11 Kasım 2007 Pazar

Mortgage Company

The term “mortgage” is often used in the same breath as a “mortgage loan.” A mortgage company can be defined as a company specializing in offering mortgage services such as free mortgage quotes, calculators and guides and unmatched customer services such as instant approval of mortgage loan applications. Mortgage is technically defined as a method of using personal or real property as a security for paying off a debt. A mortgage is generally secured against a commercial or residential property where the initial cost of the property is quite hard to bear. In this context, a mortgage loan is a loan obtained for acquiring a plot or residence. Mortgage loans are generally lower priced than other loans as value of the property reduces the risk for the loan provider. In other words, a mortgage loan is secured against the property intended to be bought on the part by the borrower. Mortgage properties usually entail certain restrictions on the use or disposal of the property such as paying any outstanding debt before selling the property. Investing in mortgage properties through loans has become the accepted practice in the developed countries such as the USA and UK. It is also the trend in India where you can avail of a high risk loan by securing your property thereby also getting lower interest rates.
Top Mortgage Companies
1st financial mortgage Fairfield Financial Mortgage Mortgage Broker Mortgage Lender GMAC MortgageNational City MortgageWells Fargo MortgageOption One Mortgage SunTrust Mortgage American Financial Mortgage Citi Financial Mortgage Lenox Financial Mortgage Liberty Financial Mortgage
Mortgage loans are structured as long term loans based on the formulae of time value of money. The loan amortization period or the rate of mortgages can be reduced by availing of mortgage refinancing options offered by all leading mortgage companies. Mortgage companies can offer both FRM (Fixed Rate Mortgage) and ARM (Adjusted Rate Mortgage) schemes to borrowers. While ARM means that the mortgage rates will not remain the same over the tenure of the loan, interest rates will usually remain stable in case of FRM. Besides, there are several mortgage companies offering loans which entail a bullet payment or a lump sum payment on the amount of the loan otherwise offering reasonable interest rates. Mortgage companies offer the best quality of customer services such as refinancing at a lower mortgage rate, getting a new home mortgage or a home equity loan or second mortgage. As previously mentioned mortgage companies offer a mortgage refinance calculator, which can calculate the refinance rate that you can avail depending on your past refinance circumstances, the property you want to buy and whether it has a good possibility of appreciating in value over time, its location and above all, your credit rating. Mortgage companies do not want to offer high risk borrowers loans even if they exhibit sufficient liquidity in recent times. The key features of mortgage companies can thus be summarized as debt consolidation service, home equity loans, latest mortgage quotes, real estate lending, new home loans and mortgage refinancing. Most importantly, free online loan application facilities giving instant approval can boost the popularity of the mortgage company a great deal. Some of the best known mortgage companies around the world including India are: Countrywide Financial CorporationAmeriquest Mortgage CompanyAvis Mortgage, Inc.CTX Mortgage CompanyICICI Lombard

Nationwide reduces fixed rates

24 October 2007
Nationwide Building Society has cut the price of some of its fixed rate mortgage deals to make them some of the most competitive rates available.
With effect from 26 October 2007, its five year fix will be charged at 5.63 per cent, with areduced fee of £499 for homebuyers and those re-mortgaging..
Nationwide is also cutting the rate on its 25 year fixed rate mortgage, which will now be available at 5.98 per cent, with a fee of £599
The five year fixed rate mortgage is lower than that of Halifax, Abbey and Alliance and Leicester and the 25 year fixed rate is also competitive. Recent volatility in the financial markets and uncertainty over the outlook for interest rates means that now may be a good time to consider taking a fixed rate mortgage
Matthew Carter, Nationwide divisional director for mortgages says: “We hope these new deals will appeal to the quarter of a million borrowers who are due to mature from two year fixed rate mortgages between October and December this year. The new rates should ease the pain of the rate shock these borrowers could experience as their current deals end, which had an industry average rate of just 4.56 per cent.”
All Nationwide fixed rate mortgages offer borrowers the additional flexibility to overpay, underpay and take payment holidays. They are also fully portable, so borrowers can take their mortgage with them if they decide to move to a new home during the fixed rate period. Borrowers who remortgage to Nationwide from another provider can also benefit from free legal assistance and valuations.

Mortgage Overview

In a mortgage deal borrower of the mortgage is called mortgagor, while the lender is called as mortgagee. Get an overview on the mortgage.
Home Mortgage
Mortgage Loan
Mortgage Rate
Mortgage Insurance
Second Mortgages
Mortgage Refinancing
Reverse Mortgage
Commercial Mortgage
Mortgage Quote
Mortgage Life Insurance
Mortgage Interest Rate
Debt Consolidation Mortgage
Fixed Rate Mortgage
Mortgage and Finance
Home Mortgage Finance
Mortgage Life Insurance
Reverse Mortgage Information

Mortgage Brokers World

Mortgage Brokers World play a significant role in the mortgage market of a country. The mortgage broker generally guides the borrower by providing complete information on the mortgage products available by various mortgage lenders. Generally mortgage brokers world are registered with the state or authority for smooth functioning.Find below complete list of mortgage brokers in various regions over the world:


