Posts Tagged ‘mortgages’

What Goes On If You Simply Can’t Handle All Of Your Property Finance Loan Monthly Payments?

Your mortgage is right up with the highest value costs which you’re going to be obligated to manage and needs to be the very first personal debt that you deal with. If you ever identify you’ll be getting behind on your mortgage, then one strategy is ordinarily to get in touch with your provider. Actually, it really needs to be the first thing that you might want to take care of, because of the fact he or she is the one allowed to supply you with a quick cure to this kind of lending issue without taking any kind of gambles.

If you happen to have a decent relationship along with the financial institution, that is when you have a good prospect of getting reduced mortgage loan interest rates or lessening the lowest amount that you have to pay back on a monthly basis. Dependant on the seriousness of your personal economic hardship, the mortgage company will be able to stretch out the time on the mortgage loan or provide you with a forbearance span, right up until you get back to normal. A wide range of cash loaning organisations feel that the buyer need not end up paying exceeding thirty percent of her / his total income for the house loan per month. Therefore, it’s best not to be reluctant to communicate this predicament to your own mortgage lender so you can uncover the recommended strategy for the problem.

Though addressing your financial institution is proper if you cannot afford to repay your home mortgage any more, every once in awhile his or her firm’s rules does not enable them to render any modifications on your initial contract. In such a case, you need to ask for the guidance of an official credit specialist. This expert usually has knowledge about just about every strategy one can pull out by law therefore can certainly talk with your creditor, bettering your chances of acquiring an improved arrangement on your present loan agreement.

In difficult circumstances, if you end up going to suffer a loss of your own property and continue to have debt, you are able to also go with a short deal. A short sale is known as a technique that allows anyone to sell off your place for less than the amount your mortgage loan will be worth however, the mortgage broker is likely to erase your financial obligations when you find yourself rather close to property foreclosure. An alternative choice you have got available whenever you realise that property foreclosure is forthcoming may be to choose a deed-in-lieu of foreclosure, if it’s the only mortgage loan that you have got. Sad to say, you’re likely to forfeit your house however, you’ll do away with your mortgage. Dependant on the rapport you’ve got with the loan service, he can perhaps let you remain in your home for a maximum of six months or until finally you acquire a place to settle.

Avoid Trouble When Looking To Refinance Your Home

Undoubtedly, thousands and thousands of property owners have refinanced their houses to minimize their total mortgage loan installment payments, manage their debts and rise their disposable income – but quite a few of them have discovered a precious lesson in the process. Although it appears like a no-brainer on a lot of levels, the determination to refinance demands a very practical strategy which includes a lot of figure crunching and figuring out of components such as break-even factors and variable interest charges vs. fixed interest charges. Know that mortgage refinancing is not the remedy for each and every situation, particularly when you take into account that the tough finer details generally does more harm than good if you don’t realize and factor in the handling costs, closing costs and other kinds of high-priced obligations hidden in the terms.

 

The first point you have to always remember is that financing institutions are often going to make a honest share off of any transaction, so be cautious of re-financing schemes which present ridiculously low interest charges or unreasonable timelines. Ensure you don’t form your conclusion exclusively on the yearly interest rate (APR) but dig into the conditions of the mortgage loan, especially if it requires a variability of the lending price. You need to be prepared to figure out for yourself the benefits and disadvantages of signing on a fixed-mortgage fee as opposed to an adjustable-rate home loan (ARM).Additionally take into account that a great charge can aide to sell Windsor homes because if accomplished appropriately the mortgage can be transferred to the new purchaser.

 

Another loophole generally applied to serve the financial institution over the seller are the linked fees or points which come up at the close of the deal. Occasionally such a ploy is utilized to offset lower lending rates, though quite typically the mortgages advertised as “no-cost” are going to have padded interest rates. 

 

Look online for referrals to materials that may help ascertain your alternatives. Glance for graphs which show the variation in charges soon after financing, new monthly installments and monthly financial savings so you can calculate the time it will take you to break even. All of these figures can come into play once you own Aurora real estate as it adds up to the total price of a house over the years.

