Introduction

A mortgage deal is as an agreement in which the borrower pledges his property as a security against a loan. When you have decided to take a mortgage loan, you need to look into the most important aspect of mortgaging – the cost.

A low cost mortgage means that the mortgage is arranged at a minimum cost so that the borrower can get maximum benefit from it. You can get a mortgage loan from several types of lenders such as commercial banks, mortgage companies, credit unions, mortgage brokers and so on. Mortgage costs will depend on the cost offered by the particular lender, the type of mortgage applied for and how successfully you have been able to select a cheap lender.

Cost information

It is important to gather information about the rates and fees from each lender.
• Rates – Ask each lender for a list of its current mortgage interest rates and whether the quoted rates are lowest for the day. You should also know whether the rate is fixed or adjustable.
• Fees – There are a variety of fees that your lender might charge you such as arrangement fee, application fee, early redemption penalty, etc. Many of these fees are negotiable by the lender. Ask each lender to give an estimate of its fees and what each fee includes. In case you do not understand a particular fee, you should clarify it with the lender.

Mortgage option

The cost of the mortgage will also be affected by the mortgage option that you wish to choose. Some of the popular mortgage options available in the U.K. finance market are: buy to let, first time mortgage, council right to buy, self certified mortgage, pension mortgage, flexible mortgage and reverse mortgage. While choosing the mortgage, you need to consider the benefits of the competitive interest rate against any additional costs that may be charged.

Choosing a lender

Earlier, borrowers had access limited to traditional lenders who used to charge heavy fees. But now with rapidly changing technology, you can not only consult the newspaper for lenders, but also can search for lenders on the internet compare them and choose the one that is most reputed among the several available.

Finding a low cost mortgage can be a difficult task. A little effort can help you get a good deal. You need to shop around, compare costs and terms and negotiate to get the cheapest possible deal.

Introduction

As the name implies, a fixed rate mortgage is a mortgage for which the interest rate is unchanged for either the full term of the loan or for a specified period of time. This means that the borrower has to pay a particular amount as instalment per month based on a certain rate of interest, which would not change throughout the period for which the interest rate is fixed. Generally fixed rate mortgages are of two types (Fixed mortgage rate for real estate, 2010).

1)    Fixed mortgages for 30 years: This is the most preferred fixed rate mortgage, since for thirty years the amount to be repaid per month remains the same. The disadvantage is that if the bank’s variable interest rate falls below the fixed rate, the borrower would be at a loss. Also, for the risk taken for 30 years the lender might charge a higher interest rate.

2)    Fixed mortgages for 15 years: The conditions for this mortgage are the same as for 30 years. The difference is that the repayment period is only 15 years. Therefore the interest rate would be lower compared to the former. When a mortgage loan of thirty years is to be refinanced (remortgaged) then this type of product is preferred by the borrowers. As a rule, the equity of the property under mortgage would be increasing. So more amount could be obtained as loan during refinancing.

Depending on the lender, interest rate generally varies from 5 to 6% for an initial period which varies from 3 to 5 years. Later on, interest rate would be between 7 to 8%. About 95% of the value of property would be given as loan. There are some lenders, who keep the interest rate same throughout the period of repayment, but the amount available as loan would be only about 85% of the value of property. (Mortgages – Compare Best Fixed Rate Mortgages, 2010). Fees for arranging loan vary from ₤900 to ₤1000.

Which fixed mortgage should you go for?

This depends on your individual situation and requirements. For instance, what kind of loan-to-value are you looking for? The higher the LTV, the higher the rate of interest. Your credit score also determines the rate of interest charged by the lender. The term of the loan also has a bearing on the rate of interest. All factors considered, the best fixed mortgage for you is the one that gives you enough money and a repayment plan that does not strain you.

Conclusion

So, it could be seen that two types of fixed mortgages are there, for 30 years and 15 years. Both are having their own advantages and disadvantages. For both cases, the repayment conditions and even the interest rate offered by different lenders vary. Therefore, the borrower has to make a study of the lenders who offer the mortgage in order to take correct decision. Therefore, the borrower has to make a study of the lenders who offer the mortgage in order to take correct decision. Read the fine print too before committing to a particular mortgage. As the saying goes “The devil is in the detail.”

Introduction

Tin is one of the cheapest materials available and it has been around for ages. Although there are now many other stronger metals available in the market and even non-metals like asphalt shingles and ceramic tiles for roofing material, tin roofs have been used most widely for hundreds of years in UK. Why?

Tin is not only one of the most abundant metals on our planet but it is also the cheapest. A tin roof is extremely durable in harsh environmental conditions. Unlike a strong steel roof, it does not rust after a few days in the rain and is resistant even to salt. It can even withstand acid. That’s why it is quite popular among people living close to industrial areas and the sea. Since tin is one of the most abundant metals on this planet it is easy to acquire and thus has reached even the most backward of human settlements.

But what do mortgage lenders think of tin?

The mortgage lenders in the UK are fighting for the business as the market continues to expand at a steady rate after the recent downturn. The fact is, today you are able to find finance on a variety of properties rather more easily than a couple of years back.

Even so, sometimes it is hard to say whether or not you will get a mortgage on a tin roof house in the UK. It will depend solely on the mortgage provider and the condition of the house in general and the roof in particular. On many instances in the recent past, people who had tin roofs on their domestic properties were able to get mortgage. The lenders, in such instances, will ask a technical expert to conduct a detailed examination of the roof to determine its present condition. In the end it all depends upon the mortgage provider who would be asking for this anyway.

The lenders also consider other factors like the location, the borrower’s creditworthiness etc. while deciding whether to offer a mortgage on a house with tin roof. If the house is located in comparatively upmarket location it is more likely to find favour with the lender. Similarly, a good credit history comes handy in such instances as always. But, as a rule, the interest rates charged on houses with tin roofs tend to be at least one percentage point higher than similar houses with solid roofing.

Conclusion

While it is possible to get mortgage for a house with tin roof, it is not as easy as for one with a solid roof. You may have to approach multiple lenders, go through a lengthy process that evaluates the condition of the roof and house and finally pay a higher rate of interest on the mortgage. If your house is located in a premium locality and your credit history is not bad, your chances of obtaining a mortgage are higher.