Facts for the mortgage market in Canada, potential owners

Facts for the mortgage market in Italy to show its nature and the role of mortgage broker process. The largest segment of the market is that banks are not involved went to market dominance-making in less than fifty years. Previously, he was not allowed until 1954, creditors of mortgages. By the end of 2008, 62 percent of 906 billion euros worth of outstanding residential mortgages were held by them. By 2007, almost seventy percent ofresidential mortgages were his. The reason for this dramatic change is that the banks in 1992 were key players in the market even after the changes in the Bank Act of 1992.

A recent survey showed that mortgage brokers see increased use of their services, particularly from first time homeowners and young women. But potential customers by the end just go to their lender of their mortgage with little research and basically no bargainingThey accept the first offer. Only one quarter to seek the help of a mortgage broker in today's world, which is still up 15 percent over a period of 10 years. You lose the best chance of a loan and mortgage brokers to vote you can get with free services.

An accredited independent mortgage broker can be a blessing. The broker can be a source of impartial guidance free of charge. The broker will help clients learn the Options and prices negotiated on your behalf with creditors. authorized intermediaries are qualified in accordance with applicable state laws and rules.

A particular feature of a mortgage broker, mortgage agent is that the broker has experience of several years. The broker must have a mortgage broker, of course. A mortgage broker can monitor an agent.

Mortgage agent can only work for a single> Mortgage Broker. As the broker, the agent must be licensed. This requires compliance with certain qualifications. The agent has a license within two years to complete the educational program required. These can be offered by commercial operators. The curriculum is standardized, but varies the offer size. A test is considered, what has been learned.

An ombudsman for the first qualified and worked as an agent. The broker also has a properlyMortgage Broker course. After taking the course, the broker has a license approved.

Brokers scout for the best choice. The consumer can save effort and cost of their services. You also have access to hundreds of individual products mortgage lenders are not known and can not offer. In addition, products that are unique.

This useful services are free. The broker is a commission from the lender. TheCommission expresses guides and size, not on the basis of an assessment for. They may be available to its customers of bankers, as well as hours of work outside the bank. Customers can also access on weekends and after hours. Mortgage Broker renewal may be made in it. Support for external commercial loans for investment may also be a service to them. house purchasers who have never a home, before finding comfort in keeping the mediathe broker.

Adverse Credit Boom Prompts Questions

Over the last year, there's been a flurry of product launches, as lenders pile into this nascent market. Some of the new entrants in 2005 included the Bristol & West, Victoria Mortgages and Beacon Homeloans, while investment banks Deutsche Bank and Morgan Stanley are in the process of setting out their stalls. And the trend looks set to continue during 2006; with personal debt now topping the ฃ1 trillion mark, it would seem that there's room for the adverse market to grow and for more lenders to take advantage of the increased profit margins of this sector.



Many mortgage brokers have tales to tell about the bad old days of the adverse sector, when clients with impaired credit history had to pay through the nose to secure a mortgage. Today, this flourishing sector is now a competitive one, and with so many new entrants, there is potential for a price war. However, the old adage that increased competition is always a good thing for customers, because it brings prices down and improves services, may not apply in the adverse market.



Of major concern is the limited experience of some of these new lenders, in what is an incredibly complicated market. A recent investigation by the industry regulator, the Financial Services Authority (FSA), revealed that in many cases, mortgage firms were giving inappropriate sales advice. In 80% of the files reviewed by the FSA, there was a lack of evidence to demonstrate how the recommended adverse product met the customer's needs and circumstances. Further, more than 40% of firms had no intention of reviewing a client's sub-prime mortgage product, to see whether that customer could transfer onto a prime mortgage contract at market leading rates at some point in the future.



Although the FSA's conduct of business rules do not require such a review, Alistair Good, the managing director of the south London-based brokerage, MIAS, believes that adverse credit mortgages should only ever be recommended as a stepping-stone to high street lenders and good credit. He said: "Establishing long-term affordability is therefore key; otherwise, a vicious circle can easily occur, whereby a customer grappling with high mortgage repayments falls into arrears - which in turn, locks them into further expensive adverse deals in the future.



"

Although some of the new products on offer are competitive, many target only certain types of customer. Some mainstream lenders can be said to be dipping their toes in the market, and going for clients with only small blips on their credit history - rather than heavily adverse clients with, for example, a number of CCJs. Thus it remains difficult for individuals with severe financial worries to find a suitable lender with reasonably priced products.

Now, more than any other time in the history of the adverse market, it appears that a good, impartial broker is indispensable, in order to get adverse clients the best deal, keep them informed about the latest sub-prime mortgage news and explain to them the pros and cons of complex products.



Only in this way can the burgeoning adverse market benefit the growing number of people in the UK with credit problems.

Contact details:
E-mail: samqam@googlemail.com
Phone: 0131 561 2251
Michael's Website: Belfast Airport Taxis

Be Relentless

Bill's Life and his Lessons Learned, Part II

There are a few people, very exceptional people, who are so singularly special that the complimentary joke is made; after they were born, the mold to make them got broken. In other words, there's no chance for posterity to make any more of the likes of Michelangelo, George Washington Carver, Franklin Delano Roosevelt, etc. In my case, they threw out the "mold," but I fooled 'em and grew back!

