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
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
Abbey cuts its mortgage rates
September 28, 2008
Mortgage lending giant Abbey, the High Street bank that is Spanish owned, has recently cut the interest rates on some of its mortgage products. Like a number of other lenders Abbey has been able to reduce mortgage interest rates due to a recent fall in swap rates, which is the rate at which banks lend to one another and is indicative of mortgage interest rates that are charged to consumers. Read more
Should you go direct to lender or through an intermediary for your mortgage?
September 25, 2008
These days getting a mortgage can be really difficult, and the global credit crunch has impacted heavily on the mortgage sector heavily, leaving consumers with little choice when it comes to finding a mortgage and resulting in lenders really tightening up on their lending criteria. Whilst the base rate has come down three times over recent months many lenders have continued to hike up their mortgage interest rates, making it more expensive for consumers to borrow. Many lenders are also demanding higher deposit levels and charging huge arrangement fees, which has added to the problems that borrowers face. Read more
Nationwide cuts interest rates for some borrowers
September 20, 2008
Consumers in the UK have been relieved to see that a number of lenders have reduced the interest rates on their mortgage products slightly after swap rates, which are indicative of mortgage interest rates, fell slightly. Nationwide is one of the lenders that has cut its mortgage interest rate slightly. Many consumers have struggled to get finance to purchase a property recently, as mortgage interest rates have remained high even though the base rate has been cut three times between December of last year and April of this year. Read more
FSA calls for action over mortgage fraud
September 19, 2008
The UK’s financial regulator, the Financial Services Authority, is called for increased action to combat the problem with mortgage fraud, which seems to have risen since the onset of the global credit crunch, which has resulted in tighter credit conditions and lack of availability when it comes to mortgages. The situation has apparently resulted in an increase in the number of mortgage brokers that are falsifying information on applications forms in order to get through mortgage. Read more
Falsified mortgage applications result in broker being banned
September 18, 2008
According to a recent report another broker has been both banned and fined by the UK’s financial regulator, the Financial Services Authority, as a result of falsifying mortgage applications in order to get mortgage loans pushed through. The FSA has been really cracking down on this sort of activity, and with mortgage conditions getting tighter and tighter the number of industry officials engaging in this activity seems to be on the rise, which is something that the FSA is determined to tackle. Read more
Borrowers offered money from lender to redeem their loans
September 18, 2008
Hundreds of borrowers who have taken their mortgages from the sub-prime lender, Edeus, which was set up a couple of years ago, are being offered money from the lender in exchange for redeeming their mortgage loans. Many banks have been suffering huge financial difficulties over recent months as a result of the global credit crunch, which has affected all financial markets, and have been putting in place various strategies and tighter lending conditions in order to try and weather the storm. Read more
Many consumers could experience problems with remortgaging
September 16, 2008
Some industry officials have expressed concerns that many people who are hoping to remortgage over the coming months could experience severe difficulties, not only because of the lack of mortgages on the market at present but also because nobody seems to have any real indicated of what will be happening with the interest rate, which makes it difficult for consumers to determine what sort of product they should opt for when they remortgage. Read more
Loss of sleep for estate agents
September 15, 2008
The state of the mortgage and housing market has been in steady decline in the UK for a number of months. The number of mortgages and the availability of mortgages has dropped dramatically over the months, with fewer and fewer people able to get hold of a mortgage and purchase a property. In addition to this, and partly due to this, the number of property sales has also fallen, and is expected to keep on falling. Other factors that have affected the number of house sales include the threat of house prices continuing to fall, which is putting many potential buyers off due to the increased risk of falling into negative equity. Read more
New service launched for consumers looking for mortgage advice
September 12, 2008
In the current financial climate many people that are looking to take out a mortgage are also looking for quality financial advice from an experience, qualified, and trained industry officials to help them avoid making any mistakes when deciding on the right mortgage product. However, finding the right person to advise you isn’t always easy, and many people find themselves getting poor advice from someone that is not really suitably qualified or experienced in this field. Read more
Increased stability for mortgage product numbers on market
September 12, 2008
Since last summer when the global credit crunch swept across the UK the number of mortgage products available on the market has plummeted, with many lenders having to take a wide range of products off the shelves. In addition to this availability of mortgages and accessibility to mortgage products for consumers has been dramatically cut, and the mortgage intermediary market has also been affected by these issues. Read more
Low fee mortgages from Abbey for those with sizeable deposits
September 7, 2008
Over recent months a number of lenders in the UK have increased the mortgage arrangement fees on their mortgage products, and this has seriously affected the ability of many people to afford to take out a mortgage, particularly in the current difficult financial climate. However, the good news for those with a pretty sizeable deposit is that the Spanish owned High Street bank, Abbey, has recently announced the launch of a low fee mortgage range. Read more
