Bridge Loan for Houses

You have decided to buy a new house and you have already spotted it somewhere around. But you will have to buy it fast as otherwise there are property grabbers roaming around. There is a problem however that to buy the new house you need to sells your old house which will take time. Bridge loans for houses are perfect solution for you in such a case.

Bridge loan for houses is offered for the borrowers till they sell their old houses. The loan is paid back through the sale amount received from selling old house. The borrower meanwhile purchases the new house through the bridging loan for houses amount. Thus one can also save a lot of money by timely purchasing of the house before the market price escalates.

Bridge loan for houses is essentially a secured loan. This is because a huge amount is at stake for the lender. He surely wants security of the loan first. Often the very house of the loan seeker that he intends to sell is given to the lender as collateral for bridge loan for houses. But despite collateral, lenders may charge higher interest rate as the loan repayment duration is very short. Often one sells old property in few weeks. To counter higher interest rate you should compare various loan packages on offer and settle for the suitable one having comparatively lower interest rate.

The loan amount on bridge loan for houses depends on the value of the old house one intends to sell and offered as collateral. Lenders are willing to give a loan that is about 65 percent of the old property's value. The repayment duration and borrowed amount also depends on person to person as lenders take lot of factors into account like credit history of a borrower. Surely a loan seeker with good credit history stands good chances of availing better terms-conditions. Bad credit people may get the loan at little harder conditions. But at the same time the loan gives them the opportunity to repair credit score as they pay off the loan in time.

Before making the loan deal with a lender, make a extensive comparison of various lenders providing bridge loan for houses. See who is offering lower interest rate and what other terms-conditions are and which lenders suits you best. Prefer applying online to him for a faster approval of the loan.

Bridge loan for houses makes it possible for you to instantly buy new house prior to selling an old property. The loan thus saves you from paying extra for new house had in case the market price had gone up. The loan is very costly due to higher interest rate. So pay off the loan as early as possible. Your credit score also goes higher as you pay off the loan in time.

About the Author
Elizabeth Swann is currently working as an expert author for Findbridgingloans.For more details Bridge loan for houses, residential bridging loans, bridging Loans for buying Property, personal bridging loans, bridging loans uk, business bridge loans, construction bridge loans visit http://www.findbridgingloans.co.uk/

Refinance

What Is Bad Credit Mortgage

If you are reading this article, then chances are that you have landed in a difficult position due to a loan you had taken. However you can reduce your mortgage burden if you apply some of the techniques mentioned below.

Bad credit mortgage also known as remortgage or refinancing is the process in which you pay off one mortgage with the proceeds of a new mortgage using the same surety. Surety is usually a property, vehicle, valuables etc that you keep as a surety for the financier to give you loan.

Interest: A reduced interest rate is the most common reason why people go for a bad credit mortgage or a remortgage. This is the easiest way to reduce your monthly loan payment. Use your calculator to consider how much will be your monthly repayment. Some loans have a prepayment penalty that is if you short close your loan then you have to pay some percentage of the loan, check if your present mortgage has that clause.

Consider other costs like loan application fees, loan processing fees, appraisal fees and loan origination fees. Take all these considerations and check out your total savings and then take a decision on remortgaging. As a rule of thumb, if the new loan has interest rate 2 percent less than the present loan then it is going to be beneficial in taking that loan.

Period: Another way to reduce your monthly payment is increasing the length of your loan. Either you can go for a new loan or extend the period of your present loan. If the present lender is unwilling to increase the period then you can go for a new loan.

Risk: One more reason for going for remortgaging is to reduce the risk. Some loans have adjustable or floating rate with ceiling limits or no ceiling limits. You can opt for a fixed interest rate mortgage by refinancing. Generally the fixed interest rate is around 2 percent more than the floating interest rate.

Online Lenders: There are many online lenders who are offering reasonable interest rates for people with bad credit rating. The interest rate usually increases with the lower credit rating. However if you can get a collateral and a cosigner for loan who has better credit rating, then there are many people who offer a reasonable interest rate. These types of loans are called secured loans and are available at a lesser interest rate.

Other Methods: If none of the above is working, borrow from friends and relatives and get out of that loan then gradually repay your near ones. And of course avoid over expenditure and impulsive buying. Remember "those who buy what they need not, sell what they need".

About the Author
Keith George always writes about valuable news & reviews. A related resource is Bad Credit Mortgage Further information can be found at Home Improvement

Refinance

Sub-prime mortgages - think twice

The fastest growing sector of home loans market is what we class as specialist mortgages. Specialist mortgages have developed to serve the mortgage needs of people who don't fit into the more conventional model buyer.

In the case of self-employed buyers, the introduction of self-certification mortgages has made things much simpler. A statement of earnings is normally all that is needed, provided the business has been up and running for couple of years.

