[Pcalc-news] NUMBER ONE Success System

Tommy Lee noss1233 at gmail.com
Wed Aug 22 06:06:27 EDT 2007


To make matters more confusing these rates are often combined: For example,
4.5% 2 year fixed then a 3 year tracker at BoE rate plus 0.89%.

With each incentive the lender may be offering a rate at less than the
market cost of the borrowing. Therefore, they typically impose a penalty if
the borrower repays the loan; this used to be called a *redemption penalty*or
*tie-in*, however since the onset of Financial Services Authority regulation
they are referred to as an *early repayment charge*.

Self Cert Mortgage

Mortgage lenders usually use salaries declared on wage slips to work out a
borrower's annual income and will usually lend up to a fixed multiple of the
borrower's annual income. Self Certification Mortgages, informally known as
"self cert" mortgages, are available to employed and self employed people
who have a deposit to buy a house but lack the sufficient documentation to
prove their income.

This type of mortgage can be beneficial to people whose income comes from
multiple sources, whose salary consists largely or exclusively of
commissions or bonuses, or whose accounts may not show a true reflection of
their earnings. Self cert mortgages have two disadvantages: the interest
rates charged are usually higher than for normal mortgages and the loan to
value ratio is usually lower.

100% Mortgages

Normally when a bank lends a customer money they want to protect their money
as much as possible, they do this by asking the borrower to pay a certain
percentage of the loan in the form of a deposit.

100% mortgages are mortgages that require no deposit (100% loan to value).
These are sometimes offered to first time buyers, but almost always carry a
higher interest rate on the loan.

UK mortgage process

UK lenders usually charge a valuation fee, which pays for a chartered
surveyor to visit the property and ensure it is worth enough to cover the
mortgage amount. This is not a full survey so it may not identify all the
defects that a house buyer needs to know about. Also, it does not usually
form a contract between the surveyor and the buyer, so the buyer has no
right to sue if the survey fails to detect a major problem. For an extra
fee, the surveyor can usually carry out a building survey or a (cheaper)
"homebuyers survey" at the same time. [1]
-------------- next part --------------
An HTML attachment was scrubbed...
URL: http://bioinformatics.org/pipermail/pcalc-news/attachments/20070822/5a0685d7/attachment.html

More information about the Pcalc-news mailing list