Mortgage approval levels plummet in one year
September 5, 2008
Over recent months, since the onset of the global credit crunch, the number of mortgage approvals in the UK has been falling. Mortgage approval levels have been affected by a number of factors, and this includes the tighter credit conditions put into place by lenders, which has made it hard for some people to get mortgage finance, and a lower level of applications from consumers, who are unable or unwilling to buy in the current climate. Read more
Problems with mortgages could go on for years to come
September 4, 2008
Since last summer, which is when the global credit crunch made its way from the US to the UK, the mortgage market has been in chaos, and both lenders and consumers have been suffering. Decreased liquidity in the wholesale money markets has resulted in lenders suffering extreme difficulties in securing funds to finance their mortgage lending operations, and this is turn has resulted in a reduction in the number of mortgage products available and tighter credit conditions that have made it harder for many people to get a mortgage. Read more
It could be a couple of years before mortgage freeze thaws out
September 1, 2008
The mortgage industry has been going through turmoil for close to a year now, with the global credit crunch resulting in radical changes being made to the mortgage market. The number of mortgages available have been radically reduced over the past year, and tighter credit conditions from lenders have resulted in decreased accessibility when it comes to getting a mortgage, making it difficult for consumers to get a mortgage, and resulting in the wheels of the mortgage industry all but grinding to a halt. Read more
HBOS sees mortgage jobs cut
August 26, 2008
Halifax owned HBOS has recently announced that parts of its mortgage operations are to close, and this will result in several hundred job losses according to industry officials. The mortgage meltdown has resulted in many different problems over recent months, with lenders unable to offer mortgages at the same level as preciously due to the global credit crunch. This has resulted in fewer people being able to get mortgages and a stark reduction in business for struggling lenders. Read more
Consumers not getting effective advice from some mortgage advisors
August 25, 2008
With mortgage borrowing costs currently high and availability of mortgages very low, it has become increasingly important for consumers to obtain effective and high quality advice when it comes to getting a mortgage, and in order to do this many are turning to mortgage advisors. However, according to a recent report many consumers are being failed by mortgage advisors who are giving out the wrong advice to those seeking information. Read more
Halifax mortgage entry fee comes under fire
August 22, 2008
Leading high street lender Halifax has recently come under fire after announcing that it has introduced a mortgage entry fee on its mortgage products amounting to around £245. New borrowers taking out a mortgage will not be charged this fee, and many officials have expressed anger that the bank is fleecing people financially at a time when mortgages are already very expensive and hard to come by. Read more
Consumers looking at ways to reduce mortgage repayments
August 21, 2008
A number of mortgage brokers have said that many consumers have been looking at ways to reduce their mortgage repayments by remortgaging to different deals that could work out cheaper on a monthly basis. Many homeowners have found it increasingly difficult to cope with their mortgage repayments as costs have become higher, and rising living costs, bills, petrol prices, and food costs have contributed to the difficulties that many homeowners have been facing recently. Read more
Is an interest only mortgage a good idea?
August 20, 2008
For many consumers and lenders the idea of an interest only mortgage is a worrying one, as these mortgages are often seen as higher risk mortgages, and are frowned upon by some lenders who refuse to offer them in the current, riskier financial climate. However, for some people there may be no other option apart from an interest only mortgage, and this is because the repayments on a capital and interest mortgage – also known as a repayment mortgage – are simply too high to afford. Read more
Central bank keeps base rate on hold again
August 18, 2008
The Bank of England has announced that the base rate will be kept on hold for the third consecutive month following this week’s Monetary Policy Committee meeting. The decision has come as no great surprise to most analysts and economists, who had been predicting that the base rate would stay at 5% amidst fears over soaring inflation levels. Inflation now stands at 3.3%, and this is far higher than the government target of 2%. Read more
Sharp rise in mortgage fees
August 15, 2008
According to a recent report there has been a sharp rise in the cost of mortgage related fees over the past year, making affordability for potential buyers even more difficult. The rocketing fees are likely to further impact on the slowing housing market, with even fewer buyers able to get onto the property ladder. Over the past year mortgage fees have gone up by around 20%, and many consumers will find that they have to shell out thousands of pounds simply to get a mortgage, and then may high interest rates and put down a large deposit on top of these fees. Read more
Bank of England claims that many will be able to cope with increased repayments
August 10, 2008
The Bank of England has stated that whilst many homeowners are soon due to come off cheap fixed rate deals over the coming months, many will be able to cope with the rise in repayments. Over one million homeowners are due to come off cheap fixed rate deals in the coming year, but the Bank of England states that many of them will be okay when it comes to dealing with increased repayments. Read more
How long will it take for the mortgage market to settle down?
