by: Allison Thompson
When you hear the word “cheap” what does it conjure up for you? Can it be the pair of shoes that you are wearing or the new house that you purchased not long ago? So no matter what the product is having something of a better quality but at a cheaper rate, how often would you not jump at the chance to possess something like that. If you are that type of person, then may be it is time for you to look at getting a “cheap secured loan”. These kinds of loans have been specifically set up to fulfill a persons financial requirements. Often such loans will help a customer to obtain a cheaper and more accessible rate than any other loans that are currently available.
However, a secured loan is a loan where the borrower must place collateral against the amount of the loan that they have taken out. The collateral they use can either be a house, car or any other related asset and works as security on behalf of the borrower. A cheaper secured loan is a secured loan which is provided to the borrower at a lower rate of interest than normally provided by the lender and certainly this type of interest rate is always an added benefit to any borrower. Often these type of loans the lending company or bank will offer the borrower a longer repayment period, which is often an additional benefit to those borrowers who choose to opt for these types of loans.
Often a cheap secured loan can be used for a variety of purposes such as the borrower wants to purchase a new car, or take a vacation or it may be that they want to make some improvements to their home. Some people even use such loans for consolidate debts that they already have into one easy to manage account.
Often such secured loans come at a lower rate of interest than normal loans because they are secured against the borrowers property and will often have the added benefit of a flexible repayment period. With such loans one can often borrower a larger sum of money and the loans offered can range from £5,000 to £100,000. However, the amount being offered really depends on the security being offered by the borrower. As mentioned previously such loans will provide the provider with an extended repayment period and because of this the borrower often gets a cheaper interest rate and can pay the loan back over a longer and more easily manageable period of time. Often the period time in which the loan has to be paid back generally ranges from between 5 to 25 years.
You can easily obtain a cheap secured loan from the many different banks, lending societies and financial institutes that are around. But the best method of obtaining a cheap secured loan is by going online. Using this method the borrower has access to a large number of loans that are available from trusted lenders. This method allows a borrower to look at and read the terms and conditions of the lenders loan facilities and thus make a qualified assessment of all the facilities that are available to them.
If you would like to learn more, please visit http://www.centrallendingservices.com.
Monday, February 19, 2007
Finding the Best Private Student Loan
by: Dave Fitzgerald
Students who do not meet federal requirements for financial need can use the route of a private student loan. Apply for a private loan is free. The loan is based on the student's creditworthiness and not the need for aid as does the federal loans. Many lenders offer private student loans to students or their parents and the application process is simple and free. The loan requirements are usually less stringent and the repayment options are affordable for young professionals. A private student loan is a great way to finance the education of any student that needs financial help. Below you will find things that you should know and things you should consider. Things You Should Know: 1. Student loans can be used not only to pay the fees but also for lab fees, dues for associations and housing. 2. A student can have an educational loan even though the tuition is covered by a grant. 3. A student who is eighteen years or above in age, can apply for a student loan. 4. Most of the student loan is deferred for repayment until the student completes the education or leaves the school. Things You Need To Consider: 1. Private loans for students are not given without a co-signer or a credit report. 2. Credit unions give student loans if a vehicle or a boat is provided as collateral. 3. During the cumulative credit period, a student has the option of paying or not paying the interest part of the loan. It should be noted that paying the interest on the loan while attending school will significantly reduced the amount due when the student starts paying the loan after leaving the institution. 4. Student loans are to be repaid in ten years. Nevertheless, longer repayment facilities are provided to large student educational loans. It is not difficult to finding lenders, because most financial institutions offer some form of student loan. Always take the time to investigate lenders in your immediate area and find out exactly what kind of loans they offer. Compare the different interest rate and terms to get the best offer available.
About The Author
Dave Fitzgerald is a freelance publisher living in Glendale, Arizona. He publishes articles and reports in various ezines and provides information on student loans. For more information about loans and lenders come visit http://www.DelveIntoStudentLoans.com.
Students who do not meet federal requirements for financial need can use the route of a private student loan. Apply for a private loan is free. The loan is based on the student's creditworthiness and not the need for aid as does the federal loans. Many lenders offer private student loans to students or their parents and the application process is simple and free. The loan requirements are usually less stringent and the repayment options are affordable for young professionals. A private student loan is a great way to finance the education of any student that needs financial help. Below you will find things that you should know and things you should consider. Things You Should Know: 1. Student loans can be used not only to pay the fees but also for lab fees, dues for associations and housing. 2. A student can have an educational loan even though the tuition is covered by a grant. 3. A student who is eighteen years or above in age, can apply for a student loan. 4. Most of the student loan is deferred for repayment until the student completes the education or leaves the school. Things You Need To Consider: 1. Private loans for students are not given without a co-signer or a credit report. 2. Credit unions give student loans if a vehicle or a boat is provided as collateral. 3. During the cumulative credit period, a student has the option of paying or not paying the interest part of the loan. It should be noted that paying the interest on the loan while attending school will significantly reduced the amount due when the student starts paying the loan after leaving the institution. 4. Student loans are to be repaid in ten years. Nevertheless, longer repayment facilities are provided to large student educational loans. It is not difficult to finding lenders, because most financial institutions offer some form of student loan. Always take the time to investigate lenders in your immediate area and find out exactly what kind of loans they offer. Compare the different interest rate and terms to get the best offer available.
About The Author
Dave Fitzgerald is a freelance publisher living in Glendale, Arizona. He publishes articles and reports in various ezines and provides information on student loans. For more information about loans and lenders come visit http://www.DelveIntoStudentLoans.com.
NextStudent Offers PLUS Loans for Graduate and Professional Students
by: Jeff Mictabor
According to Phoenix-based NextStudent, a premier education funding company, the proliferation of graduate and professional programs has led to new sources of education funding designed to benefit these goal-orientated students who are, in essence, beginning their career by continuing on in their education. As the job market in the United States continues to generate a need for applicants who are highly competitive in specified fields from technology to the ever-growing medical field, undergraduate students across the country are beginning to feel the squeeze as graduate and professional degrees become “must-haves” for even intermediate and entry-level positions. The decision to continue education onto the graduate and professional level is one that oftentimes comes with considerable financial stress because of the continued financial obligation. However, NextStudent’s Graduate PLUS Loan (http://www.nextstudent.com/) Program may allow borrowers to fund up to the full cost of their education (less any financial aid received), including living expenses, books, supplies and even computers. NextStudent now offers a PLUS Loan Program for graduate and professional students with rates starting as low as 8.5 percent. The Graduate PLUS Loan Program features the same benefits directly to graduate and professional students that parents of undergraduate students receive from traditional PLUS loans (http://www.nextstudent.com/plus_loans/plus_loans.asp). Because NextStudent Graduate PLUS loans are federally sponsored, they offer many of the perks of traditional PLUS loans, including eligibility for federal student loan consolidation (http://www.nextstudent.com/consolidation_loans/consolidation_loans.asp), tax-deductible interest and a variety of repayment options. Eligibility and Credit Resolution NextStudent offers a simple online application process through E-Signature, and many prospects who apply online qualify within minutes. Also offered is a “second look” for borrowers who receive an initial denial because of unresolved credit issues. NextStudent has a PLUS Credit Resolution Team that has an 87 percent success rate at resolving borrowers’ credit issues, resulting in funded PLUS loans. Graduate PLUS loans (http://www.nextstudent.com/plus_loans/plus_loans.asp) easily are accessible to many students. To qualify a student must be a U.S. citizen or an eligible noncitizen. Although a credit check is required, many students with limited or no credit history still qualify for Graduate PLUS loans. Flexible Repayment Options and Aggressive Incentives With all the great incentives offered by NextStudent and its Graduate PLUS Loan Program, now is the right time for students to take the next step and go for their graduate degree. NextStudent Graduate PLUS loans offer several repayment options including deferred repayment while a student is enrolled in school at least half time, and there are no prepayment penalties, ever. There also is a 3 percent cash rebate at repayment on the remaining principal balance after the first 12 months of consecutive on-time payments when student borrowers pay through Auto-Debit. In addition, a 2 percent interest rate reduction is available after the first 48 months of consecutive on-time payments when student borrowers pay through Auto-Debit. Student borrowers receive a .25 percent reduction when they choose repayment through Auto-Debit. NextStudent, federal lender code 834051, is dedicated to helping students and their families find affordable ways to pay for college. NextStudent offers one-on-one education finance counseling and has a portfolio of highly competitive education finance products and services including a free online scholarship search engine, federally guaranteed parent and student loans, private student loans, both federal and private student loan consolidation (http://www.nextstudent.com/consolidation_loans/consolidation_loans.asp) programs, and college savings plans. The NextStudent Scholarship Search Engine, one of the nation’s oldest and largest scholarship search engines, is updated daily, available free of charge, completely private – and represents 2.4 million scholarships worth $3.4 billion. For more information about NextStudent and its student loan programs, please visit the company’s Web site at http://www.nextstudent.com/.
