New mortgages no longer on offer from Egg
June 30, 2008
The Internet lending giant Egg has recently announced that it will no longer be offering new mortgages, which means that the choice for consumers in the UK who are looking for a mortgage will be further cut. The number of mortgage products on offer to UK consumers has already plummeted by two thirds over the past year, and Egg’s withdrawal from the mortgage market means that there will be even fewer mortgage products on offer to those looking for this type of loan. Read more
Cost of having home improvements on the up
June 30, 2008
The number of people that are deciding to have home improvement carried out is on the rise, and this is because many homeowners are now finding that it has become far more difficult and expensive to sell their property in the current financial climate, and with house prices tumbling many are reluctant to sell because of the potential losses that they could face. Many have therefore decided to try and improve their existing home rather than uproot and move to another one. Read more
Competition Commission states still a problem with loan insurance sales
June 29, 2008
Officials from the Competition Commission have stated that there is still a serious problem with the sale of payment protection insurance, which is sold alongside loans and other forms of credit. This type of cover can be very costly, and in the past there have been a number of investigations, as it was found that many lenders and providers were selling the cover inappropriately. It was found that many were selling the cover to those that could never benefit from it, such as the retired or self employed, some were pushing consumers into taking out the cover even if they were reluctant, and others were adding the cover onto the finance deal without the knowledge of the borrower. Read more
House price falls – opinions from experts
June 29, 2008
Last year many industry professionals began to predict that house prices throughout the UK would fall, although most thought that the fall would be minimal and some thought that house price inflation for this year would remain stable. However, there is little doubt that house prices are indeed falling and are likely to continue to do so over the course of this year and into next. Read more
Challenging times ahead for homeowners
June 28, 2008
Homeowners in the UK are set to face some of their most challenging times over the course of this year according to officials from a debt advisory group. This comes after the Council of Mortgage Lenders recently changed its house prices forecast for the year from a 1% rise to a 7% fall. Officials from the debt group have recommended that homeowners that are likely to struggle should seek advise from professionals in the industry. Read more
Problems could face the mortgage markets for the next eighteen months
June 27, 2008
According to one industry official the mortgage and banking industries could be set to face challenging times for at least the next eighteen months, as the effects of the global credit crunch continue to take their toll in the money markets. The bleak warning came from the boss of HBOS, who was recently speaking at the Financial Services Week conference in Edinburgh. Read more
Mortgage sector due to continue suffering says CML
June 26, 2008
The Council of Mortgage Lenders has recently released a gloomy report with regards to the future of the housing market, and this is one of a number of recent reports from a range of industry groups that make for gloomy reading. Officials from the CML have said that house prices could fall by 7% or more over the remainder of this year, and that the mortgage lending sector faced little hope of recovery over the next year. The CML had predicted that house prices could rise by 1% over the course of this year originally, but since October has changed its prediction to a 7% fall. Read more
Is it best to get a mortgage through an intermediary or direct from the lender
June 25, 2008
Consumers that are looking for a good deal on a mortgage and are lucky enough to have good credit and a regular income can often choose from going through a mortgage intermediary, such as a broker or financial advisor, or going direct to a lender. But with so many conflicting reports with regards to which is the best route to take, things can get a little confusing for the average borrower. One industry official commented on the situation with mortgage intermediaries. Read more
Three brokers found to be mis-selling sub-prime mortgages
June 24, 2008
A recent report states that three brokers that were found to be mis-selling sub-prime mortgages – which are mortgages that are for those with poor credit history or no proof of income – have had to face action from the UK’s financial regulator, the Financial Services Authority recently, and one of the brokers that was found to be mis-selling these mortgage has been closed down by the FSA. This comes just months after the mortgage meltdown in the United States, which was sparked in the sub-prime sector and created a widespread global credit crunch. Read more
Borrowing rates still rise despite base rate cuts
June 23, 2008
There have been three base rate cuts since December of last year, with the Bank of England reducing rates by 0.25% each time, taking the base rate from 5.75% to 5%. Over the past couple of months inflationary pressures have resulted in the central bank leaving rates on hold, despite concerns over the slowing economy. Inflation has now soared to 3.3%, which is way above the government target of 2%. Read more
House price growth could grind to halt in 2008
June 22, 2008
According to officials from the Nationwide Building Society 2008 could see house price growth grind to a halt in the UK. The building society states that there is to be a ’significant slowdown’ in house price growth over the coming year, adding that the current annual house price inflation level of 9.7% could plummet to 0% by the third quarter of 2008. Officials from the building society state that this forthcoming slump is down to a number of contributory factors. Read more
October 2007 saw homeowners struggle with mortgage payments
June 19, 2008
Mortgage payers in the UK encountered a difficult month in October when it came to making mortgage repayments according to recent data from the Council of Mortgage Lenders. High interest rates and property prices, coupled with difficult credit conditions, saw many homeowners struggling with their mortgages in the month of October. According to the Council of Mortgage Lenders firsts time buyers were spending 20.6% of their income on mortgage interest in October compared to 20.4% in September. Read more
What to look out for when choosing a mortgage
June 18, 2008
The world of mortgages has become something of a minefield in the UK over recent years. Not only are there more and more lenders offering a wide choice of mortgages, but the rises in property prices and interest rates have meant that many lenders have changed what were once considered traditional terms in relation to mortgages, such as offering far higher income multiples and much longer repayment periods. Read more
Are discount mortgages a good choice?
