Welcome to Home Mortgages
Home Refinancing Article
This is a selection made from among articles on Home Refinancing. For a permanent link to this article, or to bookmark it for future reading, click here.
from:
Self Certifed Mortgages on the Increase
By Nick Riviera
Self certified mortgages are for people who are unable verify their income by producing a series of wage slips. For such people income may come from a variety of sources, or it may be that they, as self-employed, have not been trading long enough to have accounts for the required period. Another possibility is that they may have a low basic salary and achieve high income through commission, bonuses, dividends or a second income.
Self certification covers a wide range of people and the trend is increasing. The self certification mortgage market is currently booming.
Market research organisation Datamonitor report that around 55% of self certified customers are self-employed, and another 34% are contract workers, seasonal workers and agency staff. That makes 89% of people in the self-certified market who fall outside the traditional employed status due to the way they work or earn their income.
The report also suggests that around 13% of the workforce in the UK is self-employed, and that number was nearly 3.8 million at the end of 2006. This is the highest number of self-employed people ever known in the UK, and the trend is growing.
There are a number of reasons for this trend. Although the number of redundancies in the UK is on the decrease the total was still over 500,000 last year. The problem is that re-employment rates are running at 35-45%, and older workers particularly find it difficult to get new jobs, meaning that there are a lot of people looking at ways to earn income for themselves, and they start their own businesses.
Once in the self-employed bracket, most people don't return to being employed. A Self-Employed Index was recently introduced which suggests from research that the mood among UK's business owners is buoyant, with 60% feeling confident about business prospects for the next six months. Another third were said to be very confident about the same period. The number expecting increased turnover for the next twelve months was 47%.
The number of self certified borrowers is also influenced by people multiple jobs. The rise of house prices, the increase in mortgage rates, creeping inflation are all factors that mean that some workers are now holding two or even three jobs just to make up the income they need. For these people, proof of income can be awkward.
There are a number of others who make up the rest of the self certification marketplace. There are those on low basic salaries, but who earn large bonuses at different times throughout the year; directors who wish to keep their financial affairs private; high net worth individuals with complex income streams, for example, property developers.
This wide and varied group of people all have one thing in common: they have more complicated streams of income than someone paid a regular, sufficient salary. They cannot always be catered for by mainstream lenders. Mortgage brokers or advisors can usually help.
It is likely that this pattern of work will continue to develop, and the demand for self certified mortgages will increase further. As the market continues to increase, so will the range of products available to consumers.
An author on a variety of property related subjects, which include mortgage rate reviews and detailed analysis of the role mortgage brokers provide in the current climate.
Article Source: http://EzineArticles.com/?expert=Nick_Riviera
http://EzineArticles.com/?Self-Certifed-Mortgages-on-the-Increase&id=884799
Home Refinancing Specific links
Blinkx Video Search
- World's largest video search engine. Over 26 million hours of video.
-- http://www.blinkx.com/
Watch Free Videos At Mevio!
- Tons of Free Videos, Only At Mevio.com
-- http://www.mevio.com/
Free Tech and Gadget Reviews!
- Watch GeekBrief With Cali Lewis on Mevio!
-- http://www.geekbrief.mevio.com/
Discover New Music
- Music Fans Discover, Enjoy & Reward The Best New Bands. Join Today.
-- http://www.ourstage.com/
A Mood Booster to Combat The Credit Crunch
- Forget about the credit crunch for a little while and be just mildly entertained for a few minutes...
-- http://www.kontraband.com/
Home Refinancing News
Mortgage Applications Surge On Low Rates - All Headline News
Washington, DC (AHN) - Mortgage applications surged for the week ending Nov. 28 as rates for home loans made their biggest weekly drop on record due to the latest government lending and mortgage asset buying programs. The Mortgage Bankers Association ...
Read more...Mortgage-rate drop may spur home purchases, refinancing - AZCentral.com
Valley residents waiting for the right time to buy a home or refinance their mortgage received a nice holiday gift from the federal government this week. The Federal Reserve's announcement Tuesday that it would spend $600 billion to buy up mortgage ...
Read more...Bernanke Says Government Must Step Up Efforts on Foreclosures - Bloomberg
Dec. 4 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke said the U.S. government must step up efforts to prevent home foreclosures, with options including buying delinquent mortgages and providing bigger incentives for refinancing loans. The ...
Read more...U.S. Consumer Loan Aid Will Only Trickle So Far - Free Internet Press
If you’re buying a home, refinancing a mortgage or seeking an auto or student loan, the new government plans to make borrowing cheaper and easier sound like a gift. One problem, however, is that whole categories of people may be ineligible. If you ...
Read more...Push state Senate to act against foreclosures - Detroit Free Press
Being forcibly removed from a home is one of the most stressful and devastating events a family can experience. This is happening all too often in Michigan, as predatory home loans have jeopardized entire communities and seriously damaged our state's ...
Read more...Treasury weighs plan to rescue housing sector: report - Raw Story
The US Treasury Department is considering a plan designed to push down interest rates for home loans in a bid to revive the country's troubled housing sector, newspapers reported Thursday. Both the Wall Street Journal and the Washington Post reported ...
Read more...Europe’s Central Banks Lower Interest Rates to Fight Recession - Bloomberg
Dec. 4 (Bloomberg) -- Europe’s central banks cut interest rates as policy makers stepped up their response to the credit crisis that has pushed the region into a recession. The European Central Bank delivered a 75 basis-point reduction in its main ...
Read more...Mortgage rate drop spurs rush to lenders for refinancing - Detroit Free Press
A sharp plunge in U.S. mortgage rates prompted a rush to refinance, resulting in record-setting business Tuesday at Livonia-based Quicken Loans and big days for other lenders. Following government efforts to unfreeze consumer credit, U.S. mortgage ...
Read more...4.5-percent mortgages? Feds mull it over - WPVI
WASHINGTON - December 4, 2008 -- The Treasury Department is developing a plan to try to reduce mortgage rates on home loans to 4.5 percent on typical mortgages by expanding its purchases of mortgage backed securities, sources familiar with the plan ...
Read more...Treasury weighs action on mortgage rates - MSNBC
The Treasury Department is strongly considering a plan to intervene directly in the mortgage industry to dramatically force down rates and stimulate the moribund housing market, according to sources familiar with the proposal. Under the initiative ...
Read more...