Credit repair

Friday, November 30, 2007

If you currently have bad credit, it would make sense to try and improve it as soon as possible. There are several steps to repairing your credit but the first place to start would be obtaining a copy of your credit record from one of the following:-

• Experian UK
• Checkmyfile
• My Equifax

Once you have reviewed your credit record you will be able to see why you would be rejected for credit and can look to set about repairing your credit.

If you have had CCJ's and have paid them off, you will need to get a Certificate of Satisfaction which can be obtained from the court. For informal settlements this would be a letter from the creditor. If you are involved in an IVA or bankruptcy, confirmation will be required from the trustee or Insolvency Practitioner.

When taking out further credit you need to consider every eventuality. Can you really afford the repayments? What happens if I lose my job? How secure is my job? These are all questions that should not be taken lightly. You should consider completing a budget planner to enable you to see what your in comings and outgoings are.

Other questions to think about are:-

What if my income reduces?

Am I relying on overtime or bonuses?

What if interest rates increase?

If you apply for a remortgage through Solution Mortgages because you have current credit problems, you can look to rebuild your credit by taking a mortgage with one of the specialist lenders we have access to. The idea is that you make all your payments and do not incur any further CCJ's and will be able to move back to a high street lender when your credit profile is better. When applying for a bad credit remortgage through Solution Mortgages all the above questions will be asked along with other questions about your outgoings. A credit search will be undertaken with your permission and we will be able to see any credit that you currently have along with the conduct of the account. There are also strict affordability calculators that we adhere to, to ensure that you are not taking on more than you can cope with. This is no ones interest.

If you are considering a bad credit remortgage, please feel free to call 0845 123 1260 or apply on line at www.solution-mortgages.co.uk

IVA's on the rise

Thursday, November 29, 2007

There are reports that individual voluntary arrangements are on the rise with a prediction of a possible spike in IVA deals next year.

There are an increasing number of borrowers whose debt problems can not be solved by a simple remortgage. Although the number of IVA's has started to drop off, this can be attributed to the banks rejecting applications over the fees charged by insolvency practitioners, which they feel are disproportionate to the work involved.

The trend over the next twelve months will be partly influenced by the outcome of the negotiations between banks and insolvency practitioners. If there is no agreement, it is expected that IVA's will continue to fall, possibly with a consequent increase in bankruptcies.

However once resolved, there is a potential backlog of IVA's which would result in an increase in early 2008.

At Solution Mortgages, if we are unable to help you with a remortgage, we can put you in touch with a company who may be able to help you with a debt management plan or an IVA. Please feel free to call on 0845 123 1260 or apply on line at www.solution-mortgages.co.uk

Tough times in the mortgage market

Wednesday, November 28, 2007

The Council of Mortgage Lenders has warned that the number of mortgages in three month arrears could increase from 145,000 at the end of 2007 to 170,000 by the end of 2008. Repossessions are also expected to increase to 45,000 in 2008 up 15,000 from 2007.

The crunch has tested the non-balance sheet lenders to the limit but fortunately has come at a time when the UK financial market is robust, with interest rates still low and employment high.

Many UK banks have declared bad debts from the US sub prime crisis but they are big enough companies to absorb these debts and the appetite for mortgage lending in 2008 should return.

Borrowers need to be resilient in the current climate and will need to cope with increased monthly mortgage payments in 2008. For sub prime borrowers who are coming out of their fixed rates in the next six months, they are likely to see a payment shock as rates have increased dramatically in the last 3 months.

Between now and March 2008 sub prime borrowers will find that remortgaging will provide minimal financial benefits, if any at all. They will probably be better off to wait until more lenders come back into the market for new business.

If sub prime borrowers have improved their credit history over the period of their last fixed mortgage, they should be able to qualify for a near prime scheme and reduce their rate. It may even be worth, applying to a high street lender to see if they would now lend due to the improvement in the persons credit history.

From March next year it is hoped that sub prime lenders will start to improve rates and criteria. This is on the basis that the credit markets have not deteriorated any further. Indeed, the return to the market for this type of lender will be dependant on securing funding lines and also the natural commercial competition in the market.

