Increase in mortgage interest rates despite base rate cut
October 31, 2008
The nation’s biggest building society, Nationwide, announced earlier this week that for the second time in the space of a week it was increasing the interest rate on some of its mortgage products. This comes despite the recent 0.5% cut in the base rate, which only a portion of lenders have promised to pass on to consumers. Amongst those that will be hardest hit by the Nationwide decision are borrowers with smaller deposits, such as first time buyers, who will see the highest rate hikes. Read more
Future of house prices looks bleak
October 30, 2008
Over the past year the housing market in the UK has fallen into a slump, with house prices having fallen month on month, leaving them considerably lower than they were at their peak this time last year. However, the bad news is not over for homeowners, with industry officials warning that property values are set to continue falling. In fact, one firm of economists has warned that by this time next year property prices could have dropped by up to 35%. Read more
The pressure is on for the Bank of England
October 23, 2008
Further pressure is being piled on the Bank of England to cut the interest rate, as officials points out that Britain could otherwise face the worst effects of recession. With the Monetary Policy Committee meeting due soon, the governor of the central bank and other senior officials are feeling the heat, as industry groups and professionals warn them to put inflation worries on the back burner and focus on the state of the economy and the rising risk of a full blown recession. Read more
Many pensioners will be paying a mortgage when their retire
October 22, 2008
According to recent reports many people that are now aged fifty five and over will still be making repayments on their mortgages when they reach retirement age and hit sixty five. The report states that around 1.4 million pensioners have mortgage debts of over £55,000, and this is costing them over £700 a month. In addition, the average time left to repay on these mortgages is eight year, with many likely to be paying them for longer and well into retirement. Read more
Will you be cutting your spending to focus on your mortgage?
October 21, 2008
Over the past ten years the UK has gone through a housing boom, and this has seen some lucky homeowners see their property prices rocket. Many have been delighted to see just how much their equity levels have increased as a result of soaring property prices, and this has made it possible for many homeowners to borrow large sums of money secured against the high levels of equity in their homes. Read more
Fine for lender over misleading customers
October 20, 2008
A well known lender, GE Money, has been fined a massive £1 million by the UK’s financial regulator, the Financial Services Authority, which claims that the lender engaged in unfair lending practices that left its customers worse off. GE Money Home Lending has been fined £1.2 million in total, and this was because it was found to have lost seven hundred of its mortgage customers around £2.3 million in total because it mis-managed their mortgages. Read more
Mixed reactions on housing proposals from government
October 19, 2008
The government in the UK has made a number of new proposals recently to try and kick start the slow housing market, and amongst the actions taken by the government are a suspension in stamp duty for properties up to £175,000, and also the provision of loans for first time buyers looking to purchase new build properties. Industry groups and officials have offered mixed reactions to these moves, some of which can be seen below. Read more
Is it time to scrap HIPs?
October 17, 2008
There is no doubt that when legislation relating to Home Information Packs was brought in the year before last there was a great deal of controversy and dissatisfaction amongst both homeowners and various industry groups, such as estate agents. Officials from the Labour government have been insisting that these packs are a good idea, and that they will make the house selling process far faster. However, whilst Labour officials continue to defend these HIPs officials from other parties are insistent that they need to be scrapped. Read more
Could you pick up a property bargain at auction?
October 16, 2008
As most people are only too well aware the prospect of being able to afford a property these days is very bleak, even thought property prices are falling, as they have been for the past eleven months. Whilst house prices have been falling month on month, the cost of buying a property is still very high. On top of this the ability to get a mortgage for such a substantial amount of money has become increasingly restricted, with lenders exercising far more stringency because of the effect of the global credit crunch. Read more
A third of pensioners left to pay a mortgage
October 15, 2008
According to a recent report one in every three people that reach retirement age will still be paying off their mortgage when they retire. It is claimed that over one million homeowners will have been unable to pay off their mortgage loan by the time they hit sixty five and come to retire. With people reaching retirements age having to prepare for a sharp fall in income in most cases, this could cause a real problem for many people, who may not be able to raise the mortgage repayments. Read more
Credit crunch does not stop asking prices from rising
October 15, 2008
According to recent reports asking prices on some properties are still increasing despite the fact that property values have been falling for almost a year. Figures have revealed that the mortgage famine and falling property values have not stopped asking prices from rising in the London area, as hopeful sellers try and get as much for their homes as possible with many reluctant to accept the fact that property values are falling. This practice is adding to the housing downturn, with buyers unable and unwilling to pay the high prices that sellers are demanding. Read more
Could stamp duty relief help to boost the housing market?
October 14, 2008
Over the past few months the housing slump in the UK seems to have become more and more pronounced, with estate agents unable to shift many of the properties on their books and with sellers resigning themselves to the fact that even if they do manage to sell their homes it will most likely be at a far lower price than they are asking. The effects of the global credit crunch, the state of the economy, and soaring inflation levels have all affected the low level of property sales over recent months. Read more
What will you choose if you need to remortgage?
