Mortgage rationing to continue next year

Officials from the Council of Mortgage Lenders have stated in a recent report that mortgage rationing is set to continue next year, and consumers that are hoping to get mortgage finance in order to get onto the property ladder may still face disappointment as banks continue to slash their lending.

One of the problems facing the banking industry is repayment of some of the bailout money that they took at the height of the global financial crisis, which needs to be repaid. Sadly, it is likely to be consumers that pay the price once again, as this will result in further restrictions on mortgage and other types of lending, making things more difficult for those that need to take out finance.

The CML has also said that repossession numbers are likely to increase next year, although the increase is likely to be modest. There are a number of factors that may affect repossession numbers, and this includes the government Spending Review and cuts, which could affect people’s jobs. Buyers are also likely to be put off from taking out mortgage finance even if they are able to get it, and this is due to the fragile state of the economy.

The CML said: “Given the continuing economic uncertainties, there is little to encourage buyers. First-time buyers will continue to find it difficult to get into the market. With funding in short supply, the availability of mortgages for first-time buyers will remain limited.”

The Council of Mortgage Lenders concluded: “Activity in housing and mortgage markets is set to remain broadly flat in 2011 and we do not envisage a return to the lending levels that characterised the middle of the last decade for many years to come.”

Tags: bank, report, cml, money, disappointment, property, mortgage, economics

£22 million in fines from FSA over 2008

Recently released figures have indicated that over the course of 2008 the Financial Services Authority handed down around £22 million in fines as it continued its crackdown against the mis-selling of payment protection insurance cover and tried to curb rising levels of mortgage related fraud. The UK’s financial regulator has been handing down record fines over the course of the year according to industry officials. Read more

Tags: disappointment, mortgage, Financial services, payment protection insurance, fsa, financial, time

Disappointment over Hips back down

The decision to delay the introduction of Home Information Packs (Hips) into the home-selling process has left a number of industry figures disappointed.

Hips were due to be introduced on June 1st, with the aim of reducing costs for buyers and improving the green credentials of homes in the UK.

However, the government has now announced that the start date for Hips will be put back to August 1st, initially with only homes with four or more bedrooms being subject to them.

The announcement has caused anger among those who support Hips and some parties have been warning of negative consequences.

“This latest decision is at the cost of the consumer and the environment,” said Mike Ockenden, director general of the Association of Home Information Pack Providers (Ahipp).

He went on to blame the government back down on a recent legal challenge which as launched by the Royal Institute of Chartered Surveyors (Rics).

“It appears to have been Rics, through their call for a judicial review, which has ultimately derailed this vital house buying and selling reform, so soon before its planned implementation,” he continued.

“This is a serious let down and it is both the consumer and the environment which will now suffer as a result of these latest changes. Consumers will have to endure the existing, broken house buying and selling process for at least a further two months, costing them time, money and unnecessary stress.”

AA Legal Services has also expressed its disappointment with the decision, claiming that there will be “many losers” as a result, including mortgage holders.

Tags: time money, Law in the United Kingdom, Providers, packs, introduction, house