If you have a bad credit remortgage which is nearing the end of a fixed period it would be prudent to wait until March 2008 when the next LIBOR reset is due. If you want to discuss your options, please feel free to call Solution Mortgages on 0845 123 1260 or apply on line at www.solution-mortgages.co.uk

Specialist lenders

Tuesday, November 27, 2007

If you have adverse credit such as mortgage arrears, ccj's or been made bankrupt it is unlikely you would be able to raise finance by way of a remortgage through a high street lender. Over the past few years the high street lenders (Halifax, Bank of Scotland, Abbey) have all launched specialist lending arms which are re branded under a different guise. They have done this as the sub prime sector is such a growing area of the mortgage market.

You can apply for a bad credit remortgage if you have adverse credit. These lenders look to help you rebuild your credit rating by offering you a mortgage, despite your credit problems at a higher rate than you would obtain on the high street. The main point is that now you have got that mortgage, as long as you maintain your mortgage payments over the discount or fixed rate period and ensure that you are out of any early repayment charge period, you could look to move to a high street lender.

Sub prime lenders require all the usual references which will usually include proof of income, proof of recent loan or mortgage payments and this will allow them to decide on the severity of the credit problems and the risk. They will also need to know, why the adverse credit has occurred.

If you need more information on a bad credit remortgage, please feel free to call 0845 123 1260 or apply online at www.solution-mortgages.co.uk

What information is required to get a bad credit remortgage quote?

Monday, November 26, 2007

Please find below a list of the details and information necessary for Solution Mortgages to provide you with a free and accurate bad credit remortgage quote.

Basic personal information (for each applicant):

Name
Date of Birth
Address
Telephone number
Citizenship

Basic Employment Details:
Employment status (ex. employed or self employed, permanent or contract)
Income
Income proof if available (ex. pay stubs, accountants letter etc.)

Basic Property Details:

Type of property (ex. detached, terraced, flat)
Current value of property (closest estimate)

Financial History (last 3 years):
Mortgage details covering the last 2 years, to include mortgage amount, any missed payments and early redemption penalties.
Secured loan details covering the last year (if applicable), to include loan amount, any missed payments and early redemption penalties.
Details of any CCJs in the last 2 years and if they are satisfied or outstanding.
Details of any IVA or Bankruptcy
Basic details of any current unsecured commitments (examples include credit cards, personal loans, store cards, car loans etc.)

Once we have the above information we can provide you with a bad credit remortgage or mortgage quotation. We will send you a Key Facts Illustration (KFI) which breaks down the mortgage for you including any fees. If you are then happy to proceed we can either dispatch all the paper work to you or if you would prefer send a representative to your property to complete all the paper work for you.

If you would like a mortgage quotation from Solution Mortgages please feel free to call on 0845 123 1260 or apply on line at http://www.solution-mortgages.co.uk/

Distressed sales

Friday, November 23, 2007

Distressed sales are on the increase which could boost the bridging market. Distressed sales occur in unfavourable conditions and usually result in the seller getting a lower price for the property than it is actually worth.

As market conditions remain uncertain, in the wake of the credit crunch, there is a possibility that more properties will come to the market and need to be sold quickly. The number of companies offering sell and rent back schemes has increased rapidly in the last 12 months.

Bridging finance could be an option instead of sell and rent back. For example if you are on the verge of repossession you could look at a short term loan if you know you are going to sell the property or you have some money coming in from

The main thing to do when in such a situation is to explore all the available options.

If you are currently being threatened with repossession, speak to Solution Mortgages on 0845 123 1260 to see if we can help you. If you would prefer to apply on line you can go to www.solution-mortgages.co.uk

Home improvements - adding value

Thursday, November 22, 2007

With rising property prices and the cost associated with moving, many people are deciding to stay put rather than move home. Home improvements are on the increase as a new kitchen or bathroom is likely to boost the value of your existing property and make it a nicer place to be while you are still living there.

Decorating remains the most popular DIY activity with activities such as new carpets, curtains, painting and garden improvements high on the agenda. But which improvements will add real value to your property. Research shows as follows:-

Conservatories

Conservatories can be a good investment, but must be kept in keeping with the rest of the property. Conservatories can cost between £10,000 and £40,000 to build and you can usually expect to recoup most of that.

Loft conversions

These usually require planning permission, can cost up to £20,000 and may take up to 3 months work. It is likely it can add as much as 10% to the value of your home.

