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UK Shared Ownership Mortgages could the ideal solution for the first time buyer to get on to the UK property ladder.

Shared Ownership

If you are unable to buy a property outright on the open market, then shared ownership is the ideal solution for you. Shared Ownership is a part buy, part rent scheme, which enables purchasers to buy a home in stages. Purchasers can buy an initial share between 25% and 75% of the value of the property and pay a subsidised rent on the remaining value of the property. Shared ownership properties can be provided by housing associations, housing trusts and local authorities. These organisations try be as flexible as possible with regards to the initial share purchased, but this may be as much as 50% of the market value at some of their developments.

A service charge will normally be payable to cover the cost of communal maintenance. The service charges payable can remain the same whatever percentage you own of your home and continues to be payable should you purchase your home outright where possible. You will need to have sufficient savings to cover the initial cost of home ownership: legal fees and stamp duty for example. You will need to be able to meet the costs of rent, mortgage, service charges and other associated outgoings.

As your income increases, you can buy further shares of your home until you could own 100% of the value and no longer share the ownership with the housing association or trust. The greater the percentage you own, the lower the percentage on which you pay rent. However, if you do not wish to buy more shares in the property, you do not have to. Obviously, the more you own, the less you pay in rent. And, if you can buy your home outright in the future, then no rent will be payable.

Having found the shared ownership house of your dreams a good whole of market mortgage broker should then be employed to find the best and cheapest mortgage. Careful searches can reveal 100% shared ownership mortgages that will not require a deposit, even if you have an adverse credit history.

As UK house prices have escalated out of the reach of the first time buyer many people have had to resort to moving into rented accommodation to get a roof over their heads. An Englishman's home is his castle and with the average UK mortgage now being in excess of £197,000, it is now an extremely expensive commodity and the dream of owning your home is looking bleak for the first time buyer.

The truth is that house prices have outstripped incomes and as a result affordability has become a big, big problem. All is not lost, so, what are the alternatives and how could you become that homeowner?

Let us look at some alternatives that could be considered: -

* Shared ownership
* Parent guarantee schemes
* Buying with friends
* Shared equity schemes

Finding the right mortgage is a very important financial decision in life as it is more often than not the largest single expenditure in people's lives! People will often search the supermarkets shelves for bargains choosing products for the sake of a 1p or 2p saving per item and there's nothing wrong with that; I do it all the time.

Our parents teach us to be frugal with money in our up bringing and we sometimes become animals of habit throughout our lives. Through the generations, inflation has seen prices increase ten fold and who would have thought years ago that the price of a loaf would touch the £1 figure.

The same can be said about UK property, as the housing market has exploded and the average mortgage has gone way above the £197,000 figure. This is before we align our currency and interest rate with the euro. Ireland has seen a massive explosion in property prices in the post years of joining the euro and it is now an extremely expensive place to buy property.

Consider this as a normal mathematical comparison. A 2% saving on a £100,000 mortgage works out at £2,000 per year and assuming that this saving can be made every year by remortgaging and moving the mortgage to another lender, it equates to an astronomical £50,000 saving over the normal mortgage term of 25 years. It just doesn't make sense to be putting an extra £40 per week into a lenders pockets when they already make billions of £££'s net profit per year.

Most of us have all experienced hard times at some stage in our lives and received letters from banks telling us that they are going to charge us £27 for bouncing a cheque or non payment of a direct debit or standing order. Now is the time to hit back and take some of that money back from them by taking advantage of the discounts that they have to offer to borrowers.

So, if there is massive saving around like that, why do people not remortgage more often?

Surveys conducted by lenders have identified that some people are just not aware, whilst others have said that they just could not be bothered. Some people have stated that the mortgage market is just too complicated.

Well, the range of UK mortgages has increased dramatically over the past few years. Although this increase in mortgage types has added complexity, it has also introduced fierce competition, which has in turn resulted in the availability of some very attractive mortgage products for the customer. With over 10,000 mortgage products to choose from, how do we ensure that we get the best mortgage and remortgage rates?

Employing and enjoying the services of a whole of market UK mortgage broker (the equivalent of a supermarket) can pay dividends here, as they have sophisticated computer software to narrow down the best rates for buying with friends, equity share mortgages, parent guarantee schemes and 100% shared ownership mortgages.

About The Author

Joe Kocsis the author is an Independent Financial Adviser, a Mortgage Broker. Follow this link http://www.mortgages2.co.uk for further information.

Most people wouldn't just purchase the first car they look at, so why would shopping for a mortgage be any different? New would-be homeowners are looking for ways to simply just secure financing that they forget that they are the ones in control of their terms. To help you get the best mortgage deal for your current financial situation and for your future, here are three steps you will want to take.

Before you can take advantage of any of these steps, it will help if you to gain a basic understanding of the mortgage process and terms you might run across as you begin your search. There are a number of helpful books and websites you might want to look into that can help you begin to find your footing in this maze of mortgage-speak.

