Two thirds of potential buyers giving up on homeownership dreams

It has been reported that around two thirds of would be buyers that were hoping to get their foot onto the first rung of the property ladder have now decided to give up on their dream for now because of the difficult financial climate and the lack of mortgage availability. Read more

90 percent mortgages fall by 97 percent over two and a half years

Most people are well aware that the mortgage market has been experiencing problems over the past couple of years, since the onset of the global credit crunch, and many mortgage products, particularly for groups such as first time buyers, have been disappearing from the shelves making it difficult for many people to get an affordable mortgage loan. Read more

Over one and a half million live rent free with parents and friends

According to the results of recent research carried out by Abbey there are over one and a half million people aged between eighteen and thirty four that are still living rent free with the friends or parents in the UK. Read more

Negative equity could hit many more

As a result of the house price crash that has seen a large percentage wiped off the value of UK properties over the past eighteen months it has been estimated that around one million homeowners have already been plunged into negative equity, which is where they owe more on their property than the actual value of the home. Read more

More breathing space over stamp duty

Following his recent budget, Alistair Darling, the Chancellor of the Exchequer, revealed that the break on stamp duty on properties up to a certain value was to be extended until the end of this year. Read more

Mortgage war could be sparked by HSBC

Earlier this month the High Street bank, HSBC, which also owns the Internet bank First Direct, announced that it was cutting mortgage loan rates even for those with smaller deposits. Read more

Homebuyers may have to put down 15 percent of property value

It has been revealed that the homebuyers of the future in the UK may have to put down a deposit of at least 15 percent of the property value, which means that an increasing number of people may find themselves priced out of the market because they do not have the deposit level that is being demanded. Read more

First time buyers still having to put up with renting

For many years many non-homeowners that simply couldn’t afford to buy a home due to ten years of rocketing property values have been waiting in the wings for property prices to start coming down again, over in the latter part of 2007 many were delighted to find that this was indeed happening at last. Read more

RICS states property sales levels may rise

Surveyors from the Royal Institute of Chartered Surveyors have indicated that there could be an increase in property sales over the coming months, as the level of interest shown by potential buyers has been increasing lately. Read more

Deposit free mortgages were a bad idea

City Minister, Lord Myners, has recently stated that the 100 percent and 125 percent mortgages that many lenders used to offer to borrowers in the UK were a bad idea. Myners described these mortgages as ‘foolish’, adding that banks should never have offered these mega mortgages. Read more

Home loans are not going to become more readily available yet

Industry experts have recently confirmed what most people have already worked out for themselves - that the availability of home loans in the UK is not likely to increase anytime soon. Read more

Council tax to rise by 3 percent in England

Recently released reports have stated that council tax in England is set to rise by just 3 percent, which is the lowest rise in ten years. However, officials have said that the rise in council tax will still be higher than the rate of inflation. Read more

Consumers’ hopes were falsely raised over assistance with mortgages

According to officials from the Conservative Party, the hopes of consumers across the UK were falsely raised by the Prime Minister, Gordon Brown, due to the delay with the Homeowner’s Support Scheme. Read more

An increasing number of privately renting tenants are getting evicted

A recent report has shown that there has been a rise in the number of privately renting tenants that are being evicted from their rented homes, and this is causing concern amongst many industry officials. Read more

Consumers receive better news about mortgages

After a year of tough times for those looking for a mortgage, consumers have finally received some good news over recent week. Read more

Officials offer advice on mortgage arrears

A recent report has shown that many homeowners in Scotland are struggling to keep on top of their mortgage repayments, and figures from the Financial Services Authority have shown that at the end of the third quarter of last year there were around 340,000 homeowners in Scotland that were in arrears. This was around 24 percent higher than the same period in the previous year. Read more

Mortgage lending hits lowest level in thirty four years

According to a recent report mortgage lending levels last year hit their lowest point in thirty four years, with figures at their lowest since 1974. Read more

Buyers attracted to property market due to low interest rates

A recent report has shown that a rising number of potential property buyers are being attracted to the property market recently as a result of the historically low interest rates. Read more

Building society admits to mistake over mortgage email

The Skipton Building Society has recently admitted that it made a mistake after sending out an email relating to mortgage lending. The lender described the email as a ‘mistaken communication’. Read more

Homebuyers being shut out by many lenders

A large number of homebuyers are having the door shut in their faces by lenders, according to a recent report. In the current financial climate an increasing number of lenders are becoming more and more stringent about who they will lend to, and as a result of this many homebuyers have been left out in the cold because they are not able to get the finance that they need to purchase a property. Read more

Repossession schemes will only help small numbers

In a recent report it has been claimed that initiatives launched to try and minimise on repossessions will only help a small number of people. Read more

Lower interest rates sparks interest in property market

According to a recent report the dramatic drop in interest rates that has taken place over recent months has resulted in renewed interest in the housing market from would be buyers. Read more

Woolwich launched cheapest mortgage since first loan

According to recent reports the Woolwich recently launched its cheapest mortgage deal since its first loan, which was made around one hundred and sixty years ago. Read more