 

Naturally, there is a great argument for checking with your present financial company first to see what sort of refinancing deals they are ready to provide you, especially because these folks currently have your relevant financial records in their files. Clearly, it saves many of the fees typically related with data collecting and can make your loan companies present the most lucrative alternative. On the other hand, there is quite a bit to be benefited by shopping around with respected refinance institutions because the competitive nature of this industry creates a wide variety of opportunities – and you never can be certain what you may possibly locate right up until you sample a few various offerings. Neighborhood real estate marketplace knowledge can make a big difference and a area financial institution which recognizes Brampton real estate values may supply you a mortgage fee which is a bit lower.

 

If you have settled in and plan to remain in your home and basically need to lower your debt, you are the ideal prospect for refinancing with a long-term loan because these folks can present you a fixed-rate of interest connected with the current equity value you have in your residence. If you are currently encountering a high-income flow, a short-term loan can be a wise decision because you can pay much more now and have a clear title quicker so you can resell when the time is appropriate.

Spanish financial institutions offer 100% mortgages on repossessed properties

Whilst over in the UK the tightening of financial conditions has forced obtaining a house with much less than 25% sow an impossibility for a lot would-be buyers, over in Spain banks are crafting it less difficult than ever for traders to get in on the marketplace where there is no the tough commitment of an initial lump sum – as long as you’re prepared to buy distressed.

Owing to the intense oversupply of properties still plaguing the mainland in particular, the country’s important financial establishments have begun offering unusual 100% house loans on the many repossessed properties these folks have on their books. While loans for any new properties appearing on the industry are becoming seriously tightened in terms of chances criteria, those who concur to purchase the dispossessed properties stand to get between 90 and 100% funding over till 40 years, with offers presently becoming offered by Santander, BBVA, Caja Madrid, La Caixa and CAM, in accordance to the Financial Times.

With quite a few advancements having sprung up rapidly simply before the 2007 crash, most of the properties the banks are selling are in reality new construct or near it. Santander’s Altamira division, which retails houses from builders whose tasks fell into management in the crisis, is supplying till 100% over 40 years on its quite a few new build properties in a bid to rid itself from exposure to house loans as per the government’s restructuring efforts. The 7 important Spanish banking institutions have been appraised by AFP to hold 45 trillion euros in dangerous property at the beginning of 2011, and to avoid searching for financial bailout, says the key bank, they have to clear minimum 15 billion euros of this.

The biggest proportion of consumer debt reduction must come from ridding the establishments of bad home loan consumer debt, thus why even the much more respected banks in the nation are now eager to offload properties wonderful and small. For the canny trader seeking a low cost way into the 2nd home market – and a possible long-term asset after costs start to increase once more – the overall amount of fantastic value, bank-assured property deals in Spain appears to be receiving far better and much better.

Interested in property in Spain?
Browse our listings of apartments, houses and other property for sale in Spain here: http://spain.themovechannel.com/property/all/

Other Stories in the News Today:

British Land pre-lets third of Cheesegrater tower

US-based insurance firm Aon will lease the bottom 10 floors of the 47-storey Leadenhall Building when it is completed in 2014

IMF Puts Spain in Same Boat as Greece, Ireland and Portugal

In their latest report the International Monetary Fund (IMF) discusses how the deterioration of the labour market in Europe has varied widely from one country to another during the last crisis.

Deadline set for landlords to improve energy ratings

Landlords must improve the energy efficiency rating of their property by 2018, following the establishment of the deadline.

Brits Face Future Housing Crisis

A new study conducted by the Institute of Public Policy Research in England shows that regardless of how the British economy performs the country will face a serious housing shortage by 2025. Good performance will result in many families being priced out of many homes, while poor performance will increase the need for social housing that is already in short supply.

Canadian real estate investors among world’s most active

Canadian real estate investors were among the most active in the world in the first quarter, according to a study into capital flows from international brokerage Jones Lang LaSalle.

