Solution Mortgages News

Solution Mortgages news on bad credit remortgages, poor credit remortgages and for people with arrears & ccj’s. Remortgage news with regards to the adverse credit market and people with sub prime credit.

Tuesday, October 16, 2012

Is the recovery coming?

Is the recovery coming?

This is a question my clients continuously ask me. They seem to be getting more anxious and frustrated every day. Especially the clients who have loads of equity but may not meet the strict affordability requirements. They may also have bad credit which lenders are simply not interested in at the moment.

I watched a programme last week which investigated the problems young people or first time buyers are having trying to get on the property ladder. It labeled them as "boomerang kids". This is because the only way they can save a deposit is to move back home. This will enable them to save the £750 per month that they were spending on rent. But it would still take them 3 years to save the deposit. Although their parents agreed it was with some reluctance.

What's the solution?

They interviewed some lenders and also a building contractor. The outcome was both seem to blame each other. One saying there's no point as there's not enough funding to sell the properties and the lender said that we need more affordable housing. There is some truth in both of these arguments but the staggering figure was that we need as nation to be building somewhere in the region of 240,000 new properties per year. Unfortunately we only built half that in 2011 and will do similar in 2012. Surely if the government pumps the money into building affordable homes rather than saving the sorry backsides of the banks then we would would solve part of the problem. Back in the 1920's both the US and the UK built there way out of the depression.

On a positive the US property market is showing strong signs of recovery. Many regions are seeing strong sales and price increases leaving analysts talking about a sustained recovery. Like the UK, the US is experiencing a bit of a lending drought but is still further on the road to recovery than the UK. That said, it was the US who was first hit with the credit crunch. Hopefully this will mean that we will start to follow in 2013.

Another positive is that "State Bank of India" (SIB), India's largest bank is to enter the residential market in 2013. Albeit they will only target London and the South East to start with. Their plans are to build up 5% of the UK market within 10 years. This in my opinion is great news. Yes, they are only dipping their toes in to start with, but its a start.

In conclusion we still have a long hard road ahead of us and we live in hope that things will get better sooner rather than later. I for one will remain as optimistic as possible and will continue to look for the positives that keep us all smiling. 

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Tuesday, October 9, 2012

Seven reasons why a secured loan might be a better option!

  1. Your current mortgage has a high penalty if you re-mortgage. If you are tied in for long periods and the penalty for coming out is 5% of the mortgage balance why not do a secured loan for now and re-mortgage to combine the two once the penalty period has expired. You must consider a further advance as this may be a cheaper option.
  2. Your current variable rate is so low that it would do more harm than good if you re-mortgage. Your current rate is less than 3% and will remain so whilst the bank of England rate is so low. Don't touch it take advantage of the low payments. Any money you need may be far more cost effective to source via a secured loan. You must consider a further advance as this may be the cheapest option.
  3. You have some minor adverse and you need to raise money against a Buy-To-Let property. If you have adverse and need to raise money against BTL properties you will find that re-mortgaging is a non-starter as all conventional mortgage lenders will want a clear credit history. You can still raise money via a secured loan with up to 4 secured arrears.
  4. You have a Non-Standard-Construction property. This is an area which is the most difficult to raise raise for. All mortgage lenders will say NO! There is 1 possibly 2 secured lenders who will lend on these property types.
  5. Your self employed and need to self certify your income. With all the problems in the market there has been a huge clamp down in mortgage lending. One of the biggest casualties was the self certification market. As far as mortgages go this is a big no no. However, with secured loans there a still a few products where this is possible.
  6. I have an IVA or I,m in a debt management plan. These are 2 areas where mortgage lending has stopped. Mortgage lenders have made it clear in this climate that they will not help clients who hold these sorts of plans. With secured loans the criteria is far more flexible. As long as you've got the equity to clear the outstanding credit then its a real possibility.
  7. I have current mortgage arrears. This is another area which mortgage lenders are very particular about. They will not lend whilst your current mortgage is not being maintained. With secured lending it is possible to raise the money you need as well as clearing all mortgage arrears.
With all of the above we would need to check income and affordability to ensure you can afford the re-payments.

If you would like some information on these areas then please call 01260 276200 or 07966 974510. You can also visit our website at www.solution-mortgages.co.uk

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Wednesday, August 29, 2012

Secured Loans with bad credit

Getting finance is proving one of the hardest things to do at the moment. We are now 5 years in to the credit drought which has spiralled the global economy out of control. Mortgages and re-mortgages remain difficult to obtain even with a good credit history.

There is a solution!

The secured loan market is recovering at a better rate than the mortgage market. There is more felxibility on bad credit and more options for variable incomes. To give you an insight to whats on offer please see a list of areas which Solution Mortgages can help;-

1 - Self employed with no accounts
2 - CCJ's
3 - Mortgage arrears
4 - Lending on BTL properties
5 - Income made up of several sources
6 - Defaults
7 - Non - standard construction
8 - Ex-Local authority flats

As you can see we can help in a number of areas. If you would like to speak to some one please call 0845 123 1260 or visit www.solution-mortgages.co.uk

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