Barnsley Building Society UpgradesMortgage Application Processing to SDS Maps'

โ€œWe selected SDS's processing system over several other solutions,โ€ said Steve Lofthouse, Assistant General Manager (Systems) at Barnsley, โ€œSDS Maps has the flexibility and web-enabled technology we were looking for, and it combines all our mortgage processes into one system.โ€







โ€˜SDS Maps' is a fully integrated, thin-client solution, handling a mortgage application from customer enquiry through to completion.







Barnsley plan to take advantage of the system's powerful architecture to deliver the following



E-commerce functions:







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A 'Broker Portal' where IFAs and introducers can login and access product searches, create new applications, track the status of applications in progress and view commissions earned and pending.



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Mortgage search facilities, where potential customers can find out how much they can borrow and details of the mortgage products that best suit their needs.







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Online applications to โ€˜Offer in Principle'. (Applications do not have to be completed in one sitting, customers can return to a partially completed form at any time, an application could even be started in a branch and completed later on a home PC).







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Compliant online quotations.



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Status Tracking.







The system features integrated 'mortgage application specific' workflow that systemises the underwriting process helping staff to focus on service provision. A task creation and management system monitors the whole process and allocates tasks to the most appropriate member of staff in order of timed priorities. Workflow will also enable case tracking to take place as all tasks are electronically recorded and the system will know at what point of the process an application is sitting.



Other key features of the system:







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Powerful document production facilities are an integral part of the system. All documents relating to an application are generated and merged in Microsoft Word format.







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The solution provides management with customisable management information (MIS) functionality, the system features a structured SQL database whereby staff can design and schedule their own reports using standard reporting tools.







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โ€˜SDS Maps' is capable of producing pre-application mortgage illustrations and has been designed to be flexible enough to handle any future changes to compliance regulation.



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SDS's solution allows two-way data transfers using Open XML.







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At draw down, cases then can be transferred electronically to the accounting and administration system.







โ€œSDS's staff are so easy to work with,โ€ continued Lofthouse, โ€œThey are professional, organised, helpful and have an in-depth knowledge of mortgage processing and the UK mortgage market. SDS's solution will allow for improved performance and functionality, which ultimately saves us both time and money.



I feel we have made the right choice in selecting SDS.โ€







The application is currently in the user-testing phase and is due to go live at the end of April.







โ€˜SDS Maps' forms part of SDS's integrated suite of mortgage systems which include;



โ€˜E-maps' & โ€˜IFA-Maps'- for interactive on-line applications, status tracking and IFA support and



โ€˜MyPage' โ€" the customisable e-banking module, which allows Lenders to provide affordable e banking services to their customers















About Barnsley Building Society



The Barnsley Building Society was formed in 1853, with nine branches in the Yorkshire area, backed by an agency network covering North Yorkshire to Warwickshire; the Society prides itself on its 'local' attitude to its members' requirements.



For additional information, contact Steve Lofthouse on 01226 733999 or visit the company's Website at www.barnsley-bs.co.uk







About SDS Applications Ltd



SDS specialises in the provision of systems and services to mortgage lenders. Since our inception in 1997 SDS have introduced new and innovative systems to the UK mortgage market, providing high quality applications exploiting the business advantages available using thin-client Internet technology. We have quickly become established as a leading supplier to this sector as a result of our cost effective solutions.



SDS leads the industry by putting its customers' success first.







Recent Clients in the Mortgage & Lending sector include GMAC RFC, Cambridge Building Society, Universal Building Society and National Counties Building Society.







For more information, contact Justin Belcher or Barry Yager on 01494 778863, via email at press@sdsapps.co.uk, or visit the Internet site at www.sdsmortgages.com

1% Mortgage Loans What's The Catch?

While there are several different types of 1% mortgage loans, there are really only two major keys to winning with a 1% mortgage loan.



The first key is to make sure the loan is set up correctly from the beginning.



And the second is to make sure you are using the loan correctly to gain the most benefit.



First, let's talk about how the loan works. Then we'll get into how to set the loan up correctly so you can reap the financial rewards these mortgage loans have to offer.



To start with, 1% mortgage loans have payment options. Each month when you get your mortgage statement you will have the option to make a 30 year fixed payment, a 15 year fixed payment, an interest only payment and a minimum payment at 1%.



Although you are given several payment options, you should only select the 1% minimum payment.



Why?



Because if you wanted to make a 30 year fixed, 15 year fixed, or interest only payment, you would be better off getting that type of loan.



Typically, these payments are higher with a payment option mortgage loan.



