Supersize mortgages: Worth the risk? by Finance News Bulletin

NatWest launches new investment option - Published:22/10/07

Be prudent with 100 per cent plus mortgages - Published:14/09/07

100 per cent mortgage deals, and novel 100 per cent plus loans, are being pushed by some mortgage lenders and brokers to ‘help’ first-time buyers onto the property steps Many unparalleled buyers already have significant debt and zero deposit, and this type of loan aims to give a much-needed foot up However, although these products may seem a silver inside layer, there are pitfalls100 per cent plus mortgages are becoming more ordinary, and are offered by lenders such as Alliance and Leicester, Northern Rock and Coventry structure Society Major lenders such as HSBC, Co-Operative Bank and NatWest present 100 per cent loans The figure of borrowers choosing these loans has also increased, but is this a sensible ideaBorrowers require to look closely at the interest rate emotionally involved to a 100 per cent mortgage Even raising a small put can result in a much better interest rate unenthusiastic equity should also be careful, if house prices take a downturn Working our your figures and being prepared, as well as raising as much money as possible for a deposit, stay the input to a successful first house purchaseFirst time buyers offered more no-deposit mortgages, financing investigate indicates - Fri, 15 Jun 2007London home information pack exception demand rejected, mortgage holders told - Thu, 14 Jun 2007nowadays's Most Popular Results Mortgage Enquiry Form require Life Insurance ------ Mortgages - Information Mortgages - Home ------ Financial Services - HomeNone of the in order on this website is intended to endorse any specific mortgage manufactured goods or provide mortgage advice Mortgagescouk is a non-regulated trading name of Financial armed forces Net Ltd[Terms & Conditions]more sites:car insurance|.