World Wide Mortgage Brokers
Alabama Albany Annapolis Arizona Arkansas Atlanta Augusta Austin Baltimore Bismarck Boston California Chicago Colorado Connecticut Dallas Delaware
Denver Detroit Dover East Virginia Florida Frankfort Georgia Hartford Hawaii Helena Idaho Indiana Iowa Jackson Juneau Kansas Kentucky
Lansing Los Angeles Louisiana Maine Miami Michigan Minnesota Mississippi Missouri Montana Montgomery Nebraska Nevada New Jersey New Mexico New Orleans New York City
North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Philadelphia Prescott Raleigh Sacramento San Francisco South Carolina South Dakota Tallahassee Washington DcWashington Wyoming

Texas Mortgage

The market for mortgages in texas has grown very fast and has acted as a positive indicator for the state's economy. Neither the continuous increasing interest rate nor the global rising energy prices have succeeded in barring the market. According to the statistics, total 269,000 homes were sold by Texas Multiple Listing Services in 2005.
Texas Mortgage TypesDifferent loan types in the state include conventional and Governmental. The Conventional types of a loan are of conforming and non-conforming in nature. Conforming Loans Majority of the peoples in US use such types of loan. In case of such loans, the lender go through the guidelines like maximum loan amounts, respective down payment, both credit and income requirements etc.
Non-Conforming LoansSimply the loans not obeying the guidelines for the conforming loans are of non-conforming types. Here we use the Jumbo loan types, which is greater than the conforming loans.
Government LoansIn contrast to the conventional loan, the Government loan needs different qualifying criterion and loan limits. Both FHA and VA are the two popular types of loans.

Texas Mortgage Rates The rates on mortgages depend upon the types of the same. The following table clearly represents the rates on different mortgage types.
Fixed (Years)
Rates
10 Year Fixed
5.81%
15 Year Fixed
5.79%
20 Year Fixed
5.94%
30 Year Fixed
6.13%
Adjustable
Rates
1/1 Adjustable
3.63%
3/1 Adjustable
5.79%
5/1 Adjustable
6.00%
7/1 Adjustable
6.13%
10/1 Adjustable
6.21%

Texas Association of Mortgage Brokers The organization tries to increase the mortgage broker profession in the country by promoting education, ethics and consumer fairness. The mortgage brokers are the best persons in guiding for a perfect loan. They own a better hold in the field of:
Residential real estate finance
Mortgage lending process
Types of loan products
Knowledge upon variety of mortgages

Fees and charges

Lenders expect borrowers to pay higher fees and charges for adverse credit loans. Often you can roll these into the mortgage loan, although you will pay far more over time after the extra interest charges. Application fees, for example, can cost thousands compared to average application fees of £5-600 for a standard mortgage.
Another question to ask your mortgage adviser
Is my mortgage large enough to make it worth paying a higher fee?
If you plan to borrow over £82,000 it is probably worth paying a higher mortgage application fee to save money on a lower mortgage interest rate.
This is because the break-even point, or the size of your mortgage where neither the cost of the interest rate or upfront fee outweigh the other is £82,000, say mortgage adviser John Charcol. Put simply, if you take an £82,000 mortgage with a three year fixed rate deal over 25 years at an interest rate of 4.99 per cent, you pay £485 a month which is £17,460 over three years. Add the £495 arrangement fee and the total is £17.959.
The same amount on a rate of 5.29 per cent, with an arrangement fee of £499 costs just £5 more over three years.
Tie-ins
Watch out for loans with overhanging redemption penalties that lock you into the mortgage after the initial deal ends. Tie-ins cost borrowers thousands of pounds in penalty payments each year.
Mortgage deals with a low initial repayment may be tempting. But you can find yourself between a rock and a hard place if you lock yourself into a rate which leaps £300 a month after a year and the only way out is to pay a £4,000 penalty.
On a final note, be wary of mortgage advisers charging what feels like extortionate fees to arrange your mortgage.
Some advisers charge no fee at all for the same service, because in most cases, mortgage advisers receive payment from the mortgage lender for putting your business their way.
So always shop around before you commit to an adviser or a loan, no matter how desperate you are to sort out your finances.

Is an adverse credit loan worth it?

An adverse credit mortgage can help you achieve two things as long as you keep up the repayments. Firstly, you can stay in your home despite your credit difficulties. Secondly, these loans help you repair your credit status by proving you can stick to a credit arrangement, so mainstream lenders will consider you again.
Depending on the seriousness of your debts, some high street lenders may lend to you again after two years, but you need to prove you can keep up regular mortgage payments for the agreed term first.
Who?
Don’t worry if you have never heard of many of the adverse credit lenders suggested by your mortgage adviser. Lenders you have heard of like Britannia Building Society, Bank of Scotland or Yorkshire Building Society, for example, own many of these lenders offer specialist loans like buy-to-let or adverse credit under another brand name.
There are over 4,000 adverse credit mortgage loans out there, so make sure your adviser can access all the market to get you the best deal for your circumstances.
A good way to compare one deal against another is to use the Key Fact Illustration (KFI) for each mortgage loan listing each loan’s ‘key’ features.
Those features include interest rate, deposit size, length of mortgage term and the rate you revert to after the initial deal has finished, plus any fees and extra charges you need to pay.Weblinks: www.standardlife.com www.thecheshire.co.uk

How do I find a mortgage adviser?