First of all, you need to look at the lending information from several different lenders. You have a number of options for borrowing money - credit unions, banks, thrift institutions, and mortgage companies. So, with those places in mind, you will want to start asking around for the amount of money that you will want to borrow to see what offers you might get. And while a mortgage broker can do this footwork for you, they will need to be paid for their services, which may not be something you want to pay. However, their services are worth it due to their experience and how many lenders they can access.

The next step in finding a mortgage is to start asking these lending institutions what kinds of terms they can offer you. The most important term that you will come across is the rate of interest. When you are purchasing a home, you will be paying not only money for the house itself, but also for the borrowing of the money - interest. This allows the lender to make money from your transaction as most interest is calculated over the time period and the amount of the loan. Thus, the longer and bigger the loan, the more money they will make. But since you're interested in paying for a home and not the bank, you will want to start looking for the lowest rates you can.

You will find that rates are divided into fixed and adjustable. You will want to make sure that the lenders are up front about how current their latest posted rates are. Note that fixed rates mean that your mortgage payments will not change, while adjustable rates will make your monthly payment vary. In addition to the interest rate, you will want to get a thorough explanation of the points and the APR associated with the lender to get a comprehensive idea of what a loan from them will entail.

The third step in shopping for a mortgage is often the most intimidating for the borrower and that's negotiation. You have a right to negotiate for the terms that you want, though you might not get them. It will help as you are looking at the various lending institutions if you begin to create an 'ideal' mortgage plan in your head. That way, you can talk to other lenders about what other institutions have offered you so that they can match that price or reduce their rates to attract your business.

You are in the driver's seat when it comes to your mortgage, so be sure to speak up when you think something is too high or ask for an explanation of every number that you see. If you're not happy, you can always look elsewhere for a lender.

About The Author

Grant Eckert is a writer for ShopRate.com. ShopRate.com is a leading provider of http://www.ShopRate.com Mortgage Quotes | Mortgage Rates

Instead of paying retail for your mortgage would you like to turn your existing first mortgage into a wholesale mortgage? Would you like to cut the interest rate on your existing mortgage in half without refinancing and without making extra payments out of your pocket?

Of course you would. Who wouldn’t! Now before you say, it is too good to be true, keep an open mind. Already in Australia and the United Kingdom thousands of homeowners are doing this and drastically reducing their interest costs and how many years they pay on their mortgage. This started about 8 to 10 years ago in Australia. The estimate for Australia is that almost half of the homeowners are using this system to pay off their 30 year mortgages in less than half that time.

This system has now come to the States, and thousands of people are saving hundreds of thousands of dollars by paying off their mortgage years early. United First Financial has set up a program that helps homeowners restructure their banking relationship so that they are able to cancel years of interest payments. With their web based software and the Money Merge Account, homeowners can take control of their money and build wealth rapidly.

Currently, there are over 10,000 people using the MMA program. In April 2007, 1,200 people signed up with United First Financial to pay off their mortgage sooner.

By tying your checking account, your first mortgage and a home equity or advanced line of credit into one virtual bank account, the MMA pays down your principal on your first mortgage years ahead of the regular amortization schedule. This results in reduced interest cost and builds equity in your home years faster.

Now it doesn’t work for everyone. Families or homeowners who owe more than their home is worth are probably not going to be helped. If you can’t control your credit card spending habits, it also may not work out for you. But for many families and homeowners this is a great way to own their home years earlier.

The word is spreading rapidly. To see a news report done by KVBC click on this link:

http://www.mywaytofreedom.com/mma/

For a more detailed explanation, there is a 15 minute video presentation that explains more of the details of how the Money Merge Account works at:

http://www.mortgagefreefinancial.com/MMAShortFinal051607_controller.swf

About The Author

Steven Currie a financial consultant who helps people save tens of thousands of dollars by paying off their mortgage in less than half of the time. Contact info:

http://www.mywaytofreedom.com/

stevencurrie2@bellsouth.net 931-647-4333

Not only is owning a home an integral part of the American dream, but our home is likely the biggest purchase we will ever make and the biggest asset - or liability - we will ever have. Until about a year ago, of course, no one would have imagined that a home could be a liability. That's when housing prices started to drop and relatively new homeowners realized that it was only a matter of time before their adjustable rate mortgages would skyrocket.

Experts agree that house values haven't yet reached their nadir and that many homeowners are poised on the precipice. While some people might find it easier to stick their heads in the proverbial sand, smart homeowners and homebuyers see the current market as an opportunity to either take a second look at their existing mortgages or to shop around for new mortgages. Either way, it's important to learn all that you can about different ways to finance a home before you take the plunge. Here are a few scenarios that illustrate some of the choices available today.

