How to Save on your Mortgage

As I’m sure you’re aware, for a lot of people, mortgages take up a big chunk of monthly bills. For the majority, family housing expenses occupy for than a quarter of their budget, so clearly saving money on your mortgage can only be a good thing.

Luckily, there are some actions that you can take to save money in this section of your family’s budget. Initially, double check the terms of your mortgage. It’s possible that you could qualify to refinance your mortgage at a lower interest rates, in the process saving hundreds a month.

Afterwards, review the mortgage note’s total payment term. You have to pay a greater amount of interest in the case of a longer payment term with smaller monthly payments. Discuss and make  the decision of whether or not saving monthly is a priority over saving money in the long term. Often families will choose a longer payment scheme so that more money is available on a monthly basis. Unless getting out of debt as quickly as possible is the goal, then a shorter mortgage note is often selected. Consider refinancing into a note with a longer or shorter term based on your decision. This can save you either hundreds every month, of thousands over the total length of the loan.

If you don’t think refinancing is the choice for you, there are still alternative ways to save. Look at how much monthly you are expected to pay into escrow. Often mortgage companies will overestimate expenses such as insurance and property taxes. Enquire about the possibility of an evaluation of the costs, which may then result in more monthly savings.

Research is key in saving money on your mortgage, but it is possible. So tread carefully and keep informed to maximise your chances of saving successfully.

If you have any further enquiries,  are interested in overseas mortgages or would like to take aout a mortgage abroad, get in touch with Conti - Mortages Overseas weither by exploring our website www.mortgagesoverseas.com or via telephone 08009700985

Global property market edges towards recovery

According to Jones Lang LaSalle’s latest report showed that the global property market is edging towards recovery. investment volumes climbed back up to $108 billion in the second quarter of 2012 after a dip in activity in the first quarter. This now means that capital markets are back on track to volumes of around $400 billion by the end of the year.

Global economic outlook weakened as euro strains re-emerged, while low growth in developed economies remains a drag on a strong real estate recovery. Corporate occupiers adopted a wait and see approach to expansion, with sale and leaseback activity increasing as corporate looked to release capital.

Leasing activity still remains lower than 2011 due to weak jobs growth despite having improved from the first quarter dip. As a result, gross leasing volumes across 2012 are expected to be 10% below 2011.
Global office vacancy rates are now the lowest since 2009 at 13.3%, while vacancy continues to decrease.

If you are tempted by the prospect of taking advantage of the overseas property market and are looking into investing in property overseas visit Conti Overseas Mortgages atwww.mortgagesoverseas.com
OR if you are looking for a home in the UK and need conveyancing? visit us at www.helpfulconveyancing.co.uk for all your conveyancing solutions!!

Is it the ideal time to invest in Australia?

Have you always fancied relocating down under? Has the prospect of purchasing a home in Australia crossed your mind on multiple occasions? Is there something about the idea of living in Oz that you find particularly appealing?

If so, a top news organisation has reported that, thanks to a combination of several  factors, the summer of 2012  is presenting ‘perfect conditions’ for investing in Australian property. News.com.au has stated that, due to poor auction sales, a huge choice of available homes and reductions in interest rates, a larger proportion of Australia is transforming into a ‘buyer’s market’.

An increasing number of ‘bargain suburbs’ are appearing across Australia, the latest Commonwealth Bank Home Buyer Index (in conjunction with RP data) has revealed.

Tim Lawless, national research director for RP data has mentioned that there are more than 300,000 properties in Australia for sale and that, right now, the market is favouring buyers and investors in Australian mortgages. “It really does suggest there are a lot of properties that are for sale at the moment.  Stock levels remain high across each of the capital cities so prospective buyers have a good range of housing options to choose from.''

The Commonwealth bank - Australia’s most prominent home lender, provided information to calculate the index where the number of properties available for sale were compared to the demand for home loans.

Nick Marr of HomesGoFast.com said “These figures show that it is now the perfect time to buy property in Australia.  There have been modest gains in house prices over the last quarter but with a wide choice of homes to choose from, buyers are increasingly in a position to drive a hard bargain.”

So if you are interested in investing in Australian property, buying a house in Australia or taking out an Australian mortgage, get in touch with Conti - Mortgages Overseas by exploring our  website ( www.mortgagesoverseas.com)  or via telephone on 08009700985

Jargon Buster, Conti - Mortgages Overseas

Jargon Buster, Conti - Mortgages Overseas

Entering the world of overseas mortgages can be a scary and daunting process, but not if you have a good source of helpful advice and a little bit of know-how. So here is an offering from Conti - Mortgages Overseas to help you navigate the realms of mortgages abroad with relative ease. 

Annual Percentage Rate (APR)

The measure of how much a loan will cost in interest per year. It takes into account all charges, such as valuation fees on a mortgage or any annual charges on a credit card, so it is the best measure of the total cost of a loan.

