RBS under fire over mortgage fee
May 14, 2009
Bailed out High Street bank, Royal Bank of Scotland has recently been under fire after announcing that it was charging a non-refundable and hefty fee on its mortgage. Read more
First time buyers spending fortune on deposit and mortgage
April 2, 2009
Data from a recent report has suggested that first time buyers are now spending a fortune on their mortgage deposit and their first year of mortgage repayments. Read more
A 15% deposit may become the minimum for property purchasers
March 30, 2009
As a result of sweeping reforms being considered by the UK’s financial regulator, the Financial Services Authority, consumers that are looking to purchase a property in the UK may be forced to put down a minimum deposit of at least 15 percent when taking out a mortgage. Read more
Supermarkets may axe plans to sell mortgages
March 21, 2009
As most people are aware the supermarket giants of today sell a lot more than just groceries and household goods, with many selling a range of financial products such as insurance, loans, and credit cards, and some even offering banking facilities. Read more
Central bank cuts rates and considers quantative easing
March 20, 2009
Following the March Monetary Policy Committee meeting the Bank of England has cut the UK base interest rate once again, slashing it by a further 0.5 percent and taking it to a fresh all time low of just 0.5%. This is the sixth month in a row that the base rate has fallen, and following a series of aggressive rate cuts the base rate has dropped from 5 percent in October to just 0.5 percent in March. Read more
Mortgage approvals up for second month in a row
March 18, 2009
According to industry reports mortgage approvals in the UK have increased for the second month in a row in January, with a slight increase compared to mortgage lending levels for December. Read more
Getting a mortgage has become more difficult
March 17, 2009
A recent report has suggested that getting a mortgage is becoming increasingly difficult, even though many had hoped that things would become easier following a very tough 2008 with regards to the mortgage market. Read more
Many lenders failing to pass on the base rate cut
March 16, 2009
According to a recent report there are many lenders that are refusing to pass on the base interest rate cut to those that are approaching them with a view to remortgaging. Read more
Five year low for buy to let mortgage loans
March 13, 2009
Recently released data has shown that mortgages for buy to let properties have now fallen to a five year low, as the market continues to restrict and mortgage lenders continue to try and reduce their risks when it comes to mortgage lending. Read more
Slight rise in mortgage approvals in December
March 13, 2009
Recently released figures from the Bank of England have indicated that there was a slight increase in mortgage lending for the month of December. Read more
PM accused of raising hopes over mortgages
March 12, 2009
In a recent attack the Conservative Party has accused the Prime Minister, Gordon Brown, of raising the hopes of consumers with regards to mortgage assistance. Read more
Criticism over mortgage arrears charges
March 11, 2009
Industry officials from the debt advisory sector have recently expressed their concern over charges that are imposed by lenders when homeowners fall into arrears with their mortgage loans. Reports show that when homeowners fall into arrears with their mortgages many are charged between £20 and £50. Read more
95% mortgages now only on offer from a couple of lenders
March 6, 2009
According to a recent report the once traditional 95 percent mortgage is now only available from a couple of lenders on the market, with other lenders demanding far higher deposits from borrowers. Read more
Use Any Extra Funds to Pay Down Your Mortgage
March 2, 2009
In the current credit crunch many homeowners in the UK are striving to build up their savings accounts so that they have money to fall back on just in case they may encounter financial difficulties in the future. Read more
Competitive fixed rate mortgages becoming popular
February 14, 2009
Industry officials have recently stated that bargain fixed rate mortgages are now making a comeback, with consumers jumping at the chance to fix their mortgage interest rate for a fixed period of time following the recent base interest rate cuts. Read more
More people overpaying on their mortgages
February 12, 2009
According to a recent report the number of people that are overpaying on their mortgages is on the rise, with many taking advantage of the recent base interest rate cuts and using them to try and clear their mortgage debt faster, as well as to try and save a fortune in interest on their mortgage loan. Read more
Cheaper mortgages from RBS and Natwest
February 10, 2009
A leading lender along with its parent company has announced recently that it is launching a range of cheaper mortgages. Read more
Increased rationing of mortgages
January 30, 2009
According to industry officials the rationing of mortgages in the UK is set to get worse, with lenders becoming increasingly stringent when it comes to mortgage lending and with fewer and fewer mortgage products being left on the shelves. Read more
Tighter criteria on buy to let from lenders
January 27, 2009
According to recent reports lenders are tightening their criteria when it comes to buy to let mortgages, and this means that existing and potential investors that have been hoping to benefit from the falling house prices and plummeting interest rates will most likely experience problems when it comes to getting the finance that they need. Read more
Part nationalised banks charge first time buyers more
January 21, 2009
Recent reports have indicated that the part nationalised banks in which the government owns a stake after bailing them out with taxpayers’ money are actually charging first time buyers more each month on their mortgages than other lenders are. Read more
First time buyers unlikely to benefit from HSBC increased lending
January 16, 2009