Seriously speaking, the first lesson I learned while very young is that in order to sell successfully you must be relentless.



You have to be downright incredible to be able to keep your integrity and successfully sell something like, "ice in the wintertime to Eskimos." However, As John Paul Ghetty, the oil-marketing billionaire, observed, if you have a high quality product you know people both need and want, repeatedly, it will almost sell itself." Like the nursery stock we grow at Highland Hill Farm.

I have learned these lessons. There are basic concepts that are important to understand. Starting when I was very young, I've always had "business.



" My first business was making and selling potholders when I was 5-years old. My parents had bought me a small potholder-making contraption. Rather than just make a few for the sake of "arts and crafts," developing my fingers and hands, I made hundreds and hundreds. I got real good at making real good potholders, you could say. Whenever I met someone I tried to sell them potholders at 25 cents each. As I earned more and more money, I started an account at the savings bank in Lambertville, always carrying with me lots of differently colored potholders when I walked into town to make my deposits.



On the sidewalk and inside the bank, grownups would inevitably say, "What a cute little boy," and then, "Why are you carrying all those pretty potholders?" They sold themselves. The potholder sold themselves. The customers "sold" themselves.

I sold enough potholders for me to buy 2 shares of General Electric stock and 2 shares of the Atlas Corporation, upon the advice of my great-uncle Bill. (See My Uncle Bill's Story, Part I of my life and my lessons learned). I got these shares of stock when I was 7-years old.



My small beginning business venture then expanded to include looking for Helgermites, or Hellgrammites, they're like Redworms, which I'd sell out along the road (leading to the Delaware River, of course). I picked wild blackberries and sold them along the road too. I bought fishing lures and took them to sell along the Delaware River's east bank, our side of the river. There were "hot spots" where Shad fishermen would gather during the intense "fish runs." It seemed like a good idea to bring along some blackberries too.



The fisherman needed a snack. I did too.

I parlayed my growing savings and bought 144 chickens. A "gross" of chickens came at a discounted unit price. I didn't quite realize it at the time, but I was "leveraging" my money and buying in bulk, "wholesale." So, here are two more valuable lessons for us all. Buy as cheaply as you reasonably can. (Did you notice I didn't buy a dozen gross of chickens? That's 1,728 chickens. The price per chicken would have been cheaper, but I would never have been able to handle them all!) Also, make your money work for you.



Make your money work just like a transistor works, use a little power to control a lot. My father, who coincidentally worked in electronics engineering, had a wonderful friend who bought me a book about stock options. John stuttered so terribly he could barely speak, but I will always be grateful to him for teaching me about the greatest investment vehicle of all in the stock market: Options. What a great way to make money work, investing a small amount of money to "own" rights to shares worth far more money.



With my 144 chickens, I created an "egg route," using the experience from my potholder business. I had "saturated" the market. Just how many potholders can people buy? John Paul Ghetty was right. It is best to sell something people need repeatedly, like fuel, and like food. I sold eggs in the two towns nearest to our little farm, Lambertville and Titusville, New Jersey.

I joined the 4H club and started to raise bees for their honey. Again, not realizing it, I was selling food, something people needed over and over, like John Paul Ghetty said.



As I sold honey along with my eggs, I noticed that unlike some of my friends, I never got an allowance. Then again, I didn't need one.

As you can see my selling started early and has simply never stopped. Family and friends of my parents helped me. My small ventures were very important to me and I learned the valuable lessons I'm sharing with you.

There was a great lesson in another book my father gave me, The ABC's of Beekeeping. It mentioned that if you wanted more bees, just put an advertisement, an "ad," in the newspaper.



Just have the "ad" say "Wanted Bee Swarms," with your phone number below it. Well stupid me, I believed everything I read and I therefore I did just what it said in the book. Within a few days a woman called me from Lambertville and said she had a bee swarm, could I come and get it? I followed the guidelines my father taught me and from the book. I captured that first swarm, and many, many more. Bees at the greatest price discount possible, free, were available for my to use to make honey and make money.



The above paragraphs contain a number of more unmentioned, as yet, valuable lessons. First, it's important to find parents who are supportive of your efforts. I was lucky, but if you're not as blessed, find "mentors" as so many other successful people have. Second, it is important to read books. Give books as gifts too. Don't believe everything in 'em, do believe most of what is in 'em. Especially when you use at least two sources for your information. Reporters call this "corroboration," and "confirmation.



" Third, the best way to find things or market things is through advertising.

With all these money making ventures going on, I was spending a tremendous amount of time outdoors. I developed a love of hunting and fishing. I loved the woods and being out in nature while "harvesting" the wild blackberries, collecting worms, tending the bees, walking my egg-and-honey delivery route etc. As I got older, I became an adolescent and then a teenager. Really, you ask? No fooling? I say this because like practically every other teenage boy, I got interested in cars.



I started to collect junk cars and trucks. As I began to tinker with one of them, my mother came outside to talk with me. (There's that lesson about the importance of finding supportive parents. Boy I was lucky with both!) My mother said, "Bill you don't want to be a farmer. They don't make money. You have to study. Go to college and get a respectable job. If you don't, you will be a farmer working too many long hours worrying about weather and crop diseases and such. Or, you'll be a trash collector.



I love you." Then, she walked back into the house. I guess she saw the junk cars and trucks I had collected as trash.