According to Phoenix-based NextStudent, a premier education funding company, the proliferation of graduate and professional programs has led to new sources of education funding designed to benefit these goal-orientated students who are, in essence, beginning their career by continuing on in their education. As the job market in the United States continues to generate a need for applicants who are highly competitive in specified fields from technology to the ever-growing medical field, undergraduate students across the country are beginning to feel the squeeze as graduate and professional degrees become “must-haves” for even intermediate and entry-level positions. The decision to continue education onto the graduate and professional level is one that oftentimes comes with considerable financial stress because of the continued financial obligation. However, NextStudent’s Graduate PLUS Loan (http://www.nextstudent.com/) Program may allow borrowers to fund up to the full cost of their education (less any financial aid received), including living expenses, books, supplies and even computers. NextStudent now offers a PLUS Loan Program for graduate and professional students with rates starting as low as 8.5 percent. The Graduate PLUS Loan Program features the same benefits directly to graduate and professional students that parents of undergraduate students receive from traditional PLUS loans (http://www.nextstudent.com/plus_loans/plus_loans.asp). Because NextStudent Graduate PLUS loans are federally sponsored, they offer many of the perks of traditional PLUS loans, including eligibility for federal student loan consolidation (http://www.nextstudent.com/consolidation_loans/consolidation_loans.asp), tax-deductible interest and a variety of repayment options. Eligibility and Credit Resolution NextStudent offers a simple online application process through E-Signature, and many prospects who apply online qualify within minutes. Also offered is a “second look” for borrowers who receive an initial denial because of unresolved credit issues. NextStudent has a PLUS Credit Resolution Team that has an 87 percent success rate at resolving borrowers’ credit issues, resulting in funded PLUS loans. Graduate PLUS loans (http://www.nextstudent.com/plus_loans/plus_loans.asp) easily are accessible to many students. To qualify a student must be a U.S. citizen or an eligible noncitizen. Although a credit check is required, many students with limited or no credit history still qualify for Graduate PLUS loans. Flexible Repayment Options and Aggressive Incentives With all the great incentives offered by NextStudent and its Graduate PLUS Loan Program, now is the right time for students to take the next step and go for their graduate degree. NextStudent Graduate PLUS loans offer several repayment options including deferred repayment while a student is enrolled in school at least half time, and there are no prepayment penalties, ever. There also is a 3 percent cash rebate at repayment on the remaining principal balance after the first 12 months of consecutive on-time payments when student borrowers pay through Auto-Debit. In addition, a 2 percent interest rate reduction is available after the first 48 months of consecutive on-time payments when student borrowers pay through Auto-Debit. Student borrowers receive a .25 percent reduction when they choose repayment through Auto-Debit. NextStudent, federal lender code 834051, is dedicated to helping students and their families find affordable ways to pay for college. NextStudent offers one-on-one education finance counseling and has a portfolio of highly competitive education finance products and services including a free online scholarship search engine, federally guaranteed parent and student loans, private student loans, both federal and private student loan consolidation (http://www.nextstudent.com/consolidation_loans/consolidation_loans.asp) programs, and college savings plans. The NextStudent Scholarship Search Engine, one of the nation’s oldest and largest scholarship search engines, is updated daily, available free of charge, completely private – and represents 2.4 million scholarships worth $3.4 billion. For more information about NextStudent and its student loan programs, please visit the company’s Web site at http://www.nextstudent.com/.
Making this Bad Credit Loan the Last You’ll Ever Need
by: Julian Thornton
If you are suffering from bad credit in any form, you probably want to do everything you can to clean things up so you can enjoy the world of good credit again. After all, in the media and from talks with the majority of mortgage brokers and big lenders, chances are you’ve been told that bad credit won’t get you anywhere – ever. The great news is that’s rubbish! Working in the bad credit mortgage industry, I personally know that people with bad credit are securing mortgages – good ones with reasonable interest rates – every day. You can too, and when you do, it’s important to decide immediately that this bad credit loan will be your last – ever!
This Bad Credit Loan will be the Last!
It might sound depressing saying that something will be the very last ever, however when it comes to bad credit loans, I’m pretty sure you’ll agree with me that it’s a good thing to decide that it will be your last. That’s because once you secure your bad credit loan, you will be well on your way to cleaning up your financial house to make sure you achieve good credit and a financially secure situation again – or perhaps for the very first time! After saying this, perhaps you are saying, “Yeah Julian, all very well and good for a money expert like you to say, ‘make this bad credit loan your last’, but I have a history of bad credit and poor money decisions”? My response to that is, “So what!” Even with the strongest history of poor money management, bad credit mortgage experts worth their salt can work with you to change your bad money habits and turn them into good ones that will result in lasting financial security. Hold me to that, because now I’m going to show you how!
How to make this Bad Credit Loan Your Last one Ever!
Sure, I’ve made a pretty amazing statement in the previous section, and now I’m going to show you how you can ensure this bad credit loan is the very last one you’ll ever have because it’s going to be the last one you’ll ever need!
It’s quite easy and straightforward to achieve this, so here goes:
• Find a bad credit mortgage expert who knows what they are doing: It is critical that you choose to work with a reputable bad credit mortgage expert! Good specialists in bad credit mortgages will secure competitive mortgages for people with all sorts of financial problems. Sounds drastic right? It gets better! These experts don’t just secure their clients a good home loan though. They also make sure their clients are prepared to succeed both now and into the future.
• Good money management: If you are dealing with a credible bad credit mortgage expert, and you aren’t mortgage ready when you walk through their doors for the first time, they work with you to get you ready. It’s all about good money management, and no, it’s not rocket science. It is discipline though. You make the decision to turn from your bad credit ways and you stick to that decision. Then you go to a bad credit mortgage specialist for your credit redemption! Sounds pretty dramatic, however it’s true. Bad credit isn’t the end, because every day bad credit clients prepare for a better financial future and secure home loans – even people with personal bankruptcy! The reality is that for every financial problem, there is always a solution. That solution is good money management. Reputable bad credit mortgage experts teach every client they work with, how to regain control of their finances, and for some it may be the very first time they have that control. These specialists teach their clients how to keep control as well, which prepares the client for a successful financial future. Once a bad credit mortgage specialist secures a home loan for their client, they will also walk away with a plan to follow that will ensure they will find a life of good credit at the end of the rainbow.
• Get a bookkeeper: A bookkeeper will really help you to keep on top of your financial situation, so find a good one and hire them! At least this way you will be up-to-date with everything and know what money is coming in and what money is going out.
• Stick to your cash flow plan: You are paying a certain amount off your mortgage each month according to your budget. You must stick to your budget. One way to ensure you never go beyond your budget is to donate what you deem to be a significant amount of money, to a cause you do not support. For instance, if you have a fear of birds, donate money to a bird society. Do this even if you go over budget by just a few dollars. It will keep you disciplined.
• Stay Motivated: Think about what you want to do once you are financially stable and secure. Pin photographs of your dream home, car or holiday destination on your corkboard, so you can see it as you work. Set goals and remind yourself of them. Try reading rags to riches stories as well, because they will definitely inspire you. All of these things will help you stay on track.
How to Get Your Last Bad Credit Loan Ever!
Forget the banks, because they won’t touch anybody with bad credit! Find an experienced bad credit mortgage broker who will work with you so you’ll get a great home loan to suit your needs, and the guidance you need to ensure your financial future is bright. Say goodbye to bad credit once and for all!
If you are suffering from bad credit in any form, you probably want to do everything you can to clean things up so you can enjoy the world of good credit again. After all, in the media and from talks with the majority of mortgage brokers and big lenders, chances are you’ve been told that bad credit won’t get you anywhere – ever. The great news is that’s rubbish! Working in the bad credit mortgage industry, I personally know that people with bad credit are securing mortgages – good ones with reasonable interest rates – every day. You can too, and when you do, it’s important to decide immediately that this bad credit loan will be your last – ever!
This Bad Credit Loan will be the Last!
