Abbey Mortgages Attempts To Reestablish The Flow Of Credit To Consumers

March 20th, 2009 by writer | No Comments | Filed in Press Releases

Worldwide lender Abbey mortgages has seemed to weather the economic storm and is now preparing to reestablish a steady flow of new consumer loans and mortgages. While most financial institutions around the world are being accused of increasing the credit crunch by refusing valid loan opportunities Abbey has countered the trend by setting up strict new lending guidelines. While these newer terms might seem harsh they are only a response to losses incurred during the economic speculative fever of 2004 – 2007. Those freewheeling policies resulted in the near collapse of the world’s banking system and today’s tougher lending policies. The days of house buyers with low income qualifying for 100% mortgages are long ended. In their replacement are rules requiring from 10 to 20 percent placed as deposit on any property purchase.

Renowned consumer credit online resource Credit Choices reports that according to the council of mortgage lenders the average deposit on first time homebuyers last year was 22%. This represents a sharp rise over the aforementioned period. Still these recent buyers are receiving lower interest rates due to the competitiveness of the UK mortgage market. It is almost a contradiction that while fewer lenders want to loan out funds, preferring to stand pat on their portfolios, interest rates have fallen for those buyers able to come up with the larger initial payment.

Data provided from Credit Choices shows that buyers with a deposit of from 21 to 25% will actually receive a mortgage almost a full percent lower than those with a 10% deposit.

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From Mortgage Protection to Balance Transfers, Compare Your Options

February 21st, 2009 by admin | No Comments | Filed in Press Releases

Even in this, the day and age of the credit crunch, there are still options out there for those wanting credit. Because the times are hard however, it has never really been more important to compare your options when looking for a loan, credit card or other such financial package.

One way that credit seekers can empower themselves is by using a service such as a comparison website, to make sure they get the best deals they can. Whilst one the surface many deals may seem to offer exactly what you want, whilst negating the need to sign deals with satan himself, you may be somewhat surprised and upset when you card bill or bank statement arrives.

Lenders have many ways of applying fees and charges to our credit accounts legally and sneakily. Some comparison sites offer the consumer a chance to read about various financial offerings, and help them make a more informed, level headed choice.

Creditchoices.co.uk is one such comparison site. They offer the visitor help with everything from comparing 0 balance transfers and finding out they ways that such deals can leave the consumer feeling aggrieved, to checking out the latest abbey mortgages on offer, or finding out if they really need mortgage protection cover.

As with any credit application, think carefully and fully research your options and the offers terms and conditions before signing on the dotted line.

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100% Mortgages An Introduction…

December 21st, 2008 by admin | No Comments | Filed in Press Releases

100% mortgages
 
Although now defunct, 100% mortgages used to be popular with 1st time buyers, offering a loan for the complete value of the property. Mortgage repayment rates for 100% mortgages tended to be higher than pretty much all other mortgages, but borrowers were made to understand that this was due, in part, to the extra risk on the part of the lender.
 
As well as the 100% mortgage, some lenders even offered to lend up to 125% of the value of the property, so the house buyer could purchase household goods, as well as pay for things like solicitors fees and valuations.
 
Back in 2006, roughly 2 percent of all mortgages were 100% ones. (Sourced from the Council of Mortgage Lenders)
 

Are 100% Mortgages Still Available?


 
In a word, No. the credit crunch has closed the door on 100% mortgages. Whether this is a long term thing, or just a temporary issues whilst the powers at be sort out the housing market and other issues, we do not yet know. Some people say we will see a return to 100% mortgages, whilst others are more sceptical.
The reason 100% mortgages are no longer available is pretty simple. Mortgage providers rely on borrowing money from other lenders at very competitive rates, who in turn rely on house prices rising steadily. Since October ’07, there has been a slump in house prices, to the extent that 1 year later, in October ’08, house prices were lower than 2007.
 
This has left some mortgages holders in ‘Negative Equity’ – a term used to describe having a mortgage debt that is higher than the value of your property.
If you came here looking for a 100% mortgage, do not despair. It would be wise to use a mortgage calculator to work out what you can or can’t afford, and what deal would be best for you.
 

Mortgage Calculators – What Are They?


 
A mortgage calculator is basically a tool that can be used to determine what your monthly repayments should be for any given mortgage. Some of the best mortgage calculators allow you to input the sum to be borrowed, the % rate that you have been offered, and the repayment period. The calculator will then give you details such as your monthly repayment amount, the total cost of the mortgage, and even the total interest paid for the mortgage.
 
It may be surprising what you find when you use one of these tools to work out how good the mortgage you are being offered really is – Seeing the figures in black and white in front of you in a concise table can really clear the fog somewhat.
 

About Credit Choices.


 
Creditchoices are a leading comparison site for finance matters. On their site you can compare everything from abbey mortgages to instant decision credit cards, and much more.
 
Creditchoices also have a plethora of facts and guides, in an effort to educate the consumer, so they can make informed and sensible decisions when looking for credit.
 
 
 
 
 
 

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