If you select the 1% minimum payment your first benefit will be a significant monthly payment reduction. Your mortgage payment will likely be cut in half. Of course, this is a pretty attractive first benefit for most home owners.



To compound the effectiveness of selecting the 1% minimum payment you should save what you save. For instance, let's say you refinanced your home with a 1% mortgage loan, paid off all your credit cards, and reduced your monthly payment by $1,000 a month.



Now, if you save that $1,000 a month for yourself instead of giving it to your creditors, you will have $60,000 in cash at the end of five years - And that's with a zero percent return.



Here's the second benefit to selecting the 1% minimum payment option:



Tax savings.



If you make an interest only payment your mortgage balance will stay the same. If you make a 1% minimum payment you are actually paying less than interest only. Therefore, you are creating deferred interest which makes your mortgage balance increase each month.



Before you freak out, keep in mind that deferred interest is mortgage interest and is therefore tax deductible.



Let's say your home is going up in value $2,000 a month. The 1% mortgage loan will allow you to take a small piece of that appreciation, say $500 a month, and turn it into a tax deduction.



So you are taking a small piece of your equity each month and turning it into a tax deduction. If you did not do this, all of your appreciation would be locked up in equity.



Equity is terrific and is certainly one of the many benefits to home ownership. But investing in equity will get you a zero percent return.



No one is going to cut you a check each month for the equity in your home. As a matter of fact, if you wanted to get the equity out of your home you would have to sell your home or get a loan. And you better qualify or you will not be able to get a loan.



So why not take a small piece of your equity each month, turn it into a tax deduction, and at the same time save $1,000 a month for your self? You will still have plenty of equity but with a 1% mortgage loan you will have cash AND equity.



If you do this for any length of time you will come out way further ahead financially than if you did a regular 30 year fixed or an interest only mortgage loan.



By the way, if the deferred interest is a concern, try making bi-weekly payments. Making a bi-weekly payment will reduce, and in some cases eliminate the deferred interest all together. Which means your mortgage balance would not increase.



How to set the loan up correctly:



1) The 1% payment option on these loans is only available for the first five years.



But you could actually keep one of these loans for 30 or 40 years. If you select a 40 year loan your monthly payment will be lower but the payment options will not last for five years. The name of the game is to keep the 1% payment for as long as possible. So get a 30 year amortization.



2) The 30 year, 15 year and interest only payments are tied to an index. Select a slower moving index like the MTA (Monthly Treasury Average) instead of a faster moving index like the Libor (London Inter-Bank Offered Rate).



So how can you lose with a 1% mortgage loan?



Answer- depreciation.



If homes in your area are rapidly going down in value, deferred interest could cause you to become upside down in the home.



But if your area is experiencing a 3% to 5% rate of appreciation and you save what you save by making the minimum payment, a 1% mortgage loan can have an incredibly positive impact on your financial future.



For more information about 1% mortgage loans and other mortgage related topics, please visit:



http://Mortgage-Training.



Mortgage-Leads-Generator.com



Please feel free to reprint this article as long as the resource box is left intact and all links are hyperlinked.

1st And 2nd Mortgage Refinance Loan - Refinance And Lower Mortgage Payments

Refinancing both your first and second mortgage will lower your monthly mortgage payment and qualify you for overall lower rates. It will also save you money on closing costs and application fees. And while you are looking at rates and terms, you can reevaluate your loan's payment schedule to better fit your budget needs.



Why One Mortgage Is Better Than Two



Lending companies prefer financing one total mortgage rather than two separate loans.



So second mortgage rates are at least a point higher than first mortgage rates.



Refinancing your two mortgages into one will qualify your for a lower rate mortgage. Since lenders charge flat application fees, you will save money by going through the process only once. Closing costs can also be cheaper.



Readjusting Terms



In all likelihood, your mortgages have different terms. Refinancing is a good time to reevaluate those terms and decide what would best meet your budget concerns.



If lower payments are your concern, then choose a longer term. While this will increase your total interest costs, it will ease your immediate budget concerns. Then when your financial situation improves, you can make principal payments to offset the interest costs.



When concerned about interest costs, it's best to opt for a shorter term with its lower rate. You can also pay points to further lower your rates. But this is only wise if you plan to keep the loan for several years in order to recoup the costs.



Separate Is Sometimes Better



In some cases, it is better to keep two separate mortgages to save money. In some instances, refinancing your mortgages individually will get you better rates overall. This is especially true if your total mortgage principal equals more than 80% of your home's value.