Bulgarian Hotel Revenues Up 2% Q1 2011 Y/Y

The total number of accommodation facilities in Bulgaria – hotels, motels, camping sites, mountain chalets and others increased by 1.9% in the first quarter of 2001, compared to the same period of 2010.

UK inflation rate rises to 4.5% in April

The UK Consumer Prices Index (CPI) annual rate of inflation rose to 4.5% in April, up from 4% in March.

Copenhagen’s new design hotel opens its doors

The largest hotel in Scandinavia opened May 16 in Copenhagen, another new entrant into the Danish capital’s rapidly growing hotel market.

UK house prices seesaw: now they’re up overall

London house prices rise 5.6% though Northern Ireland falls 13.9% – but that’s only according to one set of indices

The size of a deposit for a home doubles

The average deposit of a first-time buyer has doubled since the beginning of the credit crisis and is now equivalent to almost a year’s average salary.

European stocks dip after IMP chief arrest

Europe’s main stock markets dipped Monday on fears that the arrest of IMF boss Dominique Strauss-Khan could hit efforts to tame the eurozone debt crisis, as EU finance ministers met to discuss rescues for Portugal and Greece.

Property prices in Turkey up 9%

Property prices in Turkey are being pushed up by interest from overseas buyers, it has been suggested.

Read these stories in full at: www.themovechannel.com/news/

The Basics You Need to be Aware About When it Comes to a Buy To Let Mortgage

Most banks are not keen on borrowers renting out any part of their property when they have a mortgage unless it is a specific mortgage called a buy to let. The buy to let mortgage means that you have more protection too.                      

The Lenders Demands for a Buy To Let- As with a ‘regular’ mortgage, the property still acts as collateral against the mortgage being taken out. But instead of the mortgage being taken on the actual value of the property, the mortgage will be taken out on the projected rental value of the property, as it is the rent that the mortgage will be paid through.                   

Some lenders will want proof of income and/or some sort of rainy day fund. As it is likely at some point that the property will be empty and you do not have any tenants, so you will have to prove you have the finances to cover the mortgage as well as any other costs you have.                      

What Are The Advantages? – There are clear advantages to a buy to let mortgage, if it suits your circumstances and future financial plans. The mortgage on an extra property can be paid off by tenants and not by yourself, so for the last two decades, with rising property prices, it has been an excellent way of investing for the future.                    

The crash in property prices three years ago changed all that. Throughout the last decade, one only needed to switch on the TV and there was a programme about how to make money in property. This was because of a booming property market. There has been a steep decline in activity in the buy to let market but that doesn’t mean to say that there aren’t buy to let mortgages still out there. In fact, there are plenty.                         

You’ll normally still need to have an income so that if the property is empty the lender knows that you can afford to cover the mortgage for that period, although income levels do not generally need to be so high, as such circumstances should only be temporary.

What Do You Need For a Buy To Let Mortgage? – A surveyor will normally be instructed to value the property in terms of its market value, and how much rental income can realistically be made from the property, as the rental income is after all what will be funding the repayments.

Seek Advice If Necessary – Mortgage brokers are professionally trained and qualified.  This means that they have an excellent knowledge of how buy to let mortgages work as well as access to a wide range of mortgage deals from throughout the UK market.  You may pay a mortgage broker a fee for their services, but this may well be worthwhile if they can find a market leading buy to let mortgage for you.                          

Think About The Area – Think logically – if you’re buying a property that you want to rent out it needs to be in a place where people will want to rent. Near a school, close to shops and bus routes – all of these things will add to its appeal. Making sure that it is in a good state of repair will also increase its attractiveness.                       

Get Insurance – Tenants, however nice they are, will never look after your property the way you would. They won’t mean to scuff the skirting board or spill wine on the carpet, but they will. You will need to get an insurance policy that covers the building and its contents to make sure than being a landlord doesn’t cost you more than you actually make.               

Howard writes for Just Commercial Mortgages.com the UK’s No.1 site for the latest commercial mortgage rates and commercial property finance news.

What are the Pros and Cons of Using a Mortgage Broker?

