Premier Empire Mortgage

So what’s the real story? Does a crisis really exist? Clearly the mortgage industry is going through a serious “cleansing. Lenders are closing their doors, Wall Street is treating mortgage backed securities like the plague, and borrowers are struggling to make loan payments.

If you listen to the TV folks youll be stirred into a bona fide panic. But is it a real crisis or is it a natural business cycle? I believe the answer is no.

Starting in 2001 after the 9/11 attacks the real estate and mortgage industry reaped the benefits of falling interest rates. And while many people in other industries suffered through tough economic times anyone in the mortgage business had the best years (financially) of their lives from 2002 2005.

And anytime there is money to be made there will be a flood of people looking to cash in and the mortgage industry was no exception. People from all walks of life jumped in to become loan officers, processors, and managers as the industry reached higher levels than it could sustain long term.

According to Wholesale Data, the number of mortgage brokerages in 1997 was around 33,000 nationally. By 2005 it had ballooned to more than 55,000. Double the number doesnt sound too bad but the study shows the real problem: the market share of mortgage brokers was 64% in 1997 but had dropped to 58% by 2006. Twice the numbers of people were competing for a smaller percentage of loans.

The logical next step with so many people competing for smaller parts of the pie was for everyone to cut standards and rates to try and get what they can. Then came the advent of easy money with high loan to values, reducing credit restrictions and increased risk across the board. Again not good.

So is there a need to downsize the mortgage industry and regain control of guidelines and quality standards? Absolutely.

But what about this crisis - what are the facts?

Fact - Mortgage money is still readily available. The main difference is that credit qualification has really tightened up in an obvious reaction to the easy credit guidelines of the past few years. There are still options available for 100% financing, low down payment options and rates are still quite competitive.

Fact - Credit worthy borrowers are finally being rewarded. Lending had reached a point where any and all credit problems (including bankruptcy and foreclosure) were being brushed aside in favor of volume. These trends never made sense so when they backfire does that constitute a crisis? A borrower who pays their credit on time and saves money for reserves or down payment can still get a loan.

Fact - The downturn in real estate is a natural cycle.When you look at thebig picture, the real estate industry went through a historic growth cycle created by historically low interest rates. This growth was fueled artificially by something that cannot be sustained so it shouldnt be a surprise when the ride is over.

Fact - The mortgage industry needed to be downsized. Studies show that the number of mortgage professionals more than doubled since 1997. Anytime an industry sees such an influx of new people you can expect the sort of issues we’ve seen in our business:



lower levels of training and accountability

new players from other industries that dont quite understand what they are in for

less emphasis on long term relationships

shrinking margins due to increased competition

lower levels of professional standards





Fact - Mortgage guidelines had reached a risk level never seen before in history. Some tightening of credit standards was inevitable.

Those in the sub-prime market have taken a beating over loose guidelines but the facts are that this issue was industry wide. Sub-prime in particular was never a “bad” thing if done at the right rate or loan to value. If credit or income standards were not up to conventional levels it makes sense that you should get a higher rate or lower loan to value than the conventional market. The problem comes when the non-standard rates and LTVs are just as competitive as conforming products which is exactly where the market wound up by 2005.

And don’t think for a moment that conforming lenders weren’t pushing the limit. In order to keep up with competition guidelines loosened for them just as quickly as everyone else. The shutdown of conforming loan operations and the mortgage insurance losses we have seen over the last 18 months confirm this.

So with all of these trends the downsizing of the mortgage industry should be seen as a good thing. Those professionals staying in the mortgage business should be wiser and more professional than ever before. You can be sure that they want to stay in the business and fully realize what they are in for.

Industry changes bring new solutions

These sweeping changes in the industry have caused mortgage professionals to make some changes. Buckle up, change your ways or get out!

The industry changes inspired one mortgage broker to come up with a new service offering mortgage advice for borrowers with loans in process for a small flat fee. The company, Trusted-Mortgage-Advice.com (www.trusted-mortgage-advice.com) offers to review a borrowers mortgage documents for the loan in process and help them negotiate the best terms with their lender. Its a unique twist for a mortgage professional no bait and switch, no I can do better instead its that second opinion that most borrowers go to their friends for.

