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Matthew Said:

Is it better to pay down debt or save for bigger down payment for home mortgage?

We Answered:

Lenders will look at your debt to income ratio, and they will not like an outstanding debt. So clear the debt.

Put off buying a house until you are debt free and have at leat 20% saved for a house deposit. If you can't do that, you can't really afford a house. A house is a huge expense and not something to be entered on a whim.

You will need at least 20% deposit so that you don't pay mortgage insurance, which is an extra expense that you get charged to cover the fact that you are a risk to the bank. It doesn't go towards your loan. It just goes to an insurance company, so that the bank will take your loan. It doesn't protect you, only the bank. So save a big deposit so you don't have to waste even more money.

Clear the debt first. Then save a house deposit. Then buy a house. Don't try to do it all too soon, because you run the risk of getting rejected for a loan (which will make it even harder to get a loan in future, because it goes on your record). Also, the more debt you have, the easier it is for some minor blip, like an illness, or job loss, to completely ruin your life. You need to be prepared to have a mortgage, with at least 3 months repayments stashed away to cover you for an emergency. Don't buy a house until you can actually afford to. Right now, you can't. If you try, and something goes wrong, you lose the house. Don't take the risk.

Best wishes

Franklin Said:

We are looking to get a bigger mortgage, but are looking to move lenders. Do i need a deposit?

We Answered:

You will do better to run this question via a mortgage broker.

There will be a redemption fee to pay on the existing mortgage to finish the deal early to consider. That can be quite high. Read your small print.

Equity can be considered as part of the deposit if the equity is there, but that is very much down to valuation and valuation in the current climate can be a big issue.

Interest rates will rise so a bigger mortgage now at similar monthly payments may cripple you if interest rates were to rise, and any lender will look at the bigger picture of whether you can cope with bigger repayments should this happen.

Joseph Said:

What credit agencies do most mortgage lenders use?

We Answered:

It depends on the lender. Every lender has different risk parameters. Back in the 90's, the bank I was with practically gave money away. If your FICO was 640 and the loan was under $150k, it was approved. They are not around anymore.

Javier Said:

How are you adjusting in the real estate industry with lenders falling?

We Answered:

After all that babel about lenders and buyers that have committed to questionable loans and lending policies.
What Is Your Real Question??

Diana Said:

Who targetted Britain's biggest mortgage-lender?

We Answered:

Northern Rock, - now HBOS, all falling.

This thing was too big to be set up by a few pals over a coffee and a doughnut.

Expect a few PI's to fall of tall buildings in the next week or so, as they have the ability to point fingers.
If none do, then they must be employed by MI5 - which can only point one way.