August 9, 2008
According to recent reports the mortgage industry in the UK could take several years to settle down, and industry officials have said that conditions in mortgage lending will never be as relaxed again as they have been over recent years. These relaxed conditions and the days of easy credit were brought to an abrupt halt late last summer, as the global credit crunch winged its way to the UK from the United States, and began to wreak havoc in the mortgage and finance industries. Read more
Borrowers accused of late mortgage payments by Northern Rock
August 8, 2008
Thousands of mortgage payers have been falsely accused of failing to pay their mortgage on time by ailing high street bank Northern Rock. The Rock, which recently became the victim of the first run on a British bank in 150 years, accused thousands of its customers of failing to pay their mortgages on time. The customers received letters stating that their mortgages were overdue and asking them to get the matter sorted out as quickly as possible. Read more
Many landlords deciding to sell up
August 6, 2008
According to a recent report an increasing number of landlords in the UK are deciding to sell up, with a number of factors thought to be responsible for this increase. The Royal Institute of Chartered Surveyors has stated that the level of new landlord instructions fell to the quarter ending October 2007. Officials from RICS also stated that amongst the factors responsible for the increase in the number of landlords selling up were higher interest rates and tighter credit conditions amongst lenders due to the credit crunch. Read more
Are you thinking of approaching a mortgage intermediary?
August 6, 2008
One industry official has recently stated that whilst more and more people may be thinking of approaching a mortgage intermediary for help with finding a suitable mortgage, many may find that the number of deals that these brokers have are not far more restricted than they have been in the past, which could in effect result in less choice and more expense. Read more
Brokers report on new remortgaging trends
August 6, 2008
A number of mortgage brokers have recently reported a new trend with consumers that are looking to remortgage. According to some mortgage brokers many of those that are coming to remortgage are opting for longer term mortgages, taking the loan over a longer period of time such as thirty or thirty five years instead of the usual twenty five year term. This is helping many consumers to keep their mortgage repayments costs down at a time when household budgets are being affected by rising living costs, petrol prices, and food costs. Read more
Brokers angry over lack of deals from lenders
August 5, 2008
Many consumers as well as many different industries have been affected by the global credit crunch, which made its way to the UK last summer. Credit conditions have become far tighter, consumers have struggled to get finance, lenders have struggled to fund their mortgage lending operations, and the wheels of the mortgage lending industry have come close to grinding to a halt. Recently a number of lenders have tried a new tactic, by offering better deals to consumers that go to them directly rather than going through a middle man in the form of a broker. Read more
Mortgage approval levels hit fresh low
August 4, 2008
According to recent figures mortgage approval levels for new home purchases in June fell to a fresh low, exceeding the poor approval levels that were seen in May. The report showed that compared to May there was a further 23% drop in mortgage approval levels in June, with the number of approvals falling from 27,499 in May to 21,118 in June. The figures come from the British Banker’s Association. Read more
First time buyers - do they benefit more from buying over renting?
August 3, 2008
A recent report has suggested that although house prices are falling, mortgages have become more expensive, and credit conditions are tighter than ever, many first time buyers could still be better off purchasing a property rather than renting a home. Many first time buyers have been put off purchasing a property because of the high cost of borrowing and difficulties in getting finance, and many have had to turn to renting instead. Read more
Mortgage lending for November takes a tumble
August 3, 2008
According to figures that were recently released by the Council of Mortgage Lenders mortgaging lending levels have fallen again for November. Experts state that this is yet another sign of the cooling housing market. Industry professionals have stated that many different factors point to a slowdown in the housing market, and falling mortgage lending levels are included in this indicative factors. Read more
Many homeowners at risk of losing their properties
July 30, 2008
According to a recent report many homeowners will be at risk of losing their homes over the coming year and a half, with over one million set to face the risk of losing their home. The data has come from a report by the UK’s financial regulator, the Financial Services Authority, with officials stating that a number of factors will affect the ability of many homeowners to keep up with repayments on their mortgages, despite the fact that interest rates have been cut twice in the space of several months. Read more
Should You Pay Off Your Mortgage
July 30, 2008
A mortgage loan is a pretty hefty debt to have hanging over your head. Sometimes mortgages are used to buy that first home or to pay for remodelling, emergencies, or other situations where money is needed quickly.
The current mortgage crisis has many homeowners looking twice at the loan agreement which may reset at higher interest rates in the future and at rates that make foreclosure possible. This fact alone causes many home owners to consider paying off a mortgage early. Read more
Could the base rate drop as low as 4%?