With so much uncertainty, so many changes, and so many “bad faith” stories out there I think there is a real need for borrowers to get independent, third party mortgage advice. So many times in the process borrowers call their friends or family to find out if they are getting a good deal or if what the broker is telling them make sense. So going to another lender only assures they promise to beat your current deal. With Trusted-Mortgage-Advice.com (www.trusted-mortgage-advice.com) they will give you that second look to make sure you get the best deal possible.

Getting a mortgage following bankruptcy may sound like an impossible task but by perusal of professional bankruptcy mortgage advice you can increase the chance of gaining approval.

For some, being bankrupt seems like the world has come to an end. However, there are some big advantages to wiping the slate clean and starting again from scratch. In the past getting a mortgage approved following bankruptcy was almost impossible but as the number of people falling into debt increases (currently seven thousand UK residents experience bankruptcy every year, the opportunity to gain approval for a bankruptcy mortgage is increasing. Happily the quantity and quality of bankruptcy mortgage advice is on the increase along with it so much so that it can be a real task to sort through this volume of bankruptcy mortgage advice and grab that which is most relevant to your personal circumstances. Here we highlight some of the most important information that will apply to anyone in this unfortunate position.

Firstly, it is crucial to understand that you will legally be required to declare that you are bankrupt. The thought of this may cause you a few sleepless nights assuming that you will never get a mortgage after bankruptcy; the thing you must remember is that these days there are many more lenders who are willing to approve a bankruptcy mortgage.

By following good bankruptcy mortgage advice you are definitely more likely to get approval a bankruptcy mortgage. Some good advice to bear in mind is as follows:

Most Lenders prefer to wait two years after your bankruptcy discharge before considering a bankruptcy mortgage application. If you are in this position the chance of approval increases dramatically as does the choice of schemes available to you.

Ensuring that all your payments after bankruptcy are made on time will increase your chance of getting a bankruptcy mortgage. A large deposit is definitely advantageous when applying for a bankruptcy mortgage. Good bankruptcy mortgage advice would suggest a deposit 5% to 15% of the property value will increase your chances of approval. Some lenders will look further into where the money for the deposit has originated especially if it has come from relatives. So be sure to check the lender criteria.

It is vital that you get bankruptcy mortgage advice from a professional mortgage adviser who is regulated and approved by the FSA. Do make sure that you look at as many bankruptcy mortgage lenders as possible this will ensure that you have the maximum chance of getting a bankruptcy mortgage that best meets your needs.

Ensure that all the bankruptcy mortgage advice you are given is fully explained to you. The mortgage advice you are given should be completely transparent. If you dont understand the advice that you are being given then more often than not its an indication of inaccuracy.

Remember that the people offering you bankruptcy mortgage advice are likely to have different commission rates from different lenders and schemes. To ensure that you get the best advice and choice of lenders. Seeks the services of a specialist FSA approved mortgage broker who sources from the whole of the market. FSA approved mortgage brokers are obligated to give you best advice and will find the right deal to suit your individual needs.

Anyone under the age of 50 will agree that the internet is an awesome tool, bringing immeasurable amounts of information to the masses. In these days and times, we would be almost lost without the ability to find information in an instant. For instance if you’re wondering “how much can I afford to borrow on a mortgage” then an online tool such as a mortgage calculator is amazing, allowing you to start looking for your dream home with a general idea of how much you can afford to borrow. This simply was not possible a few years ago, as mortgage advice needed to be sought, just to find out simple information such as this.

However, whilst providing massive amounts of useful information at the touch of a button, the internet is a double edged sword, even with the presumption that you are obtaining your mortgage facts from a reputable source, the art is in the interpretation of this information, this is where mortgage advisers are invaluable and will not be beaten for a good few years.

