Monthly Archives: January 2009

Author : Anjitha Sakthidharan

100% mortgages are mortgages that require no deposit, means the loan-to-ratio of the mortgage is 100% These are sometimes offered to first time buyers, but almost always carry a higher interest rate on the loan Normally when a bank lends customer money they want to protect their money as much as possible; they do this by asking the borrower to fund a certain percentage of the property purchase in the form of a deposit

A 100% mortgage can be used to fund the entire cost of purchasing a property, eliminating the need for a deposit The only costs that are not covered are miscellaneous expenses such as stamp duty, legal fees, and mortgage application and brokerage fees

As these types of loans are becoming popular, lenders appears to be keen to offer a variety of options that are aimed at helping common people to buy homes or property The increase competition is good for the customers as they can now shop around to find a better and competitive deal of their choice

You can find zero-down sub-prime mortgages with both conventional and niche sub-prime lenders Make sure that you request quotes from as many mortgage lenders has possible to be sure you find the lowest rate and best terms

Sub-prime lenders now offer financing packages with zero down Interest rates are higher on these types of loans, but they make purchasing a house easier And unlike a conventional loan, there is no private mortgage insurance required There are two types of zero-down mortgage packages, each with their own requirements

Fortunately, many mortgage companies recognize how difficult it is to save for a down payment Thus, some lenders have created special loan programs that make it possible to buy a home with zero down payments Ordinarily, if you had a down payment for a home, you would obtain better rates However, because of low mortgage rates, you do not need a down payment to secure a good rate

There are many options for a zero down home loan For starters, some mortgage lenders offer an 80/20 loan This involves offering a mortgage for 80% of the asking price, and a 20% home equity loan for the remaining balance This option is very useful; moreover, homebuyers avoid paying private mortgage insurance

All lenders have their own criteria for determining who will qualify for a zero-down loan Most sub-prime lenders require any bankruptcies or foreclosures to have been at least twelve months ago A conventional loan requires these to be discharged two to four years ago A flipside to 100% mortgages is that they often involve hefty fees and high interest rates These extra costs provide a hedge against the extra risks faced by the lenders if the borrowers cannot keep up with their monthly mortgage payments

While a credit score of 600 or higher is best, large cash reserves can also qualify you Six to twelve months worth of cash reserves in the form of savings, money market, or other liquid assets are considered ideal If you choose 80/20 financing with the seller carrying the second mortgage, you can qualify with sub-prime lenders with a score of 560

If you are hoping to buy a home with zero down, contact a mortgage broker There are various loan programs that offer zero down loan options If using a mortgage broker, the company can help you find a lender

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Author : Michael challiner

You are probably going to need life assurance if you want to insure your health or your income should you become ill and unable to work- something which is especially important for single people or people with dependents, including a same-sex partner There are also instances, like buying a house, when life insurance may be necessary

Providers might want to know if you are gay They will ask you to complete an application form which will include information on whether your partner is in the homosexual category The enquiry may not be direct but the insurance company will subsequently send out an intrusive questionnaire on lifestyle

It might be tempting not to disclose information or to give false details but this would only serve invalidate your insurance and is consequently a very bad idea Furthermore, this can give rise to considerable difficulties when reapplying to other companies

Once the form has been completed, you may then be requested to take a test to find out if you are HIV positive There are no pre-set rules on testing and insurance companies are fairly random in their selection process

If you do test positive for HIV, it will be difficult to buy products associated with life insurance Simply taking the test itself can result in a refusal of cover by some insurers, even if the result is negative

Even if you pass all the tests satisfactorily some companies will still double or treble your premiums Most companies will insist on HIV testing for gay men who apply for income protection or critical illness policies even though neither would pay out for an HIV related claim If you believe life cover has been unfairly refused, write to the Association of British Insurers at 51 Gresham Street, London, EC2V 7HQ Phil Carvosso, of Carvosso & Co, a financial adviser based in Brighton, says: ‘It is not nice knowing the insurer can claim rights to some of your blood Understandably the test can be harrowing

He recommends that you take the test on your own terms in advance of going to an insurer To avoid insurance companies being allowed access to areas of your medical history, some people suggest getting drug or STD treatment at anonymous clinics which are available in nearly every town or city The National Aids Helpline or the Terrence Higgins Trust should be able to help you locate a suitable one Present guidelines used by the insurance industry in relation to gay applications are very out of date The ABI has been considering new proposals thanks to tireless campaigning by gay IFA Chris Morgan and the Terrence Higgins Trust

There has already been an agreement between The ABI and The British Medical Association whereby doctors should not be requested to give information on STIs and negative HIV tests New proposals would make the risk assessment undertaken by insurance more up- to- date by ensuring that safe sexual behaviour, rather than sexuality, is the criterion

Although it may be some time before new guidelines are fully implemented, gay applicants can normally still obtain the cover they need even in the present system Independent Financial Advisors, specialising in gay finance can often find cover without any need for testing and on precisely the same terms that apply to heterosexual applicants

Mr Carvosso recommends Scottish Widows which he feels is more sympathetic than some banks Shopping on-line can also generate some of the best prices theidol com is reportedly one of the cheapest, offering all types of life insurance, including that for gay applicants Isis Financial Planners (tel 08000 1960 69) also specialises in gay insurance

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Author : Michael challiner

Yesterday’s 1 5 percent cut in the Bank of England interest rate will mean at least one in four mortgage borrowers will make a substantial saving Borrowers with a tracker mortgage will feel the full benefit from as early as next month, however, it may take much longer before any beneficial effects are felt by many others

Tracker mortgages Directly tracking any movement in the Bank of England rate, borrower’s rates will come down by a full 1 5 percent with immediate effect Most tracker mortgages are currently priced between 5 and 6 percent, so some homeowners would see a drop of nearly a third An average family with a 200,000 repayment mortgage, currently paying 5 5 percent on a tracker loan, would see their monthly payments fall about 170 a month

However, some lenders such as the Nationwide and Skipton have “collars” meaning the Bank rate is not followed once it falls below a certain level For Nationwide this is 2 75 per cent and 3 per cent for Skipton For new borrowers trackers are not good value With many banks withdrawing trackers altogether this week, others are charging 1 5 or more percent above the base rate

When banks lend to each other, the rate is known as Libor Well above the Bank rate, banks use Libor to price their lending rates If the Libor does not come down then some new borrowers will be required to pay two per cent above the bank rate

Fixed-rate mortgages

For new borrowers fixed rates are coming down, but the best ones are still well over five percent Homeowners who are on fixed rate deals now will see no change and when they come to remortgage they may not find a better deal than their current one

Discount mortgages

These track the lender’s standard variable rate (SVRs) SVRs have not been coming down as quick as the Bank of England rate About half of the lenders have cut their SVR since last month’s 0 5 per cent base rate cut it remains to be seen how lenders react to the latest Bank cut

Remortgage before the end of your current deal or you will end up paying the SVR Only a small amount of borrowers pay the SVR, which is at least 1 5 per cent above the base rate With falling house prices though, people are having less equity in their homes, remortgaging is difficult and they end up paying the SVR

Savings

High rates, some paying well over six percent, are still been offered by banks to attract private individuals It is difficult to raise the capital they need from other banks

Business and investment

Finishing almost six per cent down, the stock markets were unconvinced by yesterday’s cuts

Businesses have the same lending criteria as private individuals, only being able to borrow from the banks and not the Bank of England Refinancing their debt is still expensive while the Libor remains high In time rate cuts should work

The stock market instability is daunting for private investors For the average investor, put some of your savings into your pension each month Eventually, markets will recover

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