Arrangement Fee

Otherwise known as an application fee, it is a mortgage lender's charge that goes to cover the cost of processing a mortgage application. The fee will typically be a couple of hundred pounds and is usually non-refundable, even if your loan application is rejected. Thankfully, many mortgage lenders no longer charge arrangement fees.

Broker

Anyone who sells financial products. A stockbroker sells stock, an insurance broker sells insurance and so on.

Building Insurance

An insurance policy that covers the cost of rebuilding your home if it is destroyed. Most mortgage lenders demand that building insurance is taken out as a condition of your loan.

Completion

The final stage of the property buying process. The completion date, which must be agreed by banks and solicitors for both parties, is typically two weeks to a month after contracts have been exchanged. On this day the money will be deposited with the seller and then it is just a matter of picking up, or handing over the keys.

Cooling off period

The time given by the lender for the applicant to reflect on the arrangement and change their mind if necessary

Contents insurance

Cover for household possessions. As a rule it covers anything that can be moved, and often covers items when they are outside of the house, such as a camera you have taken on holiday.

Conveyancing

The legal work carried out during the sale of a property. This should include a local authority search to check that there are no factors that will affect the future value of your home, such as subsidence or planned development.

Credit Reference Agency

A company which collects and stores information used by lenders to determine an individual's credit risk. You have the right to see this information, for a small fee.

Discount Mortgage

A mortgage that offers a short-term discount on its standard variable rate. These types of mortgages typically carry a penalty for early repayment.

Fixed Rate Mortgage

A mortgage that has an interest rate which does not move with market fluctuations. This means you can fix your monthly repayments in advance, helping you to plan your financial future. The fixed term can last anything from one year to 25 years. The downside is the mortgages often come with heavy fees and penalties. And, if interest rates fall, you could be locked into a high rate.

Flexible Mortgage

This is a mortgage that allows you to vary your monthly repayments. The advantage is that, if you have extra money, you can pay your mortgage off early and so reduce its cost. Also you can put payments on hold if times are lean. In exchange for this flexibility the loans usually charge more interest.

Gross

Income, such as interest, wages or dividends, before tax and other charges are removed.

Income Multipliers

When it comes to getting a mortgage, this is the most common way lenders work out how much you can borrow.

Interest

The amount charged by the lender for the borrowing of a certain amount of money. How much it is depends upon the credit risk of the borrower and the current inflation rate. It can also refer to the return upon an investment.

Interest-only Mortgage

This is where monthly payments cover only the interest on a mortgage. The outstanding balance remains the same, so the borrower needs to make additional investments to ensure the full amount can be repaid at the end of the mortgage period.

Loan to Value (LTV)

A mortgage term that describes the amount of money a lender will forward you as a percentage of your property's value. Banks and building societies tend to lend up to 95% of property value.

Mortgage

A loan where the borrower offers a property as security to a lender until the full amount is repaid.

Mortgage Broker

A person or company authorised to search the mortgage market for a deal that suits you. They can contact mortgage lenders on your behalf to make arrangements to complete a loan. They charge a fee for their services, though often this will be paid as commission from the lender to the broker.

Negative Equity

The moment your mortgage is worth more than your home you are said be in negative equity. It is never a good thing, but only becomes a real problem if you want to sell your home. Unless you can make up the deficit then your lender can block the sale.

Notaire or Notary

A public official who can witness legal documents, administer and take oaths

Redemption Penalty

This is an interest penalty levied by mortgage lenders on borrowers who pay back mortgages early. It is typically included on mortgages that offer some form of interest rate discount as a means of stopping borrowers leaving as soon as the discount period has run out. Increasingly redemption penalties only apply during the discount period of a mortgage.

Repayment Mortgage

This is a mortgage that requires the borrower to repay interest and a slice of the money borrowed at regular intervals. As long as the homeowner meets every payment, the loan will be fully repaid at the end of the mortgage term.

Survey

An inspection of the property to identify defects, faults and any necessary remedial work. This can then affect the valuation

Valuation

The process of assigning a value to a property. Lenders will demand that a property you plan to buy has a valuation by a registered surveyor before they agree a mortgage.

Variable Rate Mortgage

A mortgage whose interest rate moves in line with changes in the Bank of England Base Rate. The mortgages are set at a premium to the Bank of England rate.


If you have any further questions about buying a property abroad, taking out an overseas mortgage or just need a little bit of a nudge in the right direction, please get in contact with Conti, either via our website (www.mortgagesoverseas.com) or by telephone 08009700985

Frequently Asked Questions Conti - Mortgages Overseas

Frequently Asked Questions

Conti - Mortgages Overseas

I have never heard of Conti, are you safe to deal with?