It might sound depressing saying that something will be the very last ever, however when it comes to bad credit loans, I’m pretty sure you’ll agree with me that it’s a good thing to decide that it will be your last. That’s because once you secure your bad credit loan, you will be well on your way to cleaning up your financial house to make sure you achieve good credit and a financially secure situation again – or perhaps for the very first time! After saying this, perhaps you are saying, “Yeah Julian, all very well and good for a money expert like you to say, ‘make this bad credit loan your last’, but I have a history of bad credit and poor money decisions”? My response to that is, “So what!” Even with the strongest history of poor money management, bad credit mortgage experts worth their salt can work with you to change your bad money habits and turn them into good ones that will result in lasting financial security. Hold me to that, because now I’m going to show you how!
How to make this Bad Credit Loan Your Last one Ever!
Sure, I’ve made a pretty amazing statement in the previous section, and now I’m going to show you how you can ensure this bad credit loan is the very last one you’ll ever have because it’s going to be the last one you’ll ever need!
It’s quite easy and straightforward to achieve this, so here goes:
• Find a bad credit mortgage expert who knows what they are doing: It is critical that you choose to work with a reputable bad credit mortgage expert! Good specialists in bad credit mortgages will secure competitive mortgages for people with all sorts of financial problems. Sounds drastic right? It gets better! These experts don’t just secure their clients a good home loan though. They also make sure their clients are prepared to succeed both now and into the future.
• Good money management: If you are dealing with a credible bad credit mortgage expert, and you aren’t mortgage ready when you walk through their doors for the first time, they work with you to get you ready. It’s all about good money management, and no, it’s not rocket science. It is discipline though. You make the decision to turn from your bad credit ways and you stick to that decision. Then you go to a bad credit mortgage specialist for your credit redemption! Sounds pretty dramatic, however it’s true. Bad credit isn’t the end, because every day bad credit clients prepare for a better financial future and secure home loans – even people with personal bankruptcy! The reality is that for every financial problem, there is always a solution. That solution is good money management. Reputable bad credit mortgage experts teach every client they work with, how to regain control of their finances, and for some it may be the very first time they have that control. These specialists teach their clients how to keep control as well, which prepares the client for a successful financial future. Once a bad credit mortgage specialist secures a home loan for their client, they will also walk away with a plan to follow that will ensure they will find a life of good credit at the end of the rainbow.
• Get a bookkeeper: A bookkeeper will really help you to keep on top of your financial situation, so find a good one and hire them! At least this way you will be up-to-date with everything and know what money is coming in and what money is going out.
• Stick to your cash flow plan: You are paying a certain amount off your mortgage each month according to your budget. You must stick to your budget. One way to ensure you never go beyond your budget is to donate what you deem to be a significant amount of money, to a cause you do not support. For instance, if you have a fear of birds, donate money to a bird society. Do this even if you go over budget by just a few dollars. It will keep you disciplined.
• Stay Motivated: Think about what you want to do once you are financially stable and secure. Pin photographs of your dream home, car or holiday destination on your corkboard, so you can see it as you work. Set goals and remind yourself of them. Try reading rags to riches stories as well, because they will definitely inspire you. All of these things will help you stay on track.
How to Get Your Last Bad Credit Loan Ever!
Forget the banks, because they won’t touch anybody with bad credit! Find an experienced bad credit mortgage broker who will work with you so you’ll get a great home loan to suit your needs, and the guidance you need to ensure your financial future is bright. Say goodbye to bad credit once and for all!
Thursday, February 15, 2007
Legislation and Governing Bodies of the Secured Loans Industry
Author: Adrian Hudson
Learn about the regulations and bodies affecting the Secured Loans market
Introduction
The Secured Loans market is often referred to as ‘Unregulated’, but what does this mean? This article will attempt to answer this question by looking at the both official and non-official governing bodies that have an affect Secured Loans. It will also briefly discuss the various Parliamentary Acts that incorporate legislation affecting the Secured Loans or Second Charges market. The target readership for the article is either those involved in the Finance Industry, specifically secured loans, or members of the public with a general interest in Consumer Credit legislation which may affect them.
The Office of Fair Trading (OFT)
The Office of Fair Trading, or O.F.T as it is more commonly referred to, is responsible for a number of key areas with the ultimate aim of protecting the consumer. It has three main purposes. These are the enforcement of Competition and Consumer Protection rules, the analysis of markets to make sure they are working and communication to consumers, businesses and the government.
In terms of Secured Loans there are a number of areas the O.F.T deals with that affect the way that operators in the market promote themselves. The first of these is by administering Consumer Credit Licenses. With the rapid growth in people taking out credit in the early 1970s an act of parliament was passed in 1974 called the Consumer Credit Act and it is under this at that Consumer Credit Licences are granted. If an entity advertises promotes or brokers Secured Loans it must have a Category C Consumer Credit License. On application the O.F.T will investigate all people connected to the business applying to ensure that they are all people worthy of issuing or guiding people to enter into credit. There is a general misconception in the market that the Consumer Credit License is only required if the Secured Loans Company offers loans less than £25,000, but the Act clearly states that a Category C license is required for businesses that provide credit of ANY amount secured on land.
Other areas the O.F.T deal with that affects secured loans are there enforcement of other elements of the 1974 Act and also the updates to the Act which occurred in 2004 - these are the ‘Agreements Amendment’, ‘Disclosure of Information’ and ‘Early Settlement’ Consumer Credit Acts.
For secured loans these act govern a number of things. The first of which is the way that organisations can advertise secured loans. The Acts have rules governing what can and cannot be said in an advertisement and also have stipulation over certain words that have to appear in the advertisement. For example the words “YOUR HOME MAY BE REPOSSESED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT” probably have to appear on most Secured Loans advertisements. The Acts also stipulate that the Annual Percentage Rate (APR) must appear on Credit dvertising and also given rules give its calculation (commonly known as the TTC calculation or total charge for credit).
There is a growing momentum of opinion in the Mortgage and Secured loans industry that at some time secured loans will be regulated by the F.S.A. With the already increased workload of the F.S.A it is more likely that an ‘official’ recommendation for their regulation by the F.S.A is more likely to come from the O.F.T
Financial Services Authority (FSA)
The Financial Services Authority, or F.S.A as it is more commonly know, is responsible for enforcing the rules of the Financial Services and Markets Act (FSMA) 2000. Contrary to popular belief it is actually a non-government independent body and is financed solely from the income it receives from the very organisations it legislates. Although it is accountable to Treasury Ministers it is operationally independent.
In terms of legislation affecting Secured Loans the F.S.A regulates activities in relation to payment protection insurance (P.P.I). So if a business helps customers buy or claim on payment protection insurance it is highly likely it will need to apply to the F.S.A to be regulated. In the Secured Loans market whether you need to be legislated by the F.S.A largely depends on your involvement in P.P.I. If an organisation simply acts as an introducer it is quite likely it does not need to be regulated, however it is always advisable to seek legal advice.
At the time of writing the FSA is very active in the area of P.P.I. It is presently looking into what happens to Insurance premiums when someone either settles a loan early or want to cancel only the P.P.I element of a secured loan. At the moment most insurance providers have a ‘no refund’ clause for both cases.
Another area the F.S.A deals in that may affect Secured Loans providers is their regulation of Mortgages. The FSMA states that if an authorised lender gets second charge loans business from an unauthorised lender then their advertisements must be approved by the F.S.A approved firm.
Finance Industry Standards Institute (FISA)
The Finance Industry Standards Institute (FISA) is a self-governing body set up independently by the industry to govern itself in the Secured Loans market. An annual subscription fee from its members funds FISA. It publishes a Code of Conduct for its Members that cover the standards it requires in advertisements. In essence these are guidelines that give the requirements of the O.F.T specifically for the Secured Loans sector. FISA also publishes a disciplinary procedure and warns in its documentation that it will enforce legislation on non-members, in the first instance by contacting the offending organisation and in the second instance by informing the relevant regulatory body.
FISA also conducts training courses every month or so. These cover the legislative requirements of being involved in the Second Charge sector. In the future the organisation plans to have three levels of ‘qualification’, these will be Foundation, Associate and Member, but it is waiting on developments in the O.F.T and F.S.A before it does this. One supposes whether this happens will also be influenced by the level of regulation that those two bodies impose on the Secured Loans sector.
Information Commissioners Office (ICO)
The Information Commissioners Office (ICO) enforces the requirements of the Data Protection Act (1998). Given that all businesses in the secured loans sector will at some time hold information about individuals they must be registered as a Data Controller with the ICO. In summary, the Data Protection Act ensures that all data kept on an individual (including employees) is accurate, fairly and lawfully processed, adequate relevant and not excessive, used for limited purposes, not sent overseas and is kept securely.