Listen to your mother. That's a lesson you probably already knew before reading this. I picked out a college in the not-too-far from home backwoods of Pennsylvania. I graduated from Juniata College, near Huntingdon, in 1973 with a B. S. in Chemistry. My wife, Marjorie, also a Juniata graduate, is a teacher. We were married in 1977. We settled in Dublin, Pa. I worked for a small chemical plant.



One weekend we had a yard sale. The first item that sold was the bunch of flowers that I removed from my wife's window box. Here's another valuable lesson that I have learned. Be observant. This eye opener was telling us that there is a market for plants here. If people will buy them from your window box, plants "will sell themselves." I always had a desire to raise trees and plants and own a farm, though not be a farmer like my mother warned me, so we decided to "go for it." Another valuable lesson: It is good to have a plan.



..

We purchased a small farm near Doylestown, in the well-to-do and growing heart of Bucks County, Pennsylvania. We began our "tree farm," our nursery. The local newspaper, The Doylestown Intelligencer, became our "store." Placing small "ads" in the paper under the classifieds was our method of advertising. A small, cheap 2 line ad such as, "Pine trees delivered. Planted and mulched, $8. Guaranteed. Call 215-345-0946," were awfully economical and phenomenally successful. We tried many ads. We found that just about anything can be sold or bought using classified advertising.



Would it have been better to place quarter-page or full-page sales ads? Would it have made sense to spend money we didn't have yet? I believe the answer is no. "Buy as cheaply as you can," I said above is an important lesson.

Now, besides trees, we market anything at our consignment store in Milan, Pa.

A few years later, we learned another lesson. Friends, Walter and Paul, who make Christmas Tree ball kits, had us over for dinner. They had years of marketing experience and told us that you have to test your market.



Their suggestion was to run ads for what you want to do or sell and see the response, see if the market "likes" what you offer. Duh! This seems so obvious. They were right, though primitive and simple, isn't this similar to what Marjorie and I had been doing naturally with our flowers and ads for pine trees? Most people don't test out their markets before they invest. We were lucky we did. So take this valuable lesson and "test."

Marjorie and I now began investing in farm properties and leasing out spaces on the farms to help pay for the mortgages so we'd have positive cash flow.



I decided that I would buy an option on a property (thank you again, dad's friend John for your lesson) and if I could, find tenants who would rent the property. If there was now the positive cash flow, we would exercise the option to buy. In this manner we would only buy properties that were "cash cows." We were testing to see if each of the properties would make money. (Thank you, Walter and Paul.) Additionally, we'd have all properties rented the day we took over so we would have no vacancies.



Okay, being in an area with a growing economy helped.

All of this real estate "business," all of this investing we're doing is not "rocket science." It is the planned application of simple ideas. Or, to say it differently, it is the implementation of a plan. As they might say at the Wharton School of Business, this is "Planning and Control". Okay, enough of the repetition from Highland Hill Farm's Department of Redundancy Department. Just consider that we did not invent any new products or provide any better services.



We spend our time, we "invest" our time "up front," beforehand, whether it's a tree, a plant, or real estate we're going to market. We followed our plans and always invested our time before our money. I always tell people to start at the public library. It's a gift of many books to all of us. The price of all those books is very low too. They're free to borrow. Remember that you don't have to read, for example, "The International Plant Propagators' Society Volume 54, 2004 edition, 88888,000001 pages," to be up to date.



Do read a wide range of books. Even if only simple, "How-To books," like the how to select how to plant, how to sell, types of books.

My final lesson is, always ask questions when you can't find the answers yourself. I've asked thousands of questions. Then, listen to the answers. You can find more answers to almost anything at my web site seedlingsrus.com.

Branding Mistakes - Brand Identity Guru

1. It "sells itself." I don't need to market.

Okay, you might have a solid product or service. You might even routinely satisfy your customers. They might even send their friends and family to you. But wait. Is that your product or service selling itself? No (that is, unless your widgets have learned to speak). That's one of your customers playing out-of-the-goodness-of-my-heart salesperson for you. Yeah, word-of-mouth is nice, and if it's happening for you, congratulations! It's a sign of a great product or service.



But relying on it exclusively can hurt you. Yes, six degrees of separation and all that, but counting on those connecting conversations to consistently mention you, especially down the line, is a bad gamble. Word of mouth needs help. A kick in the butt: a reminder to your customers of their good experience with you and an enticing offer to potential new customers to give you a try. Providing this kick is what a well-conceived branding and marketing strategy should do. At Brand Identity Guru (www.



brandidentityguru.com), we've got some BIG boots.

2. "One of these things...looks just like the other"

You might sell red cars, and Johnny Big Wheel down the street might sell a similar blue car. But what's under the hood? Even better question: what's under the hood that makes your better than the blue car? This is the essence of differentiation in the marketplace, and if you're not playing up the things about you that make you different—and better—than your competition, your marketing is driving nowhere.



At Brand Identity Guru (www.brandidentityguru.com), we know how to steer a marketing campaign that leverages differentiation to build your brand and increase your bottom line.

3. Liar, liar, your business is on fire and up and smoke

If you think word-of-mouth is powerfully working for you, it's just a fraction of the punch a bad buzz can pack. The best way to a bad buzz? Over promising and under delivering. It will kill you. That's why it's important to be truthful in your marketing. Say what you can do.



