Archive for September, 2011
Gross Lending Falling As Credit Squeeze Bites
The Council of Mortgage Lenders CML has reported that UK gross mortgage lending has fallen six per cent during August sinking to 32.2 billion from a record 34.25 billion in July prompting fresh fears that the housing boom is over. Only a month ago analysts were pointing to the record level of mortgage advances bullish at the fact that five interest rate rises had not dampened the market. But in only a month that appears to have been turned on its head.
The recently released figures represent a three per cent fall on lending for the same period in 2006 and even more worrying for the banks building societies and other lenders is that this drop in lending took place before recent credit restrictions were imposed on mortgage lending resulting from the knockon effect of the subprime market failure in the USA.
With perhaps predictable bravado the director general of the CML Michael Coogan rejected claims that the market was anywhere near a dramatic slowdown commenting: Lending fell slightly during August but was still at very high levels. We see no obvious decline in consumer demand although in the short term we are seeing a decrease in the supply of lending due to the problems lenders are experiencing in raising wholesale funding.
The CML point to the overwhelming support of the economy from the chancellor the Bank of Englands declaration that it would support threemonth funding and the US Federal Bank rate cuts that will increase liquidity amongst lenders. However caution is still urged as providers of UK mortgages are reminded to factor in interest levels on mortgages similar to those that exist now if they are to avoid problems in the future.
As a result of the tightening of lending criteria now more than ever potential borrowers are being urged to compare mortgages carefully before committing themselves to a particular deal. Anyone in such a situation will find that rates have risen sharply and even the amount they may be able to borrow has significantly reduced compared to several months ago as lenders move to protect themselves against potential baddebt.
The ogre of negative equity and the close shave for the Northern Rock building society are causing some jitters in the financial world with lenders doing all they can to ensure that they can protect their assets. The CMLs claim that there is nothing to worry about will be tested over the coming months as more borrowers struggle to keep up with increased payments and the dust from the subprime mortgage market collapse in the USA settles.
About the writer: Andrew Regan is an online freelance author from Scotland. He is a keen rugby player and enjoys travelling.
Get A Mortgage Without Saving For A Deposit
If you are looking to buy your first home you may be contemplating your options available to you. If you have found your home and have the necessary deposit saved then great but many are finding saving the deposits now being demanded are impossible for them to save for anytime in the near future. There are a number of shared equity mortgage schemes that can help you avoid spending years saving up a deposit. If you are lucky enough to have family that can join in and take an equity stake in the property to get around the need for a deposit then there is a family equity mortgage this can be an option. The parent or family member who takes the equity stake in the property legally has the stake in the property which normally is around 10. The parent would get their money returned to them if the property is sold the property cant be sold without the funds being returned to the parent. There are a couple of lenders who offer family equity mortgages using a mortgage broker is beneficial in helping you find the right mortgage deal for you taking the hassle out of searching the best deals as well as providing that valuable expert advice that can be very helpful to you in getting the best deal that suits your circumstances. If family assistance isnt an option then there are government schemes that are there to help individuals and families with the purchase of their first home. The LIFT shared equity mortgages scheme in Scotland is for those who arent able to financially afford a mortgage on their own each applicants finances are assessed which isnt limited to income it also includes savings. It is aimed at low to moderate income citizens. Each case would be individually assessed. The government can lend up to 49 the buyer needs to hold a majority share normally the funding would be around 2040 but as I say more can be loaned. With the LIFT scheme the buyer owns 100 of the home and is pretty much left alone when it comes to the home with permission only needed if the buyer wants to bring in a tenant.
About the writer: Chris Borthwick writes articles covering a broad range of subjects. His main area of expertise is mortgage advice and writes many articles on mortgages for finance industry mortgage brokers and for the general public. Most recent articles detailed the benefits of a fee free mortgage broker.
Florida FHA Mortgage Eazy To Qualify!!
FHA Credit Guidelines for Purchasing a Florida home
What do Florida FHA Lenders Want to See When They Review Your Credit report?
Before approving a Florida FHA mortgage loan the lender analyzes the integrity of the borrower’s past credit performance. Florida mortgage applicants who have a good credit history demonstrated by a solid track record of timely payments will likely be qualified for an FHA home loan. Potential borrower’s whose credit history reflects a consistent history of slow payments with sufficient explanation is not a good candidate for loan approval.
The following is a list of items concerning the borrower’s credit:
NO CREDIT HISTORY
3 lines of credit are necessary to apply for an FHA loan. However in the event a borrower does not have sufficient credit on their credit report the FHA will allow alternate trade lines including a 12 month history of timely payment on items such as rental history phone cable car insurance or any other 3rd party verified payment history.
CHAPTER 13 BANKRUPTCY
Florida mortgage FHA lenders will consider approving a Florida mortgage applicant who is still paying on a Chapter 13 Bankruptcy if those payments have been satisfactorily made and verified for a period of 12 months. The court trustee’s written approval will also be needed in order to proceed with the FHA home loan. The Florida mortgage applicant will have to give a full explanation of the bankruptcy with the loan application and must also have reestablished good credit in order to qualify and must prove stable predictable income likely to continue.
CHAPTER 7 BANKRUPTCY
Florida mortgage applicants must wait at least two years since the discharge date of the borrower and / or spouse’s Chapter 7 Bankruptcy according to FHA mortgage guidelines. This is not to be confused with the bankruptcy filing date. A full explanation will be required with the Florida mortgage application. In order to qualify for an FHA loan the borrower must qualify financially have reestablished good credit history and provide proof of a stable job.
LATE PAYMENTS
During an underwriter analysis of a Florida mortgage application the overall pattern of credit behavior is being reviewed rather than isolated cases of slow payments. If a good payment pattern has been maintained regardless of a specific period of financial difficulty preceded it the borrower may escape disqualification.
FORECLOSURE
FHA insured mortgages are generally not available to borrowers whose property was foreclosed on or given a deedinlieu of foreclosure within the previous three years. However if the foreclosure of the borrower’s main residence was the result of extenuating circumstances an exception may be granted if they have since established good credit. This does not include the inability to sell a home when transferring from one area to another.
PAST COLLECTIONS JUDGEMENTS AND FEDERAL DEBTS
Florida mortgage applicants A collection accounts do not need to be paid off as a condition for FHA mortgage approval. It is stated as such in FHA mortgage guidelines. Any judgments will have to be paid in full prior to closing. Florida mortgage applicants who are delinquent on any federal debt such as tax liens student loans etc. are not eligible for an FHA home loan.
Thomas Martin
http://www.fhamortgageprograms.com/florida/
About the writer:nbsp;nbsp;Florida FHA mortgage specialistThomas Martinhttp://www.fhamortgageprograms.com/florida/http://www.fhamortgageprograms.com/faq/fha.shtml