Central heating

This is likely to recoup all your costs and more as it is basically essential to any desirable house these days.

Creating a garage

You may require planning permission for this from the council but as an investment should be worthwhile. An investment of £6000 to £10,000 could net you as much as £30,000 later.

Other popular improvements which are likely to add value to your property are a new modern kitchen, new bathroom or double glazing.

How you pay for home improvements is as important as the value added to your home. If you are considering borrowing money on your property to pay for home improvements and have been turned down by your current lender due to adverse credit, you should not necessarily take out store cards or take out the finance with the company selling the windows etc. The interest rates on these types of credit are usually very high and therefore it may be worth considering a remortgage.

If you have been turned down by a high street lender or your current sub prime lender you could speak to Solution Mortgages about the lenders we have access to. We can look to pay off your existing lender and raise you enough from the equity in your property to fund the home improvements you require. The interest rate on your mortgage is likely to be a lot less than you would pay on a store card or credit agreement.

If you would like to speak to Solution Mortgages you can call 0845 123 1260 or apply on line at www.solution-mortgages.co.uk

Interest rate cut before Christmas unlikely

The minutes from the last monetary policy committee (MPC) meeting have revealed that most of the members voted in favour of waiting before reducing interest rates.

It would seem that they want to wait and see whether the economy is really slowing down dramatically and look to potentially take action in 2008.

Some lenders have increased their standard variable rate (SVR) with disregard to a potential bank rate cut.

The outlook for interest rates is a cut in 2008.

If you are considering a bad credit remortgage and need to raise finance, Solution Mortgages should be able to help. You can call 0845 123 1260 or apply on line at www.solution-mortgages.co.uk

Remortgaging with bad credit

Wednesday, November 21, 2007

If you are considering a remortgage there are several matters that a lender will need to consider:-

The first will be the purpose of the loan which will decide whether the loan falls within the current lending policy and if it is to be regulated by the Consumer Credit Act 1974.

A lender will also look at the status and personal circumstances of the applicant, which will usually be done by way of a credit search. If the credit search shows adverse credit such as CCJ's or mortgage arrears or bankruptcy then you may have to consider a bad credit remortgage as high street lenders are unlikely to consider the application. This is where Solution Mortgages can help.

Lenders will need to consider the value of the security offered for the mortgage ie. the value of your property. A survey by a qualified surveyor will determine this.

There could be other underwriting considerations, including MIG, guarantor, insurance etc.

The procedure for remortgaging is relatively straight forward as the property is not changing hands.

When applying for a remortgage through Solution Mortgages the necessary status and security information will gathered. In particular details of your existing mortgage have to be confirmed.

The lender will check whether the information given at the application stage is consistent with evidence presented by your existing lender.

We will obtain a redemption statement in order to establish accurate borrowing requirements - otherwise there may be a shortfall that cannot be met from your personal resources.

Once the remortgage is assessed as acceptable by the lender, a formal offer of advance will be issued.

Once you have read the offer and are happy the conveyancing work can commence.

The solicitor acting for you will arrange to pay off the existing mortgage from the proceeds of the advance cheque, alongside any other costs, fees, or expenses involved.

If you are considering a bad credit remortgage, please feel free to contact Solution Mortgages on 0845 123 1260 or apply on line at www.solution-mortgages.co.uk

Individual voluntary arrangements (IVA's)

Tuesday, November 20, 2007

An individual voluntary arrangement (IVA) is an alternative to bankruptcy. It is a method by which a debtor can make an arrangement with creditors to reschedule outstanding debts over a specified period, supervised by an insolvency practitioner. For an IVA to be arranged, a creditors' meeting must be arranged. At the meeting, creditors representing at least 75% of the debt must agree to the IVA. For example, if the debt is £100,000 creditors owed at least £75,000 in total must agree to the IVA.

Those subject to IVA's will be considered for a bad credit remortgage through the lenders Solution Mortgages has access to but each case will be treated on its own merits.

If you are currently involved in an IVA and are looking to clear it, please feel free to call Solution Mortgages about a bad credit remortgage on 0845 123 1260 or apply on line at www.solution-mortgages.co.uk

Bankruptcy

Insolvency occurs when a person's liabilities exceed his/her assets or a person cannot meet his/her financial obligations when they fall due.