A selection of mortgage advisers or ‘find an adviser’ websites
www.unbiased.co.uk
www.moneypilot.co.uk
www.purely.co.uk
www.lcplc.co.uk
Warning!
It’s important to find a mortgage adviser you trust offering a professional, transparent service. Any extra costs or charges should be discussed upfront, certainly not come as a shock after the deal has already been done.
The adverse credit sector used to attract a bad element of profiteering advisers who targeted desperate customers and overcharged them for an unprofessional limited service. But since mortgages became regulated by the FSA in November 2004, it’s easier to shop around to find excellent specialist advice, sometimes from a mainstream mortgage adviser.
Since mortgage regulation in November 2004, all advisers have to offer you an Initial Disclosure Document (IDD), which tells you who they are, how much they charge and the services they offer. Now, you know whom you are dealing with before you disclose your circumstances. If the firm isn’t keen to reveal much about themselves, walk away.
Questions to ask your adviser
Do you offer mortgages and insurance from all mortgage lenders in the market or a limited selection?- the better the choice on offer the better your chances of finding a competitive deal
Do you charge fees? If so is it a flat fee or a percentage of the amount borrowed?- Paying a flat fee is usually far cheaper than paying a percentage of the mortgage loan i.e. 2 % of £100,000 is £2,000 compared with an average flat fee of £2-300
If you found the adviser over the Internet, make sure a head office address is listed on the home page and the firm is registered by the FSA. Check the firm is registered on the Financial Services Authority website at www.fsa.gov.uk by clicking on the Firm Check button on the side panel of the home page.
Weblinks: www.standardlife.com www.thecheshire.co.uk

How do I apply for an adverse credit mortgage?

It’s hard to find in-depth information on adverse credit mortgages because you can only apply for a loan through an Independent Financial Adviser or a mortgage adviser.
Borrowers need to talk to an adviser before applying for these loans for several reasons. An adviser can explain how serious your credit problems are and make sure you only apply for loans from mortgage lenders who will consider your application.
A mortgage adviser can help you with mortgage paperwork and stop you getting more black marks on your credit file by applying to mortgage lenders that reject your application.
Sometimes an adverse credit borrower may also need a self-certification loan because he or she earns income from different sources. An adviser can help you sift through a different range of adverse credit self-cert mortgage loans. Your mortgage is probably the most expensive item you will ever buy, so it’s important to make the right choice.
A little extra help?
But many of these specialist lenders don’t deal directly with the public at all. So, it is difficult for borrowers with a poor credit record to shop around and compare rates and fees, for example, like a standard mortgage applicant.
Before you talk to a mortgage adviser, you could do some research. Magazines like What Mortgage, Your Mortgage and Mortgage Magazine all list the best value adverse credit mortgages at the back to give you an idea of the kinds of interest rates and fees you may pay.

Do you need an adverse credit mortgage

Check your credit status
Before you apply for a home loan, look up your credit record. You can order a report online, by telephone or request it by post from credit agencies Experian (www.Experian.co.uk) Equifax (www.Equifax.co.uk) or MycallCredit (mycallcredit.com)
A Statutory Credit Report costs £2 and is a good indication of your status, although all three agencies charge extra for more detailed information if you want regular updates or for early warning signs of credit fraud.
Mortgage lenders automatically check your credit history when you apply for a mortgage. If there is any incorrect information on your file, like a debt listed as unpaid when it has already been cleared, you can tell the credit agency to erase it.
Warning!
Importantly, don’t be tempted to apply for a mortgage to see if you get turned down. Each time a lender refuses you credit it shows up as a black mark on your record making it more likely other lenders will refuse you credit.
However, if your credit record is poor, the next thing to do is find out how serious it is and shop around for the best deal through a mortgage adviser.
Minor debt? – lenders who may consider you
Abbey
Birmingham Midshires
Bristol & West
Irish Permanent
Hanley Economic BS
Leeds BS
Nationwide BS
Principality BS
Stroud & Swindon BS
The One Account
Yorkshire BSWeblinks: www.standardlife.com www.thecheshire.co.uk

What are CCJs and IVAs?

CCJs
If an unpaid creditor decides to take action against you this can result in a County Court Judgement (CCJ). If you pay the debt, you avoid a court hearing. If you don’t, this will result in a private hearing court ‘judgement’ against you. This order is called a CCJ and will either be for the amount agreed between you and your creditor or, if you can’t agree, a payment set by the court. CCJs remain on your credit record for a period of time, even if you have settled the debt.
IVAs
Individual Voluntary Arrangements were established in the mid-eighties as a way for people or businesses in financial trouble to cut their debts but avoid bankruptcy.
IVAs are a legal contract between lenders and a borrower to pay back 30-50 per cent of their debts through an agreed monthly repayment over five years. Interest is frozen over the repayment period and as long as the debtor keeps up payments he or she is debt-free when the term is up. However, IVA holders have zero credit status and cannot apply for any credit during the term of the IVA.
To set up an IVA, 75 per cent of the creditors have to agree to the proposal put forward by the individual's IVA practitioner. The IVA company will look at a person's income and outgoings and calculate how much they can afford to pay each month. According to accountant PricewaterhouseCoopers, an IVA application is made every seven minutes.

