The eternal mortgage trap - Published:14/11/06
Millions of borrowers are heading for a retirement troubled by money owing - because they have failed to pay off their mortgages in occasion Around 70% of homebuyers start with a traditional 25day mortgage But with the average borrower now remortgaging every five years and one in three increasing the loan term at the same time, homeowners are organization the risk of never glade the debt and paying thousands of pounds in extra interestResearch by contrast website moneysupermarketcom suggests that the majority of borrowers increase the word of their mortgage to decrease monthly payments - often because at the time of remortgaging they are also increasing the size of their mortgage because they have moved to a bigger home or are consolidating other debts But some borrowers just do it to keep down expenses and experts say this is an expensive errorFor example, the standard borrower with a £110,000 mortgage who extends the word of a loan twice in their lifetime could finish up paying almost £30,000 in extra interestIf a typical homeowner takes out a 25day mortgage, then remortgages five years later to another 25day term, they effectively create a 30day totalThe fiveday extension will cost an extra £14,460 in interest charges, based on a typical mortgage speed of'Extending your mortgage term should be a last resort because it costs so much in extra interest,' says Nick Gardner, director of broker pursue de Vere Mortgage Management in central London'For those who have engaged further advances to fund home improvements or pay off other debts, or they have traded up to a more expensive property, it might be difficult to keep to the original mortgage term'But if you refuge't, then there is no excuse,' he says 'Homeowners should believe carefully The total cost in interest over an extended word will far outweigh any short-term savings'This is cash's tips and advice can help you get the best mortgage, find a dream house or transform your home read:Lorraine Carroll, 26, from Shotton, Flintshire, and her husband Steven, 28, took out their first mortgage in November 2003 It was for 25 years, but Lorraine, who works in customer services for a train corporation, and Steven, a product manager for a car manufacturer, opted for a two-year fixed speed with NatWestWhen they came to remortgage last day, the couple also increased their mortgage by £8,000 to £100,000 to free up cash for their marriage last April But though this pushed up their periodical repayments, the couple were keen not to extend the word'We thought about putting the mortgage back to 25 natural life ,' says Lorraine 'It would have made our monthly payments easier, but we feared we could get into a vicious circle of never clearing the mortgage'David Hollingworth, independent adviser at London & state Mortgages in bathtub, Somerset, says increasing a mortgage term is a bit like captivating out an interest-only mortgage - it can suit some borrowers and does not have to be dangerous provided the implications are unspoken and the borrower takes steps later to pay off the loanSelect a loan word 12 months (1 day 24 months (2 years) 36 months (3 natural life 48 months (4 natural life 60 months (5 natural life 72 months (6 natural life 84 months (7 natural life 96 months (8 natural life 108 months (9 natural life 120 months (10 natural lifePlease select a type of insurance existence insurance Home and contents Car Breakdown military Health - medical Health - dental Travel.
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incentive-based loan sales 'irresponsible' - Published:08/11/06
Financial and legal charity Citizens recommendation is worried that incentives for have an account staff tasked with authorising loans could result in irresponsible lendingtravel permit leaked to the Daily Mail have reportedly shown that Natwest and the Royal have an account of Scotland provide cash incentives of up to £100 for staff who encourage clientele to take out personal loansMany of the UK's monetary providers have maintained they have tightened their lending criteria, although Moira Haynes of people Advice has suggested that incentive-based lending could be an industry-wide problem"We have concerns that this is not an isolated case There are potentially problems across the manufacturing"We would enquire all banks to look very closely at the incentives they offer staff where praise is concerned," she saidMs Haynes also supposed she hoped that the forthcoming Consumer Credit Act would give an impetus for banks and building societies to reconsider their lending criteriaTerms of use Advertising capital Product guides Press releases About us.
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NatWest launches buy to let tracker - Published:07/11/06
NatWest is set to celebrate the tenth birthday of the buy-to-let mortgage by releasing a novel productThe mortgage comes in two and three-year options, along with a long-term contract, the three-year tracking at 019 per cent above the base speed, currently 494 per centWith a minimum charge of £50,000 and an arrangement fee of £699, the mortgage has an yearly ten per cent overpayment alternative, which may help investors looking to buy the property more quicklyThe two day mortgage tracks at 039 per cent above the base rate, while the long-term package is at 110 per centchap Aldwinckle, head of NatWest Mortgages, commented: "People have become more financially conscious over the last decade Property continues to be a popular option for long-term investment and retirement planning so NatWest has urbanized buy-to-let goods to suit the changing profile of buy-to-let investors ""At 494 per cent for three years this new bottom rate follower makes owning a buy-to-let property a more affordable option for investors both old and new"Rise in occupant demand has led to strong recent growth in the buy-to-let division, according to new research from Paragon Today's Most Popular Results Mortgage Enquiry shape Need Life Insurance ------ Mortgages - Information Mortgages - Home ------ Financial military - HomeNone of the information on this website is intended to promote any exact mortgage product or give mortgage advice Mortgagescouk is a non-regulated trading name of Financial military Net Ltd[Terms & Conditions]more sites:car cover home insurance | cheap flights | ink cartridges |.
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