Iain Dale 3 November 2018 9:00 AM 3 November 2018 9:00 AM Share Twitter Facebook LinkedIn Email Whatsapp You probably haven’t heard of the loan charge. I hadn’t until a couple of months ago, when I told listeners to my LBC radio show that I would soon be interviewing Mel Stride, the financial secretary to the Treasury. Following this, I was bombarded by texts and emails from something called the Loan Charge Action Group and its many, many sympathisers. I then became acquainted with what might be the next storm to hit the government. The messages, many of them emotional and some borderline aggressive, told the same story: hundreds of what politicians like to call ‘hardworking families’ were facing unpayable and unjust tax bills as a result of a Treasury U-turn on what previously had been a perfectly legal tax scheme. Freelancers and contractors had been allowed to be paid through an employee benefit trust; the payment was via … [Read more...] about The loan charge scandal: the Treasury U-turn destroying the lives of hardworking families
Conventional home loan requirements
(BPT) - Buying a home is an exciting process, but for many people it can also seem out of reach. While many renters would like to buy, there are several factors that may lead potential homebuyers to believe they may not be ready. These include credit score requirements, income and debt levels, and the common myth that a 20 percent down payment is needed. Here is some good news: Qualifying for a mortgage may not be so far out of reach.While it is true that borrowers with stronger credit profiles — FICO scores of 720 and higher, low debt-to-income (DTI) ratios, and cash reserves — generally receive better mortgage terms, there are products in the market that can enable access to affordable, prudently underwritten mortgage financing.Down payment is routinely cited by prospective homebuyers as the largest hurdle to homeownership, but low down payment mortgages are widely available in today’s market. These include conventional loans with private mortgage insurance (MI) and … [Read more...] about Take a second look at your homebuying options
For those considering whether now is the moment to buy, these are disorienting times. When Kate Faulkner recently looked for a home in the city of Peterborough — a growing location for London commuters — she found comparable properties within one square mile whose prices were going up, down or were completely flat.“There are as many different markets in one city as there are across the country,” said the founder of Property Checklists, a website and advice provider. With price growth slowing in former hotspots, transaction levels stuttering and an uncertain period for Britain’s economy in prospect, the housing market has been drawing in its horns. Buy-to-let investors are hemmed in by new taxes and regulations, while owner-occupiers are reconsidering high-risk property moves as interest rates start to rise and mortgage affordability rules remain tight. This week, Bank of England governor Mark Carney delivered a stunning warning that house prices … [Read more...] about Is UK property still a good investment?
If you’re in the market for a new home, or your first home, you may want to look into an FHA loan. The popular loans are insured by the Federal Housing Administration, providing a government-backed mortgage through your local bank or credit union. The pluses are many: Interest rates are lower and fixed, and the requirements are not as stringent as a conventional loan. An FHA loan doesn’t require as high a minimum credit score to qualify as a conventional loan - 500 vs 620. The required down payment on a conventional loan runs from 5 to 20 percent, whereas, with an FHA loan, a down payment of just 3.5 percent is required for credit scores of 580 and up and 10 percent for credit scores of 500 to 579. In addition, savings, a financial family gift or a government grant can be used toward a down payment of an FHA loan. As a borrower, you must pay two mortgage insurance premiums for an FHA loan: an upfront premium of 1.75 percent of the amount of the loan, plus an … [Read more...] about Do you qualify for an FHA loan?
If you’re looking to make home improvements, pay medical expenses or finance a college education, your home can be a source of extra cash. A HELOC, or home equity line of credit, is a loan that is secured by your property, based on the equity in your home. There are a number of advantages to obtaining a HELOC, according to Bankrate. First, it’s typically easy to be approved for a HELOC if you have a lot of equity in your home. Additionally, if you’ve been thinking of taking out a second mortgage, it’s important to note that the interest rate on a HELOC may be lower, and you only pay interest on the amount you’ve borrowed on the line of credit, similar to a credit card, adds Bankrate. Unlike a conventional loan, you may keep borrowing on the unused amount, up to the maximum approved limit, as long as you keep paying down the line of credit. You may also pay less in closing costs. When a HELOC matures, you are required to pay off the balance all at … [Read more...] about What is a home equity line of credit?