Insolvency arises when an order is made under the Insolvency Act 1986 or the Bankruptcy (Scotland) Act 1985. A bankruptcy order remains in force for 12 months (in most circumstances). The bankrupt is made responsible to an insolvency practitioner whose main duty is to ensure that the creditors get as much money back as possible during the period that the order is in force.

When applying for a bad credit remortgage it will normally be declared on the mortgage application form. It is a criminal offence not to do so. If it is not declared it will usually be discovered by the conveyancing solicitor before completion when a bankruptcy search is carried out and the bankrupt will be legally prevented from executing a mortgage deed.

As a matter of course, lenders will decline applications from undischarged bankrupts but some of the lenders who Solution Mortgages have access to will discharge the bankruptcy on completion of the mortgage. Other lenders are prepared to consider applications from those who have been discharged from bankruptcy after a specified number of years.

If you are currently bankrupt or have been discharged and need to raise finace by way of a bad credit remortgage please feel free to call Solution Mortgages on 0845 123 1260 or apply on line at www.solution-mortgages.co.uk

Solution Mortgages October completion times

In October 2007 Solution Mortgages Limited's average remortgage completion time from initial enquiry until completion was 27 working days. This is in light of the continuing credit crisis problems and lenders effectively looking for reasons not to lend.

Jamie Smith, Completions Manager said, "problems are still continuing and lenders are taking longer to come back to us on cases, but we are still within our in house targeted completion times".

Adverse credit remortgage

Monday, November 19, 2007

The US housing crisis has had a marked effect on UK markets, so much so that the majority of sub prime lenders have revised their rates and criteria on a daily basis to reflect investors' lack of confidence in the market. This has resulted in no lenders wanting to leave themselves in a market niche that no one else wants to partake in.

Although the frenzy of rate changes seen a month ago is dying down, the market is still experiencing problems. Rates are being revised and products are either changing or being completely withdrawn.

There are still lenders who offer heavy adverse, bad credit remortgages but these schemes will usually restrict the amount of recent arrears incurred and limit the LTV (loan to value).

Another issue is where a customer is already with a sub prime lender and the new lender is likely to insist on the last three payments having been made in full and on time.

If you need an adverse credit remortgage and have missed payments on your current mortgage, the key is to act early. If you speak to a broker early on, you will have a better chance of being able to source a new lender.

If you have any questions about a bad credit remortgage, feel free to call Solution Mortgages on 0845 123 1260 or apply on line at www.solution-mortgages.co.uk

County Court Judgments (CCJ's)

Friday, November 16, 2007

When a person is unable to pay his creditors, a civil case can be brought to the county court in England and Wales or the Sheriff Court in Scotland. The court can make a judgment (decree in Scotland) against the debtor that then remains in force until the debt is paid off.

If a credit search is conducted and you have or had CCJ's, these will show against your profile. If they have been paid off they will show as satisfied on the credit reort.

When applying for a mortgage, the application form always requires details of such judgments and it is a criminal offence to knowingly conceal them from a lender. Many high street lenders will not lend to individuals with CCJ's but if you are applying for a bad credit remortgage, the lender will usually allow for such items of adverse credit in their criteria.

Although County court judgements do not rule out the ability to get a mortgage, they have to be considered within the context of the application as a whole. A person who has been unable or unprepared to meet obligations in the past may be regarded as less reliable in the future.

If you have CCJ's and are looking into the prospect of remortgaging, speak to Solution Mortgages about a bad credit remortgage. You can call 0845 123 1260 or apply on-line at http://www.solution-mortgages.co.uk/

Slower growth predicted in 2008

Thursday, November 15, 2007

The recent turmoil in the global credit markets has dominated news headlines for the past couple of months and has also been a major factor in the Bank of England inflation outlook in the last month.

The Bank of England has said that the global financial system remains vulnerable to further shocks after the losses experienced on mortgage backed securities led to weakened confidence in international markets. In its inflation report the bank said that economic growth would be lower next year even if borrowing costs fell from 5.75%.

Pressure on prices was also stronger because of soaring energy prices and a falling pound which has put inflation above the 2% target for most of next year. This is expected to settle back in the middle of 2009. The near term outlook is less benign for both inflation and growth.

The stock markets view the Bank of England cutting rates in early 2008 following the Federal Reserve downwards.

