Sunday, October 3rd, 2010 at
9:44 am
According to recent figures form the Bank Of England, homeowners in the United Kingdom are continuing to increase the equity in their homes. The amount of equity in UK homes rose by approximately £6.2 billion during the last 3 months.
Equity is the difference between the current value of your home and the mortgage or secured lending that you have borrowed. Whenever you buy a home and the value of the property rises over time, the extra value is called equity.
The figures seem to show that Britain is doing more to cut spending, save money and try and pay its debts which is the exact opposite of what the Bank of England would want them to do in the current economic situation.
The UK public are also definitely thinking to the long term future rather than the present as a recent research showed that the most Brits believe that property is the best way to save for their retirement and pension.
Over half of people in their 50s would advise their children to invest in property and a quarter of these asked said that they were planning to use their home to fund their retirement.
During the boom times, equity withdrawal was extremely popular but due to house prices falling and mortgage lenders being more strict with who they accept, this tend has definitely come to a halt.
Mortgages, while still hard to get, seem to be getting more available, according to the latest figures with banks becoming more flexible in regards to deposits although on the flip side, those mortgages with small deposits will most likely have a higher interest rate.
If you are still one of those people that are considering releasing equity in their homes you should consider all of your options very carefully before you proceed. There can be hidden fees and charges and interest rates can vary depending on which type of deal you take.
Wednesday, September 8th, 2010 at
12:46 pm
More and more people in the UK and across the globe are falling behind on their mortgage payments. If you can’t meet your monthly mortgage repayments, the first thing you need to do is contact your lender immediately and try to agree some sort of repayment plan. Until you come to an arrangement you should pay as much as you can manage each month. This will show that you’re committed and your lender will probably be more likely to treat you sympathetically.
Although interest rates have plummeted in the UK, many people are still having trouble maintaining their mortgage payments. The recession in the UK has meant that many people have lost their jobs or have had to accept reduced working hours meaning less monthly income.
Mortgage lenders are actually very keen to help sort out any payment difficulties their customers are having. If you’re struggling to make the payments, they might be able to come to a payment arrangement with you.
Depending on your personal circumstances, your lender might agree to reduce your monthly payments for a period of time. 
They may also offer you the chance to switch to an interest only mortgage for a set period. Other options include extending your mortgage to reduce the monthly repayments or even offering a payment holiday for up to 12 months.
If you’ve already fallen behind, your lender will most likely suggest a payment plan for the arrears as well as paying your standard monthly payments. If you are not in a positions to make extra payments, you may be able to add them to your loan or delay them for a while.
If you cannot agree a repayment plan with your lender they will normally take you to court to start the repossession process. Before they proceed in this manor, they have to follow a number of steps, such as talking to you about the reason for the mortgage arrears, working out a repayment plan and giving you notice that they will start court proceedings if you do not keep to a payment agreement.
If your lender has taken reasonable steps to assist you a court will normally give the lender permission to evict you from your property.
If you are having trouble paying your mortgage you should try and avoid taking out a loan to pay your debts. These loans can be costly and are usually secured on your property. Another thing you should try and avoid is handing back the keys. Remember that you will still be responsible for keeping up with the mortgage repayments before the property is finally is sold. You should also keep in mind that you will be liable for any outstanding balance if your home sells for less than your remain mortgage balance.
If you have no other option but to hand back the keys you should inform your lender that you will not longer be in a position to pay and that they should initiate their procedure to procure the sale of the property. You should also as for a Voluntary Surrender Form which will confirm that you have agreed to voluntarily leave your property so repossession action can commence. By completing a voluntary surrender form, it will likely make the repossession process much quicker and put a stop to arrears calls and letters from your lender.
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