Mortgage Repossession - Make Sure You Know The Facts

Mortgage repossession is a devastating thing. Having your home swept out from under you is not only a financial crisis. It can be an emotional one as well.

In the UK, however, there is a piece of federal legislation that prevents mortgage repossession from actual making a person or family homeless. The law is called the Prevention of Homelessness Act, and protects residents of England and Northern Ireland.

It says that if a person or family occupies a dwelling and it is their principal and only home but becomes subject to mortgage repossession or any adversary tenant eviction proceedings, the court can suspend that eviction or mortgage repossession order to give that person or family time to find a reasonable alternative place to live.

The law says that the application may be made by the person who is subject to mortgage repossession or tenant eviction prior to that action being taken.

Where a person occupies the home as her, his or their only dwelling the court has the power to suspend the repossession or eviction enforcement for any period and under any conditions that the UK court sees fit to impose.

The criteria given the court for this mortgage repossession or tenant eviction protection is very lenient. In fact, it almost just says, do what you think is right, judge.

The legislation stipulates that a court can decide to suspend the repossession for mortgage arrears or eviction for unpaid rent to prevent the person or persons residing there from sleeping rough or having to live somewhere not reasonably fit for any habitation by humans.

The definition of mortgage repossession or landlord or tenant repossession proceedings is defined as litigation begun in a court of the United Kingdom by the lender or landlord for purposes of recovering possession of property that is occupied by the debtor or tenant as her or his main or sole residence.

One portion of this homelessness prevention bill talks about variable interest rates, and gives the court the power to actually change the rate of interest that the debtor is paying on the mortgage if that is a reasonable thing to do to prevent repossession and homelessness.

There are some stipulations built in, however. The rate of interest that the court alters the mortgage to cannot be less than that applied by the UK federal Department for Work and Pensions (must like Social Services and its Section H housing assistance in the U.S.)

The Prevention of Homelessness Act also allows the court to put into effect a waiver of charges and fees in the interest of trying to ward off a mortgage repossession. These fees waived could include legal and court costs including the expenses incurred by the debtor for an indemnity clause.

The legislation further stipulates that should someone become eligible for, and acquire public assistance, the payment of the mortgage, to prevent repossession might also be paid out of the public assistance check awarded, at the discretion of the court.

Clearly, in the UK, the government has seen fit to protect the interests of homeowners and tenants and assure that they keep their homes wherever and whenever possible.

About the Author:

James Copper works for Stop Repossession Today who help homeowners stop mortgage repossession and avoid repossession.

Article Source: ArticlesMaker.com

Guide To Buy To Let Mortgages

One of the most popular areas of property development in recent years has been the buy-to-let facility. Favoring both professional property developers, as well as savvy consumers who can afford to do this, it allows a mortgage to be taken out for the sole reason of letting the property immediately.

With recent figures showing the average price of a house in the United Kingdom now a staggering 167,000 GBP, it's becoming increasingly difficult for people to buy a home, especially in the first-time buyer's market. This has led to a dramatic increase in people choosing to rent a property, as opposed to buying, while they try and save for a deposit for a new home. Men and women are also choosing to stay single these days, as opposed to living with someone or marrying them, therefore leading to an increase in demand in the rental market as well.

The benefits of someone taking a buy-to-let mortgage out are numerous. With interest rates in the United Kingdom at a good high, buy-to-let is an excellent financial gain for those investors who have property that they are letting out. Not only do they own a property whose value is rising all the time, therefore it's a wonderful investment for the future, but they are still making money by charging rent on the property. Depending on the size of the house being let, this can lead to an extremely tidy profit.

For example, say you buy a three-bedroom house and the monthly mortgage is an average 1,000 GBP. If you rent that property out to three separate tenants as a house share, and charge a very reasonable 500 GBP per month per person, you're making an immediate profit of 500 GBP every month, as well as paying for your mortgage. You can see quite easily why buy-to-let is such an attractive proposition.

It's not just the traditional landlords who are benefiting, either. Whereas in the past you may have heard the word landlord and thought of a middle-aged businessman, now it's more frequently younger people who are joining this lucrative market. According to the National Landlords Association, or NLA, the market has changed considerably in the last few years and more and more young landlords are now the norm. With a yield of around six per cent in the British market alone, which in itself will see the average investor make a profitable return of over sixty per cent, it's not surprising that the buy-to-let market is attracting all ages.

Indeed, such is the popularity of this new way to own a property, the buy-to-let market in the United Kingdom is now second only to Poland in this particular area. And with the Polish economy not really allowing for any other option except to rent, this is proof indeed that this is just the start of an extremely profitable avenue.

About the Author:

Teacher Marks are Estate Agents in Central London who focus on practice of surveyors specialising in all aspects of Central London commercial property

Choosing the Right Mortgage Loan Can Save You Time, Money and Grief

This article was written to answer many of the most frequently asked questions on this topic. I hope you find all of this information helpful.

When you are getting ready to buy a house, there is no doubt the the mortgage loan is one of the most important factors affecting which house you will purchase. Not too long ago, many thought that a loan was a loan, no matter which one was chosen. But this doesn't hold true today because of the many different kinds of mortgage loans available to the home buyer. So, before choosing a mortgage loan, it is very important to decide which one is right for you.

Finding the right mortgage loan means weighing your options with what you require in a house and your financial picture, both now and in the future. Also, the right mortgage is not just having the lowest interest rate; it's a lot more than that. And this "more than that" will be determined by your individual status. You can get a good picture of your individual status and what kind or mortgage payment you can afford by considering the following questions:

**What does your financial picture look like right now (this includes the money you have coming in, what you have saved, any cash you have on hand, and your debt-to-income ratio)?

**How do you expect your financial picture to change in the coming years?
**How long are you planning to keep your house?
**How do you feel about a changing mortgage rate?
**Do you plan to pay off the loan before you retire?

The answers to these questions will give you a good idea of your financial picture. Now the next step is to decide two key options: mortgage length, and type of interest rate (fixed interest rate or adjustable interest rate).

The length of your mortgage loan can vary, all the way up to 30 years.
If you're trying to decide between a fixed or adjustable interest rate mortagage, be certain you consider the risks involved with an adjustable rate. In other words, if your interest rate changes and your payment goes up later, will you be able to handle it. You may be able to save some money with an adjustable rate over the life of the loan, but a fixed-rate loan gives you the comfort of knowing what to expect because of the rate is locked in.

One useful tool when considering which mortgage loan is right for you is an amortization schedule or and an amortization caluculator. Amortization is figured out before you even buy the loan for your home, and it is apart of the house loan's paperwork during the closing. You can adjust the numbers in the amortization calculator to see if you will able to make monthly payments on the loan amount you want to borrow. You can see why this would be a very useful tool.

Obviously, you will be able to pay off a shorter-term loan faster, but this will mean that your monthly payments will be considerably greater. An extended loan with a rate that is fixed is sought-after because it offers security, and this allows people to create and maintain their budget. It may cost you more over the life of the loan, but you will have more cash on hand when you need it, and you will have a better chance of not defaulting on the mortagage loan if a crisis come up.

Considering the points listed above in this article, you can see that it's important to closely examine your fianacial situation when trying to find the right mortgage loan for you. Ask yourself those questions, use an amortization calculator, and then shop around. If necessary, seek the advice of someone that you know is knowledgable and trustworthy.

We hope you have gotten some good ideas from this article and that you are able to use them.

About the Author:

George Mello is devoted to sharing info he has found to be helpful like mortgage loan info. Don't choose your mortgage loan until you are well armed with information...Amortization Schedule Blog

Article Source: ArticlesMaker.com