Shared ownership mortgages are specialist mortgages that are designed to cater for purchasing property through shared ownership schemes. Shared ownership schemes are also known as shared equity schemes and have become a popular method for first-time-buyers to get a foot on the property ladder if they do not have the funds necessary to pay for the deposit required for more traditional mortgage products.At present there are only a few lenders who...more
While most mortgage brokers need to be registered with the Financial Services Authority in order to advise clients on residential mortgages, no such rule exists for buy-to-let mortgages. This is because buy-to-let mortgages are regarded as commercial loans and the Financial Services Authority does not regulate this type of finance.Regardless of the fact that a mortgage broker does not need to be registered to advise on buy-to-let mortgages, if...more
The mortgage intermediary market is facing a potential recruitment crisis due to a lack of graduate mortgage brokers entering the industry. Unlike many other professions, such as accounting or banking, the mortgage industry does not have a structured recruitment process designed to attract new mortgage brokers.At present, the industry is awash with mortgage brokers in their 40s or 50s who are nearing retirement and who have little interest in applying new directives from the Financial Services Authority or learning about new advancements in IT. Because of this, the mortgage intermediary industry is hungry for new talent to take their place.Trainee mortgage brokers are required to complete a qualification such as the Cemap, but this is only necessary after they have decided to enter the industry. Once trainee mortgage brokers have completed the Cemap there is virtually no compulsory ongoing training required to continue working as a mortgage broker.The ongoing training does exist, however it depends on the employer as to how much training their mortgage brokers will be required to complete in order to remain authorised. Despite this, training is not the issue. What the industry...more
Prior to 2004 there was little regulation for mortgage brokers conducting business in the UK. Anybody could call themselves a mortgage broker, regardless of whether or not they held the necessary qualifications, and they could source clients and conduct their businesses in any way they chose to.However the Financial Services Authority introduced a...more
When searching for a home loan, you will be faced with the decision of whether or not to use a mortgage broker. There are advantages and disadvantages to using a mortgage broker instead of applying for a home loan directly with a lender.One of the main advantages is that independent mortgage brokers have access to, and knowledge of, the entire UK...more
Independent mortgage brokers are generally regarded as an excellent source of advice when searching for the right mortgage to finance or remortgage a property. Independent mortgage brokers are not tied to advising clients to use particular lenders and home loan products. Instead, they have access to all mortgage lenders and products available on the market.In addition to independent mortgage brokers, there are tied mortgage brokers. Tied brokers are similar to independent brokers however, instead of having access to all mortgages available on the market they only have access to products from a select panel of lenders.Mortgage brokers who work within a bank or financial institution are generally known as mortgage advisors. This type of broker will only offer advice on the home loan products made available by the institution they work for. Mortgage advisors therefore offer advice on the most limited range of products out of the three different types of brokers.Some mortgage brokers, however, do not offer independent or tied advice and therefore provide an "information only" service. Information only mortgage brokers do not help their customers decide upon which mortgage products are...more
When looking for a mortgage you may be faced with a decision as to whether you should use the services of a mortgage broker instead of applying for a home loan directly with a lender.One of the main reasons why you should use a mortgage broker is...more
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In recent times, Independent Financial Advisors (IFAs) have been used by many people as an alternative to mortgage brokers. The main reason for this is that there is a crossover between the services they offer.IFAs and mortgage brokers usually...more
Equity release is a way for homeowners to release cash from the equity that has built up in their home. Equity can be defined as the difference between the value of a property and the balance of the mortgage, or any other finance, that is secured on...more
There are several different types of methods for interest to be charged on mortgages. Tracker mortgages have a variable interest rate that moves roughly in line with the Bank of England Base Rate (BoEBR). Another popular type of interest rate is a...more
A capped rate mortgage has an interest rate that cannot rise above a pre-determined level for a specified period of time. After the capped rate period expires, the interest rate of the mortgage reverts to the lender's Standard Variable Rate (SVR).A...more