June 18, 2008
From fixed rate mortgages to a tracker mortgage, and from interest only mortgages to buy to let mortgages, the world of mortgage loans has become more complex than ever these days, with a wide range of mortgages to select from. This is great news for consumers that want to find the perfect mortgage for their needs, but can be a nightmare for those that know little or nothing about mortgages and are not sure where to even start. Read more
Borrowers getting fleeced on fees
June 18, 2008
It seems that the average borrower looking for a mortgage simply cannot win these days. Even though house prices are coming down, which should have been good news for first time buyers looking to get their foot on the property ladder, and interest rates have been cut three times since December, which should be good news for all borrowers, things are still incredibly tough for mortgage borrowers, and many are still finding that it is impossible to get a mortgage due to a variety of factors that are affecting affordability levels. Read more
Consumers reluctant to switch mortgage lender
June 17, 2008
A recent report has shown that many UK homeowners are reluctant to switch their mortgage lender, even in cases where their existing mortgage becomes difficult to afford. The data shows that even where borrowers have been on a cheap introductory deal that has come to an end, and they are left facing the financial implications of moving onto the lender’s standard variable rate, they are often reluctant to switch to another mortgage lender in order to get a better deal. Read more
DWP loses sensitive information
June 16, 2008
There has recently been another blunder, with yet another government agency losing sensitive data about consumers. The Department for Work and Pensions has admitted that it has lost hundreds of budgeting loan application forms, each of which contained a range of sensitive data about applicants, which could prove to pose a risk if the information falls into the wrong hands. A union official has branded the loss of this information as ‘outrageous’. Those that have recently made budgeting loan applications to the DWP have been advised to contact the agency as early as possible. Read more
Abbey’s 125% mortgage offer not appropriate
June 15, 2008
High street lender, the Abbey, is being criticised by many industry experts after announcing the launch of a 125% mortgage, which is being made available to first time buyers along with other groups. Experts claim that this mortgage deal comes at a bad time, when severe difficulties and chaos have hit the financial markets. Whilst many other lenders are cutting back on their mortgage offerings, the Abbey is allowing some consumers to borrow over and above the value of the home in a 125% mortgage deal. Read more
BoE holds interest rates for fourth month
June 14, 2008
Following on from the November 8th Monetary Policy Committee meeting the Bank of England has decided once again to keep interest rates on hold at 5.75%. This is the fourth consecutive month that the Bank has decided to leave rates unchanged, giving rise to much speculation as to why the interest rate has been left at 5.75%. However, when the decision was announced the Bank of England gave no indication as to why it had decided not to change interest rates for another month. Read more
Many worried about effects of expiring fixed rate deals
June 13, 2008
According to recent reports many consumers and industry professionals are concerned about the flood of cheap fixed rate mortgage deals that are due to come to an end in the coming months. Many homeowners took out these low rate deals for two or three years in 2004 and 2005, but since this time interest rates have rocketed with a series of five 0.25% rises since August 2006. This means that when these cheap fixed rate deals end, the homeowners concerned will have to either find another suitable deal to switch to or will have to cope with the lender’s standard variable rate, which is likely to be way higher than the interest rate that they are currently on and could make a huge difference to monthly repayments. Read more
Interest rates could fall twice by June
June 12, 2008
Homeowners and first time buyers have faced tough times over the past year, with a series of five interest rates between august 2006 and July 2007 taking the base rate from 4.5% to 5.75%. For those on variable rate mortgage this has means five rises in the amount that they have to repay each month, which has pushed many households way into the red and has resulted in an increase in the number of repossessions. Read more
Sale and rent back described as ‘daylight robbery’
June 11, 2008