July 21, 2008
Over the past sixteen months or so homeowners on variable rate mortgages have really suffered financially, having seen their relatively low rates of interest rocket to sky high levels following a series of five interest rate rises from the Bank of England between August 2006 and July 2007. This has meant that their mortgage interest rate has also rocketed, and as a result of this their monthly repayments have gone through the roof in some cases, causing immense financial difficulties for some homeowners, and causing the level of repossessions to rise. Read more
Mortgage lending remains strained state officials
July 21, 2008
Last summer mortgage lending levels peaked, but late last summer the global credit crunch made its way across the Atlantic to the UK, and this changed the whole face of mortgage lending. Banks suddenly found it harder and more expensive to secure finance to fund their mortgage lending, and this has resulted in many changes. The number of mortgage products on the market has fallen by two thirds, interest rates have gone up, higher deposits are being demanded from lenders, and arrangement fees have rocketed. Read more
Halifax increases rates for new borrowers
July 20, 2008
The Halifax has increased its interest rates on mortgages for new borrowers after making alterations to interest rates for the twentieth time since the start of the year. Over twenty of its mortgage products will see rates rise by up to 0.5%, and this is despite the fact that the base rate has fallen three times since December and has stayed static at 5% over the past couple of months. Read more
Difficult decision for those wishing to remortgage
July 18, 2008
A recent report has shown how many people that are planning to remortgage either to get a better deal or because they are coming off cheap fixed rate mortgages may now find it difficult to determine which mortgage to go for as a result of confusion and differing predictions over what will happen with interest rates over the remainder of this year. Just a couple of months ago it was widely predicted that interest rates would continue falling over the course of this year, and that by the end of the year the base rate could be as low as 4%. Read more
Another house price tumble according to figures
July 16, 2008
According to recent reports November saw property prices fall by 1.1%, marking the third consecutive monthly drop. According to the Halifax this is the first time that this has happened since 1995, and the latest fall marks the largest drop in house prices since December 2006. Halifax officials state that the average property price has now fallen to £194,895, and this has taken the annual rate of growth from 8.9% in October to 6.3% for November. Read more
Tough times ahead for homeowners
July 14, 2008
Officials from a debt advisory company have stated that following bleak forecasts from the Council of Mortgage Lenders with regards to house price movement homeowners in the UK need to brace themselves for some very tough and challenging times ahead. Officials from the group are urging homeowners to prepare for difficult times, and if necessary to seek advice from experienced professionals with regards to their financial situations. Read more
Halifax makes more upwards changes to rates
July 12, 2008
Last week the high street lender, Halifax, announced that it was making its twentieth set of changes to interest rates on its mortgage products since the start of this year, with rates on many of its mortgages being pushed up, spelling bad news for new borrowers looking for a good deal. First time buyers and those looking to remortgage will now have to deal with higher monthly repayments, with rates going up even though the base rate has been on hold at 5% since April following three rate cuts in relatively quick succession. Read more
Will mortgage approval levels recover?
July 8, 2008
With the ongoing global credit crunch causing huge problems for mortgage lenders when it comes to raising finance to fund their mortgage lending operations, mortgage approval levels have been taking a hit for some time. The current economic climate means that many consumers are unable to consider taking out a mortgage, with many household budgets already overstretched, and this is also affecting approval levels with fewer people applying for a mortgage. Lenders have also increased a range of mortgage fees, such as interest rates, deposit levels, and arrangement fees, which has affected consumer ability to afford to take out a mortgage. Read more
Lack of first time buyers severely affecting rest of housing market
July 6, 2008
The housing and mortgage markets have both been experiencing immense difficulties over recent months, with the onset of the global credit crunch last summer having a profound adverse effect in the money markets, and this having a knock on effect in the housing sector. Mortgages have all but dried up, with many consumers unable to get finance to purchase a property due to tighter credit conditions stemming from lenders finding it increasingly difficult to get finance to fund their mortgage lending operations. Read more
Fancy getting an Asda mortgage?
July 3, 2008
Over recent years we have all become used to our local supermarket giants offering a wide range of products in addition to the traditional groceries. Many supermarkets have started to offer household gadgets and furniture, clothing, and even travel money. Many now offer a range of financial services, ranging from loans and credit cards to insurance services to suit all needs. And one of the leading supermarket giants, Asda, has recently announced that it plans to break into the mortgage market. Read more
Estate agents jobs at risk due to housing downturn
July 1, 2008
The downturn in the housing sector, which has been fuelled by the global credit crunch, tighter credit conditions, and falling house prices, could result in many thousands of estate agents losing their jobs, according to a recent report. Many industry sectors have been adversely affected as a result of the slump in housing sales and mortgage availability, and the estate agency industry is just one of a number of industries that are likely to suffer as a result of this. Read more
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
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
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
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
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