Finance forum: Mortgage loan

A mortgage loan is a loan agreement for purchasing real property. The mortgage on the property serves as collateral. In the contract, the person defined as the “lender” undertakes to give the “borrower” an amount, provided that the latter repays it under certain conditions. The repayment is usually made in installments consisting of repayment and interest. The interest rate can be fixed or variable based on the contract.

Are banks the new landlord?

Posted on 06.04.2021

New Zealand’s government recently announced that its housing market had gone past the boom stage and was now in bubble territory, endangering the economic well-being of the country. During the last year, property prices rose 23%, putting properties far beyond the reach of buyers, especially young and first-time buyers. Other countries have experienced a similar rise in property prices, especially in the developed world. In Australia for instance, prices went up by 2.8% during the month of ...

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Holding an unused help-to-buy ISA? Here are your options

Posted on 05.04.2021

The UK government offered its public help-to-buy ISA accounts with the added benefit of a free cash contribution towards buying their first house. Since the accounts did not have any strict initial deposit requirements, many people signed up. However, it’s now becoming clear that the number of unused help-to-buy accounts - accounts where people never deposited any money - could be very high. The revelation was made by the Nationwide building society, which claimed that most of the help-to- ...

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Solving the UK’s housing crisis

Posted on 31.03.2021

 Earlier this month, Rishi Sunak, Chancellor of the Exchequer, announced his budget where he added a mortgage guarantee scheme aimed at helping first-time home buyers. Under the scheme, banks would offer mortgages up to 95% of the property value. The government promised to back these loans by covering certain risks. Boris Johnson said the time had come to incentivize the newer generations to invest in property. The issue with these plans is that they don’t help solve the real hou ...

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What is the Habito One 40-year fixed mortgage?

Posted on 11.03.2021

Broker Habito recently announced it will be launching a new 40-year fixed mortgage. Some say that thanks to the new mortgage, people may never have to search for mortgage deals again. The new deal is set to launch on Monday, the 15th of March. Benefits for the public The biggest benefit of this scheme is that it will give the public some peace of mind. Prospective homeowners will have more certainty and will be protected from future rises in interest rates. At the same time, they will have the ...

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UK Mortgage Approvals Ease as Tax Relief Approaches

Posted on 03.03.2021

Building societies and banks in the UK approved 98,994 loans during the month of January. The number was down from 102,809 approved loans the month before that. As the pandemic-induced lockdown continues and people do not have the same opportunities to spend their money as before, they continue using the opportunity to pay down debts. Stamp duty holiday The real estate market in Britain currently enjoys the stamp duty holiday, a scheme that helped prop up the market when the pandemic first hit ...

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