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Archive for Financial products

How to Finally be a First Time Buyer

Thursday, October 9th, 2008

The house price crash is proving to be a boon for many potential first time buyers. Those who have waited for years, ever-frustrated as house prices have rocketed beyond their reach are at last seeing a chance to buy.

With house prices having fallen eleven months in a row (according to figures from Nationwide), buyers poised to step on that first rung are waiting in the wings. So what are market conditions really like?

Well, according to the financial papers, prices are set to still fall, which is why many potential buyers are still holding back.

This may be bad news for those desperate to sell, but for those looking to finally be handed the keys to their own home, the news is great.

Many of these would-be purchasers have been saving up for years, watching prices soar further and further beyond their reach. Provided that they haven’t given up and dipped into their funds, they could be on track to buying their dream home in the next year.

One of the only dampeners that buyers should be aware of is the difficulty right now in getting a loan. Existing home loan borrowers have an easier time, should they find a buyer, as they have a proven credit record on their side and probably a chunk of equity in their property.

Lenders are now asking for as much as 25% deposit – compared to the 100% or even 125% loans that were being offered when prices were still rocketing. Unless you have a good credit record and a hefty chunk of savings, your dream property might not be as close as you think.

So, potential buyers could be wise to use their credit cards and take out cheap personal loans – provided always that they make repayments promptly. By building up a good credit record before they look at getting their home loan, they stand a great chance of getting that mortgage approval they need.

Posted in Borrowing, Consumer Credit, Credit Card, Credit record, Financial news, Financial products, First time buyers, Homeowner Loans, Homeowners, House buying, Housing news, mortgages, Personal loans, Property, Remortgaging, Secured loans, UK Finance | No Comments »

Broker Fees – Why?

Tuesday, September 2nd, 2008

One of the most common questions asked here at Interfinancial is “Do you charge a fee?” Many customers come looking for a personal loan but are – quite rightly – wary of paying a Finder Fee before they see the goods.

So, what are these fees and why is it so hard to find a loan these days without stumping up hard cash first?

For many customers, the loan is their lifeline: They have a limited income that seems to either being going out faster than it comes in, or they need cash ASAP to cover an unexpected bill. The last thing they can afford is yet another outgoing.

Believe us, brokers do understand that when you need money, you’re not looking to spend it. However, it’s not just customers who have had to adapt to the global credit crisis; the loans market has changed a lot too.

With fewer loan products available and lenders getting increasingly picky over borrower criteria, we’re working harder than ever to find you that loan. We spend alot of our time checking paperwork, answering questions and searching the market – which increasingly means checking the small print – just to get you quotes.

With so many customers shopping around to get the cheapest loan deal, we’ve always had to stay competitive, but we can only offer the deals that are out there. Many customers have unrealistic ideas about the deals they can get – especially when they are seeking a bad credit loan.

Whilst we don’t expect every enquirer to take us up on our quotes, we do find that we’re spending a lot of time looking for loans for people who don’t realise that cheap bad credit loans are not available from every lender like they used to be.

So, we hope you’ll understand that these fees are not just about us taking your hard-earned cash. We just want to make sure that you’re as serious about loans as we are.

Posted in Bad Credit, Borrowing, Consumer Credit, Consumer debt, Debt management, Financial news, Financial products, Personal debt, Personal loans, Secured loans, UK Finance, Unsecured loans | No Comments »

Beware of hidden catches in your home loan

Monday, September 1st, 2008

In these days of the credit crunch many lenders are looking to ways to recoup on losses incurred in the last year. If you are looking to get a mortgage look out for the following catches that many lenders slap on in an effort to boost profits.

First of all many mortgages come with exit fees. If you decide to switch loans to another lender or even if you try to pay your home loan off early your lender will charge you an exit fee in order to cover the administrative costs of the mortgage.

These fees have been traditionally around £50 to £100 however many lenders have been including small print in the mortgage agreement which state that exit fees are variable. If you find you have been charged what seems an excessive fee, it is worth checking out. Use the documentation you have to make sure you are being charged the stated amount and if your lender refuses to co-operate go directly to the Financial Services Authority (FSA).

Another thing to consider when agreeing to a mortgage is the standard variable rate (SVR). The SVR is the lenders’ fluctuating rate for borrowing and in general is around 2% higher than the Bank of England base rate. If you are on a fixed rate mortgage for instance, once the deal expires you will automatically be moved onto the SVR.

It is always wise to be aware of when your loan rate is due to change well in advance to give yourself time to shop around. Although your lender should notify you to discuss your options, it is better for you if you are aware of the market, rather than accepting the first rate you are offered.

The financial climate is rather rocky right now, so it is better to have all your facts than to stumble along and find that you have switched from a great deal to one that leaves you considerably worse off each month.

Posted in Banking, Borrowing, Consumer Credit, Financial products, Homeowner Loans, Homeowners, interest rates, mortgages, Property, Remortgaging, Secured loans, UK Finance | No Comments »

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