Not what you wish you could do, or might be able to do. If you must err, do so on the side of under promising and over delivering.

4. One-trick marketing is like a no-trick magician

It won't do anything, and people won't pay to see your show. To get your message to resonate in a 21st century market, you need to make your appeal in every corner the market looks. Print advertising, direct mail, online, telemarketing, public relations, and in person. In every place, a consistent brand image and message.



5. Microsoft Word clipart is for junior high book reports, not corporate identities

A logo is the face of your company, so it must be unique and memorable. Not available for millions to place into whatever bake sale flyer they're working on at the moment. But a corporate identity is more than a logo. It's your company's unique value proposition and its products and services…all instantly recognizable on sight of your logo, name and tagline.

6. Don't be visually absent

Talk can be cheap if it's not paired with a strong visual presence.



Well-conceived visuals connected with your market makes your message stick, no matter the medium. Brand Identity Guru is an agency that can drench any marketing effort with huge vats of sticky visual honey, even if you're currently bone dry.

7. The typewriter and telegraph are cool machines, but not to use today

A business owner by nature has to have a little bit of Evil Knievel in him, but when it comes to technology, he or she is often more of a cowardly lion. That's understandable. You got into your business because you know it, like it and can put food on the table with it.



Not because you like to tinker with every new business technological innovation that comes down the pike. However, cutting edge technology can be a powerful profit-generating tool for your business, especially when it comes to marketing, and Brand Identity Guru (www.brandidentityguru.com), can help you find your technological sweet spot to get your message out.

8. If an employee's 14-year-old son designs your website, it will be painfully obvious

A website must have a nice look, but that's a small part of a good web presence.



You have to give your prospect information they need and close the sale fast. Otherwise, they'll surf on by to a competitor's website. In today's digital marketplace, your website must be an integral part of your overall sales strategy. Not just a token presence. More than ever, prospective customers are researching their buying decisions on the web. If your site doesn't substantiate who you are and your offerings, educate, inspire and finally motivate your visitors to buy, your online presence isn't strong enough.



Brand Identity Guru (www.brandidentityguru.com), knows how to strengthen it.

9. You have a website, but don't tell anybody

Having a website is pointless if no one sees it. That's why it's just as important to drive traffic to your website as it is to have one. How do you do that? A great way is through traditional advertising like billboards, print ads, signage and printing the web address on all your marketing collateral. Online, there's search engine optimization, banner ads, online advertorials, keyword purchases, links and cross-promotion strategies.



A good mix of online and offline traffic strategies along with solid branding will drive traffic to your website.

10. "I don't need to be in the paper"

On the contrary, editorial coverage carries more credibility than any kind of paid advertising you can do. Getting it, however, is difficult. Only a well-conceived public relations strategy that targets media outlets your prospective customers frequent will get the job done. But it's not just about writing press releases. It's about providing relevant information to the media outlets you're trying to get into and cultivating relationships with key editors and journalists.



If you're successful, you'll see your name in print and a bigger number on the bottom line.

11. Branding done yourself is branding done badly

Given the choice of doing branding yourself and not doing it at all, you may be better off not doing it all. There are few things worse for a business than an "amateurish" image, and that's usually the result with DIY branding. Even if you know how to do some graphic design work or are a decent writer, good branding takes strategic know-how and the finesse and time to get it just right—things only a good branding agency like Brand Identity Guru can offer.



12. If you think your employees aren't part of your brand…
You're wrong.

Your brand is the face of your company in every interaction with the outside world, and your employees interact with it quite a bit. On the phone, on sales calls, at schmoozing and networking events, or in informal settings, you must train your employees to represent your company in a way consistent with its brand image. Doing so can ensure you have an army well-groomed brand ambassadors out there.

13. Failing to track your branding campaign's success can lead to future failure

If you don't make your market's reaction to your branding effort your business, your business will suffer mainly because you won't know where to go next.



Successful branding is a constantly evolving process, and if you don't learn from your mistakes, you'll continually repeat them—and make more! On the other hand, once you know what your most successful strategies are, you can build off of them. Any branding agency worth its salt will be able to effectively track the success of your campaign.

14. Don't forget the clients who got you here, keep good relations

As businesses grow, they sometimes forget the little people who contributed to their success.



Don't. Those who got you here can be an invaluable resource to you even if their business isn't as important as it was. Since they've known you for a long time, they can offer valuable counsel as to the future direction your company, such as offering their opinion on new products or services. They can also continue singing your praises as another satisfied customer. Plus, you never know when a little fish might eat a big lunch and become a big fish to you again.

To measure how strong your brand is copy and paste: (http://brandidentityguru.



com/bightml/brandmasterpiece.html). Then click "Take the brand strength test". This is a short survey that measures the strength of any company's brand. It's a great tool to see where you are today.

Scott White is President of Brand Identity Guru (http://www.brandidentityguru.com), a leading brand consulting and market research firm located in Easton, Massachusetts, USA, near Boston.

Brand Identity Guru specializes in creating corporate and product brands that increase sales, market share, customer loyalty, and brand valuation.



Over the course of his 15-year branding career, Scott White has worked in a wide variety of industries: high-tech, manufacturing, computer hardware and software, telecommunications, banking, restaurants, fashion, healthcare, Internet, retail, and service businesses, as well as numerous non-profit organizations.