October 13, 2008
When choosing a mortgage product it is very important that you go for a mortgage that is going to prove suitable and save you money wherever possible, as your mortgage is a daunting long term financial commitment. In the past choosing a mortgage was relatively straightforward. If interest rates were low and were more likely to go up than down in the future most people went for a fixed rate mortgage to protect the lower repayments in the event that the base rate went up. In cases where the interest rate was quite high and the most likely movement would be downwards people have opted for a base rate tracker, so that their repayments would fall when the base rate went down. Read more
Predicted rate cuts could reduce annual repayments by thousands
October 10, 2008
According to a recent report homeowners paying their mortgages could find that their repayments fall by a couple of thousand pounds or more if the Bank of England cuts the base rate several times over the next year, as it is expected to do. A number of industry officials have predicted that the base rate will be cut a number of times over the coming twelve months, and for some people this could mean huge savings on repayments depending on the size of the mortgage and the interest rate that they are paying. Read more
Problems with mortgage interest help from Government
October 10, 2008
According to a recent report many officials have pointed out that there are some serious flaws in the scheme that the government has in place to help people with their mortgage interest payments if they lose their jobs. In the event of job loss the scheme means that the government will cover mortgage interest payments on home loans of up to £100,000. However, from April of next year this will apply to home loans of up to £175,000. Read more
Rise in loan costs due to PPI crackdown
October 9, 2008
According to a recent report the ongoing crackdown in relation to Payment Protection Insurance, or PPI, on loans has resulted in an increase in costs and interest rates for those taking out personal loans. Officials have said that lenders have been looking at other ways to make money on loans since being warned about mis-selling PPI by UK financial authorities, and therefore personal loans have become more expensive for consumers. Read more
Blanchflower speaks up in favour of rate cuts
October 9, 2008
Earlier this month following the latest Monetary Policy Committee meeting the Bank of England announced that for a fifth month in a row the base rate was to be kept on hold at 5%. Interest rates soared five times between August 2006 and July 2007, each time rising by 0.25%. Between July 2007 and December 2007 the rate remained stuck at 5.75%. However, between December 2007 and April 2008 there were three 0.25% cuts in the base rate bringing it down to 5%, where it has remained since. Read more
Attracting buyers for your property
October 8, 2008
If you have been trying or even thinking about selling your home over recent months you will already know what a tough time you could be facing. Property sales have plummeted over recent months, and the situation has been fuelled by falling house prices, which is putting potential buyers off due to the risk of falling into negative equity, and also by tighter credit conditions, which is resulting in many would be buyers being unable to get the necessary funds required to purchase a property due to the global credit crunch. Read more
Inflation to fall sharply next year
October 7, 2008
According to government officials the soaring level of inflation is likely to drop sharply next year, and this could result in falling interest rates, which will come as good news to those with loans and mortgages. Some industry officials have predicted that once inflation starts to fall next year interest rates could plummet to as low as 3.5%. At present the base rate stands at 5%, and has remained at this level for the past five months, as the Monetary Policy Committee tries to keep a lid on soaring inflation. Read more
Make sure you keep up with repayments on your secured loan
October 7, 2008
In the past many people were nervous about taking out a secured loan, as the very fact that the loan was secured against the home made some people extremely wary. However, for those with damaged credit there was very little choice other than to opt for a secured loan, as most unsecured lenders would not entertain the idea of lending to someone with damaged credit. Read more
Will house prices rise or fall?
October 6, 2008
A huge number of industry officials and agencies have been predicting since last year that since the housing bubble burst house prices would continue to fall for the next couple of years in the UK. Some officials have predicted that house prices could plummet over the next couple of years, with a number of professionals sating that the value of properties could fall by 17% over the next year and by up to a third over the next couple of years. Read more
Northern Rock borrowers running into financial problems
October 5, 2008
Recent research has suggested that Northern Rock mortgage customers may be running into financial problems at a far faster pace than other borrowers, with repossession figures showing that a large proportion of homeowners that have been losing their homes are Northern Rock borrowers. The research was carried out by Standard and Poor, and indicated that one in every thirteen repossessions was a Northern Rock homeowner. Read more
Is it worth waiting to save money on stamp duty?
October 5, 2008
Affordability for first time buyers looking to get onto the property ladder has continued to dwindle over recent months despite the fact that house prices have been falling month on month and are now said to be at their lowest since August 2006. When house prices started falling many thought that this was the news that many first time buyers had been waiting for, having been priced out of homeownership for some years. However, this was not to be because over recent months the mortgage meltdown has resulted in many first time buyers being unable to get a mortgage due to lack of affordability. Read more
Cut out the middle man and sell your home online
October 4, 2008
People buy all sorts of things online these days, from holidays and cars to entertainment and groceries. According to one recent report some people also look for a new home online, and the struggling homeowners that are looking to sell their properties but are experiencing financial issues could save themselves a fortune and gain more control of the situation by selling their property online rather than go through an estate agent. Read more
Buyers could be encouraged through stamp duty suspension
October 3, 2008
Many people cannot remember the last time things looked so bleak for the housing market, with property sales having plummeted and estate agents selling an average one property a week or less. With a range of factors affecting the ability of consumers to make a purchase, the housing market has all but ground to a halt, adding the other pressures that the nation is facing in terms of the economy, the financial markets, and soaring inflation levels. Read more
Credit unions performing well in the wake of the credit crunch
October 2, 2008
Over the past twelve months, since the onset of the global credit crunch, many people have become distrustful of banks, and many others have found that they no longer have access to some of the services that banks offer, such as loans and other forms of finance. According to a recent report this trend is resulting in increased custom for credit unions, which are community run institutions and offer many benefits for members. Read more
Lenders cut rates but only well off will benefit from them
October 1, 2008
Over recent weeks a number of lenders have reduced the interest rates on some of their mortgage products, and this has been the result of a drop in swap rates, which are indicative of mortgage interest rates as they are the rates at which lenders lend to one another. With swap rates having fallen a number of lenders have passed on the cut by reducing the interest rates on some fixed rate mortgages. Read more