Owning a home is the most important dream of any person.
It is one of the basic necessities of life as stated
by Maslow in his ‘Theory of Hierarchy of Needs’. People
generally desire to have a home which not only gives
them shelter, but also should be the expression of their
artistic tastes, and an object of pride. Owning a home
is a matter of spending of life’s savings. For some-
belonging to the high earning group, it is not a problem;
but for others arranging finances for their dream home
is a very crucial decision, they ever take in their
life. To enable people to realise there dream, financial
institutions and banks offer home loans to people.
Home loans play a very important
role in the lives of UK nationals. Every year there
are borrowings worth billions of pounds by the UK nationals
for home loans.
Now days, home loans have become a necessary
part of life as it is not essential that one has the
necessary amount of money to finance his immediate requirement
for purchasing home. One can avail home loans, after
signing a document with a financial institution on a
specified amount of money to go with the purchase with
that borrowed money. Lenders and financial institutions
keep the house or any other residential property as
collateral. In the UK, home loans are offered by innumerable
financial institutions at various APR. The amount of
loan approved usually depends on the income and assets
of the borrower and his capacity to pay back the loan.
In the UK, home loans offered are of two types:
- Fixed rate home loan
- Variable rate home loan
Fixed rate home loans are offered to borrowers at a prefixed
rate of interest for a specified time period. In case of upward
fluctuations in interest rates in the market, customers enjoy
the benefit of not paying any extra sum money on the increased
rate of interest. Variable rate home loans, on the other hand
are left to the mercy of lenders and government regulations.
In case of upward trend, the borrowers have to tighten their
budget.
With the ever increasing competition in the market, more and
more financial institutions are offering home loans at lower
APR along with customer oriented services. All companies claim
to be the leading loan and other financial services provider
with the best service. In order to tap the growing market
companies and lending institutions are coming up with more
innovative products to cater to the requirements of all the
customers. With the advent of internet, the services offered
have become more fast and efficient. Now one can compare the
best rate offered in the market at the click of the mouse.
The complications in home owner loans fall when borrower defaults
in the payment of the monthly installment. In many cases,
it has been seen that lenders start charging more interest
rate than the standard rate. Wise borrowers, in such situation,
switch over to a new lender for better rate of interest and
fee waivers. This is termed as remortgage. Remortgage is a
very prudent way of avoiding heavy interest rate. There are
innumerable agencies which suggest better remortgage options
to the borrowers.
Moreover, with gradual shift from the sellers’ market to the
buyers’ market, the ultimate beneficiary is the customer.
Companies even offer value added services to the borrowers
to evolve brand loyalty. Companies are even leveraging strength
from modern management practices and corporate governance.
In the long run, company which offers the best financial solution
with the right set of marketing mix will win the race.
Summary:
Owning a home is the most important dream of any person. It is one of the basic necessities of life as stated by Maslow in his ‘Theory of Hierarchy of Needs’. People generally desire to have a home which not only gives them shelter, but also should be the expression of their artistic tastes, and an object of pride.
Mohammed Amir holds several degrees from JNU University, including a Bachelors and Masters in Commerce. Currently he is working as financial consultant for http://www.chanceforloans.co.uk/
For Detail email with the subject "Enquiry".