Whilst hunting for guidance about getting a mortgage, you may either seek the advice of the Lender (Bank, Building Society) directly or seek the advice of a broker.

Using a Broker

Mortgage brokers have to be either directly authorised by the Financial Services Authority or in the alternative can be an agent working  for an authorised company.

Mortgage brokers offer various services and charge varying fees.  The mortgage broker will give you Keyfacts documents in which they should set out the professional services they offer and the fees that they’ll charge.

Mortgage brokers have expert understanding of the mortgage market and can guide clients through the maze of the mortgage market.  There’s a large range of deals, mortgage rates and also incentives provided by a mass of mortgage lenders   Mortgage brokers will provide you with advice and help you to make sense of the market and help to select the most suitable mortgage for the client.

Certain mortgage brokers are able to offer products from the whole of the mortgage loan marketplace while others can be limited to certain loan providers.

There are three main types of mortgage broker:   

Tied  These brokers act as agents for a specific lender.  Which means that they will only provide guidance on mortgage products offered by that mortgage lender.  This sort of broker shall be paid by way of commission from the lender and won’t charge the client an upfront fee.

Panel  These brokers recommend products from a panel of loan providers. They’ll only be capable of offer products from the lenders within the panel.  It is important to make certain this is the case, because this sort of broker could tell you they are whole of the market  despite the fact that they are choosing from a limited panel, providing that the panel of mortgage providers on offer are representative sample of all mortgage lenders.

Independent Brokers -These are brokers that are not linked to any mortgage companies and are capable of offer mortgage loan products from the whole of the mortgage loan marketplace. 

The main benefit of this, is the fact that their advice is much more likely to be genuinely impartial.  These types of brokers will normally charge their clients a fee for their assistance.

It is very important ensure that you know about precisely what the mortgage broker can and cannot provide.  The mortgage broker must provide clients with very clear details of what they provide you with at the outset.

A mortgage broker is paid for the services they supply to their clients.  The payment is either by charging their clientele fees, receiving a commission fee from the mortgage lender or even a mixture of the two.  In the event the mortgage broker is obtaining a commission from the mortgage lender they need to make the client aware of this.

Dependant upon the kind of mortgage you are having, you may need advice on an investment product as well as the mortgage (for example a savings plan to repay the mortgage in the case of an interest-only mortgage).   Not all mortgage brokers are qualified and registered to provide advice investment products.  You will need to check the FSA Register (available on line) to see whether or not your mortgage broker is competent and registered to give guidance on both an investment product and a mortgage.  In the event your chosen broker can’t advise on investment products, you may have to consult with two separate brokers which could involve the payment of two individual service fees.

Mortgage Brokers cater for the requirements of a client with uncommon requirements or conditions which providers usually do not cater for directly, these may by way of example,  include buy to let Or sub-prime lending.  Obtaining a deal that will match the client that has an uncommon requirement may be complicated without the expert understanding of the mortgage loan marketplace provide by a mortgage broker.

Unlike banks and building societies which may have fixed opening times usually in office hours, a mortgage broker is available to supply advice out of office hours.

Mortgage brokers have expertise in working together with mortgage companies and are aware of how their individual procedures work.  Because of this a mortgage broker may package the clients application in order to match the individual loan provider and make it possible for the application to proceed quicker than if the client had made an application directly to the provider.

Choosing a Mortgage Directly from a mortgage lender.

As an alternative to using a mortgage broker,  you may approach a provider direct. Indeed,  some loan providers only offer their own mortgage products direct, an example is HSBC.   However, it is very important be aware that mortgage company can only advise on their mortgage products, so you may need to approach several lenders in order to be able to compare different mortgage products and get a mortgage to suit you.

The Advantage Of Getting Only The Assistance Of The Right Mortgage Consultant For You

Purchasing a house could be exciting or nerve wracking.  Having a home means you are now residing in a place you can call home yet obtaining a home mortgage loan can be tricky for the real estate and mortgage market is fickle.  Thus, help and advice in this course of action is necessary simply because you can waste a lot of cash rather than save.  After all, even though you would like to make house acquisition easier, you likewise want to ensure you don’t pay a lot more than what’s required within a particular interval.