Brand Identity Guru clients include: Sun Life Financial, Coca Cola, HP, Sun, Nordstrom, American Federal Mortgage, Simon (America's largest shopping mall manager) and many others, including numerous emerging growth companies.



Scott White is a very enthusiastic speaker and has the gift of being able to explain the principles of branding in a compelling and entertaining manner so that people at all levels can understand.

Recent Downturn In Refinance Industry

Someone has rightly said that, `nothing remains the same forever and so is the truth for refinance industry. There is a major downturn in refinance industry of majority of the states of U.S today. The real estate market which boomed and was in sunshine has become a bit cloudy today.



Major reasons of downturn in refinance industry can be summarized as below.



1) Downfall in real estate market: - There is a current sky-high rise in the prices of housing and steady rise in the interest rates also. Hence buying a house has become an expensive affair for the people.



People buy house but takes decades to pay off long installments. As a result there is a decline in ratio of the homeowners. More people are falling behind on their mortgages according to surveys and the percentage on loans on which payments are at least 30 days overdue to a greater extent with last two years and it became harder for homeowners to refinance or sell quickly.



2) People facing for closure fail to take lenders help:- According to Gannett news statistics reveal that almost 2,80,000 homeowners in U.



S, who lost home lat year, half of them never talked to their lenders. For closing involves home with little or no equity. Borrowers need to stay cool during such times and pay and must talk to lenders so that they can work out a new payment plan or modify the loan to make the situation cool. Lenders have the powers to make the market stagnant by offering various solutions to the borrowers.



3) Sub prime loans leads to increase in for closure rates: - Sub prime loans are loans granted to those whose credit rating is less than desired.



They are a significant factor in the present increase in for closure rates in major states of U.S. This means that people with bad credit who have defaulted on their loans may in fact make things harder for future borrowers who also have bad credit. Hence several lenders of sub prime mortgages are showing signs of trouble with the housing bubble having burst and more homeowners beginning to default in high interest mortgages.



4) Increase in interest rates: - Over past 1-2 years the housing market has been in turmoil as the Federal Reserve has been raising interest rates putting pressure on new borrowers to put down the demand of owning a house.

Best Buy to Let Mortgage Quotes

Want to increase your profits as a landlord? Yes. Well read on and see how you can. Finding the best buy to let mortgages is one of the key factors in successful property investment. And whilst the Bank of England base rate is retained at just 4.5%, now is still a very good time to be considering property investment or simply refinancing any buy to let properties you already have to release equity for future purchases.

It would be easy to start saying just how easy it is to become a landlord and earn income from UK investment property and how you can simply sit back and watch the profit tumble in like a cascading waterfall.



The reality is that there are a number of key issues that you will have to be involved in to ensure your investment property portfolio works to its optimum. With tenants to source and vet, an investment property to maintain, buy to let mortgages to arrange, letting agents to manage and accounts to monitor, it does take a certain level of commitment. Sourcing the best buy to let mortgage quotes can in itself be a very time consuming exercise and Landlords often opt to use a buy to let mortgage broker to do this work on their behalf.



There are many different buy to let mortgage products available so it is worth getting a few of the best buy to let mortgage quotes available as different lenders will offer different rates and products and these can depend on the type of investment property in question and the employment status of the applicants. So if you are still keen to have a slice of the much talked about property game then you will want to read on to find out how to get started?

PROPERTY MARKET 2006

Despite the negative press that the housing market experienced at the beginning of 2005, the recent reports for 2006 are showing a much brighter outlook for property investment.



There is of course the question of what will actually happen in 2006 and the property market. It is never a precise prediction as there can be many influencing factors but what we do know for certain is that over the last few months we have seen interest rates stabilize and property pricing stablising as a result of this. It is unlikely that we will see double figure inflation prices on property in the next few years but many are suggesting at least a 5% increase year on year for the forseeable future.



So does that mean we should avoid investing in property until the market starts to increase dramaticallyagain. In some respects many people might suggest that investing in property at any time is a good investment. When you consider that historically property in the UK has doubled in value, and sometimes tripled in value, every last 10-15 years, then it is likely to see you a good return on your investment if you are prepared to take a long term view. Plus, there still remains a high level of activity from Landlords and investors alike with a number of buy to let mortgage providers suggesting record levels of applications being received.



For those looking for a get rich quick overnight scheme, then this is not for you. But when you consider the long term gains, it might be worth reading on and don't forget that it is worth doing plenty of research and finding out as much as you can about investing in property. Perhaps pick up a Free Buy to Let Guide.

How to make ฃ166,500 in 15 years

According to research from the Centre for Economics and Business Research (CEBR), the average cost of a home in the UK could be ฃ300,000 by the year 2020.



Currently that figure stands at around ฃ157,000 in 2005 which represents an increase over the next 15 years of 91%.

This figure of ฃ300,000 is achieved by the economic forecaster basing its prediction on the ever increasing population compared to a slower production of house building. As with many commodities, it is the result of lower supply and higher demand that will push up these prices.

With buy to let residential investment property, the maximum loan you can apply for is 85%. Based on an average value property in 2005 of ฃ157,000 this would require you to put down a deposit of 15% ฃ23,550 subject to valuation and rental cover which can vary between 115% to 130% in most cases.



