Monthly Archives: November 2015

What is the True Cost of Mortgage Advice Fees


Many experts have been demanding that banks and other lending
institutions provide more accurate and clear information on the costs of
their mortgage advice. The current regulations can mean that a bank can
appear to have much lower costs associated with a mortgage loan than,
say, a mortgage broker, who is obliged by law to declare all of their
fees and charges. This puts mortgage brokers at a disadvantage when
trying to secure business as they are bound by different rules regarding
fee disclosure.


And for the consumer it makes it difficult to compare the cost of a
large mortgage between a deal offered through an intermediary such as a
broker and one offered directly by a bank or building society. Anyone
borrowing for a home loan should make sure to obtain all the information
they need to make a true comparison of products; brokers can sometimes
seem expensive when compared to banks but this is not necessarily the
case.

Under the present UK regulations, mortgage brokers are
obliged to provide a Key Facts Illustration, which declaresthe upfront
advice fee and reveals the cost of the fee paid to procure a home loan
i.e. the fee the broker receives from a bank for arranging the home
loanon their behalf. But mortgage advisers at banks and building
societies have to state only minimal information of this kind and the
cost of the financial advice can seem to the customer to be completely
free, when this may not be the case.

Experts would like to see
more transparency from mainstream lenders about the true cost of any
mortgage advice that is offered to a customer because at the moment it
is hidden by the interest rate and by underlying banking costs such as
salaries and bonuses.


This issue could worsen in the coming months because in April 2014 new
rules are coming into force in the UK so that all mortgage product sales
will have to be arranged to include advice. So mortgage advisers will
have to include the full cost of their advice clearly on each Key Facts
Illustration, which may make any differences between the cost of advice
directly from a bank and via a broker seem even greater.

Bank
quotes for home loans typically indicate either no fees or very low fees
so brokers are likely to seem expensive in comparison. It will,
therefore, be more important than ever that mortgage brokers can prove
their worth, particularly to high net worth customers. They will need to
show that their advice is worth the fee and that customers are getting a
better deal from a broker who can advise on a range of products from a
range of lenders rather than just the mainstream lenders.


Clearer cost of sale information on mainstream bank illustrations could
actually be beneficial to the banks in improving efficiency as they
would then, themselves, have a clearer view of the real cost of
providing mortgage advice. If banks had this clearer view of the cost of
providing mortgage advice in terms of salaries, branch costs, bonuses
etc. then they might think it worth selling their mortgage deals through
brokers. Indeed many mainstream lenders are starting to believe that
acquiring large mortgage customers would be less expensive through
intermediaries such as mortgage brokers than it is through their own
high street branches.

All You Need To Know About Debt Relief Orders

All You Need To Know About Debt Relief Orders (DRO)

The financial climate within the UK continues to be a
perilous place and it is extremely common for people to find themselves
accruing higher levels of debt than they want and/or can manage.

However,
a Debt Relief Order is one of the ways in which those with significant
levels of debt can find a solution to keep the creditors at bay. Here we
take a look at the features of Debt Relief Orders, as well as the
benefits and risks associated with this type of debt reduction plan.

What is a Debt Relief Order?

Debt
Relief Orders were created in order to offer a binding and legally
recognised means for a small but specific group of debtors who cannot
obtain debt relief through other means.

A DRO is an order granted by an official receiver to help insolvent individuals address their debt after just one year.

Once
granted, the debtor is not required to make any other repayments toward
their debts during the time the order is in place and, if their
financial circumstances do not change during this period, their debts
will be written-off when the Debt Relief Order comes to an end after 12
months.

. Debt Management Plans are specific plans made depending
on an individual’s income and expenditure and are aimed to help them
repay and clear debts at a rate they can afford. The Debt Management
Plan will enable reduced monthly payments and could help against the
repossession of personal belongings. A Debt Relief Order is an order
people can apply for when they are unable to pay off their debts. DRO’s
are granted by the Insolvency Service and are a cheaper debt solution
than bankruptcy. Debt Relief Orders are aimed at people with debts less
than 15.000

Qualification for a Debt Relief Order

.Individuals can apply online through an approved intermediary if they meet the following criteria:

The Pros and Cons Reverse Mortgage


A lot of us are not aware what a reverse mortgage is all about. The
reverse mortgage is actually the opposite of a mortgage loan. For
instance, in case you have a house for which you have already paid. The
lender pays you money on a regular basis against the market value of
your home. This is a superb option for people who are old and cannot
work. This as result ensures them regular money flow sans any much
effort. HECM Equity Line of Credit Georgia offers a wide array of
schemes which can help senior citizens. HECM basically refers to Home
Equity Conversion Mortgages. This presents money solutions to a wide
array of people. With reverse mortgage schemes you will be able to buy
things which would have otherwise seemed beyond your reach.


Usually a lot of people consider retirement as the end of their life.
But in reality, this is the time when you are free from all your work
responsibilities and can begin to enjoy your life to the fullest. There
are various types of reverse mortgage plans, but in some way or the
other they are similar. You carry on staying in your own home akin to
what happens in a normal mortgage. You even pay the property taxes. You
are accountable for maintenance, house insurance and even repairs of the
property.

At the conclusion of mortgage, you need to pay all
the cash advances together with the interest amount. In case you are
unable to do the same, the lender can easily foreclose your house.


Reverse mortgage comes with a financing fee .This also holds true with a
forward mortgage. The money which you get from a reverse mortgage, you
can use it to pay this fee. These costs are usually supplemented to the
loan balance amount and you must pay them back together with interest
when the loan period comes to an end.