Other Regulatory Bodies and Secured Loans
Although the following organisations do not have a direct power or control over the secured loans market it is worthwhile mentioning them, not only for reasons of clarity, but also, as it is possible there will be changes in legislation, these organisations may later have more influence over the secured loans sector.
The Consumer Credit Trade Association (CCTA) is another independent body, but differs from FISA in that it deals with the whole Consumer Credit market. It also offers training courses, publishes regular newsletters and actively lobbies the Government about consumer credit related issues. In a world where we assume taking out credit is a relatively new phenomenon it is useful to note that the CCTA was founded well over a hundred years ago in 1891.
The Intermediary Mortgage Lenders Association (IMLA) is an independent body that represents the views and interests of institutions in the generation of mortgage business through Intermediaries.
The Council of Mortgage Lenders (CML) is yet another self-governed body operating in the Mortgage Industry. In a similar fashion to the CCTA it is also involved with government with legislative issues, issues policy guidelines. It is also renowned for produces statistics about the UK lending market covering, amongst other things, arrears and repossessions, the number of mortgages being taken out and specifics like the number of buy to let mortgages being taken out.
To finish this section, there is one more independent organisation called the Association of Mortgage Intermediaries (AMI) who acts as the trade body for mortgage intermediaries.
Conclusion
Although the Secured Loans sector is commonly referred to as ‘unregulated’ this document has hopefully shown there is still a lot of regulation (both official and un-official) that affects and encompasses the secured loans sector. In the finance area where the UK has a reputation for being the most regulated in Europe it is only a matter of time before secured loans come under the umbrella of the FSA. It is believed that instruction for the FSA to take control of the secured loans market is more likely to come from the treasury rather than the FSA itself. What is certain is that the secured loans market will become more legislated in the coming years. One thing to note if you are going to business in the Mortgage or Secured Loans market that subscription to these organisations can add up to many thousands of pounds per year.
Learn about the regulations and bodies affecting the Secured Loans market
Introduction
The Secured Loans market is often referred to as ‘Unregulated’, but what does this mean? This article will attempt to answer this question by looking at the both official and non-official governing bodies that have an affect Secured Loans. It will also briefly discuss the various Parliamentary Acts that incorporate legislation affecting the Secured Loans or Second Charges market. The target readership for the article is either those involved in the Finance Industry, specifically secured loans, or members of the public with a general interest in Consumer Credit legislation which may affect them.
The Office of Fair Trading (OFT)
The Office of Fair Trading, or O.F.T as it is more commonly referred to, is responsible for a number of key areas with the ultimate aim of protecting the consumer. It has three main purposes. These are the enforcement of Competition and Consumer Protection rules, the analysis of markets to make sure they are working and communication to consumers, businesses and the government.
In terms of Secured Loans there are a number of areas the O.F.T deals with that affect the way that operators in the market promote themselves. The first of these is by administering Consumer Credit Licenses. With the rapid growth in people taking out credit in the early 1970s an act of parliament was passed in 1974 called the Consumer Credit Act and it is under this at that Consumer Credit Licences are granted. If an entity advertises promotes or brokers Secured Loans it must have a Category C Consumer Credit License. On application the O.F.T will investigate all people connected to the business applying to ensure that they are all people worthy of issuing or guiding people to enter into credit. There is a general misconception in the market that the Consumer Credit License is only required if the Secured Loans Company offers loans less than £25,000, but the Act clearly states that a Category C license is required for businesses that provide credit of ANY amount secured on land.
Other areas the O.F.T deal with that affects secured loans are there enforcement of other elements of the 1974 Act and also the updates to the Act which occurred in 2004 - these are the ‘Agreements Amendment’, ‘Disclosure of Information’ and ‘Early Settlement’ Consumer Credit Acts.
For secured loans these act govern a number of things. The first of which is the way that organisations can advertise secured loans. The Acts have rules governing what can and cannot be said in an advertisement and also have stipulation over certain words that have to appear in the advertisement. For example the words “YOUR HOME MAY BE REPOSSESED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT” probably have to appear on most Secured Loans advertisements. The Acts also stipulate that the Annual Percentage Rate (APR) must appear on Credit dvertising and also given rules give its calculation (commonly known as the TTC calculation or total charge for credit).
There is a growing momentum of opinion in the Mortgage and Secured loans industry that at some time secured loans will be regulated by the F.S.A. With the already increased workload of the F.S.A it is more likely that an ‘official’ recommendation for their regulation by the F.S.A is more likely to come from the O.F.T
Financial Services Authority (FSA)
The Financial Services Authority, or F.S.A as it is more commonly know, is responsible for enforcing the rules of the Financial Services and Markets Act (FSMA) 2000. Contrary to popular belief it is actually a non-government independent body and is financed solely from the income it receives from the very organisations it legislates. Although it is accountable to Treasury Ministers it is operationally independent.
In terms of legislation affecting Secured Loans the F.S.A regulates activities in relation to payment protection insurance (P.P.I). So if a business helps customers buy or claim on payment protection insurance it is highly likely it will need to apply to the F.S.A to be regulated. In the Secured Loans market whether you need to be legislated by the F.S.A largely depends on your involvement in P.P.I. If an organisation simply acts as an introducer it is quite likely it does not need to be regulated, however it is always advisable to seek legal advice.
At the time of writing the FSA is very active in the area of P.P.I. It is presently looking into what happens to Insurance premiums when someone either settles a loan early or want to cancel only the P.P.I element of a secured loan. At the moment most insurance providers have a ‘no refund’ clause for both cases.
Another area the F.S.A deals in that may affect Secured Loans providers is their regulation of Mortgages. The FSMA states that if an authorised lender gets second charge loans business from an unauthorised lender then their advertisements must be approved by the F.S.A approved firm.
Finance Industry Standards Institute (FISA)
The Finance Industry Standards Institute (FISA) is a self-governing body set up independently by the industry to govern itself in the Secured Loans market. An annual subscription fee from its members funds FISA. It publishes a Code of Conduct for its Members that cover the standards it requires in advertisements. In essence these are guidelines that give the requirements of the O.F.T specifically for the Secured Loans sector. FISA also publishes a disciplinary procedure and warns in its documentation that it will enforce legislation on non-members, in the first instance by contacting the offending organisation and in the second instance by informing the relevant regulatory body.
FISA also conducts training courses every month or so. These cover the legislative requirements of being involved in the Second Charge sector. In the future the organisation plans to have three levels of ‘qualification’, these will be Foundation, Associate and Member, but it is waiting on developments in the O.F.T and F.S.A before it does this. One supposes whether this happens will also be influenced by the level of regulation that those two bodies impose on the Secured Loans sector.
Information Commissioners Office (ICO)
The Information Commissioners Office (ICO) enforces the requirements of the Data Protection Act (1998). Given that all businesses in the secured loans sector will at some time hold information about individuals they must be registered as a Data Controller with the ICO. In summary, the Data Protection Act ensures that all data kept on an individual (including employees) is accurate, fairly and lawfully processed, adequate relevant and not excessive, used for limited purposes, not sent overseas and is kept securely.
Other Regulatory Bodies and Secured Loans
Although the following organisations do not have a direct power or control over the secured loans market it is worthwhile mentioning them, not only for reasons of clarity, but also, as it is possible there will be changes in legislation, these organisations may later have more influence over the secured loans sector.
The Consumer Credit Trade Association (CCTA) is another independent body, but differs from FISA in that it deals with the whole Consumer Credit market. It also offers training courses, publishes regular newsletters and actively lobbies the Government about consumer credit related issues. In a world where we assume taking out credit is a relatively new phenomenon it is useful to note that the CCTA was founded well over a hundred years ago in 1891.
The Intermediary Mortgage Lenders Association (IMLA) is an independent body that represents the views and interests of institutions in the generation of mortgage business through Intermediaries.
The Council of Mortgage Lenders (CML) is yet another self-governed body operating in the Mortgage Industry. In a similar fashion to the CCTA it is also involved with government with legislative issues, issues policy guidelines. It is also renowned for produces statistics about the UK lending market covering, amongst other things, arrears and repossessions, the number of mortgages being taken out and specifics like the number of buy to let mortgages being taken out.
To finish this section, there is one more independent organisation called the Association of Mortgage Intermediaries (AMI) who acts as the trade body for mortgage intermediaries.