Normally, a 25% deposit is needed and interest rates will be slightly higher than usual. This is just one example of a specialist produce.

Another type of mortgage, which is causing concern to Citizens Advice Bureaux (CABs), is designed to serve the needs of people with a poor credit record. It is known as a sub-prime mortgage, or sometimes called a credit repair mortgage.

Unbelievably, there are over 4,000 different versions of this product on the market. There are variable, fixed and discount rates. The mortgages are extremely complex, higher fees tend to be charged, the amount lent compared to the value is likely to be lower and interest rates higher than in the rest of the mortgage market.

The sub-prime mortgage has varying levels. For a would-be buyer who has missed a couple of loan repayments in their past, it's likely that a "light" or near prime version would be offered. If the same person had a poor credit rating, county court judgements against them or was a discharged bankrupt, then they would have a "heavier" or sub prime type of mortgage offered.

Dependent on the results of the credit rating, there could be an interest charge of more than 3% on top of the average standard variable rate mortgage. There's a big gap between sub-prime and near-prime. Another snag is the cost of the fee for setting up the loan. Commonly there's a charge of 2 to 2.5% of the loan.

The concern of the CAB relates to the indication that mortgage lenders specializing in sub-prime mortgages are giving social housing tenants the encouragement to purchase their homes with mortgages that they simply cannot afford.

Right-to-buy has resulted in more than 1.6 million council and housing association tenants purchasing their homes since it was introduced in 1980. It is thought that recently the surge in the sub-prime market has meant that offers of loans are being made to riskier customers.
Tenants eligible for a right-to-buy deal get a discount on the value of their property.

This ranges from $16,000 to $38,000, depending on the area. The vendors of the sub-prime mortgages appear to be persuading buyers to extend their mortgages and combine current debts. This, combined with the charges and higher interest rates, quickly erodes whatever gain might have been achieved by the discount. Many of the clients who approach the CAB with mortgage arrears are in trouble directly because of this situation. They run the risk that, unable to keep up their repayments, they will become homeless and will also consequently lose their right-to-buy position.

There has been a reduction in the number of sales of right-to-buy properties in the last few years. The Housing Act of 2004 brought in some tighter rules and restrictions, together with reduced discounts, especially in areas with higher house prices and higher homelessness levels.

In September 2005, there was a report by the Financial Services Association, which voiced concern over what checks were employed to check the borrower's suitability for these mortgages and questioned the advice given by some brokers. A further investigation to this is planned.

Incidentally, first time buyers with no credit record will struggle to get conventional mortgages with competitive interest rates. A history of debt, repaid promptly, will stand you in much better stead when the time comes for a mortgage, than no debt at all!

About the Author
Mortgage helpers provides upto date uk cheap mortgage articles

Mortgage

Bad Credit Home Equity Loans

Thinking of redecorating your house into a dream home? Most people are. Why is it that some can translate their dreams to reality and other cannot? It has to do with having the funds to do so. Unfortunately dream houses require quite a bit of savings. So what do you do if you need finances to remodel your house?

The other option is to take a loan. If you have a bad credit history it could become difficult. This is rapidly changing. For families around the US, companies are offering bad credit home equity loans so their dreams can actually turn into reality.

Today banks, credit union and even credit card companies are cashing in on home equity loans. As a homeowner you need to be careful when choosing such a loan because your house is given as collateral. Normally, a lender will decide how much equity you have in your house. Depending on this you can borrow up to the aforesaid limit. The higher the equity, the higher you can borrow. You will be charged interest on the amount that you have borrowed.

Another type of home equity loan is where you pay a fixed interest for a fixed amount borrowed. The interest rates on these loans are higher. Companies such as loanweb.com, e-loan.com, quickenloans.com and homeloancenter.com makes the process simple and easy. If you have a bad credit history, you can log on to one of these sites. They have a simple and free application form that you need to fill out.

The application normally asks you for your credit and personal information. The information is sought so they can get your loan pre-approved.

Once the home equity loan application is submitted these companies will do the background work to get your loan pre-approved. In some cases they will link you to several vendors who are interested to lend to you. The rates of interest vary depending on the lender. You will receive several quotes from different lenders.

This gives you a wide choice in order to make the right decision. It will help if you do some background reference checks on lenders and also read up on material relating to home equity loans. The quotes given are no obligation quotes, which are given only for your information. Home equity loans are a great way to reestablish your line of credit.

The choice of multiple lenders gives you the chance to compare their credibility and interest rates. Some lenders do not even require formal documentation of income. They are willing to help customers whatever their credit situation. Even in cases of bankruptcy or foreclosure, lenders are able to get you home equity loans.

About the Author
Brand-Blog Finance is the Founder of Bad Credit Home Equity Loan blog, who help Loan Seeker Find the best available loan rate quotes via the website http://finance.brand-blog.com