Wrestling with debt

How people get into debt

Hiccups in life like unexpected unemployment, illness or a relationship breakdown are common triggers for spiralling debt problems. For others, no matter how relatively wealthy, simple disorganisation can lead to missed payments on utility bills or forgetting to pay back a student loan. As a result, mortgage applicants are increasingly finding a bad history can bar their way to a first home or a remortgage on the home they already own.
If debts get unmanageable, homeowners can use their mortgage to consolidate debts like credit cards, store cards or loans. Mortgage interest rates are low compared to the rates on loans or credit cards. So, it can make financial sense for mortgage borrowers to cut costs by remortgaging or by borrowing an extra lump sum from their current standard lender called a further advance.
But for those who have already missed a mortgage or other debt repayment, your current lender may not be able to help.
So to keep your home, an adverse credit mortgage lender may be your only option.

What is an adverse credit mortgage?

Adverse credit mortgages are for borrowers with a poor credit status.
Few people check their credit record on a regular basis, so they don’t know that any missed repayments, say, from a mobile phone or even a mortgage payment may have left a black mark on their credit record. The fact is few high street lenders consider mortgage applicants with a problematic credit history.
Some standard mortgage lenders are willing to lend to applicants with relatively minor debt problems, for example, a £200 settled County Court Judgement.
But because mortgage lenders see mortgage applicants with serious past credit problems as a bigger risk than a borrower with a clean credit record, adverse credit mortgage loans are more expensive and offer less flexible terms.
For example:
Those with say, six unsatisfied County Court Judgements (CCJs) or missed mortgage payments may need a larger deposit and usually, the worse the credit history, the higher the interest rate and fees they will have to pay for a home loan or remortgage. Weblinks: www.standardlife.com www.thecheshire.co.uk

Who needs an adverse credit mortgage?

Many people have experienced credit difficulties at one time or another. Estimates suggest one in the five people have been turned down for a mortgage in the UK as a direct result of debt.
Bad money management is partially to blame, but many mortgage lenders have also become more cautious over the applicants they are willing to lend to. Industry statistics suggest around 10 per cent of UK homeowners with a mortgage have an adverse status – also known as sub-prime or non-conforming - home loan.

Switzerland Mortgage

Introduction
Mortgage in Switzerland are mainly collateralized with the land upon which the housing is located. Here the owner has the chance of obtaining credit due to the value of the land. Here the lender acquires the right to use the land if the borrower is unable to meet his/her payments on mortgages. Generally on a bank's balance sheet, the mortgage loans appear in three separate asset line items which are as follows:
The current building credit account with mortgage collateral,
The fixed loan account with indirect mortgage collateral and
The direct mortgage account Overview On Swiss Mortgage Industry Though there is the presence of a very top international Banking structure in Switzerland, still the potential of the mortgage industry is not marked in a larger extent. The following points are the reasons behind such happenings.
The highest per capita mortgage indebtedness in the world
Interest rates which almost never fluctuate more than two or three percent and
The highest withholding tax rate in any country. However the mortgage industry in Switzerland functions in a different environment from its American counterpart and it is nonetheless parallel in many aspects and instructive in its idiosyncracies. Mortgage Business In Switzerland In Switzerland the political importance of the mortgage business is derived from the involvement of nearly all peoples whether it may be savers or tenants. In case of both the categories, the level of the mortgage rate is decisive for interest and rental rates. It is the only country having the biggest savers in the world
Mortgage Rates In SwitzerlandThere is the presence of high per capita mortgage indebtedness in Switzerland. This has led to the mortgage rate being the leading interest rate indicator in Switzerland. This rate is lower currently. The reasons behind lower rates are the huge capital inflows into Switzerland and interest rate cartels by banks. The mortgage interest rate also has a great impact on the inflation rate in the country.It is seen that there is a direct link between the price of agriculture produce and rental rates on the one hand and mortgage rates on the other.Rising interest rates in the country has pushed up rental rates. Keeping in view the above discussions it is very clear that mortgage rate is not only a leading interest rate indicator in Switzerland, but is also a major political one.