A lot of people automatically head to different mortgagees if they want to apply for a home mortgage loan without considering getting expert advice.  Many people believe that the easiest way to obtain advice is to go to a local lender yet this isn’t always the best option.  With new policies and legislations today, mortgaging is now more complicated or difficult.  It would be best to obtain an advice from a professional who’s not attached to any bank or lender.  An independent advice is often preferable, so find a mortgage adviser who can give you an impartial picture of the mortgage and real estate market.  By using their experience and knowledge in managing mortgage and dealing with lenders, they could recommend what kind of offer you could take and what elements you should consider when searching for a loan provider.   

Some mortgage advisers want to offer you help and that’s simply because that is what they do.  Keep in mind that there are actually those who are unfamiliar with the field and people who’ve seen all the things regarding mortgaging.  The first might offer you reduced fees as compared to the latter.  A good mortgage consultant is one who’s working with about ten mortgages every month.  At the very least, he or she has to be familiar in this field for not less than five(5) years.  Feel free to inquire about their activities and the kinds of mortgage problems they’ve went through.

Are they affiliated with finance companies?  Certain advisers do business with a bank while others work with several banks and lenders.  The advantage of going to advisers who are working with many loan providers is they have more options for you and they can provide you a better choice.  A mortgage broker might be working together with over five(5) lenders and there are also those that know thirty(30) lenders and banks.  Nonetheless, at any time, they could just recommend no more than three lenders to you.  That dealer could send recommendations to financial institutions where he works with, and that’s how he builds rapport with these particular banks and lenders.  The more referrals they generate to a mortgagee or bank, the better their relationship. It’s good if the adviser or broker has made good connections with numerous lenders.  Furthermore, they should be aware of the regulations of each lender.

FSA Concerns over the Interest Only Mortgage

Just as the property market makes a tentative rise from the ashes of the recession, the Financial Services Authority (FSA)  are indicating grave concerns over the Interest Only Mortgage.

Under an Interest Only mortgage loan, the borrower only pays the interest on the mortgage loan.  Every monthly payment is comprised of interest only. The capital owed under the mortgage won’t reduce throughout the term.  If as an example, the borrower takes out a mortgage of £100,000 for a term of 30 years on an interest only basis, at the end of the term, the full amount of the mortgage of £100,000 will still be due.

The model of the Interest Only mortgage is intended so the borrower can invest in a separate savings account or investment product (for instance an endowment, pension or unit trust) separately from the mortgage loan.  At the end of the mortgage term, the investment product  should be worth just as much as  or more than the mortgage charges owed.  The borrower is able to utilise investment product to repay the mortgage debt.

The inherent risk with an Interest Only mortgage loan is always that the investment product does not rise in value as originally planned and at the conclusion of the mortgage loan term the borrower can find they are not able to pay the mortgage loan.

Throughout the 1980s and 1990s the interest only mortgage loan coupled with an endowment policy became a popular  way to purchase a property.

Householders were told that the endowment policy would incorporate the life insurance cover essential for the mortgage loan with an investment product that will at the conclusion of the mortgage term could not only pay off the mortgage loan but could also leave them with a cash to spend. Many of the endowment policies had been tied to poorly managed funds hooked up to a poorly performing stock market;  the endowments could not deliver and not only did  they not supply the lump sum payment but left the borrower incapable of pay off the mortgage loan.

Through the property boom years of the early 2000s, in their dash to grant mortgage loans, the lenders started to relax their specifications for interest only home loans.  Although formerly the borrower was required to prove that they had invested in an investment product to utilise to pay the capital at the conclusion of the mortgage loan before they’d be granted the home loan, the mortgage providers now left this solely to the borrowers discretion.   Some mortgage companies put a warning on the mortgage offer regarding the consequences of not having an investment  product in position;  a few made it  a term of the mortgage that an investment product has to be set up  but did make sure that  this was complied with.  With the house prices continuing to rise, the lenders couldn’t see this as a significant risk  a large percentage of borrowers were switching every  2 -5 years and paying off their mortgages prior to the end of the term of the mortgage;  after all, if ever the borrower couldnt pay at the end of the term of the mortgage they can always repossess the property and sell the property or house thus rely on the Mortgage Indemnity Guarantee 1 to reclaim their losses.

