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By Benjamin Robert Ehinger

A Few Things to Know About No Doc Mortgages

When you need to find the right type of mortgage for you it is necessary to learn about no doc mortgages. These are mortgages that are a bit different and will help you by allowing you to not have to worry about proving as much. You have to find the right mortgage and it is possible that the no doc mortgages are for you.

Are you looking for a mortgage and you know proving your income is going to be a problem? There are programs that are designed specifically for those that have trouble proving their full income. They are called no doc mortgages or stated income mortgages. Here are the situations that are perfect for no doc mortgages.

The Reasons to Use No Doc Mortgages

If you are a self-employed individual, then you are exactly the type of person that the no doc programs have been designed for. When these programs first came about, they were used only for self-employed individuals and the requirements were not easy. You had to have perfect credit, but now you just have to have pretty good credit.

Another type of individual that the no doc mortgage is for is the tipped employee. We all know that if you are a bartender or server or you work for tips doing something else, then you know that you don’t claim all of your tips. This makes it hard to prove that you make what you really make and it will make it hard to get a mortgage without using a no doc program.

The last situation that is perfect for a no doc mortgage is the independent contractor. This could be a sales representative or someone working in the construction field. This is the type of person that gets paid by cash, personal check, or money order and does not claim all of their income due to expenses and other reasons. The no doc program is perfect for you.

All of these situations are great for the mortgages that do not require you to prove your income. You also will not have to worry about many of the things that you would have to worry about with a traditional mortgage. You need to get the right mortgage loan for you and you will have to make sure you look into at least a few options before choosing one.

Finding the No Doc Mortgages that Work for you

No doc mortgages are not hard to find and just about every bank and mortgage company has a no doc or stated income program for those that cannot qualify for a normal mortgage. You will have to expect your rate to be a bit higher and you will need to have good credit to qualify, but this might be the best choice for you.

These are not the type of mortgages that are going to fit everybody, but if you fit into the right type of situation you will want to at least know about these types of mortgages. This could be the type of mortgage that helps you to get the house of your dreams or the right one of the no doc mortgages could help you get the refinance you need.

About the Author: The best

No Doc Home Loans

can be found by going to this website:

No Doc Home Loan

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The Dangers of a Foreign Currency Mortgage

by

michellesymonds

In the 2000s some British mortgage borrowers who were sold complicated foreign currency mortgages are suffering a disadvantage with high repayments and increasing debt because of large fluctuations in exchange rates. The hardest hit borrowers have been those with home loans linked to the Japanese yen which has recentlyrisen to levels not seen in over 20 years.

Many experts believe that these foreign currency mortgages should never have been sold to clients who did not fully appreciate the risks attached to such deals and urge clients to always take professional advice regarding foreign currency loans.

Japanese yen foreign currency mortgages were sold in the early to mid 2000sin order for borrowers to take advantage of the low interest rates in Japan at a time when interest rates were not low in the UK. This meant that monthly mortgage repayments were less expensive than for a normal UK mortgage. In 2004the difference in yen mortgage interest rates and sterling interest rates wasabout 5 per cent so the savings were substantial.

However, the risk associated with a mortgagesin a foreign currency is that if the foreign currency increases in value against sterling, the monthly repayments go up in equivalent sterling terms. In addition, the total amount of the debt in sterling also rises.

Shocking figures that illustrate just how great this risk is show that a Japanese yen based mortgage equivalent to 500,000 in 2004 would have increased to a debt of 770,000 by 2009 and a staggering 855,000 by 2012 because the yen-sterling exchange rate had risen from 200 to 117 to the pound over that period.

Japanese yen, Swiss franc and US dollarmortgages were all sold by well-known British banks in particular to UK expats living overseas, but experts have argued that foreign currency mortgages are only suitable for sophisticated investors who understand the risks. Foreign currency mortgages can be a good solution for some high net worth clients who, for instance,do not receive their income in sterling or who have major assets in foreign countries. Such investors can benefit from this type of deal but banks were selling these loans in the 2000s to less knowledgeable investors as a means of just reducing the interest rate payable. There was no managed multi-currency loan arrangement to hedge the associated risks so it proved to be a highly risky strategy.

Some of the borrowers whose mortgages have been adversely affected by the yen exchange rate rises have reported that they were not fully warned of the dangers of such loans. Furthermore, many of them are not covered by the UK financial services jurisdiction so cannot have their complaints investigated by the UK\’s financial ombudsman.

High net worth mortgage experts believe that foreign currency mortgages are harder to obtain now than they were 10 years ago but many banks still offer this facility in the UK. Anyone considering such a home loan should take professional advice from a high value mortgage broker with experience in this type of lending and ensure they fully understand the risks before agreeing to such a loan.

This article has been written on behalf of Enness Private Clients, who offer an expert and focussed service specifically for clients requiring

High net worth mortgage

. As a specialist

high value mortgage broker

they work with people from all walks of professional life: from lawyers, hedge fund managers and board directors to entrepreneurs and self-employed business people.

Article Source:

ArticleRich.com