UK Mortgage

UK Mortgage : The mortgage market of UK is one of the most sophisticated mortgage markets in the world. The UK mortgage market offers a choice of around 4,000 products to customers. It is one of the most competitive where there is a growing need for lenders to devise winning strategies. However in such types of markets innovation is proved to be one of the determining factor in differentiating the winners and losers in the future. Market of UK mortgage is a top most innovative and competitive market in the world. The Mortgage market of UK differs in comparison to the other countries in the ground thatthere is no intervention in the market by the state or state funded entities. Due to the poorer economic conditions, the mortgage market in UK has contracted more in 2005 than predicted before. There was a general slowdown in the total secured lending mortgage market for the year 2004.The progression of the buy-to-let mortgage market in terms of market share from 2003 to 2004 was the lowest observed (0.6 percentage point compared to 1.3 percentage points in the previous period. Making a better customer relationships Lloyds TSB gained market share in 2004 and moved into second place in terms of gross advances. In contrast, Barclays was the only lender in the top ten to witness a decline in both its mortgage book and its new mortgage business in 2004.
Process Of Mortgage In UKIn the Mortgage market of UK, lenders usually charge a valuation fee, which pays for a chartered surveyor to visit the property and ensure it is worth enough to cover the mortgage amount.Such type of survey is not a full survey .That is why it may not identify all the defects that a house buyer needs to know about.Even it does not form a contract between the surveyor and the buyer.
Mortgage Lending In UK PresentlyAccording to the figures from the Major British Banking Groups net mortgage lending in November-2005 rose by an underlying £5.1bn; the strongest rise since July 2004. It is much higher than both October's rise of +£4.3bn and the average of +£4.4bn over the previous six months .A lower growth is being marked in overall unsecured personal lending. Both loans & overdrafts have risen by just £0.1bn, on the recent average (£0.4bn).
BBA director of statistics, David Dooks have said that,”November’s above-average rise in mortgage lending has truely reflected the recent upturn in approvals and provides more evidence that the mortgage market bottomed out in the summer and is now being underpinned by steady demand”.
Some Mortgage Types In UKIn case of Repayment mortgages each monthly payment pays off a little of the underlying debt, as well as interest on the loans. After the completion of the term the mortgage is then cleared. In Case of the Endowment Mortgages an endowment policy is provided to life insurance and save funds to repay the loan at the end of the term (Generally 20-25 years). If the investment performs badly, then a shortfall is faced on your loan at the end of the repayment period. Individual Savings Account (ISA) mortgages work on the same principle as endowments, but an Individual Savings Account is used as the loan repayment method. If your investment performs badly you could face a shortfall at the end of the mortgage term. Pension mortgages are similar to both ISA and endowment mortgages, but work on the basis that pensions provide tax-free cash on retirement. After the end of the mortgage term the loan is paid out of your tax-free lump sum.
Interest Rates On Mortgages In UKThe interest rates on any mortgages are not different only the range of options offered differ. Variable rates– Here you have to pay the continuing rates on your loan. The mortgage rate changes every time interest rates change. Whatever may be the kind of mortgage you start with, it is likely to change to variable rates at some point of time Fixed rates– Here the interest rate is fixed for the period agreed - often two to five years Capped rates - These are fixed, but if rate falls you have to pay the lower rate. Such deals can be a good for budgeting. Cash back deals - This is when lenders offer money back if you take out a particular product. Discounted rates – In such type of mortgages the borrower is offered a discount off the lender's variable rate. The rate paid will fluctuate in line with changes in the variable rate.

Singapore Mortgage

The unique feature for mortgage particularly housing finance in Singapore is the role of the
mandatory saving scheme, Central Provident Fund (CPF). The home purchases in Singapore is mainly financed through the use of Central Provident Fund (CPF). This CPF was introduced in 1 July 1955 as the national funded pension scheme by the Colonial British Government. The relaxation of the CPF regulation has allowed residential property purchases in mid 1970s for public housing and early 1980s for private property. The total amount of withdrawals for housing has increased by about 14 fold in its peak in 1999 as compared to the year 1981. According to the Singapore Census 2000, the scheme has become very successful in promoting home ownership whereby 92% of the Singaporeans own a home.
Home Ownership In SingaporeSingapore’s home ownership is segmented into two types like private homeownership and public home ownership. Among them the public home ownership sector is the dominating sector accommodating 81.3 percent of total households from low income to upper middle income groups. The public housing system is strictly under the authority of the Housing Development Board (HDB), which covers duties such as housing production, housing management, housing finance and formulation of housing policies. The public home ownership sector is divided into three sub-sectors as follows
The public new housing sector.
The HDB resale market.
The HDB executive condominium market. In the new housing market, the dwellings are newly built and are sold at subsidized prices. The private owner-occupier housing market accommodates less than 10% of the total number of households. There is an indication of rising private housing stock, which increased from 14% in 1989 to 18.1% in 1999. The private sector receives comparatively less subsidies from the Government and thus is less regulated.

Financing System In SingaporeThere are mainly two types of financing systems in Singapore, which are as follows:
The HDB public finance sector
The commercial finance sector. HDB flats owners can enjoy the subsidized mortgage rates if they are eligible for the subsidized loans. The HDB can grant a subsidized loan to first time homebuyers and also to second time homebuyers who upgrade to another HDB flats. The private home owners and homeowners who do not qualify for the subsidized loan will, however, have to secure their financing from banks and financial institutions.