In addition to the traditional residential mortgages such as a first time buyer mortgage, buy to let mortgage or just a simple remortgage, most mortgage brokers are also able to offer impartial advice on specialist mortgages, ranging from commercial mortgages through to overseas mortgages. Information on these areas often seems somewhat lacking online and with the little information available, generally being biased towards one particular lender, an impartial mortgage adviser is essential. Mortgage advisers able to provide advice on and arrange commercial mortgages are invaluable in buying a business property whether it be a small corner shop, pub or large hotel chain and if you were looking to buy a villa in Spain or Cyprus, the traditional mortgage adviser almost certainly has the expertise you need and is able to arrange an overseas mortgage.

With years of training and experience under their belt, a good mortgage adviser is able to offer you impartial advice on all types of mortgages. By taking your personal details and circumstances into account, advisers can provide a “whole of market” search and thus using all the lenders they are able to place even the most difficult mortgages. When a computer may say no, a good mortgage broker will often be able to help.

Qualified mortgage advisers are not only a reliable source of impartial mortgage advice, but their ability to arrange a mortgage that is tailored to you, by placing you with the most suitable lender for your needs, makes them irreplaceable. The simple process of using a local mortgage adviser not only answers many more questions than a website can, but more importantly, they will understand your circumstances and treat you like a person.

Mortgage Takeover of Fannie/Freddie: Good For Borrowers?

Government officials dropped a bombshell last week when they announced the seizure of mortgage giants Fannie Mae and Freddie Mac. Wall Street rallied, interest rates dropped and the politicians and pundits are claiming this will mark the end of the suffering brought on by the mortgage mess.

This is good news, right?

In the short term yes but everyone should stop and consider what the long term implications are of the government running the mortgage industry.



Whats Really Going On?

In a nutshell - Uncle Sam just co-signed for all of our loans.

Officials announced the move would involve placing these mortgage operations into a government conservatorship in hopes of stabilizing the housing / credit markets. In a conservatorship, like bankruptcy, common stockholders are expected to lose their investments.

Essentially this is the equivalent of a giant bail out. Investors have been scared to death of a worsening meltdown and this move basically puts the governments money (your and my money) behind the mortgage industry to make sure it doesnt fall down.

With the housing and credit markets continuing to slump and with fears of the meltdown getting worse this move was the governments best bet to shore up markets.



Impact For Borrowers:

Good News:



Lower interest rates in the short haul. Who doesnt like lower rates?

Investors get a shot of confidence. Now that Uncle Sam is the co-signer investors feel more confident that the mortgage backed debts will remain solvent.

The government owns your loan. How bad can that be?





Bad News:



The government owns our loan uh, oh. Ever tried negotiating with the IRS? While the government has had FHA, VA and other programs it does not have experience managing the type of operations that Fannie and Freddie run.

Future uncertainty about management / guidelines. Our inside sources are telling us that the future of guidelines

Long term implications..







What Should Borrowers Do?

Borrowers should be looking to capitalize on the temporary drop in rates and stabilization of credit markets. In the week since the announcements rates have steadily declines as investors are feeling the relief of the government bailout.

Our suggestions:

Make sure your mortgage in process can drop down to the new rates



Make sure your mortgage in process can drop down to the new rates

Make sure your loan officer is fully educated about the changes and how it might impact your loan.

Check your Good Faith Estimate (GFE) and Truth in Lending (TIL) to make sure your mortgage company is not up selling your loan to take advantage of the lower rates to take a higher commission.





What Does the Future Hold?

We believe that the housing market recovery will probably determine when the credit markets regain their health. Why? Because decreasing home values resulted in the inability of homeowners to sell or refinance their house to get out of financial trouble which is how this mortgage issue all got started.



Here are some recent facts:



Maybe the housing marketing isnt so bad in many areas. The Office of Federal Housing Enterprise Oversights (OFHEO) House Price Index (HPI) reported in May that 35 states saw a positive home value price change in the first quarter of 2008. In addition, 164 MSAs showed positive first quarter appreciation when compared to the same quarter of 2007.