Nine years ago, Sam and Jenny Thompson bought a home that was ten years old. They were savvy enough to buy their house just before prices went through the roof. They have well over $100,000 of equity in their home, but their home is showing signs of wear. It's time for a new roof, a new heating and air conditioning system, and they know that they need to have some dry rot repaired and have the house painted. They don't have much in savings, though, and want to borrow money so that they can get the repairs done.

Sam and Jenny have a few options to pay for home improvement. They can refinance their home and get cash out for the repairs, they can get a home equity line of credit, or they can get a second mortgage. Which option is best depends largely on that status of their current mortgage. If they have a low interest, fixed rate loan, it probably doesn't make sense to refinance. If they're planning on staggering their home improvement over the next two years, it probably doesn't make sense to get a lump-sum second mortgage. Instead, a home equity line of credit might work best. On the other hand, if they have an adjustable rate mortgage, it might be financially prudent to refinance to a fixed rate loan and cash out part of their equity to make their home repairs.

Cynthia and Bill Williams have owned their home for five years, but are concerned that Bill might be laid off in the next six months. They have quite a bit of money in savings, but have racked up considerable credit card debt. Because they're paying a high interest rate on their credit card debt, they may want to use a home equity line of credit for debt consolidation purposes, and to have a cushion in case Bill does lose his job.

When Rebecca Richards bought her home two years ago, she thought housing prices would continue to soar and interest rates would go down. She bought her house with an adjustable loan and is terrified that, when the loan adjusts later this year, she won't be able to make her payments. In this scenario, Rebecca needs to meet with her lender now, rather than wait for the other shoe to drop. If possible, she should convert her adjustable rate home loan to a fixed rate loan.

The bottom line is that, whatever your circumstances, you need to learn all that you can about the options available to you. Thankfully, there are resources on the Internet that not only have a library of informative articles on mortgages, but that also provide the calculators and tools you need to find the answers to your questions. The best sites even offer a variety of loan programs and will prepare a personalized quote for the types of mortgages that you might be interested in.

About The Author

Chris Robertson is a published author of Majon International. Majon International is one of the worlds MOST popular internet marketing and internet advertising companies on the web. Visit their main business resource web site at: http://www.majon.com

To learn more about subjects like Mortgages please visit the web site at: http://www.yourmortgageshop.comFor more information and informative related articles and links about this subject matter and content, please visit Majon's Real Estate directory: http://www.majon.com/directory/Real_Estate

There has been a lot of talk in the news lately about sub-prime mortgages and how they are affecting the housing market as well as some of the other economic sectors. Many consumers may be wondering just what are sub-prime mortgages. It is a fair question to ask, but a somewhat difficult one to answer.

One reason it is difficult to define sub-prime mortgages is because they can vary, and they can vary a great deal, in fact. Most of the sub-prime loans that were issued in the past had at least some of the factors that are detailed in this article, but the combination of factors were generally mixed. This one of the reasons why the sub-prime market grew so quickly; these loans could be all but custom-made to fit the individuals taking them out. In some cases that was fine, but in many other cases those exotic mixes of factors were a recipe for disaster.

Some of the factors that went into creating sub-prime mortgages include:

No down payment. Many buyers were thrilled with the prospects of moving into a new home with no down payment required. What some of these buyers did not fully appreciate was that they were now financing the entire amount of the home rather than what would have been the balance had a down payment been applied to the loan.

Low teaser rates. Many of the adjustable rate mortgages that ultimately ran into trouble (and will continue to run into trouble) had very low introductory rates. A large number of these loans had two year teaser rates that when laid out in dollars and cents made buyers believe that they could afford the home. What was not often considered was the monthly payment after those teaser rates expired and much higher rates went into effect. Some buyers went into contracts with a teaser rate of two percent but will find the rate shooting up to ten or eleven percent when it resets. For the majority of sub-prime mortgage holders the newer, higher rates are the main cause of concern and the main reason they will face foreclosure if they do not arrange for other loan terms.

Credit worthiness was also a major problem. Most families want to own their own home, but the truth is some people simply cannot afford the costs associated with homeownership. During the sub-prime heyday many buyers were moved into loans that creditors and Realtors knew the buyer could not afford. Whether this was done out of compassion for the low-wage earner or out of corporate greed is another story for another time. The end result, however, is homeowners are losing homes because they simply do not have the wage levels needed to keep the home and to pay for the added costs of having a home.

There were many other factors that often played a role in the sub-prime mess including inflated home appraisals, false or misleading information on the credit applications that were turned into lenders, aggressive marketing that made promises to buyers that could not be kept, and many other issues, some of which are only now beginning to come to light.

The bright side to all of this is that perhaps some legislation will come about to help avoid these problems in the future.

About The Author

Peter Kenny is a writer for The Thrifty Scot, please visit us at http://www.thriftymortgages.co.uk and http://www.thriftyscot.com/refinance/ http://www.thriftyscot.com/158/012008/insurance-prices-may-fall.html

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