Archive for the ‘Information’ category

New Government Proposal May Make Finding Housing Easier For Ex Forces

November 4th, 2012

In the UK there is currently a huge shortage of affordable housing, and this is having a severely detrimental effect on service men and women when they are making the transition from the military to civilian life. Jobs for ex Forces personnel are also in short supply, meaning our heroes are in greater danger of falling into debt or homelessness. The step from military life to civilian life is not an easy one, and all too often everyday issues like housing, benefits, employment and health can become stumbling blocks for ex-military servicemen and women.

It’s an unfortunate fact that many military service leavers are homeless on departure from the Forces and are not put forward as a priority for emergency accommodation despite the sacrifices they may have made for their country. Help for soldiers can be found in a number of places, but there are no government-funded schemes to assist with the specific problems service families come up against when looking for housing.

Lord Best, social housing leader in the House of Lords put forward a plan to solve the housing crisis by building 100,000 retirement and extra-care homes every year in order to provide older citizens with better-suited accommodation to live in. In turn this will mean their older, larger properties will return to the market, providing first-time buyers (many of whom will be ex-military servicemen and women) with affordable housing. Service families would benefit hugely from a scheme like this.

The plan is not without its issues though; the initial investment required to build such a large number of homes would require a huge amount of risk from the construction industry’s point of view. The scheme would also rely on older homeowners being ready and willing to move house, a stressful change that many would not be keen to take on or even may not be physically able to. There would also need to be a cultural change in the way people feel about their properties, forgoing sentiment for practicality. This, unfortunately, would be nearly impossible to encourage and despite new housing being potentially more practical for the ageing population, the emotional attachments people have to their homes cannot be overlooked.

The housing crisis in the UK is a complex issue, and one that cannot be solved by simple solutions, however what this proposal from Lord Best shows is that without forward-thinking solutions like his, the problem will never be overcome.

The Mortgage Broker and the Client

March 26th, 2012

In today’s tricky housing market, it is important to make sure that you are getting a loan that fits your particular financial circumstances. The last thing you want is settling for a loan that is incommensurate with your budget and that you can’t afford. However, a lot of the time synthesizing all this information can be very difficult if you are not an expert (and most people aren’t). This is where a mortgage broker can step in and offer their expertise, knowing full well the importance this decision has to your future and the pressure and anxiety that inevitably surfaces with the decision.

The professional mortgage broker has become increasingly popular in recent years primarily because of some of these difficulties. They act as an intermediary for the homeowner and potential lenders, analyzing their clients’ financial standing with a thorough and in-depth professional consultation in order to determine the best possible lending partner.

Most professionals offer multiple services, each of which are very different and demand precision and good decision making, including loans for first-time home owners, fixed-rates, refinancing, residential loans, Federal Housing Administration loans, and jumbo loans. Perhaps the most important of these services is for the first-time homeowner. The biggest obstacle of a first-time homeowner is figuring out what exactly they can afford, since this is likely the most significant (and complex) investment they have ever made. The professional mortgage broker is able to guide the first-time borrower through this stressful and exciting process, where otherwise the owner might very well be overwhelmed and be pressured into making a regretful decision.

Another important service a mortgage broker can offer is in refinancing. Because of current government regulations and historically low interest rates, now is an ideal time to refinance and see immediate savings. Through refinancing, people can lower their monthly lending payments, consolidate debt, and even pay off those pesky credit-card companies that have been damaging their credit scores for so long. And anyone can appreciate that.

A fixed-rate, sometimes just called a “plain vanilla” loan, is just what is sounds like — fixed. The borrower is going to pay the same amount of interest every month regardless of ulterior circumstances. This is, of course, the alternative to the fluctuating interest of an adjustable rate, which changes with respect to an index that reflects how much it costs the lender to borrow on the credit market. Outside of the United States, fixed-rate loans are not as common, but in the U.S. they have become a very popular option. The most common terms are fifteen-year and thirty-year, but there are now shorter terms available and even forty and fifty-year options. Again, however, the average borrower will have a hard time deciding which option is the best fit for their budget and unique financial circumstances. A professional mortgage broker will help synthesize all the information and often-baffling mathematical equations. Sometimes it’s okay to ask for help, particularly when your financial future is on the table.