The Bank of England has said that the risks to inflation forecast were balanced but those to growth were on the downside. There is a lot of uncertainty however, regarding asset prices, consumer spending and the global economy.

Events have already taken place with the trend of tightening lending criteria to UK bad credit remortgage borrowers. This is likely to continue into 2008. If people do fall into arrears on their mortgage they do not to act quickly now, in order to stave of repossession. People are still able to secure light to medium bad credit remortgages but when people have missed 6 payments or more in a 12 month period they are likely to struggle to find a new lender.

New member of staff

Wednesday, November 14, 2007

Solution Mortgages Limited are pleased to announce that Jenny Armitt has joined the mortgage processing team from Capital One. Jenny has extensive experience processing mortgages in the adverse credit market and will be an asset to the team.

At Solution Mortgages we are committed to ensuring our service levels are without compromise and bolstering the processing department ensures we meet the targets we set ourselves.

Bridging finance

Tuesday, November 13, 2007

Bridging finance may be an option when a borrower moves house and the date of disposal of the existing property falls after the date of acquisition of the new one.

There are two types of bridging finance:-

Open bridging - where a borrower takes out a new mortgage without having a buyer for the existing property. This can be risky as there is no guarantee when the latter property will be sold.

Closed bridging - this is when the person buying, already has a firm buyer for the existing property.

There are not many advantages to open bridging other than enabling the borrower to complete the purchase of the new property more quickly than would otherwise be possible.

Closed bridging provides a valuable service as it allows a purchase to go ahead that otherwise might break down as a result of the purchase/sale chain breaking down. It can also be obtained at a reasonable rate.

The disadvantages are that bridging is another cost at a time when you are already incurring many other outgoings.

If you have any queries on bridging loans, feel free to call Solution Mortgages on 0845 123 1260 or apply on-line at www.solution-mortgages.co.uk

Buy to let mortgages

Monday, November 12, 2007

A buy to let mortgage is designed to allow individuals to buy property for investment purposes. These mortgages are not regulated by the Financial Services Authority.

They have been a very popular type of mortgage in previous years due to the continuing rise in property prices and the shortage of property for rent.

The rental income and the possible capital gain that can be achieved when the property is sold presents an interesting investment opportunity.

Buy to let mortgages are a greater risk to a lender as there is no guarantee that the property will be permanently tenanted and therefore could stand empty with no rent coming in. Also the borrower could treat the commitment less seriously than if the property was there own home. Lastly the value and saleability of the property could be affected if it is badly treated by the tenants.

Lenders usually offset this risk by charging a higher interest rate, however with demand for these products, interest rates still remain competitive.

The buy to let mortgage is not usually based on income multiples. Instead the lender is more interested in the rental income on the propertyand would like the rental income to be around 125% of the monthly mortgage payment.

The lender will also want a suitable tenancy agreement in place so it is not prevented from obtaining a possession order in the event of a default.

Solution Mortgages can help if you are considering a buy to let mortgage regardless of your credit history. Feel free to call 0845 123 1260 or apply on-line at www.solution-mortgages.co.uk

Mortgage arrears

Friday, November 9, 2007

If you have mortgage arrears on your current property you need to act quickly and address the situation.

Lenders should always encourage borrowers to contact them to discuss any difficulties with paying the mortgage, as early as possible.

Lenders are obliged to do all they can to help borrowers to try and bring their payments up to date. If it appears that the arrears situation is controllable and can be retrieved, then the lender has many options. The lender will also take into consideration the loan to value as this influences the lenders security. If the loan to value is low, there is less threat to the lenders security and therefore the options are likely to be wider.

The options a lender can look at are as follows:-

Payment of arrears over a specific period

This is where the borrower agrees to clear the arrears by paying more than the monthly instalment for an agreed period. Many lenders permit a maximum of a one year period for this to be done.

Full or partial suspension of monthly payments

This is sometimes offered where the mortgage is on a capital repayment basis, where there is already a reasonable amount of equity and therefore security in the property. This would only be allowed as a short term measure and is essentially a payment holiday. Arrears will build up over the 'holiday' period which will need to be settled within a set time at the end of the agreed period.

Accepting interest only payments

If the loan is on capital and interest repayment the lender may be willing to accept interest only repayments for a specific period. This will lower the monthly payments slightly but the lender would have to judge whether there is any real benefit to doing this.