Conclusion
Although the Secured Loans sector is commonly referred to as ‘unregulated’ this document has hopefully shown there is still a lot of regulation (both official and un-official) that affects and encompasses the secured loans sector. In the finance area where the UK has a reputation for being the most regulated in Europe it is only a matter of time before secured loans come under the umbrella of the FSA. It is believed that instruction for the FSA to take control of the secured loans market is more likely to come from the treasury rather than the FSA itself. What is certain is that the secured loans market will become more legislated in the coming years. One thing to note if you are going to business in the Mortgage or Secured Loans market that subscription to these organisations can add up to many thousands of pounds per year.
Home finance mortgage loan calculators
Author: Ziss Sub
You can use home finance mortgage loan calculators as help in handling every day finances
You can use home finance mortgage loan calculators as help in handling every day finances Use home finance mortgage loan calculators in calculating loans payment,loans amortization schedule,calculating interest rate ,present and future value of monthly payments In credit cards section use financial calculators in Real Cost calculator where you can find out how much is the price of product The Cash Advance Cost Calculator is used to determine the total cost of taking a cash advance from your credit card and paying it back over timeThe Payoff calculator helps you calculate how much interest you will save by paying off a credit card balance now instead of paying it off over timeIn Mortgages section you can calculate:- Mortgage payments- mortgage refinancing to get a better interest rate- Mortgage amortization- detailed mortgage calculator- Second mortgage- mortgage tax benefits- Mortgage interest and property tax payments are tax deductible.You can deduct this interest from your income, and this can mean a large tax savings- Maximum mortgage calculator - presents estimates of the mortgage amount you could get at various interest rates- Mortgages points comparator - fee for establishing a new loan. It is one of the important factors in the calculation of the annual percentage rate for a mortgage- Escrow account cancellation - Escrow Cancellation Calculator helps you determine the financial payback for canceling your escrow account and managing your insurance and property tax payments yourself Planning section: Renting house vs buying house - The Rent versus Buy Calculator will help people who are trying to decide whether to keep renting their home - leasing or buuying car - will help people who are trying to decide whether to keep leasing their car - student loans cost -Setting up a college loan savings plan - saving for student loans - The purpose of student loans Savings Calculator is to determine how much you will have to put away on a monthly basis to meet your college savings goals- retirement planner - Improve quality of life after retirement Use this home finance mortgage loan calculators as help in managing you personal finances: http://www.credit-cards-mortgages-loans-calculators.com/
You can use home finance mortgage loan calculators as help in handling every day finances
You can use home finance mortgage loan calculators as help in handling every day finances Use home finance mortgage loan calculators in calculating loans payment,loans amortization schedule,calculating interest rate ,present and future value of monthly payments In credit cards section use financial calculators in Real Cost calculator where you can find out how much is the price of product The Cash Advance Cost Calculator is used to determine the total cost of taking a cash advance from your credit card and paying it back over timeThe Payoff calculator helps you calculate how much interest you will save by paying off a credit card balance now instead of paying it off over timeIn Mortgages section you can calculate:- Mortgage payments- mortgage refinancing to get a better interest rate- Mortgage amortization- detailed mortgage calculator- Second mortgage- mortgage tax benefits- Mortgage interest and property tax payments are tax deductible.You can deduct this interest from your income, and this can mean a large tax savings- Maximum mortgage calculator - presents estimates of the mortgage amount you could get at various interest rates- Mortgages points comparator - fee for establishing a new loan. It is one of the important factors in the calculation of the annual percentage rate for a mortgage- Escrow account cancellation - Escrow Cancellation Calculator helps you determine the financial payback for canceling your escrow account and managing your insurance and property tax payments yourself Planning section: Renting house vs buying house - The Rent versus Buy Calculator will help people who are trying to decide whether to keep renting their home - leasing or buuying car - will help people who are trying to decide whether to keep leasing their car - student loans cost -Setting up a college loan savings plan - saving for student loans - The purpose of student loans Savings Calculator is to determine how much you will have to put away on a monthly basis to meet your college savings goals- retirement planner - Improve quality of life after retirement Use this home finance mortgage loan calculators as help in managing you personal finances: http://www.credit-cards-mortgages-loans-calculators.com/
Cut off your financial crunch at a single stroke with debt consolidation loan
Author: John Carry
a debt consolidation loan has some other benefits to offer. It will bring your interest rate down. The interest you have to pay for this loan will be lower than the average interest rate of your multiple debts.
Have you had enough of dealing with multiple credits and several creditors? Do you want to cut off this financial crunch at a single stroke?
“Yes”, if this is your reply to these questions, then you can take a debt consolidation loan. Probably there is no other better way of answering back your creditors’ harassing phone calls than paying off his money. By taking a debt consolidation loan, you will receive a reasonable amount of cash. With the cash in hand, you can pay off almost all of your debts.
As soon as you repay your debts, the creditors will be silent. There will be no more phone calls asking you to clear the instalments. The hassle of making multiple payments to lots of lenders on the different days will vanish. With only one loan to deal, it will be easier for you to keep track of it.
This is not all; a debt consolidation loan has some other benefits to offer. It will bring your interest rate down. The interest you have to pay for this loan will be lower than the average interest rate of your multiple debts. Further, you will have an extended repayment period for this loan. So, you have to make smaller monthly repayments.
Despite that, you can take a debt consolidation loan in secured and unsecured form. If there is equity available in your home, then you can go for a secured debt consolidation loan. Tenants and those homeowners who are not ready to risk their home can take an unsecured debt consolidation loan. Finally, to obtain this effective gadget of getting rid of debt trap in a hassle free manner it is recommendable to apply through the online lenders
a debt consolidation loan has some other benefits to offer. It will bring your interest rate down. The interest you have to pay for this loan will be lower than the average interest rate of your multiple debts.
Have you had enough of dealing with multiple credits and several creditors? Do you want to cut off this financial crunch at a single stroke?
“Yes”, if this is your reply to these questions, then you can take a debt consolidation loan. Probably there is no other better way of answering back your creditors’ harassing phone calls than paying off his money. By taking a debt consolidation loan, you will receive a reasonable amount of cash. With the cash in hand, you can pay off almost all of your debts.
As soon as you repay your debts, the creditors will be silent. There will be no more phone calls asking you to clear the instalments. The hassle of making multiple payments to lots of lenders on the different days will vanish. With only one loan to deal, it will be easier for you to keep track of it.
This is not all; a debt consolidation loan has some other benefits to offer. It will bring your interest rate down. The interest you have to pay for this loan will be lower than the average interest rate of your multiple debts. Further, you will have an extended repayment period for this loan. So, you have to make smaller monthly repayments.
Despite that, you can take a debt consolidation loan in secured and unsecured form. If there is equity available in your home, then you can go for a secured debt consolidation loan. Tenants and those homeowners who are not ready to risk their home can take an unsecured debt consolidation loan. Finally, to obtain this effective gadget of getting rid of debt trap in a hassle free manner it is recommendable to apply through the online lenders
What Are Bridging Loans?
Author: Peter Kenny
If you are in the middle of moving house, and you have found the perfect new home but you cannot sell your current home, then you should think about getting a bridging loan to pay for the shortfall
If you are in the middle of moving house, and you have found the perfect new home but you cannot sell your current home, then you should think about getting a bridging loan to pay for the shortfall. A bridging loan is a loan that you take out when there is a temporary shortfall in cash when you are moving property or business. You may also need a bridging loan when buying property at auction in order to pay for the property within the 28-day time frame. These loans are more risky for lenders, and so are more expensive. Therefore you should only get out a bridging loan if you know that you can repay the loan within 6 months. Who can get a bridging loan? A bridging loan is often easier to obtain that a normal loan or mortgage, with the self employed and people with poor credit history being eligible for such loans. Obviously this depends on the lender, but generally speaking you should be able to secure a bridging loan as long as you can make the repayments. How do bridging loans work? Bridging loans in the case of property work by allowing you to take a mortgage out on the new property, and then take a second mortgage out on the property that you are selling. You can usually borrow up to 65% of the value of the properties, minus any existing mortgages that you have. Depending on the property valuation this means you can borrow between £25,000 and £500,000 as a standard figure. How to get a bridging loan Getting a bridging loan is much like getting any other loan, and involves shopping around various online lenders and mortgage providers. However, the main difference is that for the bridging loan a valuation will be carried out by the lenders to ensure property value. The process usually takes around 7-10 days, in which time you can sort out the rest of the legal processes involved when buying a house. Costs Bridging loans vary in cost, with specialist lenders who specialise in giving loans for auctions having the lowest rates, as it is assumed you can afford the property as you have already legally bought it at auction. If you have bad credit then you will obviously pay more. Interest rates on bridging loans are usually worked out on a monthly basis, with an average rate being about 1.5% a month. Often, the interest rates for bridging loans is less important because you are going to pay back the loan quickly and the most important factor is getting the loan on time for you to purchase the new property. Any alternatives? If you cannot sell your house in time to finance the new property, then there are not many options open to you apart from bridging loans. Of course you could get a traditional loan, but this can take longer and the loan terms might be too long or the amount offered too low. If you know that you will have the money back from a property sale soon, then a bridging loan might be the right choice for you.