Conti is the UK's leading independent overseas mortgage specialist and over the last 14 years has arranged thousands of mortgages for satisfied customers. As we are a mortgage broker, we are bringing applicants and lenders together, therefore your mortgage and property are with that lender, not Conti.

Can I rent the property?

Most lenders we work with do allow the rental of a property they are mortgaging. Certain conditions may apply and can vary by lender

How do I get good Legal Advice?

Conti works closely with 2 excellent law firms that specialise in the legal matters related to purchasing overseas. You can find their details on the Other Services page of our website to contact them directly and independently from Conti

How long will I have to wait to find out how much I can borrow?

Conti offers a free 'decision in principle' service, where you can find out how much of a mortgage is generally available to you. This service can be accessed via the website (click here) and takes no more than a few days

Are there ways I can use my UK property to fund the purchase?

At Conti we believe there are significant benefits in having a mortgage through a lender based in that country. However we often have clients who reduce the size of their required mortgage by putting down a larger deposit. This can be facilitated by using the UK property to raise money against. Conti can certainly assist you with this and can find more details on the Other Services page of our website

How long does it take to arrange a mortgage?

This can vary significantly by country and mortgage lender but broadly Conti is able to process the application within a week, subject to the applicant being able to provide all the details we need. It is then submitted to the lender for approval

How do I apply for a mortgage?

Simply click here or call 08009700985

What are the advantages in taking out an overseas mortgage as against raising equity on a property in the UK?

The main advantage of taking out an overseas mortgage is the lender will carry out checks on the property such as an independent valuation. The lender will also ensure clients have clear title and the property is registered in the clients' name upon completion.

Raising equity on a property in the UK may seem straightforward but buying an overseas property in 'cash' could present problems for the buyer if they do not ensure independent checks are carried out on the property. Sadly, all too often we hear of cash buyers where the heart rules the head and basic checks are overlooked, leaving them with a raft of problems such as boundary and title issues. Some may have bought a place in the sun but have had their fingers well and truly burned during the process.

Is it better to buy in the local currency or in Sterling?

Generally it's recommended to take out a mortgage in the same currency as you earn where available. However, if the intention is to rent out the property it may be beneficial to take out a mortgage in the local currency to avoid currency fluctuation costs.

What additional costs above the purchase price should I allow for?

This does depend on the country however it's usually best practice to allow for additional costs such as Legal fees, local or government purchase taxes, arrangement fees, surveyors costs, title searches and deed amendments etc. We generally suggest our clients allow an additional 10-15% on top of the purchase price to allow for these 'extras'

How much do you charge for your services?

Once you are happy with the quotation and wish to proceed we charge an administration fee of £95 for French mortgage cases and £145 for the rest of the world. We then earn commission from the lender that funds the remainder of our costs for processing and submitting the application. In some instances the lender either does not pay a commission or only pays a reduced amount. In these instances we do charge you a completion fee. Clients are always made aware of this at the quotation stage

How will I know how my mortgage is progressing?

A dedicated adviser will handle your mortgage application and will provide regular updates. You can also track the progress of your mortgage online at your own convenience.


For any further information on buying a property abroad, taking out an overseas mortgage or general help and advice, please do get in touch with Conti - Mortgages Overseas either by our website (www.mortgagesoverseas.com) or by telephone 08009700985

Expats: Handy hints and tips for moving abroad

If you want to buy a house abroad and think that an international money transfer would be the best way to fund it it would be worth reviewing the rules for import and export of your possessions.

Everyone has those items that hold huge sentimental value, be it a wedding video, family photo albums, a toy rabbit or a penny you found on the floor the day you won the lottery (I wish). So you should try to be aware of the sometime strict rules that  accompany the process of moving all your things abroad. It always pays off to be as informed as you possibly can.

For example, the transport of vehicles is often tightly regulated. You need to check on the age of car, whether it complies with local maintenance and emission standards among other things to ensure that you can import your vehicle with minimal hassle.

Pretty much all countries will have a list of forbidden objects that will vary from place to place so it’s worth double checking with a relocation expert early on and putting in a little bit of time and effort into research, as you never know what may be considered dangerous in another country. Another mistake people often make is with electrical items. There’s a possibility that your electronic goods won’t work abroad if there’s a significant difference in power or voltage.

It may seem obvious ( some people do forget!), but you should also ensure that any important documents, e.g. your passport, are in a secure yet accessible location. As it would be a pain to remember that your passport is hidden away with your china at the other end of the moving vehicle buried beneath 2 tonnes of old clothes, books, furniture and cuddly toys.

Clare Nessling, director of the UK’s leading overseas mortgage specialist, Conti endorses the use of meticulous planning when moving overseas. Since, with the economic recession, investors making the most out of low property prices overseas may be caught out and have their dream move postponed if they haven’t followed protocol to the letter. However, with common sense, helpful advice, support and a bit of expert knowledge, there’s no reason why moving to your dream home abroad can’t be an efficient experience with minimal hassle.

