Raising a deposit for your first home. Page 2

By Melinda Varley

An unsecured loan can vary in both size and the terms of the monthly repayments, depending on the purpose of the loan. It is a debt that is not secured against an asset or equity.

With any loan, it is important that you use the Annual Percentage Rate (APR) to

Interest Only Home Loans: An introduction to the workings of an interest only mortgage.
Rate Tarts No Longer Welcomed By Mortgage And Credit Card Providers: Mortgage lenders are taking steps to reduce the number of people switching their mortgages. This article looks at the situation.
Foreign Currency Mortgages. What are they and what are the risks?: Foreign currency mortgages could save you a lot of money but the risks are high. This article explains.
Mortgages and Loans. Islamic finance avoids interest.: Muslims are forbidden by the teachings of the Koran to pay interest. This means that conventional mortgages and loans cannot be used. This article explains the alternatives available for Muslims and defines some of the words used in Islamic finance.
Loans. Mortgages. Credit cards. Interest rate rises around the corner.: The financial institutions are expecting interest rates to rise. When and what's expected?
Mortgages. The return of the Mega-Mortgage.: All of a sudden, mortgage lenders love mortgages over £500,000. Great if you can afford them.

Life Insurance News

compare the true cost of borrowing, as this will factor in fees that might not be included in the 'headline' rate.

A company may quote 'typical rates', which means that the terms apply to any applicant, but the exact rate offered to you will depend on your personal circumstances.

If you have a poor credit history you may find it difficult to obtain a loan and if you are offered one, the interest rates may be higher than usual.

There may be many routes available for you even if you find yourself without a deposit and more and more lenders are launching mortgages specifically designed to help out first-time buyers. The possibilities are:

Graduate mortgages
Professional mortgages
Guarantor mortgages
Joint mortgages with your parents
High loan-to-value mortgages
Mortgages for friends buying together
100% loan-to value (LTV) mortgages
Mortgages over 100% loan to value (LTV)
Offset mortgages with your parents
Shared ownership and equity mortgages

If you are seriously considering buying your first home it is important to research all your options and to really shop around for the best deal tailored to you and your circumstances.

Did you Know?
According to Land Registry figures, there has been a huge increase in the number homes sold for £1m plus. Despite what you'd expect, this hasn't caused the scramble for business you'd expect from lenders. Many of them are exercising caution when it comes to the well-heeled mortgage seeker. Surprisingly, the best deals go to the smaller borrower. It seem as if lenders would prefer to lend 10 borrowers £150,000 each rather than one loan of £1.5m, in order to spread the risk.

It is, however, beginning to get easier to get mortgage quotes for high value homes. Recent figures from the Land Registry show a massive increase in the sales of million pound plus properties.

Did you know?
Last year the average Contents Insurance premium rose by 2% to £151 and the average Buildings Insurance premium increased by 1% to just over £205. But within the market we've seen rises of as much as 6%.That's why if you want cheap home insurance , it pays to get a range of quotes off the Internet - and never accept the first quotation you get.

Today's Tip
Don't buy direct from a Life Insurance Company until you have received at least two life insurance quotes from a specialist life insurance broker. That way you're bound to get a great deal.

Did you know?
Last year the average Buildings Insurance premium went up by 1% to just over £205 and the average for Contents Insurance premium rose by 2% to £151. But within the overall market we've seen some much bigger rises - one insurer has pushed its premiums up by 6%. That's why is pays to get a range of home insurance quotes - and never accept the first you get.