Earlier this month the High Street bank HSBC made an ambitious pledge to increase its lending by around 20 percent next year compared to this year, claiming that it aims to lend around £15 billion in mortgage loans. Read more
London property market will lead the way to recovery
January 13, 2009
Recent reports have suggested that whilst London may see the largest house price falls than any other area in the UK next year property prices in this area will also be the first to recover once the housing slump starts to subside. Read more
Base rate cut to lowest level in nearly sixty years
January 8, 2009
Earlier this month the Bank of England cut the base rate to its lowest level in nearly six decades, slashing it by a further 1 percent to just 2 percent. This brings the base rate to almost one third of the level it was at just over a year ago, when the base rate was still 5.75 percent. The central bank slashed rates in October, November, and December, cutting rates by a total of 3 percent in this period, bringing the base rate to its lowest level in fifty seven years. Read more
BBA reports on slipping mortgage lending figures
January 3, 2009
The British Banker’s Association has recently released figures that show mortgage lending levels slipping for the month of October. Industry officials have suggested that some consumers may have used deposits to fund other purchases over the month, particularly with Christmas just around the corner. Compared to October of last year mortgage approvals had fallen by around 52 percent according to the BBA figures. Read more
First time buyers paying more for mortgages due to deposit levels
January 1, 2009
A recent report has shown that those taking out mortgages with just a small deposit to put down are paying far more each year for a mortgage than those that have a higher deposit level to put down. People with lower deposits, who are often first time buyers with little in the way of savings and no previous property from which to take equity, are paying far higher interest rates than those able to put down a higher deposit, and therefore are ending up paying far more in repayments each year. Read more
Scotland sees fall in mortgage lending
December 24, 2008
According to recently released figures Scotland saw a fall in mortgage lending levels over the third quarter of this year, with mortgage lending approvals falling by around 18 percent over the quarter. However, according to the Council of Mortgage Lenders, Scotland still accounts for around 12 percent of all new UK house buying loans, which officials have said is a record high. 
The figures show that in the three months leading to the end of September, there were 5300 new loans approved for first time buyers, which equated to £481 million worth of lending. This was down from 6600 loans in the second quarter of the year, which equated to around £622 million worth of lending. The statistics also showed that the average first time buyer was putting down a deposit of around 16 percent for their mortgages, which comes about as a result of lenders demanding far greater deposits.
An official from the Council of Mortgage Lenders said “It has been less pronounced in Scotland. As the Crosby report recognised earlier this week, intervention is needed to restore the availability of mortgages and we hope to see its recommendations implemented swiftly. This would help address the mortgage supply issues, but consumer demand for loans will continue to fall away in the weaker economic outlook.”
The third quarter also saw remortgages falling in numbers, with eighteen thousand remortgaging loans worth £1.9 billion approved during the third quarter. It is thought that remortgaging levels may continue to decline as a result of consumers switching to lower rate standard variable mortgages when their existing deals come to an end.
Ban for fraudulent mortgage broker
December 20, 2008
The UK’s financial regulator, the Financial services Authority, has taken action against yet another broker than has been found to have been engaging in fraudulent activity. Since the start of this year a number of brokers have been fined by the regulator, having been found guilty of a variety of fraudulent activities relating to mortgages. This is an issue that the FSA has started cracking down on particularly hard over the past year or so. Read more
Deadline set over fairness to mortgage customers
December 18, 2008
Over recent months the government has been trying to bring in new guidelines and rules in relation to mortgage lending, to ensure that mortgage customers are treated fairly by banks and lenders in the current difficult financial climate. Recently lenders have agreed that they will now wait at least three months before taking any repossession action in the event that a homeowner falls into arrears with their mortgage repayments, which gives the customer more time to reach an effective solution with the lender or to catch up with repayments. Read more
Response to UK interest rate cut
December 13, 2008
In early October the government and the Bank of England surprised the nation by cutting the base rate by 0.5% a day ahead of the scheduled Monetary Policy Committee meeting, where interest rates are usually cut. Like a number of other central banks across the globe, the Bank of England cut the base rate in an emergency move to try and boost the failing economy and stave of recession, and the move was welcomed by many consumers and industry groups. Read more
Mortgage market could slump massively by end of year
December 10, 2008
As most people will be only too well aware the mortgage market in the UK and in other parts of the world has slumped over recent months, and for over a year, since the onset of the global credit crunch, nations have been suffering huge financial problems, with liquidity in the financial markets all but grinding to a halt. In the UK and other nations this has resulted in radical changes in the mortgage market, which has slumped enormously as the days of easy credit disappear and a new approach to lending comes into play. Read more
Lender expects 80% fall in mortgage market
December 5, 2008