If you’re planning on moving abroad, buying a home overseas or are thinking about taking out an overseas mortgage, get in touch with Conti - Mortgages Overseas by exploring our website (www.mortgagesoverseas.com )

Top tips for buying an overseas property

Top Tips for buying an overseas property

Buying a property abroad is an exciting prospect, but one important rule applies - don't let your heart rule your head. The principles you would stick to in the UK also apply when buying overseas.

Follow Conti's 'Top Tips' to ensure that your buying experience is as hassle-free as possible.

1. Contracts
Never sign a contract that you do not understand (e.g. if it's in a foreign language). If two versions are provided, i.e. English & local language, ask your solicitor to confirm the English version is a true translation.

Always read the contract! Ensure you are fully conversant with the terms and conditions you are about to agree to. Specific points to be clear about include:

•   What deposit is required? Is it refundable and under what circumstances?
•   For new properties, what stage payments are required and when?
•   What is included in the price and what is the cost of the extras?
•   Check the due completion date

2. Arranging Finance
If you require mortgage finance, obtain an 'Agreement in Principle' for your mortgage before agreeing to purchase the property, or before signing any contracts and paying a deposit.

If you are arranging finance on the property, ensure that this is stated in any contract and, where possible, seek an 'opt-out clause' if the loan is not agreed (which will ensure any deposit paid is refunded).

Remember your overseas  mortgage will probably be in the local currency and you must consider the impact of fluctuations in exchange rates. However, if the intention is to receive rental income from the property, this may be in the local currency.

3. Specialist Advice
Always ensure that you seek specialist advice from independent solicitors, valuers, architects and surveyors before considering a purchase overseas. They should be proficient in your chosen country's laws and processes and also know the specifics involved in buying a property there. It is essential they confirm to you that all required permissions, licences and planning consents have been obtained.

4. Valuation
Before proceeding with the purchase (especially with a re-sale property, regardless of age), ensure an independent valuation of the property is carried out, which should point out any problems with the property - e.g. subsidence, damp, wiring defects - and could also highlight any possible boundary disputes.

5. New Build
If buying from a developer, what's their track record and how long have they been trading? Are references available from previous buyers? Check comparable properties in the area and any re-sales offered on the same development.

If the developer mentions 'rental returns', what are these based on? Check they're feasible and have been achieved in the past.

Before making any commitment, try to give yourself a `cooling off` period if you see a `must-have' property and are tempted to put down a deposit there and then. You must be sure that you're making the right choice.

6. Title/Property Ownership
Does the developer or seller have full title to the land or property? Ensure you do not inherit a debt on the property before you purchase, which your solicitor should also be able to check. For example, if the developer has borrowed money to build the development and this amount has been allocated against each plot as additional security to the developer's bank.

7. Location, Location, Location
Conduct thorough research about local facilities and transport. People gravitate to locations with a nearby airport, especially if it's served by a budget airline. But remember there are no guarantees that cheap flights will continue indefinitely in one location. Proximity to basic facilities like restaurants, shops and a beach are also important.

Talk to people who already live/own property in the area you like to get a better understanding of what it's like to live there. And consider the property off-season - many resorts (beach and ski) are seasonal and practically shut down when the tourists return home.

8. Local Money
Open a bank account in your chosen country and, where relevant, ensure you obtain a Certificate of Importation for the money you bring in from your home country.

Set up standing orders in your local bank account to meet local bills and taxes. Failure to pay your taxes in some countries such as France, Portugal and Spain, could lead to action by the authorities.

9. Extras
Bear in mind that bills don't end at the asking price. Lawyer's fees, IVA, local and national taxes, insurance, etc must all be met in your host country and can often add at least a further 10% to your cost of acquisition. Ensure you are, therefore, aware of the costs charged by the legal and government authorities for purchasing a property in your chosen country.

10. Tax
Check the inheritance and capital gains tax laws of the country where you are buying. For example, in France your children automatically inherit rights to your house; your estate may not automatically pass to your spouse and you may, therefore, need to compile a separate will.

If you take a mortgage out on a property in France or Spain, it may reduce your inheritance tax liability as there is a debt on the property.

If you rent out your property you will be liable for income tax

Conclusion
Remember - remain clear about your objectives. You must be sure about why you're buying and what you're hoping to achieve. Is it for retirement purposes, purely for holidays, or an investment? You may be undecided, e.g. had planned to buy in Spain for holidays and eventual retirement, but now have decided to go for an emerging market like Montenegro, where you hope to profit from the investment. Can you really afford the risk associated with this change of decision?

Conti specialises in arranging mortgages secured on overseas residential property in more than 45 countries. For information, please visit www.mortgagesoverseas.com