California, Florida, Nevada, and Arizona are still the largest statistical problem areas for home prices. Industry experts acknowledge that these markets were the most speculative during the 2000 2005 mortgage mayhem. And because the values in these areas are very high relative to the rest of the country it has a larger impact on the overall numbers.

Just because four states are still falling, and 11 other states continue to try and stabilize doesnt mean the entire market will continue to take the plunge. According to PMI Mortgage Insurance Companys Economic & Real Estate Trends recent report, almost 68% of the nations 322 remaining MSAs experienced positive appreciation everywhere other than California, Florida, Nevada, and Arizona.





So while no one has a crystal ball it appears things are not quite as bad as the media would have us believe. If the credit markets can begin to stabilize and home prices hold steady we may yet see the end of this mortgage crisis.

It has never been harder than at the moment to get a mortgage with the current economic state. This guide has been created to provide practical tips to anyone looking to get a mortgage whether itd be for a London or Aberdeen mortgage or anywhere in between.

Borrowing

First things first, you need to see how much you can borrow, generally mortgage lenders will allow you to borrow three times your salary or if you are buying with someone else it will likely be two and a half times of the joint salary.

There are other options to consider so dont worry if you cant afford to buy your ideal home using the above methods. One option lenders offer is to allow two people to buy together giving three times the salary of the larger salary and one times the lesser. Other options include if you want to rent a room out you can add this income to your salary before income assessments are calculated. It is worth searching the market to see what options lenders are offering as they often change, using a mortgage broker will help you search the market without the hassle.

Final tip for borrowing been honest! If you hide information on debt or county court judgements held when you take a mortgage it can come back to affect you greatly, later on.

Deposits

Banks are being understandably more careful with their lending. The size of the deposit makes a huge difference not only in terms of being able to acquire a mortgage but at a decent rate. Larger deposits are needed to secure a mortgage so if you can hold on a little longer, save up a bigger deposit it will save you money in the long run. Many work overtime or take a second job and/or live at home to save money as quickly as possible. Bigger deposit means a much better deal.

Although there are no 100% or 125% mortgages on the market as at time of writing (and unlikely soon) you do have the Family Equity Loan Plan mortgage where a parent or close family relative will take an equity stake in the property when paying for part of the home.

If you are in Scotland you also have the option of the new LIFT mortgage scheme were the government will take a stake in the property, allowing you to get that property of your dreams.

Mortgage Broker

Using the services of a mortgage broker is a good place to start. A good mortgage broker will search the whole of the market to ensure you find the best deal available whether itd be for an Aberdeen Mortgage, London or anywhere else in the UK

This will be probably, the biggest financial commitment you will make so helpful guidance is essential. It is important not to over stretch yourself and plan that your future borrowing can be met and suits your needs.

Subject to satisfying the individual lenders criteria a lender may offer to lend money to purchase a property in the form of a mortgage. A residential mortgage which is a loan secured on your new home means that if you are unable to service the loan they own a large percentage of your home and can repossess that property if you are unable to service that loan correctly. You will only receive a mortgage if you match their lending criteria.

This is unlike a unsecured loan for example a personnel loan from a bank. There are many issues and components to a mortgage that should be understood. For example what is loan to value, early repayment charge, stamp duty, debt consolidation, self cert, disbursements, deposit and mortgage arrears. Take note that some mentioned are actual mortgage products and options which may not be included within a mortgage as a component.

You can potentially save a lot of money by choosing the right mortgage for you, insuring it is the most suitable mortgage to meet your current needs and circumstances. . But your mortgage is a long term commitment and the deal that you take out should match your requirements. For example if you plan to only live at the property for a while due to job transfer you may consider having a portable mortgage or a home loan without early repayment charges.

If you redeemed the mortgage early high penalty could be charged. As guidance how an early repayment charge can apply for example by taking out an incentivised product such as fixed rate, discounted and capped rate these could incur early repayment charges after the incentive has expired.

Even the wealthy need mortgage advice. The world may be full of rich people but they only get rich by having the right advice in the first place.