Potentially over the next 15 years, this one investment could realize a return of ฃ166,550. This is based on selling the property at ฃ300,000 less the loan of 85% of the property value in 2005.

Over previous years there have been times when property has declined in value and other times where it has signifcantly increased in value but a good property investor will clearly see the benefits in both a rising and declining market and will utilize the facilities of a good buy to let mortgage provider to assist in this.



For example:

During a rising market, a property investor may decide to use this window of opportunity to release some of that equity realized in the value of the property, to use for additional property investment. However, the property investor is less likely to use that capital released during a rising market. Instead, the landlord will wait until the market has re-stablised itself or experiencing a decline. At this point, they will then use this window of opportunity to purchase lower priced property and the circle continues.



That is why property investors are in it for the long term and why they see the market as being profitable to them in all conditions. And when you consider that property prices only need to increase by an average of 4.4% year on year, it is easy to see why this type of investment is so achievable.

Successful property investors will do a lot of research on areas that they believe will become property hotspots and areas which are less likely to perform. There are many areas experiencing high levels of growth with substantial financial investment with a lot of regeneration programmes in place or planned in the future.



Even by simply monitoring publications such as Construction News can give a good indication of where new commercial premises are being built which can be a good indicator of new businesses moving to the area which in turn can lead to an increase in demand for property locally.

It is the general consensus that interest rates have stablised and there is even speculation of a drop later in the year but either way, they have been steady for a good number of months now. Slower capital growth does result in buyers having to put more effort into managing and developing their portfolios.



And more importantly making a profit from property. Buying property at discounted prices can be done but you must do your homework to make sure they are genuine discounts and incentives. And don't forget that in a slowing market, vendors will be more likely to listen to your offers. Albeit if they are a bit cheeky. In particular, you can use the negative press that is often surrounded by the property market to your advantage. For example when the media are circulating stories of a dropping property market, then vendors are even more keen to listen to your offers.



How to Get Started in Buy to Let

• Do as much research as you can. You can even get some free publications including Free Buy to Let Guides

• Find out what properties are selling for. A good way of doing this is by contacting estate agents and researching on the internet. A good way is to look at property house price websites.

• What is the level of demand for rental properties in the area

• What type of property is most in demand. For example, if it is a university city, then the demand for shared student accommodation may be much higher than property for professional sharers.



• Find out what rent is being achieved on those properties and the likely time to get the property let out. Speak to letting agents and local businesses that may be letting properties already in the area.

• Raising deposits for your investment properties, may be easier than you think by releasing equity from any of your existing properties.

So how Do you know if you have bought a good investment

Well there is always an element of risk but providing you follow the main logic you should eliminate most of them.



It is also important to make sure you continue to review your buy to let mortgage funding on a regular basis as this can have a big impact on your success and cash flow. As we have said above, the property market can rise as well as fall so providing that you have some cash funds in the bank to help you through any tougher market conditions then you could reap the rewards in years to come. But it's important that you calculate these carefully into your projections to ensure that whatever funding you may need to input into the investment property that it will be outweighed by the eventual gain.



Providing that you are buying a good quality property in a good area with strong rental demand then it's worth considering. Don't just buy a property because it is cheap. You might buy a property at a very discounted price, but if you can't let it, you could find yourself covering the buy to let mortgage payments for months to come which will see a big dent in your profits. Find out why it is cheap. Is there an increase in crime in the area, have plans been submitted for a large industrial unit to be built behind the garden etc, etc.



Do your research. And don't be afraid to develop a property for profit. Buying at the right price, in the right area and doing the right renovation on the property, can also see you return a decent profit. Re-financing the property on completion and letting it out could give you the best of both worlds.

Having taken into account all the considerations above, to calculate if it is a good investment, you need to ensure that your annual rental income exceeds the cost of your monthly buy to let mortgage repayments and maintenance costs.



And it is more likely that your annual rental income will be stronger if you select an investment property in area with a strong and growing rental demand as it is less likely that you will experience rental voids and be supplementing the monthly buy to let repayments.

Firstly, you need to establish if this is the right time for you to become a landlord and how much it is going to cost you. Can you afford to tie up money in a property? If the worst comes to the worst, can you afford to lose that money?

The simplest way to work out the repayments on a buy to let mortgage is to use an on-line buy to let mortgage calculator.



These can help you work out the best buy to let mortgage product for the type of UK investment property you are considering and your individual circumstances. You will need to know the likely rent that can be achieved for the property as this will determine the maximum loan amount available against the purchase price or refinancing value of the buy to let property. Lenders normally suggest that the rental income each month represents at least 130 per cent of the monthly mortgage payment.



Although there are some buy to let products calculated on ratios of as little as 115%. By working on these calculations, gives the investor a margin to cover the letting agent's fees and other associated costs.

This is a long-term investment and you need to take the same approach to investing money into a house or flat as you would to buying into the stock market. Historically the value of properties have doubled every 10-15 years but that doesn't mean to say that there won't be peaks and troughs in between.



These are times that you have to be prepared and most importantly can afford to ride through.

Increasing your returns by using buy to let finance to your advantage

For example, lets say you have ฃ100,000 cash to invest into Investment Property. Is it best to buy a property outright or use this money as deposits on multiple buy to let properties?

