In the future - Moving on


If you thought buying a property was a fairly arduous process, buying and selling can be even worse. Horror stories abound, of 'chains' breaking, of gazumping, and even of 'reverse gazumping' -the situation where a buyer waits until the last minute and then just before the exchange of contracts, knowing that the person who's selling to him is totally committed to the next stage and couldn't pull out at this point even if he wanted to, suggests that the price be £11,000 or whatever less.

Another nightmare can be the so-called 'contract races', where a seller provisionally accepts offers from two or three hopeful buyers and says, 'The first one to arrange mortgage finance and complete preliminary legal processes wins.'

The reasons for doing this are quite understandable, if they are not forgivable. Anyone who has had the experience of a buyer dropping out at the very last minute will probably be determined that next time he will never be so foolish as to take one person's word again but will hedge his bets by having a few understudies in case the most likely buyer lets him down.

The problem is that this puts a number of people to what could be quite considerable expense. Each one has to pay for the building society valuation and possibly a survey; each may have to find a deposit as a sign of good faith to put down with the estate agent (true, this is returnable if the sale doesn't go through, but it still has to be found in the first place); and each will be incurring legal fees.

Part of the problem lies in the fact that the wheels of finance turn-slowly -sometimes agonisingly slowly. At the time of writing this website, mortgage queues were lengthening; with some building societies, borrowers were having to wait up to three months before they could get their loan. But, until contracts are exchanged, either side of the transaction can pull out with impunity; and the longer the period of waiting the greater the likelihood of something going wrong.


Life Assurance Companies and Endowment mortgages


Some life companies are beginning to issue special MPPs that automatically cover this risk. If you do not have one of these and have at any point extended the term of your mortgage, the most sensible thing to do is simply write to your insurance company informing them of this fact.

It's then up to them whether to increase the premium rates.

Other types of insurance connected with house-buying Mortgage insurance guarantees

These policies called 'indemnity guarantees' paid for by the borrower, but it is the building society who will benefit from them.

The circumstances in which they are required will depend on the rules of the particular lender, but generally will be if you are borrowing in excess of 0.8 . . .... see: Life Assurance Companies and Endowment mortgages


Current Mortgage Offers

  • At Commercialise Yourself you can compare mortgages using our repayment calculator, look for special offers for first time buyers or for 95% loan to value mortgages and see the most popular choices, Nationwide, Accord etc, we now even have a buy to let section for the brave or heart or strong of pocket! You can send us an email if you want to know more about mortgages and what we do and we will get back to you as soon as we are able. offers@commercialise.org.uk

     

    Finding the right mortgage can be stressful, but we’re here to help you every step of the way.

    Even if you have no proof of income, poor credit rating or facing repossession of your home, we can normally say YES (even if the high street lenders have said NO)!

    Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage. The overall cost for comparison is 7.9% APR. The actual rate available will depend upon your circumstances. Ask for a personalised illustration. There will be a fee for mortgage advice. The precise amount will depend upon your circumstances but our average fee is 2.36% of the loan value. We are authorised and regulated by the Financial Services Authority for regulated mortgage and non-investment insurance contracts.