Asia Mortgage - Mortgage Market In Asia

Introduction To Mortgage Market In Asia
According to the World Development Indicators database 2005 - World Bank, Asia is the largest continent, which accommodates 61% of the world's population. Presently the countries like China, Indonesia, Malaysia, and Thailand are the developing regions and the fastest growing region according to the report of the World Bank. The significant progress over the Asian region has drawn the worldwide attention. Today 31% of the population in Asian countries resides in urban regions. This percentage is estimated to increase to more than 50% by 2030 (CIA World Fact book 2003-04). This truly depicts sharp focus on the issue of housing finance for low and middle-income families. The Asian Development Bank (ADB) also recognizes the issues surrounding housing finances. One of the key initiatives of ADB is to promote affordable housing for low and middle-income families. Mortgage Market Size In Asia Among the top mortgage markets in Asia, the size of China's mortgage market is considered as the largest in Asian region. The mortgage market is estimated at US$1670.7 billion (13,800 billion RMB) as of June 2004. Japan, being a developed country, has the second largest mortgage market among the selected Asian countries.But the size of the Chinese and Japanese mortgage markets are small in comparison with the US and UK mortgage markets. The mortgage market in China is relatively smaller compared to its population size and in comparison with the mortgage market in Hong Kong. Types, Terms and Conditions of Mortgages In Asia The most common types of mortgages in Asian countries are adjustable rate mortgages (ARMs) and fixed rate mortgages (FRMs). The typical origination requirements for mortgages show that the maximum loan to value ratio (LVR) ranges from 70% to 80%. Vietnam has a lower LVR of 50% while the LVR can be extended to 85% in India. The maximum mortgage term ranges from 20 years in India, Indonesia and South Korea to 30 years in China, Japan, Malaysia and Vietnam. The term can be extended to 32 years in Singapore. Banks impose a payment-to-income ratio in mortgage evaluation. The range is very wide, from as low as 33% for Indonesia to as high as 75% in Vietnam. The banking practice for Malaysia and Indonesia follows Islamic banking regulations. In Vietnam it is interesting that although the maximum LVR is only 50% (or at most 60% in some cases), the payment-to-income ratio is very high. The payment-to-income ratio for Singapore is relatively low 40%, but this does not include payment from compulsory pension-fund contributions. Mortgage Rates In AsiaThe interest rates for FRMs are usually higher than that for ARMs. The mortgage rate for Vietnam is the highest at 9.5% (India has the second highest rate of 8.5%) while Japan has a very low mortgage rate of 2.375%. The short-term rate in Vietnam is 4.80%. In contrast, the short-term rate for Japan is only 0.011%. The mortgage rate in Hong Kong is currently about 2.5%, which is lower than the prime-lending rate. Interestingly, the mortgage yield spread in Japan, South Korea and Singapore are higher compared to Hong Kong. Mortgage yield spread in Vietnam, India and Malaysia are relatively high at more than 3%. Countrywide Mortgage Market Performance
Mortgage Market In China The growth of the mortgage market in China can be better understood from its construction industry. By the end of 2003, the value of mortgage market in China has reached more than 1,2000 billion RMB (US$1,452.8 billion). In the end of June 2004, the total value of outstanding mortgages increased to 13,800 billion RMB (US$1,670.7 billion).

Mortgage Market In India Mortgage Financing industry, which is primarily known as the housing finance industry in India was estimated approximately at US $ 18 billion. A significant change in the structure of the mortgage industry is being marked in the recent years. Presently the banks are gaining market share in direct housing finance segment. From estimation it is found that the share of commercial banks in the direct housing finance segment has increased from 27% in FY 2000 to 57% in the FY 2003.

Mortgage Market In Japan Japan, being a developed country, has the second largest mortgage market among the selected Asian countries. Japan has a very low mortgage rate of 2.375%.
The mortgage market as percentage of Gross domestic product in Japan has reached at 40.3 %.

Mortgage Market In Hong Kong The mortgage market in Hong Kong is one of the most developed in Asia. According to the residential mortgage survey (which includes 23 authorized institutions) Nov-2005, the residential mortgage lending has slightly changed at HK$7.8 billion.

Mortgage Market In Vietnam Vietnam is a developing country and the mortgage market is very small as mortgage loans for homebuyers are not very common.

Mortgage Securitization In Asia Mortgage securitization in Asia has become the focus of attention after the Asian financial crisis. Excessive lending has been suggested as the contributing causes for the Asian financial crisis in 1997 by the International Monetary Fund (IMF) (Collyns and Senhadji 2000). The high exposure of commercial banks and finance companies to real estate related loans appears to be connected to the financial and currency market crises in these Asian countries in 1997. In Korea, the development of a secondary mortgage market has received the strong endorsement of the Korean government in the post crisis period. The Mortgage-Backed Securitization Company Act and the creation of the Korea Mortgage Corporation (KoMoCo) in 1999 have paved way for an active mortgage securitization market in Korea. The Japanese secondary mortgage market commenced in the same year as Korea facilitated largely by the introduction of the Law on the Securitization of Specified Assets by a Special Purpose Company (SPC) laws, enacted in 1998 and amended in 2000. Sanwa Bank originated the first Residential Mortgage Backed Securities (RMBS) of US$450 million in May 1999. Conclusion To Asian Mortgage Market Presently the mortgage markets in some of the Asian countries are growing very fast. From estimation it is seen that size of the mortgage market is still small compared to the other developed and developing nations over the Globe. The mortgage GDP ratio is very insignificant in the Asian nations.