If you plan to cash out part of your home's equity while refinancing, you may also want to finance a second mortgage separately. Cash out refi loans automatically boost your loan's rate.



In order to find your best option, request quotes for refinancing your mortgages together and separately. Also look at several different lenders to be sure you are getting the most competitive offer.

The Offset Mortgage - Why Is It Growing In Popularity?

The biggest innovation in the mortgage market in recent years,

the offset mortgage, is now starting to take a significant share

of the market. Now, only six years after they were introduced,

the offset and the current account mortgage account for 10% of

all borrowed mortgage capital.



According to one of the UK's largest mortgage lenders, as many

as 25% of existing mortgage holders could save money in the long

run by choosing an offset mortgage.



If you're one of those

possible 25%, then it's important that you are aware of the

facts.



What exactly is an offset mortgage?



Here's the concept: you borrow capital from the mortgage lender

and you also have savings sat in another account. Instead of

paying interest on your full loan and earning interest on your

savings, you pay interest on the amount you borrowed minus the

amount you have saved. For example, if you had ฃ25,000 savings

and a mortgage of ฃ110,000, you would only pay interest on the

sum total of debt, which would be ฃ85,000.



Your savings would

not earn any interest on a separate level, they would only be

linked to the mortgage.



So what's the big selling point?



The major advantage to this kind of mortgage, particularly where

higher tax payers are concerned, is that you end up paying less

interest. This transpires because you are not earning interest

on the savings, and as you know, the taxman always takes a fair

amount of that interest away from you. If you have significant

savings, then you lose a lot to the taxman - but not with the

offset mortgage.



That's why this type of mortgage is so well

suited to people that have to pay over 40% tax.



These calculations illustrate the potential savings:



ฃ100,000 mortgage - 25 years



Interest rate - 4.69%



ฃ20,000 deposit



Traditional mortgage interest payments - ฃ85,351



Offset mortgage interest payments - ฃ41,998



Saving - ฃ43,353



With the offset mortgage you would also complete the mortgage

after just 19 years and 4 months.



This is because the monthly

repayments are calculated without your savings being included in

the equation - therefore you would overpay, and finish paying it

off early.



On average, a standard rate tax payer could feasibly save ฃ9,538

in tax and a higher rate taxpayer a considerable ฃ17,341.



There's also the benefit of flexibility - the offset is a lot

more forgiving than the traditional mortgage and you can

overpay, underpay and take payment holidays without penalties.



If it's that great, why isn't everyone doing it?



Offset mortgages used to have high interest rates, putting many

borrowers off at the first hurdle.



But as this type of mortgage

has started to take off, lenders are offering better and more

competitive interest rates.



The interest rate is however, still considerably higher than

with the fixed rate mortgage for example, and it's important

that anyone considering an offset mortgage can be sure that the

tax savings will cover the higher interest charge. It's the kind

of calculation that can only be accurately provided by a

professional mortgage adviser.



As a rule, the standard taxpayer must have savings of ฃ20,000 to

put against a ฃ100,000 mortgage to make the offset worthwhile. A

higher rate taxpayer would only need ฃ10,000 to justify this

type of mortgage. (These calculations were made in reference to

an average 4.69% fixed offset rate, and a 4.49% tracker

mortgage.) These figures will obviously change with the

potential rise and fall of interest rates, and as we project,

offset and traditional mortgage rates move closer together.



The many variations on the offset mortgage



Mortgage lenders, in their bid to win your business, offer

different incentives that they hope will give them the

competitive edge. The most common incentive is a free property

valuation or free legal work. The banks have a head start as

they can include your current account in the offset calculation

as well as your savings, but other lenders will let you offset

two different savings accounts. Others will offer a borrowing

facility and a chequebook.



The interest rate also varies considerably - from a 6-12 month

fixed rate, to a tracker guaranteed to stay below the base rate

for 6 months, or a tracker which tracks the base rate for a set

amount of years, but also charges a minimal premium.



The amount you are borrowing compared to the value of the

property will also affect the interest rate. At the moment one

lender will give an interest rate of 5.6% for people that are

borrowing less than 50% of the property value, whereas anything

above that (up to 99%) will have an interest rate of 6.



45%.



The concept may be easy for you to get your head around, but the

sums won't be. See an independent mortgage adviser for

individual advice tailored to your circumstances, it's the only

way to be sure that the offset is best for you. However, we

think that if you have savings and pay interest at a higher

rate, you'll be onto a winner with the offset.



*Indicative figures correct as at 11/05