An official from the housing charity Shelter has described some sale and rent back schemes as conducting ‘daylight robbery’. Shelter, along with other campaigners and groups including the Citizen’s Advice Bureau have been pushing for the government to introduce regulations and measures to stamp out unfair practices by such companies, which it states is leaving the lives of some people in tatters when they lost their homes and are affected financially. Read more
Most repossessions involve sub-prime lenders
June 10, 2008
A recent report has shown that the majority of repossession cases in the UK involve sub-prime lenders. The research was carried out by the BBC in the light of the rocketing level of repossessions taking place in the UK. Sub-prime lenders are those that cater for consumers with bad credit, the self employed, and those that cannot prove their income. However, the interest rates that they charge can be extortionate, and many of those consumers that start to struggle to keep up with repayments come from the sub-prime mortgage sector. Read more
PPI still being mis-sold to millions
June 10, 2008
Over the past couple of years there has been a major crackdown on the sale of Payment Protection Insurance to consumers that were not suited to the plans. However, according to consumer campaign officials and watchdogs, there is still evidence of large scale mis-selling of this type of cover to millions of people that can never actually claim on the insurance, and are therefore wasting their time. Read more
Cheap fixed rate homeowners see light at end of tunnel
June 6, 2008
Customer who are on cheap fixed rate mortgages that are due to come to an end are finally able to see the light at the end of the tunnel after months of fretting over how they will manage to keep up with repayments once their low fixed rate comes to an end. Over the last half of last year many people voiced their concerns over the repayment leap that those with cheap fixed rates would face once their fixed rate term came to an end, and many officials predicted that there would be huge rises in repossession levels. Read more
Mortgage brokers given warning by regulator
June 5, 2008
Mortgage brokers across the UK have been warned by the financial regulator, the Financial Services Authority, that they must ensure that they are providing clear, transparent, and fair information to consumers to ensure that they get the best deal on a mortgage based on their needs and circumstances. Times are already difficult for many brokers, with many lenders turning away applicants, and others who are now offering deals directly rather than through brokers. Read more
The base rate cut failed to benefit credit card customers
June 5, 2008
There have been three base rate cuts over recent months, with the Bank of England cutting the base arte by 0.75% between December 2007 and April 2008. Despite these rate cuts not all lenders have passed on the cuts to borrowers, and there has been a lot of controversy over lenders that have failed to pass on the base rate cuts to mortgage and loan customers, with many claiming that the lenders in question are adding to the slowing economy by leaving borrowers to struggle despite the base rate cuts. Read more
2008 to be a tough year for mortgage lenders
June 4, 2008
Experts have stated that 2008 is going to be a very tough year for mortgage lenders in the UK, stating that the effects of the credit crunch, which has decreased liquidity for lenders, will make it difficult for lenders to find the money to finance loans. Inter-bank lending has become more difficult and expensive, which as increased the turmoil facing mortgage lenders. Officials from the Financial Services Authority have stated that the market conditions at the moment mean a very bleak year ahead for lenders. Read more
Mortgage lending still on the decrease
June 3, 2008
According to the Bank of England mortgage lending in the UK continues to decline. The Bank of England recently released figures that showed how mortgage lending was still going down in the UK, with around 20% drop in mortgage lending for September this year compared to September of last year. The figures show that in September of this year there were 102,000 new mortgage approvals, which reflected a drop of 25,000 from the same period of last year and a fall of 6,000 from the previous month’s figures. Read more
Consumers could be hit by rising mortgage rates from lenders
June 2, 2008
Since August 2006 the base interest rate has risen five times in the UK, taking it from 4.5% to 5.75% in just under one year. Since July of this year struggling homeowners have been relieved to find that the base rate has remained stable, although the Bank of England has failed to cave in to calls for interest rates cuts. However, although the base rate has remained stable at 5.75% since July 2007 recent reports suggest that a number of lenders are still raising their mortgage interest rates, which means that some homeowners may still feel the additional pinch. Read more