Mr Jones - decides to use his ฃ100,000 to purchase a brand new property outright for cash. He lets the property for ฃ600 per month giving a return of ฃ7,200 per annum.



Due to inflation, the rent will increase accordingly and eventually, after fluctuations in the property market, the house doubles in value.

Mr Smith - decides to use ฃ100,000 as deposits (15% for each investment property) to buy ฃ500,000 worth of properties similar to the one Mr Jones bought. This results in Mr Smith receiving five times as much rental income, i.e. ฃ3,000 per month or ฃ36,000 per annum. The other ฃ400,000 is borrowed on buy to let mortgages and Mr Smith pays interest on this at a rate of approximately 5%.



These monthly interest only repayments would work out to be ฃ20,000 per annum. Therefore, net of interest they receive ฃ16,000 per annum. Mr Smith is already better off than Mr Jones….. but what happens in years to come? Well it is probably safe to say that Mr Jones's rental income will rise with inflation as per Mr Smith. However, Mr Smith's buy to let mortgage costs remain the same. Therefore, the gap between Mr Jones and Mr Smith's rental income will continue to widen as time goes on.



And finally after 10-15 years when property could have doubled again. Mr Jones would have made a capital gain of ฃ100,000 and have ฃ200,000 worth of investment property. Whereas, Mr Smith would have made ฃ500,000, which is five times as much capital gain!!

The most successful landlords will use some of the best buy to let mortgages to fund their buy to lets and with buy to let mortgage products becoming more sophisticated and competitive the best buy to let mortgages can ensure you maintain your investment property portfolios in such a way that you are always working to the most optimum cashflow situation.



Best Buy to Let Mortgages

Finding the best buy to let mortgage is crucial to your success as a property investor. Unlike other forms of investment, a lot of the money you put into a buy to let property is likely to be borrowed. Over the last few years, the buy to let mortgage market has boomed, and borrowing money to invest in this way has become easier than ever. There are a number of different buy to let mortgage products available from fixed rates, discounted variable rates, discounted rates and so on.



Different products may be suitable for different investment properties. And don't be tempted to just go for the cheapest buy to let mortgage as there may be penalties that make it less attractive in the long term.

Always find out the best buy to let mortgage deals available at the time. Some investors may decide to retain their entire portfolio with one lender, but it's important to realize that different buy to let products between different lenders can provide you with maximum flexibility and cashlow depending on how you structure your funding.



However it is very important that you get the correct guidance with your buy to let finance. You will often find that buy to let mortgage brokers have access to numerous different products and lenders and some can even offer exclusive products that wouldn't necessarily be available to you if you approached the buy to let lender directly.

Questions that are worth considering when finding the best buy to let mortgage:

1. Do they have access to lots of different products in the market place?

2.



Do they have the ability to create a long term property development strategy for you?

3. Are they able to secure Exclusive Products?

4. Are they able to arrange mortgages within 10 working days?

Most buy to let lenders will offer a maximum loan of 85% requiring you to fund at least a 15% deposit towards your UK investment property. The buy to let mortgage industry is very competitive with new products being launched on a very regular basis.

Some buy to let mortgage brokers may charge a brokerage fee up to 2% to arrange the buy to let finance for you but don't let this put you off because if they do have the ability to secure exclusive products for you, it could be very beneficial to your cashflow as a landlord.



Plus, if they are able to reach formal mortgage offer stage in a very short space of time, this could result in you being able to secure the investment property at very competitive prices if you have the ability to tell the vendor that you can have the deal completed within a matter of a few weeks.

How much you can borrow for the buy to let property will usually be worked out differently to how much you can borrow to buy your main home. Different lenders and different products carry different criteria for working out the maximum loans available.



Some will lend on how much you earn, others on the rental income you achieve from the investment property. And sometimes a combination of the two.

How much rent will you make?

Before you agree on the purchase price of a buy to let property, it is important to find out from local letting agents, what the likely rent could be. They should be able to let you know which types of property are in highest demand and which areas are the most sought after for tenants. If you need to find out whether your potential buy to let is looking like a good investment, ask your broker/lender to work out the yield (ie the money you are investing and the rental income you will receive) on the property against what your repayments are likely to be.



I you are investing in an up and coming area, it could still be a viable investment despite the figures not looking too healthy today. If you believe that the area will be having a lot of other investment or new businesses moving in, then there is the possibility that the surrounding property market will have a positive knock on effect. When the valuation is carried out on the property, the surveyor who visits the property will also be expected to give an assessment of the expected rent as well as the value of the property.



A local letting agent is the best person to approach for this kind of information - especially if you hint that you might let them be the property's management agent.

So in conclusion the property market is likely to remain a prime choice for property investors as long as they are will to commit to the long term.

Jennifer Tweed is the founder of http://www.buytolet4sale.com, one of the UK's first property portals solely dedicated to advertising investment property for sale. You'll also find an on-line mortgage calculator, FREE Buy to Let Guide, Investment Property for Sale, Tenancy Agreements, Landlord Insurance, and more .



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Why Do You Need to Use a Mortgage Adviser?

Taking out a mortgage is probably the biggest financial commitment you will ever choose to make. The term of the loan will probably last until you are near to retirement age and in many cases the loan amount will become larger as you move up the property ladder.

