Making Money from Property

For those of you who are a bit stuck and wondering how to make your finances work for you and how you might become financially free, Miki and I highly recommend the Tigrent courses. Both Miki and I took Tigrent courses and they gave us the tools and confidence to start building a property portfolio and also introduced us to a network of people interested in becoming financially free.

If you feel you cannot get on that first rung of the ladder, try one of Tigrent’s introductory sessions. They’re free!

Their latest seminar is Make Money From Property with Auction Guru & TV Show Host Martin Roberts
Sign up for a two hour free seminar to find out how you can become a successful property investor!


How to find the best first time buyer’s mortgage

The time has come for you to buy a house, but for a first time buyer, the housing market can be frightening
and confusing. Unethical lenders may try to ensnare you with high interest rates and a loan that will have
you paying for years. Many houses are priced out of the range affordable by first time buyers. The market
for mortgage loans fluctuates every year, the interest rates and deals always changing. All these things make finding a good deal on a house difficult.

A first time buyer should consider a number of factors before going to purchase a property, such as:

  •  how much they will be permitted to borrow
  •  how much they can afford to pay per month
  •  the initial cash outlay for fees and deposit
  • what kind of mortgage they ought to use.

A mortgage broker, who will act as an intermediary to find you the right mortgage, can help immensely to ease this process.

Mortgages for the first time buyer in the UK

There are many different types of mortgages that can be chosen for a first time buyer. These include :

  • the fixed rate mortgage – with an unvarying interest rate over the life of the loan
  • the adjustable rate mortgage  – where the interest rate is periodically adjusted based on a index
  • the interest-only loan – where for a period of time, the buyer pays only the interest on the loan, then must begin making payments
    on the principal capital loan.

These last two types can be tempting to the first time buyer with little income, but can result in more money paid out over the lifetime of the mortgage. An adjustable rate mortgage can be the
better deal if interest rates continue to fall, but worse if they rise. Interest only loans permit a buyer who will be in better financial shape in a few years to get a foothold in the housing market. The downside is
that the principal will be untouched for those years.

 

 

How much to mortgage?

It can be dangerous to borrow too much money to buy a house especially if you are a first time buyer. In
the current climate 100% mortgages are actually no longer available. This is not necessarily a bad thing.
The problem with having a 100% mortgage is there will be no equity in your property and if house prices
dip you could end up in negative equity.

Negative equity is when your mortgage is worth more than your house: this is a huge danger. Many first time buyers consider only the monthly payment when they sign
up for a mortgage. It also is important to look closely at the full amount you will be paying, and the length
of time it will take to repay.

Some kind of deposit is normally required.  You will now need to have at least 5% of the purchase price as a deposit. If you have 10% or more, you can secure a better deal on your
mortgage rate.

Compare mortgage rates at these sites. www.MoneySupermarket.com and www.uSwitch.com

First time buyer rate

Some mortgages may offer first time buyers preferential rates. But this isn’t always the case ,so make
sure you shop around and definitely go to a mortgage broker who will sometimes have better deals
available to them than the high street and internet comparison sites.

 

7 Ways To Improve Your Credit Rating

Improve Your Credit Tip 1. On The Record

How can I improve my credit? This is one of the first questions you might ask your self if you’d like to buy
a property in the future or if you’ve already applied and been knocked back.

If your credit checks aren’t coming up with all bells and whistles with banks and credit card companies,
you need to establish why. Your credit reference file should reveal all, it records all your borrowing
behaviour past and present. Your file can be ordered online for a small fee from the websites of the three
main credit reference agencies, which are Experian (www.experian.co.uk), Equifax (www.equifax.co.uk)
and Call Credit (www.callcredit.co.uk). There is also one main website where you can obtain a triple
credit report for under £20 which gives the information from all three credit report companies in one so
you can quickly and easily cross reference your records and check for any discrepancies or
inconstancies. www.CheckMyFile.com

It is important that all your credit reports have the same information for instance don’t have your name as
Mrs J N Smith and Miss J Smith at the other. This lowers your credit score.

 

Improve Your Credit Tip 2. Decide To Take Action

Do you think it’s really worth going through all that trouble to improve your credit score?
Moneysupermarket.com, the price comparison website, offers a “smart search” service. Go ahead and try
it here. Potential borrowers are able to search for the best deals available according to their
creditworthiness. Those with a poor credit history can expect to pay rates of at least 12 per cent for an
unsecured personal loan — more than double the price of the best deals. So yes I’d say it’s worth it. So
take action an write to the credit reference agency if they have any of your details down wrong and ask
them to amend them.

Improve Your Credit Tip 3. Beware Of Credit Repair

Credit repair companies advertise a service that purports to be able to clean up your credit file. But these
companies sometimes offer shoddy advice and charge a fee for information that can be obtained for a
modest sum from credit reference agencies and debt counselling services.

Improve Your Credit Tip 4. Borrow To Build Credit

If you are invisible to credit agencies, your credit record will not be spotless. With no history of credit there
is no way of telling whether you are credit worthy or not. It could be worth taking out a credit card. Using
the card wisely, without incurring charges or penalties, will help you to rebuild your creditworthiness. But
you must be disciplined or it will have the opposite affect!

Improve Your Credit Tip 5. Store Cards

In order to improve your credit as we’ve mentioned above, you should have some borrowings. In most
situations store cards are a no no. Interest rates can be as high as 30 per cent. But, again, if you pay off
the balance each month, simply owning a store card and using it will help to rebuild your credit rating.

Improve Your Credit Tip 6. On A Roll

 

Lenders and credit reference agencies want to know where you live, so make sure that you register your
details on the electoral roll. Contact your local council to get yourself registered.

Improve Your Credit Tip 7. Mobile Credit

When you take out a 12-24month contract with a mobile phone company, you are signing up to a
consumer credit contract. Keep up with the monthly payments a

From tenant to owner

 We have partnered up with estate agents, property finders and first time buyer vendors all over the UK to offer you the First Time Buyer exclusive property deals. Otherwise unavailable to the public.

 

These deals have been sourced from what we call “motivated sellers” these are property owners who are so keen to sell their property they are willing to offer a discount.