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
Investing in property can sometimes be stressful and a bit of a hassle but as most will tell you, once you’ve achieved it you will feel a huge sense of satisfaction. Here are some helpful hints and tips to minimise the stress and to maximise the satisfaction.
Think ahead and make a decision on what questions you want to ask your possible estate agent. Enquire about essential information, facts and figures. For example; the quantity of houses they’ve sold in the past year, where they were in relation to the area you’re interested in etc. Decent agents will be more than happy to give you such information and talk you through it all. A not-so-decent agent will not, and this should ring alarm bells.
Get organised! It makes overseas property purchase a lot simpler. Get a notebook or a folder where you can keep any advice or information you gather. This will create an invaluable source of data that you can easily access for reference purposes.
Unfortunately, the reality is that you have to anticipate extra costs and fees when buying a property overseas. Most will consider relevant taxes, down payment, bank funds etc. when, in fact, costs such as improvement bonds, school taxes (if applicable) and other location specific charges may be included. Think logically and think laterally to best predict such additional fees.
To ensure that you’re in the best possible position before buying, ask your estate agent for a checklist. Many will have pre-made checklists specifically designed for buying a house. Getting your hands on multiple versions of checklists from a couple of different agents means that you’ll be covered for basically all possible scenarios.
If you are planning on investing in a foreclosed home, it’s important that you make arrangements for repairs to happen. In quite a lot of cases, homes that are foreclosed have been left empty for a while before hitting the market, so it’s likely that they’ve been neglected on the upkeep front. They are likely to require HVAC (Heating, Ventilation and Air-Conditioning) system installation and you should be aware of the possibility of pests.
Be prepared to be a bit flexible. You may fall in love with a house but the location may not be great, or vice versa, you need to be aware of your budget. So be ready to search in another area or maybe try looking at a different type of home.
Establish clear long term and short term goals for yourself. If these goals aren’t met, search for another property. After all this is an investment and if it doesn’t meet your objectives, the investment’s unlikely to pay off.
Don’t place your purchase solely on one factor e.g. the view. You may love it, but if it’s subjective, others may not agree with you so you may end up missing out if you decide to sell the house in future. Try to ensure the property has multiple good points rather than just one. If you love it, go for it but try not to pay too much.
I’m sure you’ve already heard this but... Location, location, location! Location should be very high up on your priorities list. E.g. if you are investing in overseas property to set up a shop, if the location isn’t right you won’t get the customers.
Consider the asking price of the house when deciding upon your initial offer. If you have an accommodating seller, it’ll be simple to determine a final purchasing price that you are content with.
Get ready for some remodelling and some repair work, this way you get the most value from your property. seeing your investment’s value increase is incredibly satisfying and if you do it right, its value could increase beyond what you originally invested in it!.
Hopefully this has given you a little bit of an insight into the fact that buying property overseas isn’t as complex as it initially seems. The research stage could get confusing, but it will be worth it in the long term.
If you have any questions about investing abroad, buying a property overseas or taking out a mortgage abroad, get in touch with Conti - Mortgages Overseas either by exploring our website (www.mortgagesoverseas.com or via telephone 08009700985
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.
A mortgage that offers a short-term discount on its standard variable rate. These types of mortgages typically carry a penalty for early repayment.
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.
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.
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.
A loan where the borrower offers a property as security to a lender until the full amount is repaid.
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.
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