From the borrowers viewpoint, not having an investment product set up to repay the mortgage was a fair risk  the value of the property was risingif they were in difficulty, they would always sell the house or property and pay back the mortgage loan;  meanwhile they may make use of the reduced payments and if they really found it necessary to, could always switch to capital and repayment at a later time.

The FSA believes that the interest only mortgage loans from the boom years could really blow up between 2024 and 2033,  accentuated by the extraordinarily low interest rates.  There are actually signals that complications could start off far sooner as increasing numbers of property owners battle with negative equity.

The concerns of the FSA are reflected by the mortgage provider who definitely are slowly and gradually waking up to their folly.  Interest only  mortgages are getting more and more difficult to obtain.   The Halifax has joined  BM Solutions ( now a part of the Lloyds Banking Group) have tightened their criterion for an interest only mortgage making it compulsory for applicants to produce evidence of the investment product to be used to pay off the mortgage loan, before they are taken into consideration for an interest only mortgage.  BM Solutions have also put a loan-to valuelimit of 75% on interest only home loans and have limited the total mortgage to 500,000.00.  It is anticipated that these kinds of constraints will be rolled out throughout all the mortgage providers within the Lloyds Banking Group and it is most likely that some other mortgage lenders will follow suit.

The Importance Of Getting A Reliable Mortgage Broker

Looking for somebody who will assist you to sift through numerous mortgages is crucial, particularly if it is your first time to obtain it.  You might be left unaware in your initial attempt to get the right mortgage deal.  Sure, it is tough, yet you just have to ask help from people that know better and then you will be fine.

A mortgage broker is usually an independent service provider who may assist you in finding the right mortgage lender depending on your needs.  Put simply, he is somebody that sets you up together with lenders.  Different lenders provide various offers and the dealer shall help you find the correct lender.

You should recognize the real difference between a broker and a mortgage banker because the former offers loans of a bank or a lender.

You might have observed that mortgage agents seem to be no longer quite important these days considering most financial institutions give the same products.  Nevertheless, these people can still assist you in a way nowadays.  There’s absolutely no good reason to compromise the need for mortgage brokers in the industry no matter what sort of rumors you heard recently.

Mortgage brokers always have a role in this particular business and you may seek out their assistance if, for instance, you are the type of businessman or consumer who sees store shopping cumbersome.  If ever you don’t enjoy finding out the very best financial institution in the city, or if this task looks a little too difficult for you, then you can pass it on to those dealers.  Contrary to what people say regarding the slightness of these brokers, they may actually enable you to trim down cost.  They recognize everyone in the mortgage loan realm and could point you to the one who offers the deal you need.

However, you will be surprised that you also have to choose among the different mortgage brokers.  The dependable dealer surveys the background for various loan programs and measures up each and every package with your requirements.  Much like in any other kind of job, you will find experts who are good and people who are unreliable.

In case you’re looking for a mortgage broker, you can ask associates or friends for recommendations.  Receiving recommendations coming from people you recognize may be a lot of help since you do not have to perform the research all by yourself.  A real estate dealer or financial adviser can easily direct you to the best dealer and lender.

A mortgage specialist will probably request you to consider their assistance.  Be skeptical getting them because they may be doing this as they only have a few customers.  Reputable brokers like to have clients mentioned them by other people to whom they have worked with in the past.

You need to likewise choose a mortgage adviser if it is the first time you’re obtaining a home mortgage which is an important monetary move.

Choosing which lender is right for you

You have decided to buy houses for sale Utah and perhaps the biggest move you will have to make in your life. This is considered by many as the toughest, most expensive and important decisions. Of course you want to get the best lender possible. However, what if you received multiple offers from various mortgage companies? Which one will you choose? Here are the steps to follow to determine if which lender will suit your needs.