Extending the term

The mortgage could be put back on track by extending the term of the mortgage. This could be on either a short term or long term basis. This option is used with great care with lenders as the borrower must be genuinely committed to keeping their account up to date. This cannot be carried out repeatedly.

Capitalising the arrears

The lender may agree to capitalise the arrears by adding the arrears into the loan so that the customer makes a slightly higher payment each month going forward. This will work where a customer has gone through a difficult period but is now able to manage their financial commitments.

Trading down

If the borrower has a mortgage that they can simply not sustain the best option would be to sell the property. A lender may suspend litigation proceedings if there is a genuine attempt to sell the property and downsize to a cheaper property.

The first thing to do if you fall into arrears with your mortgage is speak to your lender. If you do not and just ignore the situation it will be seen as irresponsible. The lender can only help you if they know the full circumstances. They are also more likely to help if you are open and honest. Arrears on a mortgage can happen to anyone, the difference is how you deal with it.

If you have approached your lender and they are unwilling to help you could get in touch with Solution Mortgages. We may be able to look at a remortgage for you where you can clear your arrears and start afresh with a new lender and maybe incorporate one of the latter mentioned scenarios. With a new remortgage you could increase your term or look to move onto interest only for a period to bring your payments down. If you have arrears on your mortgage there are options. Speak to Solution Mortgages on 0845 123 1260 or apply on-line at www.solution-mortgages.co.uk

Bad credit rating

Thursday, November 8, 2007

Your borrowing options will be limited with a bad credit rating. CCJ's (county court judgements), mortgage arrears, payment defaults on credit cards and loans will all penalise you and affect your credit rating.

Most lenders use two main credit reference agencies, those being Equifax and Experian. They compile information on you from the electoral roll, county court judgments and how well you have paid both current and previous debts.

This then allows new lenders who you have applied to for credit, to make an informed decision on whether to lend to you. They will also base it on their own individual criteria.

If you are refused credit the lender must say why. Under the Data Protection Act you can ask for a review of your application. This will allow you to see where you can improve your rating. It will also allow you to see if there are any mistakes on your record.

It is possible to repair your credit, if you have a bad credit rating, but it will take time.

To improve your rating, you must make sure all your payments to creditors are paid on time. Also make sure you are on the voters roll at your property.

You can also buy a copy of your credit report from the credit reference agencies. You can put a 'notice of correction' on your file if you dispute something on your file. This means that new lenders will be able to see an explanation when they conduct a search.

Other hints to boost your credit rating is pay any balances on credit cards on a regular basis and do not apply for credit repeatedly if you have been turned down by someone else.

Similarly if you have no current credit, you may be rejected. This is because lenders feel more comfortable lending to someone who has a past credit history.

If you are struggling to raise the finance you require you could speak to Solution Mortgages to see if we can help you. Please feel free to call on 0845 123 1260 or apply on-line at http://www.solution-mortgages.co.uk/

Remortgage problems

Wednesday, November 7, 2007

If you are having remortgage problems due to bad credit such as arrears, ccj's or bankruptcy, there are still lenders who can help you.

Solution Mortgages specialise in helping people with remortgage problems and will look at your circumstances and with the panel of specialist lenders we have access to, provide you with information on a problem remortgage.

Finances can be unpredictable and sometimes debts can feel crippling. You could raise money through a problem remortgage and help to consolidate your credit card debt and other loans where the interest rates are much higher, into your mortgage.

It is not uncommon for people to experience credit problems with a large proportion of the population falling into this category. Many high street lenders will not be willing to lend to people who have credit problems especially in the current 'credit crunch' environment.

Solution Mortgages work with lenders who will consider applications for a problem remortgage and if you wish to discuss your options, feel free to call on 0845 123 1260 or apply on-line at www.solution-mortgages.co.uk

Builders feeling the effects of the credit crunch

Tuesday, November 6, 2007

Builders are starting to feel the effects of the credit crunch in the form of a drop in sales.

Sales have fallen sharply in the last six weeks and are causing builders to miss their forecasts.

The problems in the US are affecting the confidence of consumers in the UK.

This coupled with the fact that the availability of credit in the form of mortgages is drying up. Lenders are becoming increasingly choosy about who they lend to. If you have minor adverse credit you may find you are rejected for a mortgage with more traditional lenders.