Fixed rate mortgage holders may be losing out, state officials

Some industry officials have said that some people that have a fixed rate mortgage loan may be losing out financially because of the way that the base interest rate has been slashed over the past five months by the Bank of England. Read more

Rising mortgage arrears in Scotland

Recently released figures have shown that the level of mortgage arrears amongst homeowners in Scotland has been rising. An increasing number of homeowners are struggling to keep on top of their mortgage repayments. Read more

Repossessions increase by 92 percent in a year

According to a recent report the number of homeowners that were losing their homes through repossession in the third quarter of last year rocketed by 92 percent. Read more

Officials encourage mortgage overpayments

A number of industry officials have recently highlighted the benefits of overpaying on a mortgage, stating that borrowers could benefit hugely by taking advantage of the lower interest rates and making higher than necessary repayments on their mortgages. Read more

Increased popularity for cheaper fixed rate mortgages

Recently released figures have suggested that new lower fixed rate mortgages may be gaining popularity again, with borrowers keen to take up lower rate deals yet enjoy stable repayments for a fixed period of time to help them to budget more easily in the current difficult financial climate. Read more

Five year fixed rate mortgage launched by Co-op

Consumers that are looking to take out or switch to a fixed rate mortgage may be interested to hear that the Co-op has launched a new mortgage product that is said to offer a highly competitive rate of interest.

The lender has launched a five year fixed rate mortgage deal that will be available to eligible and qualifying borrowers, and the rate set on the mortgage will be 4.49 percent.

The mortgage came onto the market in the middle of January, but in order to qualify borrowers must be able to put down a deposit of at least 40 percent. The five year fixed period means that consumers can safeguard themselves against rising interest rates for a number of years and can enjoy financial stability through having fixed repayments for a five year period.

However, with interest rates plummeting and set to fall further many may want to stick to a variable rate mortgage or wait to see if fixed rate deals come down further.

The benefits of the mortgage from the Co-op include flexibility, such as being able to overpay on your mortgage, underpay on the mortgage, or even take a payment holiday.

An official from Co-op said: “With base interest rates reaching an historic low and rates across the industry falling, this new mortgage offers customers the chance to fix in their mortgage payments at a low rate and have peace of mind that their payments will remain unchanged at this level for the next five years.”

Another industry official said: “If you’re lucky enough to have at least 40% equity in your home then this mortgage does offer a great opportunity to fix your interest rate at a low level. However, before deciding on a mortgage it’s essential to compare mortgages to find a good deal, and then speak to a mortgage broker for professional advice.”

2008 saw 30 percent drop in mortgages

Over the past twelve months mortgage lending has fallen by around 30 percent according to officials from the Council of Mortgage Lenders. This drop in mortgage lending has apparently resulted in lending falling to its lowest levels since 2002. Total mortgage lending last year fell to £256.4 billion, whereas the previous year mortgage lending levels came to £363.7 billion. Read more

Slump in equity release sector in 2008

A recently released report has shown that there was a slump in the equity release sector last year, and this slump stemmed from the Northern Rock crisis, which saw the building society becoming nationalised after falling victim to the global credit crunch. Read more

Mortgage rescue plan gets rolled out

The government has recently decided to roll a mortgage rescue scheme designed to try and help struggling homeowners to avoid repossession out across England. Read more

Mortgage rationing could get worse states CML

The Council of Mortgage Lenders has recently warned that mortgage rationing in the UK could continue to get worse, adding that mortgage lending has already been restricted for the past year due to the effects of the global credit crunch but that the restrictions on lending levels could get even worse over the coming year. A senior official from the CML, Michael Coogan, said that things could get increasingly difficult for many people as a result of the ongoing restrictions on mortgages. Read more

Rate cuts may not prove of benefit to many homeowners

With the aggressive rate cuts that have been applied to the base interest rate by the Bank of England over recent months homeowners on variable rate interest deals should in theory be delighted. Since last November the base interest rate has plummeted by nearly two thirds, plunging from 5.75 percent to just 2 percent. It now stands at its lowest levels in nearly six decades, and many think that it will fall further over the next couple of months. Read more

House prices plummet at a faster pace than in the 1990s

Many people that are in their thirties and over will still clearly remember the dark days of the 1990s recession and house prices crash, where many people were left in negative equity after property prices plunged. Many are seeing the same patterns for again now, with the global credit crunch leading to plunging property prices and the year finishing with a recession where many businesses are going into administration. Read more

Industry groups and lenders reluctant to make house price forecasts

Each year many lenders and various industry groups tend to release forecasts relating to house price movement over the year to come. However, this year - which has been a particularly turbulent one in the housing sector - a number of lenders and agencies have said that they will not be making any forecasts in relation to house prices, and this is for a number of different reasons. Read more

Brits focusing on repaying their mortgages

Recently released figures have indicated that many Brits are now focusing on trying to repay their mortgage debts rather than accruing even more debt. In the third quarter of this year more money was ploughed into the housing market than every before, as Brits tried desperately to pay off as much as they could on their mortgages and tried to avoid getting deeper into debt. The figures were released by the Bank of England and related to mortgage repayments between July and September of this year. Read more

