rate and lower overall costs.)
Fees are often murky, too, making comparison shopping difficult. The best way to compare deals, says Melinda Opperman of Riverside, Calif.-based Springboard Nonprofit Consumer Credit Management Inc., is to consult with a housing-counseling agency approved by the U.S. Department of Housing and Urban Development.
Given such costs, you don't want to refinance often. Yet the advice coming from the mortgage world suggests you should be doing it regularly.
One particularly dubious idea gaining prominence is the "1% rule," which used to be the 2% rule when rates were higher. The gist: Refinance when you can knock a full percentage point off your rate.
Students 'should consider the value of their belongings' when searching for a house insurance quote
Students searching for a house contents insurance policy to cover them when they are away from their parent's home could do well to evaluate how much their belongings are worth.
This is according to Graeme Trudgill, technical and corporate affairs executive at the British Insurance Brokers' Association (BIBA), who explained that consumers should account for designer clothes, their computer, printer and gadgets like iPads - as when combined their value could be very high.
"People have a lot of stuff and you have got to make sure that you just add it all up. It doesn't take long - you can do a quick check and your insurance broker can help talk you through it to make sure you have covered everything," he continued.
However, students - of which UCAS states there will be 470,789 attending new courses this year - may not have to shell out for their own individual policy, as some providers offer home-from-home deals where parents extend their policy to cover the youngsters' possessions while they study elsewhere.
This is according to Graeme Trudgill, technical and corporate affairs executive at the British Insurance Brokers' Association (BIBA), who explained that consumers should account for designer clothes, their computer, printer and gadgets like iPads - as when combined their value could be very high.
"People have a lot of stuff and you have got to make sure that you just add it all up. It doesn't take long - you can do a quick check and your insurance broker can help talk you through it to make sure you have covered everything," he continued.
However, students - of which UCAS states there will be 470,789 attending new courses this year - may not have to shell out for their own individual policy, as some providers offer home-from-home deals where parents extend their policy to cover the youngsters' possessions while they study elsewhere.
House insurance reminder for victim of distraction burglary
The victim of a distraction burglary that took place in Towcester may have been reminded about the importance of an up-to-date house insurance policy.
A woman was approached by a man on September 15th who claimed he needed to check the pipes in her property. While the lady was occupied with the first perpetrator, another entered the house and searched the rooms before leaving empty handed, About My Area reports.
The first male has been described as white, aged between 30 and 35, with a clean-shaven face and slim build.
He is also said to have spoken with a northern accent and was dressed in smart clothes at the time of the incident, which took place between 15:30 BST and 15:50 BST.
A female who carried out a similar offence in Plymouth recently has been found guilty of burglary and attempted burglary, according to the Herald. She entered homes on the pretence of looking for lost ferrets, while her accomplice made off with items of value.
A woman was approached by a man on September 15th who claimed he needed to check the pipes in her property. While the lady was occupied with the first perpetrator, another entered the house and searched the rooms before leaving empty handed, About My Area reports.
The first male has been described as white, aged between 30 and 35, with a clean-shaven face and slim build.
He is also said to have spoken with a northern accent and was dressed in smart clothes at the time of the incident, which took place between 15:30 BST and 15:50 BST.
A female who carried out a similar offence in Plymouth recently has been found guilty of burglary and attempted burglary, according to the Herald. She entered homes on the pretence of looking for lost ferrets, while her accomplice made off with items of value.
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