Germany Mortgage

The financial services industry in Germany calls for a more closely integrated mortgage
credit markets in Europe. The German market for mortgage finance have reached a value of €31.2 billion (US$38.3 billion) in the year 2004. According to the statistics, the German market for mortgage finance has decreased by 10.1% since the year 2003. Presently a better stance is being marked in the mortgage market of German. So the market for mortgage finance is predicted to grow by 5.9% from 2004 to 2009 and will reach a value of €33 billion (US$40.7 billion). Mortgage Characteristics In Germany and Some Other Nations

Home Ownership Rate
Predominant Type Of New Mortgage
Amortization Period
Canada
66
Variable 40%Initial Fixed 60%
25
Finland
58
Variable 97%
15-20
Germany
42
Mostly Initial Fixed Or Fixed
28
Italy
80
Fixed 28%
10-15
Norway
77
Variable 90%
15-20
UK
70
Initial Fixed 28% Variable 72%
25
USA
69
Fixed 74%
30Mortgage Debt In Germany The ratio of residential mortgage debt to Gross national product (GNP) is somehow constant in Germany. The ratio of secured residential real estate debt to GNP fell slightly from 23 to 22 between 1983 to 1990. On the contrary the ratio of total residential to GNP fell slightly from 34 to 33 percent. The difference shows here the top of loans of Banks, advance funding of the Bauspar contracts and other types of unsecured loans for residential housing. Mortgage Banks In Germany The mortgage banks fund loans by issuing the mortgage bonds. The Government regulates the mortgage banks and the mortgage bond markets. The approved mortgage banks can only issue the mortgage bonds. Mortgage bank activity is restricted to lend residential and commercial property and to state and local Governments.In the end part of the 1990s communal loans accounted for 52 percent of outstanding loans, residential property loans accounted for 34 percent and commercial property lending accounted for 14 percent.
The mortgage banks also issue non-PFANDBRIEF mortgage bonds, which fund the mortgages that do not qualify for the PFANDBRIEF cover.For attracting the customers who perceives that the interest rates will fall further the mortgage banks offer one to two years fixed interest rate bridge loans with options to convert longer term, fixed interest rate loans. Mortgage Market Funding In GermanyDeposits: -Funds for housing come from deposits, contractual savings programs and the capital markets. Short-term deposits and current checking accounts continue to offer a stable, low cost source of funding for the banks. Whole Sale Funding: -Banks also fund the lending activities through issuance of the bank bonds. The mortgage banks provide direct capital market funding for the mortgages. Securitization: -Germany being one of the Europe's largest economy with approximately DM1.9 trillion of mortgages, thousands of banks, and some of the world's most powerful and sophisticated industrial and service corporations. It is one of the leading financial centres in Europe. A declining tendency was being marked in German's securitization market in terms of volumes in 2001: from a volume of Eur 7 billion in 2000 to approx Eur 5.5 billion in 2001. In the recent years a notional volume of some Eur 15.5 billion was hidden in synthetic deals in 2001. German bank KfW initiated two synthetic securitisation programs like Promise and Provide in 2001. Mortgage Bond Act In Germany The act came in to force in 19th July 2005. It aims at restructuring mortgage bond legislation. This law preserves and fosters the high quality of mortgage bonds. The power to issue mortgage bonds will be extended to all credit institutions, which comply with a certain minimum requirements to safeguard mortgage bond business. The Association of German Mortgage Banks (VDH Verband Deutscher Hypothekenbanken) The Association of German Mortgage Banks (VDH) comprises 18 private German mortgage banks. These specialized mortgage banks are major providers of loans to the public sector and capital for private residential and commercial properties. The total assets of some 1.3 trillion euros-equivalent to a 20% market share of Germany's banking industry-mortgage banks make up one of Germany's largest banking sectors.

UK Mortgage

UK Mortgage : The mortgage market of UK is one of the most sophisticated mortgage markets in the world.
The UK mortgage market offers a choice of around 4,000 products to customers. It is one of the most competitive where there is a growing need for lenders to devise winning strategies. However in such types of markets innovation is proved to be one of the determining factor in differentiating the winners and losers in the future. Market of UK mortgage is a top most innovative and competitive market in the world. The Mortgage market of UK differs in comparison to the other countries in the ground thatthere is no intervention in the market by the state or state funded entities. Due to the poorer economic conditions, the mortgage market in UK has contracted more in 2005 than predicted before. There was a general slowdown in the total secured lending mortgage market for the year 2004.The progression of the buy-to-let mortgage market in terms of market share from 2003 to 2004 was the lowest observed (0.6 percentage point compared to 1.3 percentage points in the previous period. Making a better customer relationships Lloyds TSB gained market share in 2004 and moved into second place in terms of gross advances. In contrast, Barclays was the only lender in the top ten to witness a decline in both its mortgage book and its new mortgage business in 2004.
Process Of Mortgage In UKIn the Mortgage market of UK, lenders usually charge a valuation fee, which pays for a chartered surveyor to visit the property and ensure it is worth enough to cover the mortgage amount.Such type of survey is not a full survey .That is why it may not identify all the defects that a house buyer needs to know about.Even it does not form a contract between the surveyor and the buyer.
Mortgage Lending In UK PresentlyAccording to the figures from the Major British Banking Groups net mortgage lending in November-2005 rose by an underlying £5.1bn; the strongest rise since July 2004. It is much higher than both October's rise of +£4.3bn and the average of +£4.4bn over the previous six months .A lower growth is being marked in overall unsecured personal lending. Both loans & overdrafts have risen by just £0.1bn, on the recent average (£0.4bn).
BBA director of statistics, David Dooks have said that,”November’s above-average rise in mortgage lending has truely reflected the recent upturn in approvals and provides more evidence that the mortgage market bottomed out in the summer and is now being underpinned by steady demand”.
Some Mortgage Types In UKIn case of Repayment mortgages each monthly payment pays off a little of the underlying debt, as well as interest on the loans. After the completion of the term the mortgage is then cleared. In Case of the Endowment Mortgages an endowment policy is provided to life insurance and save funds to repay the loan at the end of the term (Generally 20-25 years). If the investment performs badly, then a shortfall is faced on your loan at the end of the repayment period. Individual Savings Account (ISA) mortgages work on the same principle as endowments, but an Individual Savings Account is used as the loan repayment method. If your investment performs badly you could face a shortfall at the end of the mortgage term. Pension mortgages are similar to both ISA and endowment mortgages, but work on the basis that pensions provide tax-free cash on retirement. After the end of the mortgage term the loan is paid out of your tax-free lump sum.
Interest Rates On Mortgages In UKThe interest rates on any mortgages are not different only the range of options offered differ. Variable rates– Here you have to pay the continuing rates on your loan. The mortgage rate changes every time interest rates change. Whatever may be the kind of mortgage you start with, it is likely to change to variable rates at some point of time Fixed rates– Here the interest rate is fixed for the period agreed - often two to five years Capped rates - These are fixed, but if rate falls you have to pay the lower rate. Such deals can be a good for budgeting. Cash back deals - This is when lenders offer money back if you take out a particular product. Discounted rates – In such type of mortgages the borrower is offered a discount off the lender's variable rate. The rate paid will fluctuate in line with changes in the variable rate.

