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Ideas To Save On Your Mortgage Insurance

December 28, 2007

Many people would love to have a house of their own. It brings some level of security and satisfaction for the whole family. However, with the prices of modern homes today, only a few can afford to buy one.

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Mortgage Closing Costs - What to Expect

December 27, 2007

Don’t just assume that the price of a home that you agree on with a seller is the end of the road as far as costs! Like so many other purchases, buying a home will mean

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On Mortgage Refinancing (Refinansman) In Turkey

November 20, 2007

We go over the factors that should be considered prior to mortgage refinancing in Turkey. We also demonstrate that refinancing can be very beneficial, especially, if original mortgage was issued before March 2007, i.e., before the new mortgage law passed. Read more

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First time buyer: find your dream home now

October 12, 2006

In the present time, being a first time buyer is pretty disheartening. House prices are going high and putting properties out of reach for a common man. This has increased the level of borrowing to get on the ladder. As a result, many lenders are now offering mortgage loans at competitive interest rates to help people in making their dream a real truth.

Mortgage lenders always willingly offer first time buyer mortgage to the borrowers as they get a chance to make a long term relationship with the borrowers. They look at your capabilities as how much you can pay as mortgage repayments. Many mortgage lenders also look at your bank statements to make sure of your capability to repay the first time buyer mortgage on time. If you cannot repay then, you may find it difficult to repay the loan.

First time buyer means you are ready to buy your dream home and want to get rid of the land lords. It’s a big investment that one bears to become a homeowner. Therefore, you need to make sure that you are not paying more in terms of the interest rates. For that you will have to shop around for different mortgage lenders. Some of the deals are more expensive and you need to compare different mortgage deals to get one of the best first time buyer mortgage deals.

Being a first time buyer, you should know how much you can spend for your dream home. If the budget is out of reach, don’t take large loan as it will have a negative impact on your repayments and other related problems. Therefore, consider all the aspects before buying a home of your own.

Therefore, come forward and get on the ladder and feel the freedom of being a homeowner.

by Jake Nathan

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Property Development Loan

August 21, 2006

The group of words “Property Development Loan” is self-explanatory-A loan which is borrowed to develop properties. There are lenders who offer property development loans on the basis of profitability of the property project.

A property development loan is a type of loan offered by a lender, usually bank, to an entrepreneur or for that matter any organization, for development of a property. In this case, like any other category of loan, the lender lends the money for certain duration of time at a certain rate of interest, which becomes the profit for lender. On its part, the borrower agrees to pay within the decided time period in the mutually decided number pf installments. Almost all property development loans are construction linked, which means instead of disbursing full payment at one time, certain percentage of loan amount is given in the beginning and then rest amount is given in phases, a certain percent of the total amount at a time, depending upon the percentage of work done.

One of the most important factors in property development loan is that few lenders ask the borrower to invest his portion of money in project development before they disburse the first installment of loan. Subsequently, lenders pay in the ratio of project completed.

Property development loans In case of property development loans, loan amount depends upon the profitability, viability and risks associated with the property development project. Similarly, rate of interest charged by lenders depend upon the profitability and risks associated with the project.

If the project seems risky or viability is not guaranteed, lenders charge higher interest than a project which is sure to be profitable. This higher interest rate is charged by lenders to compensate against the increased risk associated with the property project. Some of the key features of property development loans are:

Loan amount (criteria varies from lender to lender; some of the common are give below)  Loan amount depends upon project profile  However, usually it is up to 100% of the cost of the project  amount varies between £30,000 and £30 million  Up to 70% of the land cost and 70% of the building costs

Repayment period: Up to 12 months Interest Rates: Variable rates, generally between 2% and 3% above the Bank of England’s base rate. Repayments: On project completion

Therefore, if you want to develop a property, you can borrow loan from lenders who offer property development loans. Money in case of property development loan is disbursed in the ratio of actual construction done and loan is repaid at the end of the project by selling the property or by refinancing the property.

by Steve Clark

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