Tuesday, February 6, 2007
Business Loans For Minorities: Get A Good Rate
By: Louise Michaels
Business loans are not always easy loans to get, and minorities may find this even more difficult. Many communities and government agencies have created programs to help minorities obtain a small business loan when they need it, but there is still a lengthy process to go through before the small business loan for the minority can be approved. Minority business entrepreneurs must submit a series of loan application materials, get a background check, credit check, and also submit a reliable and cohesive business plan.
The most important thing to get a good rate is to have a strong credit history. Without a high credit score, most lenders are required to only offer specific programs. Some banks and financial institutions may extend higher rates for low credit scores, poor credit history, or bad credit overall. If this is the case, it will be harder for minorities to obtain a business loan with a good rate.
The Minority Business Development Agency helps minorities by providing training and information. This can include loan and grant applications, minority businesses in the area that can provide referrals and even banks that work exclusively with minority businesses to create a custom loan program.
A mentoring service by the National Minority Council helps people receive special contracts through local lenders. Many local lenders work from referrals, and have access to funds where they can offer a lower rate. It’s important for minority business entrepreneurs to network as much as possible. Networking helps people learn about other businesses, and there may be outside investors who are available to extend funding at lower rates than even banks or commercial institutions.
The legal work behind many minority businesses is what can hold up the loan application process. The more well-prepared and ready the minority business owner can be with all documents, financial information, and records, the more likely it is that banks and other lending institutions will want to work with them. Banks can offer various programs that are tailored for certain business needs.
Referrals from key community members can increase the chances of obtaining a minority business loan, and possibly getting a good rate. Another way to reduce a rate is to break up the loan into two separate loans, and use different assets or collateral for each one. Some banks can help with arranging this.
Financial assistance may also be offered by the Small Business Administration. Corporations can help minority business owners. Corporations can assist with the loan, or extend some corporate loan package benefits that are competitive or lower than standard market rates. These corporations may work as sponsors for the loan, and can help the business promote itself within in the community as well.
Minority businesses can get good rates from a variety of resources. Community assistance programs can help pull together the financial plans and business planning specifications, while banks can offer strong rates when there is a strong credit history. Making sure credit scores are accurate can help business owners get a good rate right away. Still, there are plenty of options for assistance from other resources as well.
Business loans are not always easy loans to get, and minorities may find this even more difficult. Many communities and government agencies have created programs to help minorities obtain a small business loan when they need it, but there is still a lengthy process to go through before the small business loan for the minority can be approved. Minority business entrepreneurs must submit a series of loan application materials, get a background check, credit check, and also submit a reliable and cohesive business plan.
The most important thing to get a good rate is to have a strong credit history. Without a high credit score, most lenders are required to only offer specific programs. Some banks and financial institutions may extend higher rates for low credit scores, poor credit history, or bad credit overall. If this is the case, it will be harder for minorities to obtain a business loan with a good rate.
The Minority Business Development Agency helps minorities by providing training and information. This can include loan and grant applications, minority businesses in the area that can provide referrals and even banks that work exclusively with minority businesses to create a custom loan program.
A mentoring service by the National Minority Council helps people receive special contracts through local lenders. Many local lenders work from referrals, and have access to funds where they can offer a lower rate. It’s important for minority business entrepreneurs to network as much as possible. Networking helps people learn about other businesses, and there may be outside investors who are available to extend funding at lower rates than even banks or commercial institutions.
The legal work behind many minority businesses is what can hold up the loan application process. The more well-prepared and ready the minority business owner can be with all documents, financial information, and records, the more likely it is that banks and other lending institutions will want to work with them. Banks can offer various programs that are tailored for certain business needs.
Referrals from key community members can increase the chances of obtaining a minority business loan, and possibly getting a good rate. Another way to reduce a rate is to break up the loan into two separate loans, and use different assets or collateral for each one. Some banks can help with arranging this.
Financial assistance may also be offered by the Small Business Administration. Corporations can help minority business owners. Corporations can assist with the loan, or extend some corporate loan package benefits that are competitive or lower than standard market rates. These corporations may work as sponsors for the loan, and can help the business promote itself within in the community as well.
Minority businesses can get good rates from a variety of resources. Community assistance programs can help pull together the financial plans and business planning specifications, while banks can offer strong rates when there is a strong credit history. Making sure credit scores are accurate can help business owners get a good rate right away. Still, there are plenty of options for assistance from other resources as well.
Dangers Of Home Equity Loans
By: Patricia Lewis
A home equity loan is very attractive to home owners since it can help increase immediate cash on hand, provide a way to fund repairs or renovations of the home, and offer an extended line of credit. A fixed rate equity loan can reduce monthly payments, and an extended line of credit can help pay down high-interest credit cards or personal debt. Still, there are some dangers of home equity loans.Some lenders and brokers can promise a lower interest rate or lower monthly payment, but the payment can go up if the borrower’s credit score decreases. Homeowners who are not able to meet the demands of the change can put their house at risk of repossession if they cannot repay the debt in time. Consolidating debts or refinancing a home in this way is not a good idea if the borrower ends up instead with a larger loan that they cannot pay off easily.Even when money is saved on the home equity loan or line of credit itself, some borrowers may end up overspending in other areas. If credit cards are paid off, they may start buying things on credit again and end up making monthly payments beyond what is affordable. Plus what happens when the funding estimated for a project the loan was obtained for - house repairs, college expenses, unforeseen medical emergencies – exceeds the initial funding amount? Borrowers may find themselves spending more money than they sought to save.Some mortgage companies might charge excessive fees that the homeowners don’t know about until they sign the final papers. This is becoming increasingly common, and it’s important to know all of the terms and final costs well before hand. Other poor lender practices include equity stripping, loan flipping, and over borrowing. Equity stripping is when a lender will inflate the income on an application to secure the loan. This results in the borrower not being able to pay back the amount. Loan flipping is when a lender increases the loan amount by increasing the current mortgage. This results in an overextended amount that the borrower cannot pay. Over borrowing involves extending a loan for more than the house is worth. This borrower cannot receive a tax deduction on this amount and may not be able to keep up with the payments.Although there are many advantages of a home equity loan, there are some dangers and pitfalls to look out for. Sensible budgeting and financial practices are important to stay ahead of payments, no matter how small or large the amount may be.
A home equity loan is very attractive to home owners since it can help increase immediate cash on hand, provide a way to fund repairs or renovations of the home, and offer an extended line of credit. A fixed rate equity loan can reduce monthly payments, and an extended line of credit can help pay down high-interest credit cards or personal debt. Still, there are some dangers of home equity loans.Some lenders and brokers can promise a lower interest rate or lower monthly payment, but the payment can go up if the borrower’s credit score decreases. Homeowners who are not able to meet the demands of the change can put their house at risk of repossession if they cannot repay the debt in time. Consolidating debts or refinancing a home in this way is not a good idea if the borrower ends up instead with a larger loan that they cannot pay off easily.Even when money is saved on the home equity loan or line of credit itself, some borrowers may end up overspending in other areas. If credit cards are paid off, they may start buying things on credit again and end up making monthly payments beyond what is affordable. Plus what happens when the funding estimated for a project the loan was obtained for - house repairs, college expenses, unforeseen medical emergencies – exceeds the initial funding amount? Borrowers may find themselves spending more money than they sought to save.Some mortgage companies might charge excessive fees that the homeowners don’t know about until they sign the final papers. This is becoming increasingly common, and it’s important to know all of the terms and final costs well before hand. Other poor lender practices include equity stripping, loan flipping, and over borrowing. Equity stripping is when a lender will inflate the income on an application to secure the loan. This results in the borrower not being able to pay back the amount. Loan flipping is when a lender increases the loan amount by increasing the current mortgage. This results in an overextended amount that the borrower cannot pay. Over borrowing involves extending a loan for more than the house is worth. This borrower cannot receive a tax deduction on this amount and may not be able to keep up with the payments.Although there are many advantages of a home equity loan, there are some dangers and pitfalls to look out for. Sensible budgeting and financial practices are important to stay ahead of payments, no matter how small or large the amount may be.