European Mortgage


According to the European Mortgage Federation’s statistical publication on
European Mortgage markets, Hypostat 2003 has revealed a strong growth in Europe’s mortgage markets. Though the GDP growth in European union area was of just 0.4% in the 2003 still the mortgage markets grew by 7.4%. At end 2003 the total value of residential mortgage debt outstanding in the EU15 was €4.24 trillion, equivalent to €11,200 worth of housing debt per capita.
Recent Stance Of European Mortgage Market
The following points highlight the recent trends of European Mortgage market.
The average rate of home ownership in the EU15 member countries is 64%.The lowest rate is in Germany (41%) and the highest rates in Spain and Greece(83%).
The average rate of growth of the residential mortgage market over the last 5 Years is 9% and 8% over the last 10 years.
The total value of residential and non-residential mortgage loans at the end of 2003 was approximately €5.1 trillion.
Germany and UK, the front line Players in European Mortgage Market
The top players in the mortgage market of Europe represent over half of all Europe’s outstanding mortgage debt had to face slower rates of growth at 1.2% and 4.4% respectively, compared to an EU average rate of growth of over 7%. Poorer macro-economic position in Germany has marked repercussions on its Housing and mortgage markets.The UK market has slowed down following a number of years of very rapid growth.
Over all picture of European Mortgage Market
Countries like German and UK with other European markets have faced a slower rate of growth in comparison to the southern countries where the housing debt is very less.
The Mortgage market in the countries like Latvia, Poland, Czech Republic and Hungary have experienced a phenomenal growth averaging in excess of 50% per annuam. Some old EU members have also faced strong growth due to rising home prices.
Countries like Greece, Spain, Italy, and Ireland have faced a mortgage market growth of
Around 25% during 2003.
Rising House Prices In European Market
There is an overall increase in the housing prices in EU areas in recent years by supporting to the consumption activity in the country. The strongest prices increase was felt in the countries likeLatvia, Portugal, Spain and the UK. However the higher house prices have fueled the demand of more mortgages.
The European Mortgage Federation
It is a European trade association, which plays a significant role in the credit sector.
It groups together financial institutions consisting of granting mortgage loans in the Member States of the European Union and Norway. This Federation was founded in 1967 and based in Brussels. The Federation has brought together private and public mortgage lenders, including universal/commercial banks, mortgage banks, savings banks, mutual &
co-operative banks, building societies, umbrella companies and insurance companies. Together they grant around 75% of residential and commercial mortgage loans in Europe.
The below graphs give a true picture of the Mortgage market of EU nations.Overview of European Residential Mortgage Markets, 2003

Sources : EMF, Mortgage Bankers of America, EUROSTAT, Federal Reserve

Country Mortgage

Booming housing sector over the world has given birth to the elastic demand in the mortgage. Find detailed on the mortgage practices, mortgage rates, mortgage types used among various countries over the world.
Australia Mortgage In Australia Mortgage market, Mortgage Industry Association of Australia (MIAA) has been playing a significant role by rendering manifold services. MIAA has more than 10,000 members. Find detailed on Australia Mortgage along with Australia Mortgage Rates.Canada Mortgage In Canada Mortgage, banks play a very significant role by availing various mortgage products. Fixed Rate Mortgage, Variable Rate Mortgage and Capped Rate Mortgage are generally used in the country.Hong Kong Mortgage Hong Kong Mortgage is well developed and well organized in the Asian region. The Hong Kong Mortgage Corporation has been adopting new initiatives for the development of the mortgage market in the country.

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