Holiday homes stampede - Published:26/10/06

MORE than a quarter of a million Britons own a overseas property This number has risen by almost 50% in the past six natural life and continues to grow, thanks in part to the many television shows extolling the joys of having a vacation homeThis figure is expected to double in the next five natural life, according to Halifax Estate Agents The most popular destinations for second homes overseas are Spain, France, Florida, Portugal and Italy Others rising in popularity include Croatia, Turkey, Cyprus and Morocco, where persons often expect to pick up a bargainBut before you dive in head first, there are many issues to think, especially if you plan on renting out the home Although Europe has a single money and many ordinary laws, there are still massive differences in the tax and legal requirements when trade and renting your French fortress or Spanish villaThe key is to do your research A good thought is to agree a loan in principle with the mortgage corporation for your main home to give you an idea of how much you can spend Simon Conn, managing director of Conti monetary Services, a specialist in buying property overseas, says: 'Don't always get drawn to places on the basis of inexpensive flights There's no guarantee the financial plan airline will always fly that route, which means rental potential will plummet'Because the mainstream of people take a mortgage secured on their UK house, the lender doesn't need a assessment on the holiday home But Mr Conn warns: 'This is very dangerous We constantly perceive sound horror stories of people buying places without getting an independent assessment done and just trusting restricted developers In some cases, the property has afterwards been demolished as it breached planning rules'The easiest option is to raise assets on your existing UK home, providing you have enough equity built up in it Your lender may want to revalue your house and will make a charge for this as well as charging for the further advance of moneyYou will also be restricted to whatever mortgage deals your alive lender offers However, if you do not have penalties on your existing mortgage, you could look around for a new deal and remortgage on the other hand, you could opt for a foreign money mortgage A euro mortgage will normally be done with a bank or lender close to where you desire to buy, though some UK banks and building societies have abroad operations The abroad lender will do their own checks on the property to make sure the house is registered in the vendor's name and that a proper lawful title existsEuro mortgages tend to be cheaper The interest speed for a sterling mortgage in Spain is about 625% compared with rates from 37% for a euro mortgage The large High Street lenders Barclays, Halifax, Lloyds TSB and NatWest proffer foreign currency mortgages Whether this is right for you will depend on your personal circumstancesRob Clifford, at national agent MortgageForce, says: 'While a euro mortgage looks cheaper, it can be burdened with hassle as you are exposed to exchange rate movements which can create monthly costs higher than expected and make it hard to budget But a euro mortgage is a better alternative if you're renting the property out and being paid in euros, as the rental profits can be offset against mortgage repayments'Eastern Europe is rising in popularity with vacation makers and vacation home owners searching for a bargain You can, for instance, pick up a two-bedroom possessions at a Black Sea option for about £50,000 Properties in the mountains cost about £40,000A two-bedroom apartment on Croatia's Istrian Peninsula will price you about £60,000 while a new-build villa could be £150,000 or more But be warned that in some countries you can't buy land or possessions directly, so a limited company has to be set up to do this Also, while properties are cheaper, there are risks linkedAlthough sightseeing is growing, there is no guarantee this will continue, which affects rental possible Eastern European countries also have less steady political climates so if a government changes and takes a dim sight of foreigners buying its properties, your investment is at riskHowever, Andrew Hamilton, advertising manager at The 4Less collection, an overseas property mortgage specialist, says: 'The Bulgarian market is becoming increasingly more stable as they are set to link the EU in early 2007 Buyers can find a two-bedroom apartment for as little as £10,000 and the plea of trade is likely to grow in the future'He adds: 'British buyers are becoming more daring and long-haul destinations such as Florida, South Africa, Canada, New Zealand and Australia shape the next tier of our inquiries'beam and Betty Williams have homes on the Costa Del Sol and in Florida The couple, from High Wycombe, Buckinghamshire, bought a two-bedroom possessions in the Cala de Mijas resort in Spain four years beforeRay, 69, a part-time chairman of a production corporation, bought the apartment without a mortgage for £70,000 The pair take holidays in the possessions about five times a year They don't rent it out but are still legally responsible for income tax on possible rent as it is not their main residence Two years ago they also bought a four-bedroom home in Orlando, Florida, for £115,000 When trade both properties, they used foreign exchange specialist Currencies Direct to handle the money move, which Mr Williams says saved them about £4,000The Florida home was bought with a five-year fixed speed mortgage of £80,000 from the Wakefield Mortgage Company at 525% It was part of a deal with the US brokers they second-hand The couple have now put the home on the market beam says: 'The biggest obsession to bear in mind when buying and selling overseas is your legal responsibility for tax You may get charged 15% duty on any gain and think you've saved yourself money as it would have been higher in the UK, but you'll still have to make up the difference at some stage'WE looked at four of the most popular locations Tax, planning and lawful requirements are complex and you should consult a restricted solicitor who speaks good English Even if you buy abroad you are still liable to UK taxes as long as you are a British nationwide and stay a UK resident But Revenue and Customs has actions with most countries to make sure you're not taxed twice Sadly, you'll always disburse the higher rate So if you are a higher-rate taxpayer in the UK (paying 40%) and you rental fee out your property in Spain, the Spanish administration will charge you only 25% income tax - but you'll have to pay the 15% difference hereAverage price of possessions: £130,000 Income tax on rent: Up to 48% Capital gains tax: 16% for EU people, then further reductions after two years Inheritance duty: Complicated system but can pay up to 40% riches tax: Up to 18% of property's value every year Estate agents' cost: From 4% to 12% In some areas, the buyer pays not whole Stamp duty: 489% but exemptions be relevant VAT on new properties: Up to196% Council tax: Based on property's value Exemptions if property is vacantstandard cost of property: £130,000 Must obtain an NIE figure - a foreigner identification number Income tax on rental fee: 25% for non-residents Tax breaks obtainable Will still be taxed if you don't rent out house at level set by government Capital gains tax: 35% when you sell possessions Inheritance tax: Not a fixed rate Depends on number of factors counting the wealth of beneficiary, not now benefactor Wealth tax: From 02% to 25% of value of property every yearStamp responsibility: Transfer tax of 6%/7% but not waged if you've already waged VAT storage bin: 7% for newly-built properties Rises to 16% for plots of land, commercial premises Council tax: owed along with other little taxes Set by town hallsAverage cost of property: £130,000 A Fiscal number is required - the equal of a National Insurance figure Income tax on rent: About 43% for non-Italian residents duty breaks available Will still be taxed if you don't rent out home Capital gains duty: None, but annual tax on property legacy tax: None Wealth tax: None trample duty: Registration tax of 7% to 15% VAT: Up to 20% on new properties Council duty: 4 to 6% of ground registry value Separate taxes for rubbish disposal and waterAverage cost of house: £90,000 Income tax on rent: 15% Capital gains tax: 25% for non-residents legacy tax: None Wealth tax: None Stamp duty owed: Transfer tax of 2% to 8% This replaced legacy and gift tax VAT: Up to 21% on novel properties Council tax: Twice a year up to 08%choose a loan term 12 months (1 year) 24 months (2 natural life 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 Life cover Home and contents Car Breakdown services Health - check-up Health - dental Travel Pet - dog Pet -.