Even in the fanciest, biggest of properties money problems can strike.

However I, like the general population, do not fall into the category of wealthy and need, even more so, to hang on to what little I have. As a family, our money had been sufficiently managed but you just never know when hard times are going to hit.

When my husband left me, I was in danger of losing my home as I could not keep up the repayments by myself. Unsure of what to do for the best and under a great deal of pressure, I decided to seek mortgage advice before it was too late.

My mortgage adviser found that I was on a flexible mortgage. Otherwise known as an Australian mortgage. This enables flexibility over the years when it comes to repayments. Over payments can be made during the more financially comfortable times and reduced payments, or payment holidays, during the leaner times.

As far as I was aware, no over-payments had ever been made and this proved to be the case when I spoke to the bank. However, after my mortgage adviser looked further into our agreement, it became apparent that over payments were not neccessary. My house was on the market and attracting a lot of attention so a 6 month payment holiday was organised which, hopefully, would take me up to a completed sale.

During this time, I could decide what I wanted to do and with the help of my mortgage adviser, look at my options. We sat and discussed my personal situation. I was working full time at a local supermarket but not on a wage that could sustain a lone mortgage. I did have a lump sum left over from the sale of my house but not enough for a deposit and I didn’t want to waste it.

With a young daughter to care for I needed to continue to bring in a wage and also find somewhere else to live. My retired parents were just fantastic at looking after my daughter while I was at work so childcare was not an expense that I had to worry about, though I always tried to help out.

My parents were eager to help and althought their mortgage was paid off, they had no savings and not enough space to let us live with them long term. However, my mortgage adviser came out to discuss the options with all of us and came up with a solution.

My parents decided to take out a lifetime mortgage. This is specifically for the over 60’s and is a way to free up the equity within your property without having to move or sell. A long term loan was arranged, with no monthly repayments. The idea is that the loan will accumulate interest over the life of the plan and will be repaid on the death of the homeowner or on the eventual sale of the house.

My parents only had a relatively small house but its value was greatly increased with the amount of land it was on. With this mortgage, my father was able to build a two-storey extension to his house for myself and my daughter. I was able to make a small contribution towards this out of the proceeds from the sale of my house so not all equity was used in my parents house.

My childcare facilities were on site and, thanks to some great mortgage advice, everybody was happy with no financial losses.

Remortgage loans replace borrowers’ present mortgage with a new one. A borrower can opt for remortgage loans from his present lender or from a new one. In order to get cheap remortgage loans, the first and foremost task of borrowers is to do some research. It is recommended to borrowers not to be confined with one lender. To avail these loans at a cheap rate, meet various lenders in person, collect their loan quotes, study them and compare their terms, conditions and interest rate. Such kind of comparison will assure borrowers about cheap remortgage loans. These days, online loan option has emerged as a good resource, where borrowers can find out cheap remortgage loans within a limited span of time.

It doesn’t matter what type of Remortgage you are looking for, you will be able to search the entire market and online specialist will provide you with independent mortgage advice to help you to decide which is best for you; whether a Fixed Rate Remortgage, Capped Rate Remortgage, Discounted Rate Remortgage, Variable Rate Remortgage, Tracker Rate Remortgage or a Flexible Rate Remortgage…. whether 100% Remortgage Rate, Buy To Let Remortgage, Commercial Remortgage.

Lower interest rate

Flexible repayment option

With these loans borrowers can release the equity in their home

Remortgage loans also help borrowers to consolidate various debts into and quench debt burden.

Make underpayments, early repayments over payments or even have a payment holiday. When you are facing financial difficulty paying loan payment, you can under pay or have payment holiday. But, usually, to have a payment holiday, you should have made over payments before. Reach out to your remortgage specialist to find out your options and clear out your existing mortgage debts. Dont brood over your existing high rate mortgage, instead consolidate debts and learn how to effectively manage your debts.