Mortgage arrears to rocket

According to recent reports the level of mortgage arrears in the UK is set to rocket, with some industry reports claiming that there could be a huge rise in the number of people in arrears in 2009 despite the aggressive base interest rate cuts that have been applied by the Bank of England. In fact, around half a million households are set to fall behind with mortgage repayments in the coming year according to the reports, which come from the Council of Mortgage Lenders. Read more

Interest only mortgages being affected by price falls

The house price falls that have been ongoing for over twelve months have had many adverse effects, and according to recent reports these price falls could result in real problems for those that have interest only mortgages. These are mortgages where the monthly repayments are all put towards the interest owed on the loan with the actual loan balance remaining the same until the end of the mortgage term, at which point it needs to be paid off. Read more

Unsold homes results in decreasing rents

Recent reports have shown that the number of unsold homes in the UK are resulting in the amount of rent being charged on rental properties being driven down. Over recent months more and more homeowners that were hoping to sell their properties have found that in the current climate they are unable to secure a sale for their properties, and with many unable to keep on top of mortgage repayments a large number of these sellers decided to put their homes up for rent on the market. Read more

Bank rate cut by a further 1 percent

The Bank of England has cut the base interest rate buy a further 1 percent in the third rate cut in as many months. The rate cut took place following the December Monetary Policy Committee Meeting, where it was decided by committee members that a further cut in interest rates was necessary in order to try and boost the flagging economy through increasing consumer spending. Read more

October sees further house price falls

Recently released figures from the Halifax have shown that house prices have fallen again in October, this time by 2.2 percent. This follows a smaller drop in September, and according to Halifax figures has resulted in the annual house price falling to 13.7 percent, although according to Nationwide the annual drop is larger at 14.7 percent. Halifax officials have said that the average house price is now around £30,000 lower than a year ago, coming in at £168,176. Read more

Homeowners could be paying over £100 extra a year on mortgage

According to a recent report the average homeowner in the UK could end up paying over £100 a year extra on their mortgage as a result of the bailout of failed Icelandic banks and the Bradford & Bingley. One finance expert said that the bailout had resulted in homeowners being charged around an extra £108 a year because of home loan rates being pushed up as a result of the bailout. These figures come from John Goodfellow, who is the chairman of the Building Societies’ Association. Read more

Repossession hitting many households each day

Many households in the UK are being forced out of their homes through repossession on a daily basis according to recently released figures, with around 125 families a day having had their homes taken off them. An increasing number of people have been falling into arrears with their mortgages, not just because of higher interest rates, which have now fallen considerably, but also as a result of higher living costs, increased bills, and job losses. Read more

Warning on house prices from Nationwide

One of the UK’s major lenders, the Nationwide Building Society, recently sent out a stark warning with regards to house prices in the UK, painting a bleak and gloomy picture of what homeowners and the housing market in general has to face over the coming couple of years. Officials from the building society are expecting things to get markedly worse before they get better in the housing market. Read more

Marked rise in repossession levels

A recent report has shown that the rise in repossession levels in the UK is resulting in around one hundred and twenty families a day being evicted from their homes. In the second quarter of this year it is said that one hundred and twenty families a day were losing their homes to repossession, which reflects a 70% rise compared to a year earlier. Furthermore, industry officials have predicted that this figure will continue to rise as the nation edges every closer to a deep recession and the global financial crisis continues to take a hold. Read more

House price falls worse than last crash

In the 1990s, many people will remember that there was a house price crash that plunged many homeowners into negative equity, and a lot of people will have concerned memories of this time following the past year, when house prices have been tumbling month on month. However, according to officials from the Halifax, its records show that based on a peak to trough bases the current situation has already outstripped the 1990s crash. Read more

Many new buyers getting help from parents

A recent study has shown that many first time buyers are getting help from their parents in the current financial climate, especially when it comes to getting a mortgage. Conditions in the mortgage and financial sector have become increasingly difficult, and for many first time buyers getting a mortgage has become very difficult or even impossible. This has resulted in an increasing number of first time buyers turning to their parents for help in order to boost their chances of getting a mortgage in the current market. Read more

Drop in interest rates causes surprise for consumers

Struggling homeowners trying to cope with high mortgage repayments welcomed a surprise earlier this month after the Bank of England slashed the base rate by 1.5% just a month after applying a surprise 0.5% cut a day ahead of the scheduled Monetary Policy Committee meeting. The slash in interest rates has now taken the base rate down to just 3%. Just a year ago the base rate stood at 5.75%, so it is now nearly half of what it was a year ago. Read more

Government takes steps to help homeowners

The government has recently taken steps to try and help homeowners by changing court protocols in order to make it more difficult for lenders to take court action without taking other steps first in cases where homeowners have fallen behind with mortgage repayments.

It is hoped that this will help to reduce repossession levels, and lenders will be expected to follow guidelines and take a number of other steps before taking court action. The lenders will need to demonstrate that they have taken the necessary steps if the case does end up in the courts. Read more

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