Previously, in the UK, if you wanted to apply for a mortgage to buy a new home, the amount that would be lent to you would be automatically tied to how much money you earned. With runaway UK housing prices over the last decade, and with incomes remaining fairly stable, this method of calculating how much you could borrow on a mortgage has become out dated. Today, many new home buyers need to look for more creative ways to borrow money if they want to buy a new home in Britain.

The Affordable Mortgage

Probably the most common of the new forms of mortgage is the affordable mortgage. Unlike mortgage that fixed to your earnings, affordable mortgages are calculated based on how much you can afford to repay each month once you have taken into consideration all of your other expenses. So, for example, if you have recently bought a new car on hire purchase and will be making hire purchase payments for the next three years, these hire purchase payments will be deducted from your salary and what remains will determine whether or not you can afford to repay the mortgage loan. UK affordable mortgage loans have allowed new home buyers to borrow as much as 50 percent of their monthly disposable income in mortgage repayments, which usually gives new home buyers a much better chance of buying a new home.

The Flexible Repayment Mortgage

Growing in popularity is the flexible repayment mortgage. As mentioned, traditional mortgages take into account what you current earnings are, how much you borrow, the interest rate, and then calculates, roughly, a monthly repayment that will be fixed (variable on interest) for the remaining 20 to 30 years of the mortgage term. Real life, however, is not like that. It is highly unlikely that you’ll be earning the same in 10 years time as you earn today. A flexible repayment mortgage takes this into consideration. It allows you increase your mortgage repayments over time. As such, within parameters, you are able to borrow more on your UK mortgage than you earn today on the expectation you’ll be earning more in the future.

The Current Account Mortgage

Strictly speaking, the current account mortgage is not a mortgage at all - it’s an overdraft. As such, it is not restricted by the same lending ratio limits that traditionally apply when applying for a UK mortgage. Nonetheless, so long as you are financially disciplined enough not to be overly concerned with having to live with a large overdraft on a daily basis, this type of new UK home mortgage can mean the difference between being able to buy a house now and having to wait until you have enough of a deposit or a high enough salary to qualify for a traditional UK mortgage.

The world of UK consumer finance is forever evolving. To try and respond to recent demographic changes in the UK, and to ever rising costs of living in the UK, UK credit lenders are having to be more and more ingenious when it comes to obtaining new business. As such, if you find yourself in the position where you simply cannot afford to buy a new home on your current salary, don’t give up, look around and see if you can find a UK home lender who’ll agree to lend you the money to buy your new dream home on more flexible terms and conditions than was previously the case.

Joseph Kenny writes for the Loans Store where you can compare loans for UK residents and apply for a secured loan if you have a bad credit history.

Visit Today: http://www.ukpersonalloanstore.co.uk

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If you are in debt, well over your head in debt that is, there are options to help you overcome this situation. Let’s examine five possible responses and uncover which ones lead to true debt relief.

1. Declare bankruptcy. Not as easy as it used to be especially since Congress passed and the president signed into law legislation to toughen personal bankruptcy laws earlier this year. Still, it is an option for some. Just remember: depending on which course of action you take, Chapter 7 or Chapter 13, it can have a long term impact on your credit standing.

2. Consolidate your debt through a consumer credit counseling service. Be careful as often all these companies do is get your interest rates reduced for a period of time, earn money off of your payments, and sink your credit rating! You can probably negotiate directly with your creditors for relief and save yourself money as well as your good name.

3. Get a consolidation loan. Watch out as this means borrowing from the equity you have in your house [secured credit] to pay off debt that is unsecured. Do you really want to expose your most valuable asset in that way?

4. Debt settlement. Just because you owe $50,000 to creditors does not mean you absolutely must pay it all back. With the services of a company who would arbitrate on your behalf, you can get real debt relief without the stigma of bankruptcy. Yes, your credit would take a bit of a hit but it it isn’t the same as bankruptcy. You could then get out from under the remaining debt over a period of time.

5. Sit on it. In other words: do not do a thing. Sure, it is an appealing option for some but you cannot run and you cannot hide. Better to choose one of the first four options than this one!

Debt relief is possible, but it requires determination and research on your part. If you are using the services of another company to help you gain debt relief, make sure you read the small print and check out their references. Ultimately, your credit standing is in your hands. Do not trust it to those who are not actively working on your behalf.

Matt Keegan is The Article Writer who writes about topics from Aviation to Zoos. For samples of some of his work, please visit http://www.thearticlewriter.com

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Why would anyone accept a lease option, rent to own deal? Why would you, as a seller/investor look to find rent to own tenants? How can you use this technique to LOCK IN profits that are much greater than would be found in a straight sale?

Basically, the advantages depend on which of two end results occur: either the rent to own tenant completes on the property, or they don’t. You make money either way!

There are MANY people who have less than sterling credit, might not have a long time on the job, or not have a ton of money for down payment, closing, etc. Many people WANT to buy a house - and they expect their credit, job conditions, down payment amount to improve over time. They LOVE the idea of being able to buy NOW, on a rent to own basis. You can help these people out, and be paid handsomely for your efforts.

I’ll assume a $100,000 property, and you would offer $5-10,000 down, but be willing to take even less, even possibly take monthly payments for the down payment. Because of providing “easy credit”, you can increase the price by an amount of between 5 and 20%, depending on how long the rent to own period is, your local market, individual’s credit situation, etc.

Lets say you buy a property for $90,000 that is worth $100,000 in the open market, and is advertised at $110,000, with 5-10,000 down, and monthly payments of $750 over a 3 year period. Note that ALL of these numbers are variable - whatever works for YOU and your rent to own customer. You have LOCKED IN a profit of $20,000 in 3 years time, less mortgage pay down, with $750 a month to make any mortgage payments in the meantime. Use a mortgage table (it depends on the interest rate charged) but it wouldn’t be any more than $100 a month that the mortgage is reduced by. Total profit would be $20,000 less $3600 mortgage paid down, with $750 a month to offset any carrying costs, mortgage, etc - not a bad deal!

Should the tenant be unable to complete on the purchase at the end of the term, you can agree to renew the agreement for another period, with a higher purchase price.

That sounds like a very good set up for the vendor, but what if the rent to own tenant bails out on the agreement? The majority of rent to own agreements fail to complete, so this is a fairly likely occurence, but can be reduced by picking your tenants well.

In this case, you are left with the down payment of $5-10,000, payments that covered the mortgage and carrying costs for however long the tenant stayed for, and they probably took MUCH better care of the property than a normal tenant, as it was THEIR property!

You can simply advertise for another rent to own tenant, and collect another deposit, continue collecting rental amounts, and continue carrying the property at no cost to you.

You can carry a portfolio of properties with this method - there are virtually no maintenance requirements - its THEIR property, so THEY have to fix it, mow it, weed it, paint it, etc - and you can carry as many properties as you can get financing for, or even “buy” under a rent to own, lease option type of agreement and then rent out to other tenants at a higher purchase price!

The options are endless - and it doesn’t take a lot of ads to find a TON of willing rent to own tenants! You can set up the deals however you wish, and you can “give them a good deal” by reducing the deposit requirements, or extending the term - you win either way!

Andrew Larder Creative Real Estate

To receive free info on no or low money down real estate investing, send a blank email to: monopolyinvestments@getresponse.com

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