You would be getting remortgage UK at lower interest rate because that is the main reason behind opting for remortgaging. But you should be extra careful in picking up interest rate. It is not easy. You have lot many choices available now in terms of interest rates. For instance you may be offered a fixed or variable rate of interest for remortgaging. You should make sure which is more suitable. Each remortgage lender in the UK has individual conditions placed before the borrower which has necessitated the help of remortgage calculator and experts of the field.

The CeMAP Grp Online Training (www.cemap-grp.co.uk) is a teaching resource for the Certificate in Mortgage Advice and Practice (CeMAP), which is essential to qualify as a mortgage adviser. This course has been designed for those who want to pursue a career in mortgage advising, or even for those who just want knowledge of the vast mortgage and financial markets.

Why do the CeMAP? In the current economical climate the media is reporting daily on what is going on in our banking systems, lending provisions and how the Monetary policy, Fiscal policy and other legislation are being adjusted to get banks lending. But do you understand what is being said? The economy affects us all on a personal and daily level, however the understanding in the public about what is going on is lacking. Therefore, by educating ourselves we can have a positive impact on our own lives and use the knowledge to help our own finance. And remember, the economy is a cycle and it will go up, therefore nows the time to get the knowledge.

We at the CeMAP Grp will support you to further your knowledge and complete the course. Moreover, you could start your career as an employed or self-employed mortgage adviser with the potential to earning 100,000+.

The course material has been designed by a fully qualified CeMAP trainer who has created the resources to be simple and easy to understand. Therefore, you do not need any prior knowledge of the financial and mortgage markets, as it is all explained. Using diagrams, mind-mapping techniques, highlighting of important information and removing the unrequired information, CeMAP Grp will help you gain and retain the information in a fast and efficient manner, so you can start your mortgage career.

Once you have signed up you will have unlimited access to the online resources, including notes and FREE access to the advice and help contact center, where you can ask a fully qualified CeMAP trainer your questions. Furthermore, we will send you a hardcopy of the notes so you can add your own information and study anywhere. The CeMAP Grp Online Training provides unlimited access which allows you to work at your own pace, around your current commitments, and with no time constraints or pressure to complete the course within a certain amount of time.

The CeMAP Grp online training program covers the full CeMAP course:

CeMAP 1: UK Financial Regulation

Unit 1: Introduction to Financial Services Environment and Products

The UK financial services industry

Financial assets

Financial products

The financial planning and advice process

The main areas of financial advice

Basic legal concepts relevant to financial service

Unit 2: UK Financial Services and Regulation

The Financial Services Authority

Money Laundering

Complaints and compensation

Data protection

Other laws and regulations relevant to advising clients

CeMAP 2: Mortgages

Unit 3: Mortgage Law, Policy Practice and Markets

Borrowers

Mortgage and property regulation and law

The house-buying process

From offer of advance to completion

The economic and regulatory context of mortgage advice

Unit 4: Mortgage Applications

The role of a Mortgage Adviser

Assessment of status

Assessment of security

Guarantees and additional security

Unit 5: Mortgage Payment Methods and Products

Mortgage repayment methods

Mortgage products and schemes

Other mortgage-related products

Unit 6: Mortgage Arrears and Post Completion

Further advances and remortgaging

Arrears, debt management and recovery

Other post-completion matters

CeMAP 3: Assessment of Mortgage Advice Knowledge

Case Study Based

On completion of this course you will have an understanding of the economy, mortgages, the FTSE100 and shares, insurances and securities, current legislation and much more. Thus this knowledge will help you in your everyday life, whether you pursue a mortgage career or not.

If you sign up now for the full CeMAP course with CeMAP Grp Online Training, you will receive a 10% discount. Making NOW the best time to join us and the hundreds of others to make your 100,000+, expand your knowledge and start your new career.

Furthermore, by becoming an affiliate for the CeMAP Grp and recommending the course to five others, we will give you a massive 250. To become an affiliate just sign up, complete your details, and we will send you your own personal affiliate code.

Sign up with CeMAP Grp, www.cemap-grp.co.uk, now to change your life!

CeMAP Grp Ltd

info@cemap-grp.co.uk