Mortgage matters – buying a home, have you got everything in order?

May 08

Securing a mortgage can be tough, and if the papers are to be believed it is about to become even more challenging. A great credit history can be pivotal to arranging the help that you require, but even some of those with exceptional ratings have struggled to convince lenders to support them in the past. The irresponsible lending that contributed to the global economic crash has led to a significant tightening of mortgage rules, so how can you get everything in place for a successful mortgage application? You’ll find detailed information about applications at Experian Mortgage Matters but here is the rundown:

Dependable proof of income

Proof of income is essential in mortgage applications, and if you are employed it’s a wise idea to wait until you have been at your workplace for at least twelve months before you start to seek funding. If you have recently been given a raise make sure to get it in writing either on the contract or on an official letter from your employer to prove the increase on your payslip is not a one-off. Those who are self-employed are regularly advised to supply at least three years’ worth of accounts before proceeding.

In summary, the more cash you have coming in per month the more you can borrow. A higher income can also decrease how much deposit you need to put in as you would be able to afford higher repayments.

Clearing debts beforehand

Obtaining a copy of your credit report is also essential as many people have been turned down due to reports that say you have troubles with debt. You can ask for something to be amended if it shouldn’t be there, thus improving your score and heightening your chances of acceptance.

You will also have to supply a detailed breakdown of your monthly expenditure as well as information about existing debts too. Expect to find it tougher to get lenders to cooperate if you have a lot of outgoing expenditures. If you do have balances on credit cards, it’s wise to clear them as much as you realistically can before approaching a lender in order to enhance your credit rating.

The property’s condition

Affordability is about to become more important than ever, but you shouldn’t be swayed purely by a low price tag. You’ll have to think about the chances of the property’s value falling into negative equity based on the area that the property is in as well as its condition. Enlisting the help of a building surveyor to verify the condition of any home you’re interested in before you move forward. Should a house require renovations then it is important to negotiate a lower price with the property seller.

Cheaper houses usually need extensive renovation works. If you’re lucky then it is just a few rooms needing modern renovation like electric work or retiling. More significant repairs such as foundation crack repair, rotated wall repointing, and fire damage repair may prove to be troublesome for mortgage lenders. Mortage institutions want to be able to sell your home and get their money back should you be unable to keep up with repayments. They will be very unwilling to put a lot of money into a property that is falling apart unless you have a significant deposit, high income, or concrete plans to fix the issues. You may be required to take out building insurance on the property to cover rebuild and repair costs.

In conclusion. There are many factors that could affect what lenders are willing to offer. It’s a good idea to tighten your wallet during the months leading up to a mortgage application to demonstrate good financial etiquette. It’s predicted that the new changes will result in fewer mortgages being offered, so putting a good case forward has never been more important.

It’s a good move to shop around to get the best solicitor that you can afford. They’ll be dealing with all manner of paperwork and other legalities on your behalf once you are ready to make an offer on a home.

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How to save on your Business Electrical Bills

May 03

Undoubtedly it is the desire of every small business owner to maximize profits and minimize costs. There are many ways you can do this and a good example is by installing a half hour electricity billing system. If, like most people, you have no idea what this is, don’t worry because that’s exactly what this post is all about.

What are they?
Half hour electricity meters are not very different from smart meters. Just as the name suggests, they are designed to monitor the amount of electrical power consumed every 30 minutes and thereafter relay a report to the supplier by means of a landline. Due to this, the bills received every end of the month will be a true reflection of what’s happening on the ground. Half hour electricity billing can help improve energy efficiency in your business since it allows you to see the rate of consumption at different times of the day.  For a bit more background this is quite a useful site:

Who should use them?
Any company or business that consumes in excess of 100kiloWatts every thirty minutes is required by law to use a half hour meter system. In other words if you fall in this category, you really have no option. On the other hand, if your rate of consumption is in the area of 70 kilowatts then you can either choose to use this system or not.

Am I already using a half-hour meter?
You can determine whether or not the meter installed in your business uses the half hour system by checking your electricity bill. Basically what you will be looking for is the “S” number; if it is 00 then you are using a half hour meter system. If the number is 05, 06, 07 or 08 then you MAY have a half hour meter system and so to be 100% sure, you will have to confirm with your provider.

The difference
Because the supplier is able to get the most current data, the estimated and projected values on a half hour meter will be quite different from those found on a regular meter. As mentioned, the readings will be very accurate and so you will only pay for what you consume, not more.

Switching tariffs
Switching tariffs with half hour meters can be a tricky undertaking because of the modus operandi in the power industry. Be that as it may, it is possible to save some money by enlisting the services of an energy broker who knows how things in the industry work and also how to deal with the various service providers.

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