If you have been rejected on the high street it may be worth while getting in touch with Solution Mortgages. We have access to a range of specialist lenders who will consider people for a bad credit remortgage. We can help you even if you have current mortgage arrears, ccj's or have been made bankrupt.

If you need to raise finance you can call 0845 123 1260 or apply on-line at www.solution-mortgages.co.uk

How to get out of debt

Monday, November 5, 2007

If you are in debt, here are some hints on how to deal with it :-

Work out exactly how much you owe and who it is owed to. If your debt repayments are more than 20% of your net monthly income you should be looking to reduce them.

Draw up a budget which you can realistically stick to.

You must be disciplined and do not borrow any more money until you have repaid what you owe.

Set money aside each week that you need to live. Give your cash card to a family member so you cannot spend more than you have allocated yourself for the week.

Organise your bills, so everything is paid on direct debit. This will be easier to manage and you sometimes qualify for discounts by paying in this way. This would usually apply to utility companies.

Look at switching utility providers to get a better deal. This way you will be saving money which can go towards reducing your debts.

You could also look to switch to a cheaper credit card or loan provider. You could transfer onto a 0% credit card for a period of time. The rate will rise substantially at the end of the introductory period so you should make a note of when this will occur. Also you are likely to pay a balance transfer fee - so check how much this will be.

Store cards tend to have the highest rates of interest. If you can pay these off first then do so and then cut the cards up.

Look at your current bank account situation. With the rise in the number of Internet banking accounts there is a lot of competition and you may find a lender with more attractive rates on interest and on overdraft rates.

Review your current mortgage. You may be on your lenders standard variable rate and paying more than you need to be. With a wide range of lenders in the mortgage market you should be able to benefit from competitive pricing.

If you need further assistance you should contact the Citizens Advice Bureau to discuss your circumstances. They have numerous experts on hand to advise you on how to handle your debts.

Debt consolidation

Friday, November 2, 2007

Many people nowadays have debts on credit cards, loans and overdrafts.

Consolidating these debts into your mortgage can reduce your monthly outgoings and make life more manageable.

This in theory sounds like a wise move but there are some serious considerations you must think about, before you undertake a debt consolidation remortgage.

The method of a debt consolidation remortgage is to pay off all your loans and credit cards by borrowing more on your property. You release equity tied up in your property to clear all your debts.

The credit cards and loans that you are consolidating tend to have higher interest rates than your mortgage and hence the amount you pay each month is reduced. You will have fees to pay when remortgaging but these can be added to your loan.

However you should not rush in to something like this before weighing up all your options. You should only borrow if you can secure a competitive rate and there is a genuine monthly saving for you. Remember that the implications of consolidating unsecured debts into the mortgage is that you may end up repaying a higher amount in the long term.

Before making a decision you could contact the Citizens advice Bureau to discuss your debt problems. They have numerous experts on hand to advise you on how to handle your debts.

Once you have looked at your options you could speak to Solution Mortgages to see if we can help you. If you have adverse credit and numerous mounting debts we can provide you with information on debt consolidation remortgages which you may feel will benefit you.

Either call 0845 123 1260 or apply on-line at http://www.solution-mortgages.co.uk/

Can't get a mortgage?

Thursday, November 1, 2007

People are finding it harder to get a mortgage in the current economic climate. The 'credit crunch' has seen the number of mortgage and remortgage applications rejected by lenders, rise by 60%.

More than 738,000 applicants have been turned down by lenders in the past 6 months as stricter lending criteria is applied.

Many of these rejections have been to first time buyers who are usually classified as applicants between the age of 25 and 34. This has mean't first time buyers are disappearing at an alarming rate. The financial environment is much tougher and people will have to get used to this sort of rejection.

You must proceed with caution if you are being affected in this way as to many failed applications can affect your credit history.

The reason for these rejections other than the squeeze on credit liquidity, is that lenders do not want to take risks when there is pressure on how much people can afford.

Lenders have been acting independently of the Bank of England in terms of pricing their rates.

If you have been turned down for a mortgage or remortgage recently due to your credit history you could speak to Solution Mortgages on 0845 123 1260 or apply on-line at www.solution-mortgages.co.uk