The Truth About Self Certification Loans
By: Chris Copper Jnr
Ten years ago if you were self employed you were very limited to the deals that were available to you. Lenders tended not to like it if you couldnt prove you income when apply for a secured loan or mortgage.Things have changed, because they have had to. With more and more people starting their own business and companies opting to contract staff on a self employed basis, lenders have had to change policies. Now many more lenders have had no choice but to offer self certification loans and mortgages in order to service more customers.With a self certification product you can state your income without having to provide payslips. Such loan and mortgage products are available with specialist and some high street lenders.The hook is that with a self cert loan you will normally have to pay lager deposit and slightly higher interest rates than a standard borrow would. You should also be prepared to incur slightly higher fees as well.Different lenders will have different criteria. Some will be more concerned about affordability, others with job title and credit history others will require accounts, accountants letter or bank statements.Whether you are with a specialist lender or a high street one, you will generally need a minimum of a 10 per cent deposit (some 5 per cent). In most cases the bigger the deposit you put down the lower the interest rate will be, because you are reducing the lenders risk. You will also pay more fees when putting down a small deposit.Self Certification loans and mortgages used to only be available through specialist lenders, but this is now changing. A handful of dynamic lenders have realised that they need to include the self employed into their mainstream products.Even if you do not have three years worth of accounts, do not think that a self certification product is your only option. Lenders are now embracing more sophisticated credit scoring techniques to better weigh up the potential lending risks.Another bonus for the self employed, is that if you can get together a 25 per sent deposit then you will be able to approach most lenders and choose from their mainstream loan products. Also because of the size of the deposit you are putting down, many of the fees will be crossed out.Although self cert loans are a lifeline to many legitimate people there are a small number of borrowers that take advantage by lying about their income. Over inflation of income in order to have access to more lending or get on the housing ladder is not only illegal but also very dangerous. People that do this will often find that eventually they fall behind on their loan repayments and can face repossession. It pays to make sure that you are always honest on your application.The key rule is to ensure that your mortgage loan repayments are going to be affordable. Flexible mortgages are great for the self employed that might have seasonal spikes and dips in their income. They allow you to overpay, underpay and take payment holidays if you wish to.The best way to ensure you get a good deal and the right product is to use a good broker. They will have access to a number of lenders and products and be able to advise you on the best cause of action.
Chris Copper Jnr enjoys writing on all areas of personal and business finance. He works for Any Loans who are specialists in Self Certification Loans.
Ten years ago if you were self employed you were very limited to the deals that were available to you. Lenders tended not to like it if you couldnt prove you income when apply for a secured loan or mortgage.Things have changed, because they have had to. With more and more people starting their own business and companies opting to contract staff on a self employed basis, lenders have had to change policies. Now many more lenders have had no choice but to offer self certification loans and mortgages in order to service more customers.With a self certification product you can state your income without having to provide payslips. Such loan and mortgage products are available with specialist and some high street lenders.The hook is that with a self cert loan you will normally have to pay lager deposit and slightly higher interest rates than a standard borrow would. You should also be prepared to incur slightly higher fees as well.Different lenders will have different criteria. Some will be more concerned about affordability, others with job title and credit history others will require accounts, accountants letter or bank statements.Whether you are with a specialist lender or a high street one, you will generally need a minimum of a 10 per cent deposit (some 5 per cent). In most cases the bigger the deposit you put down the lower the interest rate will be, because you are reducing the lenders risk. You will also pay more fees when putting down a small deposit.Self Certification loans and mortgages used to only be available through specialist lenders, but this is now changing. A handful of dynamic lenders have realised that they need to include the self employed into their mainstream products.Even if you do not have three years worth of accounts, do not think that a self certification product is your only option. Lenders are now embracing more sophisticated credit scoring techniques to better weigh up the potential lending risks.Another bonus for the self employed, is that if you can get together a 25 per sent deposit then you will be able to approach most lenders and choose from their mainstream loan products. Also because of the size of the deposit you are putting down, many of the fees will be crossed out.Although self cert loans are a lifeline to many legitimate people there are a small number of borrowers that take advantage by lying about their income. Over inflation of income in order to have access to more lending or get on the housing ladder is not only illegal but also very dangerous. People that do this will often find that eventually they fall behind on their loan repayments and can face repossession. It pays to make sure that you are always honest on your application.The key rule is to ensure that your mortgage loan repayments are going to be affordable. Flexible mortgages are great for the self employed that might have seasonal spikes and dips in their income. They allow you to overpay, underpay and take payment holidays if you wish to.The best way to ensure you get a good deal and the right product is to use a good broker. They will have access to a number of lenders and products and be able to advise you on the best cause of action.
Chris Copper Jnr enjoys writing on all areas of personal and business finance. He works for Any Loans who are specialists in Self Certification Loans.
Thursday, February 1, 2007
Student loans are a great source of financial aid
By: Ganesh
Student loans are a great source of financial aid for students who are in need of financial assistance for their education. With the escalating cost of higher education many will need to look beyond what they are able to save for college financial support. Student loans provide an affordable option. First of all you need to choose how much money you’ll need, which loan type is best for you; you’ll also need to decide whether this is the right time to do it and how you are going to pay for it. All these questions need to be answered preceding to apply for a student loan before doing some research and requesting loan quotes.
In recent times many financial Institutions providing loans like Student loan refinancing, Student loan consolidation, International student loans. Student loan refinancing, it is the main goal of refinancing is usually to reduce your monthly student loan payments. When refinancing your student loans there are several things to consider. First, you have both federal student loans and private loans; you will want to refinance them separately. Because of the way federal loans are structured, you can get a much lower interest rate on them than you can on private loans. Student loan rates vary by lender and by your credit history. So, before your refinance make sure your credit history is in good shape.
Student loan consolidation is the term may not be proverbial to you but to put it merely, it is about combining all your student loans into a single loan with one lender and one repayment plan. It helps to integrate all your student loan payments into one monthly bill and it provides a fixed low interest rate for your loan and this translates into huge savings for you in the long term and it also offer flexible repayment options and no fees, charges, or prepayment penalties. Consolidating student loans allows you to extend the repayment period, which means lower payments every month.
The International Education Finance Corporation (IEFC) is the premier provider of International student loan programs for the rapidly growing population of students who wish to study in foreign countries. It offers Competitive interest rates, No application fees or other out-of-pocket fees, Funding in as few as 5 business days from receipt of completed application , Preliminary approval in as little as 15 minutes.
For more Information on student loans Visit our www.bankxp.com forum and place your valuable comments on it.
Student loans are a great source of financial aid for students who are in need of financial assistance for their education. With the escalating cost of higher education many will need to look beyond what they are able to save for college financial support. Student loans provide an affordable option. First of all you need to choose how much money you’ll need, which loan type is best for you; you’ll also need to decide whether this is the right time to do it and how you are going to pay for it. All these questions need to be answered preceding to apply for a student loan before doing some research and requesting loan quotes.
In recent times many financial Institutions providing loans like Student loan refinancing, Student loan consolidation, International student loans. Student loan refinancing, it is the main goal of refinancing is usually to reduce your monthly student loan payments. When refinancing your student loans there are several things to consider. First, you have both federal student loans and private loans; you will want to refinance them separately. Because of the way federal loans are structured, you can get a much lower interest rate on them than you can on private loans. Student loan rates vary by lender and by your credit history. So, before your refinance make sure your credit history is in good shape.
Student loan consolidation is the term may not be proverbial to you but to put it merely, it is about combining all your student loans into a single loan with one lender and one repayment plan. It helps to integrate all your student loan payments into one monthly bill and it provides a fixed low interest rate for your loan and this translates into huge savings for you in the long term and it also offer flexible repayment options and no fees, charges, or prepayment penalties. Consolidating student loans allows you to extend the repayment period, which means lower payments every month.
The International Education Finance Corporation (IEFC) is the premier provider of International student loan programs for the rapidly growing population of students who wish to study in foreign countries. It offers Competitive interest rates, No application fees or other out-of-pocket fees, Funding in as few as 5 business days from receipt of completed application , Preliminary approval in as little as 15 minutes.
For more Information on student loans Visit our www.bankxp.com forum and place your valuable comments on it.