So, as a mortgage seeker, what is the most important factor to consider when researching all of the different mortgage options?
For most people it is to simply find the best interest rate on the market but if it really was that simple then everyone would always get the best mortgage products available!

Many homebuyers first stop is their current bank.



In some cases they find that their own personal circumstances do not match the lending criteria of their bank and may leave feeling disillusioned with the whole process.

It is also true that many people who do fit their banks criteria accept the first rate the bank offers them, without researching the whole of the mortgage market and never realising that there may be far better products on the market that would suit their own personal needs.

There are often many different obstacles in the way to make it very difficult and confusing for you to choose the correct mortgage option, and this is where a mortgage adviser can come in very handy.



A mortgage adviser is a qualified professional who either offers mortgages from the whole of the market, is tied to one particular lender or offers advice from a panel of lenders.

What are the different types of Mortgage Advisor?

There are mainly three different types of mortgage adviser. These being: -

1. An adviser who has access to the whole of the mortgage market.
2. An adviser who is tied to a panel of lenders.



3. An adviser who is tied to a single lender.


It may be beneficial to use a mortgage adviser who has access to the whole of the mortgage market as they can match your needs to the best mortgage product from the whole mortgage market that fits your own personal circumstances.

Many of the products available to the adviser will not be accessible to the average person on the high street, again allowing them to give you the choice of a better mortgage product.



This gives a mortgage adviser offering whole of market advice a distinct advantage over many individual lenders' as they are not tied to any one product or lender. Always check with your adviser to confirm if they source mortgages from the whole of the market!

Another big advantage of using an adviser is the amount of time they can save you! Firstly they will take your initial details by way of a fact find i.e. salary, credit history, property value, deposits etc.



An adviser will research the products available to find a mortgage, which is suitable for your circumstances. A key part of the adviser's job is to match your details with the lenders criteria. For example, if you had a poor credit history and were self employed with only two years accounts the adviser would research the products available to them to find you a company that can provide a suitable mortgage based on these circumstances.

Once a mortgage has been sourced and you are happy to proceed, an adviser can also save you valuable amounts of time and effort by working with your mortgage lender and solicitor to ensure that you complete your mortgage or remortgage as quickly as possible.



When you have a busy life it is often difficult to find the time to chase the lender or solicitor, in many cases you end up speaking to a variety of people, not understanding the jargon that they use and ending up feeling frustrated and stressed. An adviser can help alleviate some of this stress by doing the chase ups on your behalf, saving you valuable time.

Things to be aware of when choosing an adviser

The Financial Services Authority regulates most mortgage sales taken out on or after 31 October 2004.



This means that mortgage advisers have to adhere to the guidelines and regulations issued by the Financial Services Authority. Advisers have a duty to take reasonable steps to ensure that you can afford a mortgage that is recommended. There are also minimum qualifications that are required to become a mortgage adviser.

It is also important to find out if the adviser charges you any fees. Advisers are paid by the lender on completion of the mortgage.



However there are many advisers who will charge their clients a broker fee so not only are they being paid by the lender they are being paid by you too! This does not mean that the adviser is a disreputable broker, but you may want to make sure you are totally comfortable with any fees they charge.

In conclusion if you are unsure of whether you are going to be able to find the best mortgage yourself then using an adviser might be a good option for you. It is important you use someone you can trust to do their best to offer you the most suitable mortgage deal based on the information you have provided them.



Samantha Dorn has achieved her certificate in mortgage advice and practice. She has been working in the mortgage industry since 1996 and has experience within all aspects of the business from underwriting for lenders to working with packagers giving her vast amounts of knowledge of the mortgage industry. Samantha now runs her own business - Dorn Mortgage Services.

Refused Credit Mortgages Set To "grow And Grow"

Refusal of your mortgage set to "grow and grow" 14/08/2006 16:25:00 The sub-prime market and about subprime is likely to grow and grow after further investigation. A study commissioned by Alliance & Leicester indicates greater demand for mortgage credit can be refused to come, with four of the five operators in the market should develop. The main reasons for borrowers to seek a sub-prime mortgage market or are close to defaulting on debt payments or credit cards or just having a bad credit rating, research found. The figures show that Britons are increasingly difficult to manager existing debts, which suggests that the potential market for subprime mortgages might rise. About two out of five lenders said that the typical customer of the main subgroup is likely to experience financial problems, with many low income. More than 85 percent of brokers also report that customers are aware that one or sub-prime mortgage can help rebuild a poor credit score. Mehrdad Yousefi, head of mortgages via the Alliance & Leicester, said: This market becomes increasingly competitive with more lenders offering these specialist mortgages. It is encouraging to see that agents say their clients know the value of these mortgages and is a good way to get potential buyers in the housing ladder, while allowing repair your credit history by maintaining Payments regular financial commitments. Datamonitor estimates that 9.1 million people were refused credit by traditional lenders in 2005, more representative of potential growth market for mortgage credit is denied. personal debt has already crossed the barrier ฃ 1 billion and rising default rates suggests that borrowers are struggling to cope, which indicates a growing demand for mortgages fell in the future. When traditional lenders match your criteria, refused credit market could be more attractive and other lenders to the main street can also start the restoration of those with a 'credit profile slightly lower. As lenders take advantage of this growing market, increased competition could see a better deal for mortgage holders.