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Posts Tagged ‘debts’

Home improvement loans are indeed worth taking out. However, rather than using an independent loan company specialising in home owner loans, approach your bank or building society and take extra borrowing on your mortgage as their rates will often be much more favourable.

The reason that I think that home improvement loans are worth while is probably down to television programmes such as grand designs and property ladder.

Both give the indication that as long as you spend the money wisely this will almost immediately add value to your home far exceeding the initial outlay.

Not so much grand designs are they usually build houses on an epic scale, but certainly property ladder indicate that with a few subtle well spent changes here and there you will be quids in.

They often recommend, ensuite bathrooms, knocking down walls, open plan living spaces and new kitchens and bathrooms to increase the value of the property.

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Are you considering about availing a mortgage loan or refinancing of your existing mortgage loan? “Mortgage how much can I borrow” – are you loosing sleep over this question? Do you want to get an answer to the query? There are some elements that come into play for calculating how much loan you would be able to borrow.mortgage1

Important factors that determine how much mortgage you can borrow:

The first element is the value of your house. This would ascertain the amount of equity you possess and also help you get an idea about the highest amount of loan that you can borrow. For instance, if your house is valued at £300,000 and you owe £225,000 on the house, subsequently the highest amount that you are able to borrow in equity is £75,000.

The second element is your credit score. This would decide under which category you come. When you have a poor credit score, then you may not be eligible to borrow the amount to the extent that you could with a better credit score. This is figured out on the basis of a percentage system and the higher your credit score, the nearer you would be to 100% of the value of your home.
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The final factor that the mortgage lenders take into account is your debt to income ratio. This is calculated by comparing your monthly payments for your automobile loan, mortgage loan, credit card debts and others mentioned in your credit report to your gross income amount. However, utility payments are not included. The highest debt to income ratio acceptable for the majority of lenders is 55%. The lesser your debt to income ratio, the higher you can borrow. The formula is quite easy which evaluates the risk of offering you a loan against the return. The poorer your credit score and the higher your debt to income ratio, the less is the possibility of getting the loan and the more is your rate of interest. This information should be sufficient to answer your question, “mortgage how much can I borrow?”

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debt hitting homeowners

UK debt advice. With UK debt at an all time high, there is serious worry within financial circles about how US debt and the issues with sub-prime mortgages will have a trickle down effect upon UK debt statistics.

It seems that the debt harpers, who were dismissed as pessimists were not unnecessarily worried. With the recent Bank of England interest rate rise leaving rates at 5.25% with fears of an increase by the end of the year, debt is about to get a whole lot trickier!

Most people in the UK who own their home will be paying some form of mortgage – again one of the main reasons people are in debt! Yet with the average £150,000 mortgage, debt repayments have increased by £500 due to interest rates this year alone, home owners are finding it increasingly difficult to stay on top of their debts.

This is not simply a statistic, as numerous debt counselling services have reported a huge surge in the amount of people needing some sort of debt help, and they predict more to come. When there was a time when getting on the property ladder was a sensible and astute investment plan, however it appears that today’s uncertain climate and unpredictable economy will only leave consumers and mortgage owners in deeper water with debt repayments.
It appears that there are turbulent times to come and it is in our best interests to all watch our pennies a little closer!

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