July 2018 - First 4 Commercial
27Jul2018

How to Choose a Mortgage Broker

When securing a mortgage finding the best deal could potentially save hundreds towards your monthly payments. A mortgage broker can get a fantastic deal for a mortgage and help save thousands, so it’s often a worthwhile investment, providing you choose the best broker to secure your mortgage!

Here’s some tips for how to choose the best mortgage broker:

Do your research

You can find a great mortgage broker online with a bit of research, so be sure to start here to check for potential candidates. Search for ‘mortgage broker near me’ in Google to a find a nearby practice, as this is the best bet for finding a broker than knows your local market, which is important for getting a good deal.

Are they paid by commission?

You can either do this during the research phase or simply contact them directly to find out their fees. Most brokers are paid by commission of the loan amount by the lender, typically 0.35% of the transaction value, but this won’t impact the overall fee of your mortgage.

Do they charge a fee?

There is also change that the broker will charge a flat free on top of the commission, although some charge a fee and waver the commission entirely, while some let you choose between both. Never go with a broker charging more than 1% and consider if their rates could pay for themselves in the money they could save on your mortgage

Qualfications

Always ensure the broker is suitably qualified! Not all come with the same level of qualifications, and some don’t even have any, so always look for a qualified broker as they are more likely to provide the best service possible.

20Jul2018

What Does a Mortgage Broker Do?

Applying for a mortgage is never an easy process. Whether a first-time buyer or applying for refinancing, mortgage applications are a long, complex process that can leave you tearing your hair out for weeks on end.

Yet there are ways to avoid the stresses of mortgage application, such as a hiring a mortgage broker. An expert in mortgages, a broker offers a range of services that makes the application process far easier, such as searching for deals, contacting lenders, and negotiating rates and fees.

Here are some of the services available from a mortgage broker:

Free Mortgage Advice

Mortgage brokers offer a wide range of advice regarding a mortgage, much of which is completely free of charge. For instance, if you have yet to apply for a mortgage you can still receive free advice from a broker before hiring their services.

Because some brokers get their final fees as a commission from a mortgage lender after the loan is fully processed, it’s possible to get free mortgage advice from many reputable brokers.

Mortgage Application

One of the main services of a mortgage broker is loan application. After a broker recommends certain mortgages, they then make applications for said loans on the borrower’s behalf. This includes the various paperwork required for an application, as well as speaking with lenders on your behalf on the various aspects of the application.

Mortgage Negotiation

Applying for a mortgage is only half the work of a broker – they also negotiate most of the loan deal. This ranges from getting the best terms possible on the mortgage to helping waver fees for certain aspects of the loan. As they are well connected with lenders and other industry insiders, a mortgage broker’s ability to negotiate a better mortgage is viewed as one of their strongest assets.

12Jul2018

Things to Know About a Business

Anyone looking for a business loan has likely been told about the difficulties of securing this type of credit. Due to the high risk for a lender, most business loan applications are rejected, leading to the belief that it is almost impossible to get this type loan.

Despite this, there are many benefits of getting a business loan, and it’s often easier to get approved than many expect. Here are some useful things to know about a business loan!

A business loan is usually cheaper than a personal loan

On of the reasons that a business loan is tougher to get approved than a personal loan is that they are usually cheaper in the long term. Given the wide range of business loans available, it’s possible to get a loan with the right terms that make it far cheaper than getting a personal loan with a similar amount

A business loan can be better than using savings

Those that don’t receive approval for a business loan may use their savings to cover some of the expenses instead, but this is a risky move and one worth avoiding when possible.

Personal savings tied up in a business severely restricts what you can do with your money, espiecally if an emergency where to occur, be it personal or business related. Because borrowing rates are usually quite cheap for a business loan, it’s almost always better to use one as opposed to your savings.

You can get a business loan with bad credit

It’s a common misconception that you cannot get a business loan with bad credit, but if you prove to a lender you can make the repayments and they are confident in your ability to do so, it is more than possible to secure a business loan with bad credit.

6Jul2018

Advantages of Bridging Finance

Bridging finance is a type of short-term loan used to bridge the gap between two loans, typically when buying a new property before a current property has sold. A bridge loan is not always recommended due to the high interest of the loan, but when used correctly in specific circumstances it can be advantageous for the recipient.

Let’s take a closer look at some of the main advantages of bridging finance:

Short-Term Finance

Bridging finance is never long-term, so with a short-term loan there are often fewer risks, as you’re going to pay it in less than year in most instances. In fact, not many bridge loans last longer than year, so it can be paid off in a very short period, usually once your current property as sold or the finance from a mortgage as been cleared.

Fast Purchasing

One of the main benefits of bridge financing is making a fast purchase. Because a bridging loan is cleared very quickly, it allows buyers to purchase a property they may not have been able to because they are still waiting to sell their home or for their mortgage to process, so can avoid possibly losing out on the chance of buying a dream home.

Flexibility

Most types of bridging finance are very flexible, allowing the borrower to pay of the loan in a way that best suits them. This can be in the shape of monthly instalments or paying off most of the loan once the appropriate finances have been acquired.

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