Interest rates and other fees comparison

Know all the fees you will incur with your loan by asking various lender for formal estimate. By doing this is much better than by just comparing Ogden Utah mortgage loans based on their annual percentage rate. You may also ask some other charges that not included in the list, like prepayment penalties. Determine how honest and sincere the lenders towards you and remember that you are not just comparing numbers in here. If you feel that the lender is evading your questions, and then this is the time to look for someone else.

See what other loan types are available

There are now more loan options that South Ogden homes for sale buyers could take advantage, lenders offer different loan types including conventional fixed-rate, adjustable rate, hybrid ARMs and ARMs. The best lender should be able to get you a mortgage that will fit your financial situation and individual circumstances.

Make sure that lender to work with is with good reputation

You should make sure that you are dealing with a lender whose reputation is outstanding. You can start by asking the opinion of their previous and current clients. That’s the best thing you can do if you have never worked with a particular lender. In every business people’s opinion is important especially in the field of mortgage and loans.

UK Mortgage Industry and FSA Bid to Halt Useless and Uneccessary EU Red Tape

Mortgage Industry chiefs have banded together with the FSA to oppose strict European regulations on the commercial mortgage market. The rules, if introduced, may stifle the market just as it starts to make a recovery.

While the writing has been on the wall for the FSA since the Coalition Government came to power, it hasn’t stopped the agency trying to prove its usefulness, by strongly backing David Cameron’s anti- bureaucracy crusade. This inevitably means taking a strong if futile stance against the waves of red tape emanating from Brussels.

This change of heart has resulted in a decision to oppose new rules introduced at Brussels, designed to harmonise and standardise mortgage lending across the EU member states. Campaigners against these measures claim that because housing markets differ substantially across the EU member states, the regulations that apply in Germany or Spain may not make any sense in the UK.

The commercial property market in the United Kingdom is currently trying to force its way back out of the recent market crash, and commercial mortgages are still difficult to obtain in the country. It’s obvious that the commercial mortgage market is just not where it needs to be by the many empty commercial properties and premises across the country.

So what can we expect from these excessive regulations? If previous EU inspired regulations are anything to go by, double the amount of paperwork for lenders to compete, a reduction in flexibility and avenues open for a lender or broker to operate in, which have always worked in the past. Baisically just all round confusion for consumers and experts, bereft of being able to use common sense as EU regulation strangles the sector.

Whilst the FSA opposes the European Union plans, it does still believe that some form of regulation is required.  The FSA supports borrower’s rights and advocates a minimum threshold of mortgage protection to ensure that consumers have a basic standard of protection from disreputable lending institutions.

The FSA are now reviewing commercial mortgages, in a bid to set regulations in place before the commercial market starts to boom once more. Although the recovery of the market is slow, there are signs that it is beginning to pick up again and so now is the time to set regulations in place.

High risk lending such as bridging loans and other short credit arrangements based on the value of commercial property will probably face closer regulation. This was the unofficial message of the authority, which held talks with lenders last month. Short term lending, which can lead to market volatility, might be as closely regulated as regular mortgage lending. There is likely to be less sympathy in the currently financial climate towards novel financial schemes to raise money quickly which a perceived to be low security and high risk.

The FSA’s quiet and measured approach has actually won over many fans in the industry, not least because they are open to ideas and listening to those in the industry about what needs tinkering with. You won’t find many sectors where those in the industry are happy and optimistic about the regulators reviews and actions, it seems the ‘attract more bees with honey’ tactic is working a treat.

In a market that has had more than its fair share of bad news in the last two years, the approach of the FSA is certainly welcome, in part because it is adamant in its opposition to the imposition of European-wide regulations. These new laws threaten to apply rigidly, regardless of circumstances, in every member state. However, it is even more important that the FSA is planning to regulate against dubious lending practices in the Britain but is willing to be reasonable in its attitude towards the industry and listen to the concerns of UK lenders.

Howard O’Gollegos writes for Just Commercial Mortgages the UK’s No.1 site for the latest commercial mortgage rates and commercial property finance news.