According to a recent report from one of the UK’s major lenders the mortgage market in the UK could plummet this year, and could end up at just one fifth of the level that it was at last year. Officials from Nationwide have said that based on the amount that the lender approved for borrowers in the six months to September of this year the end of the year may end on an 80% slump in the mortgage market compared to just twelve months ago. Read more
Interest only mortgage payers have no plans to repay capital
December 3, 2008
According to a recent report many of those with interest only mortgages have no plans in place to help them to pay the capital on the mortgage in the future. The report shows that there are nearly three million people with interest only mortgages, and of these around 45 percent do not have any plans in place to help them to repay the capital on the mortgage. Read more
Rate cuts not reflected by mortgage rates
November 30, 2008
According to a recent report mortgage interest rates do not reflect base area cuts, with officials stating that the UK’s major banks do not seem to be in any great rush to pass on recent interest rate cuts to their customers. The base rate has plummeted to just 3% recently following a huge 1.5 percent rate cut earlier in the month, which has nearly halved the base rate compare to this same period last year, when it stood at 5.75 percent. Read more
Sharp fall in low deposit mortgages
November 29, 2008
According to recent reports there has been a sharp fall in the number of low deposit mortgages that are available on the market, making the situation increasingly difficult for first time buyers who want to get onto the property ladder but have very little in the way of savings and no previous property from which to take equity. Most lenders have increased their deposit requirements significantly over the past year since the onset of the global credit crunch. Read more
September report shows August mortgage lending figures plummeted
November 21, 2008
A report that was released last month by the Council of Mortgage Lenders showed that the previous month saw mortgage lending figures plummet, reflecting the slump that the housing and mortgage markets have been experiencing. The value of mortgage lending for the months was just half of the value of mortgage lending for the same period the previous year. The figure for August was the lowest since 2005, and despite efforts by the government to boost mortgage lending liquidity in the mortgage sector does not seem to be easing. Read more
Choice of mortgage for new borrowers falls further
November 13, 2008
According to a recent report the number of mortgage products that are now available for new borrowers has fallen even further over the past couple of weeks, leaving new borrowers really struggling to find a suitable mortgage product that fits in with their needs and pockets. This could further impact on consumer confidence as well as on the housing market, as an increasing number of borrowers fail to find a loan that they can afford or gain access to. Read more
Interest rates could plummet next year according to officials
November 11, 2008
Over the past couple of years interest rates have soared to 5.75%, leaving many homeowners struggling to keep on top of their mortgage repayments and resulting in an increase in repossessions. Homeowners were therefore relieved when in December of last year the base rate started to come down, and between last December and April of this year the base rate fell three times by 0.25% each time, taking it to 5%. Read more
Calls for 1% base rate cut
November 9, 2008
The Bank of England is being urged to cut the base interest rate, and some groups are calling for a rate cut of 1% in order to try and weather the imminent recession. It is thought that there could be a 0.5% rate cut or even a 1% cut at the next Monetary Policy Committee meeting in November. It is also thought that other central banks will be slashing interest rates again following the surprise October rate cut, including the US Federal Reserve, which is expected to cut the base rate to just 1%. Read more
How low will rates go?
November 9, 2008
Interest rates have been causing problems for many homeowners and would be property purchasers over the past couple of years. Between August 2006 and July 2007 the base rate was increased no less than five times, and with each rise being 0.25% this took the base rate from 4.5% to 5.75%. For many homeowners with variable rate mortgages this caused huge problems, as their monthly mortgage repayments rocketed by hundreds of pounds a month in some cases. Those that were hoping to get onto the property ladder found themselves priced out of the market because they could not afford to take out a mortgage at such a high rate of interest. Read more
Mortgage approval levels still very low say authorities
November 4, 2008
There is further doom and gloom for consumers in the UK following a recent report from the British Banker’s Association, which claims that mortgage lending approvals in the UK are still way down compared to last year even though there was a slight rise in lending levels for the month of September. Any ray of hope from the slightly higher September figures was dampened following reports that the number of mortgage approvals compared to September of last year was down by around 57%. Read more
More bad news for those with low deposits
November 2, 2008
Over recent months an increasing number of lenders have been demanding larger deposits from borrowers looking for mortgages, and this has resulted in many first time buyers and low income buyers being squeezed out of the market as they are unable to raise the deposit required to get the mortgage that they want. Recent reports suggest that over the past couple of weeks the problem has become worse, and these groups could face increased difficulty. Read more
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
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
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
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
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
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