In case you have a good
property, but you are cash poor, then reverse mortgage can make the last
years of your life totally comfortable. The catch that at end of the
mortgage period if you are still alive or you have no money to pay the
loan amount you will end up losing your place of residence as well. This
can be a very scary thing. Many times people fall into debt quagmire
because of resorting to reverse mortgage. So be wary and resort to this
option with caution.

Guide to Being Debt-Free – The Steps to Freedom

Many people are in debt. Some owe other people. Some owe banks and
other financial institutions. Then of course there is the multitude that
is in debt because of credit cards. If you are one of these people then
you are probably looking for a guide to being financially free. It is a
good thing that you chanced upon this article because here you will
find simple and easy to follow steps that you can do today to start your
journey to financial independence. You can’t expect to be debt-free
overnight, but you can definitely do something today that will inch you
closer to your goal.

Stop borrowing money

One of the first things
that you should do to become debt-free is to stop borrowing money. One
of the worst things that you can do is to borrow money to pay off other
debt. Such a practice will just continue the cycle of debt and will move
you further away from your goal of being debt-free. Instead of
borrowing money to pay off other debt, what you can do is to ask your
debtors to provide you with easier payment terms. You will be surprised
at how reasonable people can be if you will just talk to them nicely.

Have a plan


You will be able to reach your goal of being-debt free easily and
quickly if you have a plan. Write it down. Get a notebook and devote it
solely for the purpose of recording your finances to help you become
debt-free. You should have a clear goal and you should know the actions
that you need to take in order to reach that goal. This tip alone will
help you reach your goal of becoming debt-free faster. Without a clear
plan, you can end up making costlier mistakes that can back you up in
reaching your goal.

Get a guide


If you can, talk to a financial adviser on how you can pay off your
debt. If you don’t have the means to hire an adviser then what you can
do is consult books and courses on how to become debt-free. This is such
a popular topic that you will not have any problem looking for
materials about it. The best place to look for a guide to being
debt-free is the Internet. You may even get a good one for free if you
are diligent enough to search. Be sure that you will follow a good guide
though. It must be from a real expert, someone who knows what he is
talking about. If you can, look for resources created by people who have
experienced being in debt and was able to free themselves. These
individuals will not only teach you but inspire you as well.

Look for an extra source of income


If you think your current income is not enough for you to pay off your
debt and live comfortably at the same time, then why not look for an
extra source of income. The Internet is a good place to look for ways to
make money. You can look for jobs online or you can even start an
online business.

How To Find The Best Arlington Financial Services And Advisors

Financial
services providers are those professionals who offer financial advice
addressing a client’s needs. With the ever increasing complexity and
demands of modern life in the Arlington, Virginia, area many people in
Arlington now seek professional guidance in order to create and secure
the future they desire. Because it is a broad industry, you will find
many financial services providers who are ready to help you. However,
finding the correct one ,the best one for you can be a challenging, even
intimidating task unless you go about your search in a logical way.
Today you will find a large number of sources you can use to locate and
screen Arlington financial advisors and find the best one for you. Let’s
have a look at some of the best sources that could help you find
Arlington financial services providers quickly and easily.

Browse Web Directories

Web
directories are one of the best sources. Online directories list many
firms segmented under different headings. You have the option of finding
various local Arlington financial services providers by searching
through categories pertaining to the types of financial services you
need. In such directories, finding the right financial services
providers is much easier because they are listed in a systematic order
followed by popular listings and featured listings. A good feature is
that they directly link to the sites of financial services providers so
that you can gather detailed information directly from the financial
services provider’s website.

Client Referrals and Testimonials

The best recommendations are referrals from people you know who have used a financial services advisor and liked him or her.

Another
way to find a good Arlington financial services advisor is to read
client testimonials. These are written by people describing their
firsthand experience with a specific financial advisor, thereby helping
you to make an informed decision. Testimonials often give you insight as
to a financial advisor’s services, rates, fees, experience,
performance, and other important factors. Testimonials will be found in
the financial services advisor’s website.

Social Networking Sites

There
are many social networking platforms where financial services providers
promote their business or services. Joining and participating in one or
more of these sites can help you find the right financial advisor for
your needs. Many of these networking sites feature options, like
communities or groups that can be a good source of information, reviews,
and referrals for financial services providers.

Business Listings and Reviews in search engines

Arlington
financial services advisors can be found by searching Google, Yahoo!,
and Bing. Caution: The top listings in search results don’t necessarily
indicate the quality of services and advice you may receive from that
business. Top placement in search results simply means the firm has done
a better job of SEO (Search Engine Optimization) than their
competitors. Use testimonials in their site and reviews posted at
various places online to help make your decision. To find reviews
online, go to any major search engine and enter “reviews for ——-”
and include the full name of the financial services provider’s firm you
are interested in. Search results will show you where their reviews are
currently posted.

Conclusion

These are a few proven tips
that will help you locate and decide on the best Arlington financial
services advisor for your personal needs. One last tip…Don’t select
your financial services advisor based on just email communication. Pick
up the phone and talk directly with the advisor who will be handling
your account. You need to feel good about that person, your financial
advisor, and that impression can only be obtained in-person, or
listening to their voice over the phone. It is almost impossible to
assess that very personal aspect through written communication only.
It’s your financial future. You need to have a good feeling about the
person you entrust that future to.