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The Top Three Ways Of Improving Chances For Mortgage Approval

With tougher mortgage rules coming into full effect earlier this week, there are three main areas that potential borrowers should evaluate before meeting with lenders, says deVere United Kingdom.

deVere United Kingdom’s ‘Top Three Ways of Improving Chances for Mortgage Approval’ list comes amidst mounting criticism of the Financial Conduct Authority’s (FCA) changes from some industry and consumer campaigners.  The new checks, introduced on Saturday, will see potential homebuyers having to give further personal details about expenditure when applying for a mortgage in an attempt, says the FCA, to avoid a return to pre-crisis irresponsible lending.

The Top Three Ways Of Improving Chances For Mortgage Approval

The Top Three Ways Of Improving Chances For Mortgage Approval

Kevin White, Head of Financial Planning at deVere United Kingdom, the UK division of deVere Group, one of the world’s largest independent financial advisory organisations, comments: “Unlike some, we are actively championing the FCA’s more stringent processes to help ensure responsible lending.

“Although it has been widely reported, or perhaps misreported, that borrowers will now be ‘grilled in three-hour interviews’, it is our belief that if people adhere to three basic evaluation points before meeting their lender, there should be no additional obstacles to obtaining a home loan than there would have been before the changes came into force.”

According to deVere United Kingdom, the ‘Top Three Ways of Improving Chances for Mortgage Approval’ are 1) to redeem any credit cards, store cards or personal loans before your application 2) to understand your credit score before the interview and 3) to know and minimise your spending habits.

Mr White explains: “If at all possible, store and credit cards plus personal loans should be cleared as this will indicate a greater degree of mortgage affordability.  Also, make sure that you are managing your finances well.  Showing a constant overdraft on your bank statements could hinder your mortgage application as it shows that you have not been managing your money well enough.  With lenders possibly going back over your bank statements up to six months, getting your finances in order sooner rather than later is a must.”

He continues: “The second ‘should- do’ is to know what does and doesn’t impact your credit score, as this is one of the things that will show the lender if you are a ‘good risk’ or not.  For example, if you are not on the electoral roll, then make sure you get on it as soon as possible as this helps with the mortgage application.  You can obtain your credit file through various agencies and it would be wise to make sure you check your file for any errors that may be on there.

“On point three – knowing your spending habits – you should be aware of any luxury or major unnecessary expenses or direct debits and scrap them, where possible.  In essence, if you are not spending beyond your means, then you should not have a problem getting a mortgage.”

deVere’s UK Head of Financial Planning concludes: “We’re confident that should these check points be achieved, borrowing homebuyers will significantly increase their chances of being approved.

“We base this confidence on experience.  With the changes in lending criteria over the last five years, such as 100 per cent mortgages being removed from the market and the removal of the ‘self-certification’ mortgage, we implemented the new tougher rules over 12 months ago – and have secured a good degree of success for both our UK-based and overseas clients.”

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Oil set for steady gains as economies shake off pandemic blues – Reuters poll



Oil set for steady gains as economies shake off pandemic blues - Reuters poll 1

By Sumita Layek and Bharat Gautam

(Reuters) – Oil prices will stage a steady recovery this year as vaccines reach more people and speed an economic revival, with further impetus coming from stimulus and output discipline by top crude producers, a Reuters poll showed on Friday.

The survey of 55 participants forecast Brent crude would average $59.07 per barrel in 2021, up from last month’s $54.47 forecast.

Brent has averaged around $58.80 so far this year.

“Travel and leisure activity look set to catch up to buoyant manufacturing activity due to the mix of stimulus, confidence, vaccines, and more targeted pandemic measures,” said Norbert Ruecker of Julius Baer.

“Against these demand dynamics, the supply side is unlikely to catch up on time, leaving the oil market in tightening mode for months to come.”

Of the 41 respondents who participated in both the February and January polls, 32 raised their forecasts.

Most analysts said the Organization of Petroleum Exporting Countries and allies (OPEC+) may ease current output curbs when they meet on March 4, but would still agree to maintain supply discipline.

“With OPEC+ endeavouring to keep global oil production below demand, inventories should continue falling this year and allow prices to rise further,” said UBS analyst Giovanni Staunovo.

Oil demand was seen growing by 5-7 million barrels per day in 2021, as per the poll.

However, experts said any deterioration in the COVID-19 situation and the possible lifting of U.S. sanctions on Iran could hold back oil’s recovery.

The poll forecast U.S. crude to average $55.93 per barrel in 2021 versus January’s $51.42 consensus.

Analysts expect U.S. production to rise moderately this year, although new measures from U.S. President Joe Biden to tame the oil sector could curb output in the long run.

“A structural shift away from fossil fuels” may prevent oil from returning to the highs of previous decades, said Economist Intelligence Unit analyst Cailin Birch.

(Reporting by Sumita Layek and Bharat Govind Gautam in Bengaluru; Editing by Arpan Varghese, Noah Browning and Barbara Lewis)

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Japan’s jobless rate seen up in January due to COVID-19 emergency measures – Reuters poll



Japan's jobless rate seen up in January due to COVID-19 emergency measures - Reuters poll 2

TOKYO (Reuters) – Japan’s jobless rate is expected to have edged up in January as service industry businesses suffered renewed restrictions on movement to fight spread of the coronavirus in some areas, including Tokyo, a Reuters poll of economists showed on Friday.

While industrial production activity picked up in Japan, emergency curbs rolled out last month such as asking restaurants to close early and suspending the national travel campaign hurt the jobs market, analysts said.

The nation’s unemployment rate likely rose 3.0% in January, up from 2.9% in December, the poll of 15 economists found.

The jobs-to-applicants ratio, a gauge of the availability of jobs, was seen at 1.06 in January, unchanged from December, but stayed near September’s seven-year low of 1.03, the poll showed.

“As the impact from the coronavirus pandemic prolongs, it is hard for firms, especially the service sector, to expect their business profits to improve,” said Yusuke Shimoda, senior economist at Japan Research Institute.

“So, their willingness to hire employees appear to be subdued and it is difficult to see the jobs market recovering soon.”

Some analysts also said the government’s steps to support employment and existing labour shortages will likely prevent the jobless rate from worsening sharply.

The government will announce the labour market data at 8:30 a.m. Japan time on Tuesday (2330 GMT Monday).

Analysts expect the economy to contract in the current quarter due to the emergency measures to counter the spread of the disease.

(Reporting by Kaori Kaneko; Editing by Simon Cameron-Moore)

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China’s economy could grow 8-9% this year from low base in 2020 – central bank adviser



China's economy could grow 8-9% this year from low base in 2020 - central bank adviser 3

BEIJING (Reuters) – China’s gross domestic product (GDP) could expand 8-9% in 2021 as it continues to rebound from the COVID-19 pandemic, Liu Shijin, a policy adviser to the People’s Bank of China, said on Friday.

This speed of recovery would not mean China has returned to a “high-growth” period, said Liu, as it would be from a low base in 2020, when China’s economy grew 2.3%.

Analysts from HSBC this week forecast that China would grow 8.5% this year, leading the global economic recovery from the pandemic.

If 2020 and 2021’s average GDP growth is around 5%, this would be a “not bad” outcome, said Liu, speaking at an online conference.

China is set to release a government work report on March 5 which typically includes a GDP growth target for the year.

Last year’s report did not include one due to uncertainties caused by the coronavirus. Reuters previously reported that 2021’s report will also not set a target.

(Reporting by Gabriel Crossley and Muyu Xu; Editing by Sam Holmes and Ana Nicolaci da Costa)

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