The number of first-time buyers taking out a mortgage greater than the value of their home has risen 21% on last year, with one in ten buyers choosing to borrow the entire value of their property and more. The rise in borrowing highlights the problems faced by first-time buyers in the face of rising interest rates and house prices.
Many first time buyers are unable to save for a deposit and are now considering 100%-plus mortgages as the only way of getting on the property ladder - it?s a dilemma as to whether they should save for a deposit and risk house prices rising further, or go for a 100% plus mortgage. Some are borrowing extra to simply be able to afford the various fees incurred when buying (stamp duty, solicitor?s fees, mortgage arrangement fees, etc) and also to furnish their new property.
Put simply 100%-plus (or loan-to-value loan deal) are normal mortgages with an unsecured loan attached with both loans charged at the same rate of interest, although it is usually a high rate of interest due to the nature of the loan.
The 100% plus mortgage products are based on ?affordability? assessment and this means that applicants with a strong credit profilecan borrow up in excess of fice times their income
But some commentators are concerned that some homeowners could be stretching their finances too far and burdening themselves with debt and leaving themselves open to huge financial risks should the price of property slump and leave them with a property in negative equity. Many view 100% plus mortgages as a last resort for mortgage borrowing but 100% plus mortgage can be seen as a real solution for first-time buyers who, without them, would stand very little chance of entering the house market. doradztwo podatkowe - biuro podatkowe Londyn
Firstly, as you will notice below - we are now offering single family homes (a detached home with driveway, garage, backyard etc.) in Orlando in addition to the condo?s we have been promoting (an apartment with common areas shared by owners). As with everything involving property, there are both advantages and disadvantages to purchasing these property types, which we will be very happy to discuss if you?d like to get in touch with our office.
USA Financing Finally Available for Buy-to-Let Investors
We have also made something of a mini breakthrough in relation to financing in that we have finally found a mortgage loan officer who actually knows how to successfully process mortgage applications from foreign buyers. His name is Mark Shore and he works for The Bank of America in Orlando. Please click here to download a PDF with his full contact details and a brief description of the types of mortgages available to foreign buyers.
If you are interested in taking advantage of the high discounts on bank owned properties but have been waiting for finance before proceeding, then my advice is to contact Mark and fill in his loan application form so that you can be prequalified in advance. You can also download a full information pack on Foreclosed Properties in Florida here.
Shortly Launching Distressed Property in the UK
As those of you who are in regular contact with us will know, we have been keeping a very close eye on the UK market over the past 6 months. As expected, in early 2009 we noticed a marked change in local developers? attitudes. After digging in their heels for a very long time, many are now willing to discount quality stock very heavily in order to generate the essential cash needed to keep their businesses afloat.
While it is pretty much impossible to predict where the bottom of the market is (although several authoritative indexes indicate that we?re almost there), it is my belief that the next three months will see many developers at their most vulnerable, which means we are entering prime buying time.
London is the first place we will be concentrating on (we are looking elsewhere too), and despite the fact that their financial services sector is on life support, the factors that made London one of the world?s foremost property markets have not changed - it is still a highly desirable place to live with a shortage of available land.
A huge number of developers are cancelling future projects and mothballing half built sites, which will cause a very substantial undersupply once the UK economy begins to recover (and my gut tells me it will recover sooner than most European countries, including Ireland).
As a full service agency, we will not just be sourcing prime residential property developments, the first of which will be launched to our database imminently. We have also formed partnerships with lawyers, tax advisors, management companies, mortgage brokers, and local agents who intimately know the micro markets we will be dealing with.
Bulk Buyers
We also deal with bulk buyers and can access very substantial discounts on prime properties for volume purchases (often as much as 50% BMV). These types of projects will not be advertised on our website or mentioned in mailers because they are commercially very sensitive. However, you can email investments@ or call our main office on 01 4433 991 if you would like to discuss further.
Make no mistake - this market is moving fast
That?s it from me this week. Ironically enough, it is looking like the worse a recession gets, the faster the best value projects will move. A couple of times this week, some of our high net worth investors narrowly missed out on amazing bulk discounts because they were 24 hours off the pace. specjaliści z dziedziny księgowości i usług podatkowych
