COMPARE MORTGAGES

WHY USING A MORTGAGE BROKER IS ESSENTIAL

COMPARE MORTGAGES
Just as you would ideally get two or three quotes for a product or service, you should also be able to compare the lenders products and what they are offering - at least two or three options.

When you are looking for a mortgage you need to apply many of the same principles you do when searching for any other product or service.

At Abacus Finance we believe that a professional Mortgage Broker is an essential part of securing a Mortgage Loan. They can help you compare mortgages and be sure you have the best deal for your situation.

Whether you are building a house, buying a house, investing in commercial property or renovating... you have already dreamed and planned - so why not get all the help you need to make it happen (the service is free to you).

Take advantage of their industry knowledge and save yourself time and the stress of multiple bank applications. Trying to compare mortgages can be confusing, and the acceptance criteria varies widely between lenders. A good mortgage broker will know all this.

The article below talks about some of what is happening in today's property market. With all the change going on, particularly with banks and other mortgage lenders, it has become even more important to get the help to secure your home finance.

Home Mortgage and Financing Trends for 2010

The housing and mortgage market has undergone a step change over the past two years as they have had to come to terms with both a global financial crisis and a recession. Neither of these two phenomena are over yet although there are signs that both have stabilised and recovered a little from the market lows and lack of funding in 2008.

The unprecedented availability of cheap finance during the 1990`s and early 2000`s fuelled significant increases in property prices. Changes to the pensions market also encouraged many to seek long term financial security in buying and letting property. The anticipated capital gain whilst the rental income covered mortgage and running costs were seen as a better option than money purchase pension schemes dependent on the rise and fall in share prices.

However, the market has now fundamentally changed. The availability of mortgage funding has dried up to all but the best credit quality customers and/or those with large deposits that could provide the security cover craved by the lending institutions. Gone too are the plethora of fixed rate and tracker options. On top of that, many of the lenders that competed for business have also melted away.

So getting a mortgage or remortgaging an existing loan will not be an easy experience in the foreseeable future. A good credit history is essential and whilst deposit level requirements have reduced a little, the best rates will be reserved for those with large equity stakes in their property.

As lenders fear greater regulation and have increasing pressure on them to repay state funding and shareholders for their capital support through the tough years, lending margins will increase compared to those available just a few years ago. With interest rates set to rise as the economy continues its slow recovery then mortgage rates will increase too. This expectation has already been factored into some of the longest term fixed rate deals on offer.

Finally, whilst competition still exists for mortgages, expect to pay higher fees as well as higher margins for your funds. Trawl the market for the best deals or use a mortgage broker to source you the optimal offer. They are in touch with current trends and may find you a better deal even with their fee than you could source on your own.

Penalties for early redemption on fixed rate mortgages have also increased so make sure that you are clear on how long you are prepared to fix for before you sign up or understand whether your fixed rate element can be transferred to any new property if you choose to move in the intervening period. Likewise check to make sure that overpayments can be made without penalty and that you get full benefit from the overpayment in terms of real time interest rate charging rather than year end balance charging calculations. There are still a few cashback deals on offer but they are few and far between.

MAKE IT EASY
GET PROFESSIONAL HELP TO GET YOUR MORTGAGE LOAN

For those of you who live in the Waikato or Bay of Plenty, regions of New Zealand, we have experienced, professional mortgage brokers available to help you compare Mortgages.

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