Joint Loan Application Tips
By: Peter J Kenny
If you are living with a partner or family member and you need some money but don’t have the means, then you should think about applying for a joint loan. Joint loans can help you and a partner or family member both get their hands on more money than you could individually, whilst sharing the burden of repayment. If you want to know more about joint loans and how to apply for them, then here is some useful information that might help.Who can I get a joint loan with?Joint loans are not available for all types of relationship, but are in fact limited to certain partnerships. Married couples are the most common joint loan applicants, although unmarried couples are not eligible. Some companies will allow applications during engagement, but the loan will not be given until after marriage. Also accepted are applications from a parent and child. Although some loan companies also consider two brothers, all other sibling and family relations are generally not accepted.Getting more moneyThe main reason to jointly apply for a loan is to get a larger amount of cash than you might be able to if you were applying on your own. Married couples or parents and children can include both of their incomes to allow for a larger loan to be taken out. If you have a similar salary, then you can usually double the amount that you can borrow.Unequal earningsApplying for a joint loan doesn’t mean you both have to have excellent salaries. Even if one of you doesn’t have a salary, but money earnt from a part-time job or other work, this can help you both to get more money. As long as you are both earning and can make a contribution to the repayment it will be in your interests to apply jointly.Both responsibleAlthough both of you will get benefits from the loan, it is important to remember that you are also both responsible for the repayment of the loan. Even if you are married and split up, the amount still owed on the loan will need to be paid back by both of you. Of course there is more risk of default than a normal loan, because should one of you stop payments then the other may not be able to keep up and so you will both end up in default. This means you risk having your credit history damaged even if you were not responsible for the debt problem. Make sure that you can definitely afford to pay the loan back, even if you are no longer living with the other applicant.Who should get joint loans?Although most married couples are eligible to apply for a joint loan, they are not right for everyone. If one of you has a poor credit history or earns significantly less than the other, a joint loan may not be the right choice for you. Also, try and make sure that any joint loan you take out will benefit both of you. Just because you can get more money does not mean that money will benefit you both. Always use joint loans to fund something that will help you both, so that you can get the most out of your loan.
Peter Kenny is a writer for The Thrifty Scot, please visit us at Poor Credit Loans and Compare Secured Loans Visit www.thriftyscot.co.uk/
If you are living with a partner or family member and you need some money but don’t have the means, then you should think about applying for a joint loan. Joint loans can help you and a partner or family member both get their hands on more money than you could individually, whilst sharing the burden of repayment. If you want to know more about joint loans and how to apply for them, then here is some useful information that might help.Who can I get a joint loan with?Joint loans are not available for all types of relationship, but are in fact limited to certain partnerships. Married couples are the most common joint loan applicants, although unmarried couples are not eligible. Some companies will allow applications during engagement, but the loan will not be given until after marriage. Also accepted are applications from a parent and child. Although some loan companies also consider two brothers, all other sibling and family relations are generally not accepted.Getting more moneyThe main reason to jointly apply for a loan is to get a larger amount of cash than you might be able to if you were applying on your own. Married couples or parents and children can include both of their incomes to allow for a larger loan to be taken out. If you have a similar salary, then you can usually double the amount that you can borrow.Unequal earningsApplying for a joint loan doesn’t mean you both have to have excellent salaries. Even if one of you doesn’t have a salary, but money earnt from a part-time job or other work, this can help you both to get more money. As long as you are both earning and can make a contribution to the repayment it will be in your interests to apply jointly.Both responsibleAlthough both of you will get benefits from the loan, it is important to remember that you are also both responsible for the repayment of the loan. Even if you are married and split up, the amount still owed on the loan will need to be paid back by both of you. Of course there is more risk of default than a normal loan, because should one of you stop payments then the other may not be able to keep up and so you will both end up in default. This means you risk having your credit history damaged even if you were not responsible for the debt problem. Make sure that you can definitely afford to pay the loan back, even if you are no longer living with the other applicant.Who should get joint loans?Although most married couples are eligible to apply for a joint loan, they are not right for everyone. If one of you has a poor credit history or earns significantly less than the other, a joint loan may not be the right choice for you. Also, try and make sure that any joint loan you take out will benefit both of you. Just because you can get more money does not mean that money will benefit you both. Always use joint loans to fund something that will help you both, so that you can get the most out of your loan.
Peter Kenny is a writer for The Thrifty Scot, please visit us at Poor Credit Loans and Compare Secured Loans Visit www.thriftyscot.co.uk/
Refinancing A Car Loan
By: John Miller
The term "refinancing" should be familiar to anyone who has purchased a loan. Simply put, refinancing is the process of obtaining a loan to pay off an existing loan. Obviously it's not quite as simple as it sounds, but understanding that basic description is enough to begin the process of learning about refinancing.One of the best-kept secrets in the finance industry is refinancing. A great deal of time, trouble, and most importantly cash can be saved through this method alone. Home refinancing has been around for a long time now and is used by many people to save money on their loans and/or reduce their monthly payments. However, many people still balk at the idea of car loan refinancing despite being familiar with the benefits of refinancing a home loan. Those who have a less than perfect credit rating to back them up, in particular, are likely to react this way.What exactly is different about car loan refinancing? In essence, nothing. At the basic level, car loan refinancing works the same as refinancing your home. In car loan refinancing, a new car loan is obtained in order to pay off the existing car loan. The new loan may have different (typically better) interest rates, a new lender, or both. Again, as in home refinancing, this is beneficial since car loan refinancing can make your monthly car loan payments lesser. Alternately lower interest rates garnered through car loan refinancing can be capitalized on to pay off the balance of the current car loan in a shorter period of time.Very few people understand the time value of money--that the longer a loan is paid on, the more money is spent on interest charges. Take for example a 60-month loan for $16,500 on a new Honda Accord and assume that the buyer's credit is poor. The car dealer manages to get the buyer approved at 21% APR for that loan, making the monthly payments $446.38. By the end of the loan term, the buyer will have paid $10,282.83 on interest charges alone--almost as much as the initial price of the vehicle (which, of course, is now worth far less than when it was purchased). Now, if the car loan were refinanced with another lender at 6% APR after the first few months, the monthly payment would have been $318.99, allowing the buyer to save as much as $7,643 on interest charges. If the buyer refinanced at the lower APR but retained the same monthly payment, the term of the loan would be shorter and the interest savings even higher.Record numbers of homeowners refinanced their homes and saved thousands of dollars during the years 2001 and 2002. More car owners are beginning to realize the benefits of car loan refinancing every day. With the steady drop in interest rates, car loan refinancing is fast becoming a trend as more and more people realize how much money can be saved simply by refinancing a car loan.
John Miller is a writer for several well-known online magazines, on shopping and products and shopping tips topics.
The term "refinancing" should be familiar to anyone who has purchased a loan. Simply put, refinancing is the process of obtaining a loan to pay off an existing loan. Obviously it's not quite as simple as it sounds, but understanding that basic description is enough to begin the process of learning about refinancing.One of the best-kept secrets in the finance industry is refinancing. A great deal of time, trouble, and most importantly cash can be saved through this method alone. Home refinancing has been around for a long time now and is used by many people to save money on their loans and/or reduce their monthly payments. However, many people still balk at the idea of car loan refinancing despite being familiar with the benefits of refinancing a home loan. Those who have a less than perfect credit rating to back them up, in particular, are likely to react this way.What exactly is different about car loan refinancing? In essence, nothing. At the basic level, car loan refinancing works the same as refinancing your home. In car loan refinancing, a new car loan is obtained in order to pay off the existing car loan. The new loan may have different (typically better) interest rates, a new lender, or both. Again, as in home refinancing, this is beneficial since car loan refinancing can make your monthly car loan payments lesser. Alternately lower interest rates garnered through car loan refinancing can be capitalized on to pay off the balance of the current car loan in a shorter period of time.Very few people understand the time value of money--that the longer a loan is paid on, the more money is spent on interest charges. Take for example a 60-month loan for $16,500 on a new Honda Accord and assume that the buyer's credit is poor. The car dealer manages to get the buyer approved at 21% APR for that loan, making the monthly payments $446.38. By the end of the loan term, the buyer will have paid $10,282.83 on interest charges alone--almost as much as the initial price of the vehicle (which, of course, is now worth far less than when it was purchased). Now, if the car loan were refinanced with another lender at 6% APR after the first few months, the monthly payment would have been $318.99, allowing the buyer to save as much as $7,643 on interest charges. If the buyer refinanced at the lower APR but retained the same monthly payment, the term of the loan would be shorter and the interest savings even higher.Record numbers of homeowners refinanced their homes and saved thousands of dollars during the years 2001 and 2002. More car owners are beginning to realize the benefits of car loan refinancing every day. With the steady drop in interest rates, car loan refinancing is fast becoming a trend as more and more people realize how much money can be saved simply by refinancing a car loan.
John Miller is a writer for several well-known online magazines, on shopping and products and shopping tips topics.
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