Mortgage rates on the move

In a turbulent economy, it pays to make good use of technology. In fact, few homeowners can afford to be without certain tools, not least a real-time mortgage calculator.

As high inflation continues to prompt talk of the Bank of England increasing the base rate, homeowners with tracker and variable rate mortgages can ill afford to take their eyes off the market.

Of course, juggling everyday commitments whilst maintaining careful watch of mortgage rates can be extremely difficult, but certainly not impossible, thanks to the leading smartphone mortgage apps.

Mortgage apps are available for the main types of smartphone, including the iPhone and BlackBerry and those running the immensely popular Android operating system.

One of the most popular and highly rated mortgage apps for the iPhone is London & Country’s Mortgage Assistant app, which can be download free of charge from the iTunes store.

Produced by London & Country, one of the UK’s most successful independent mortgage brokers, Mortgage Assistant comprises all of the features that a homeowner might require and expect of such an app.

In addition to a calculator, the Mortgage Assistant app displays information on early repayments, rate changes, stamp duty and overpayments. Crucially, the app also provides up-to-date mortgage rates supplied by the leading lenders.

Not everybody has an iPhone. The Android operating system, in fact, is slowly beginning to dominate the smartphone market but are there any good mortgage apps for Android devices?

Yes. Plenty. Karl’s Mortgage Calculator, Vincent It Mortgage Calculator and various other apps with or without a proper noun prefix are available for Android devices. Importantly, most are free to download and use.

Arguably the best Android mortgage app is Mortgage Calculator UK by Shivam Gadhia. Available at no cost to the user, the app focuses heavily on its most important feature, which is the calculator itself.

Although not as comprehensive as many other mortgage apps, especially those affiliated with some of the leading lenders and brokers in Europe, Gadhia’s app is easy to use and surprisingly accurate.

Another popular app for Android smartphones is called Mortgage Refinancing PRO, which is a free-to-use program (an option to upgrade to the full PRO version costs £2.79) that provides invaluable guidance for people who are looking to remortgage their properties.

Cheaper than Mortgage Refinancing PRO, the Get Your Home Refinanced app for Android devices includes even more details of refinancing and remortgaging, but only costs a fraction of the cost – £0.87 for the full app.

Finally, Mortgage Refinancing Pro is arguably one of the most popular and useful mortgage apps available for BlackBerry smartphones. Priced at $2.99 USD, the app is designed by Davide Perini, who also developed the more expensive Mortgage Calculator PRO.

Mortgage Refinancing Pro is actually a scaled down version of the Pro calculator software, so similarities exist between the pair. The app is an invaluable reference tool for anybody who needs an accurate, up-to-date mortgage refinance calculator.

In conclusion, there are plenty of ways to keep track of mortgage rates on the move by using modern technology. Smartphone apps provide instant access to real time mortgage rates, calculators and refinancing.

Tags: Vincent, program, refinancing, europe, Home Refinanced app

Is quantitative easing working?

When the Chancellor of the Exchequer, Alistair Darling, first announced plans for quantitative easing in the UK he said that £75 would be allocated for the scheme with an additional back up of a further £75 billion if necessary. Read more

Tags: chancellor, economy, recession, thing, bank, Economic policy

New regulations from FSA spark comments from Cable

Spokesperson for the Liberal Democrats, Vince Cable, has recently commented on the changes that have been introduced by the Financial Service Authority with regards to mortgage lending. Read more

Tags: FSA mortgage lending, Mortgages, something, economy, building societies association, mortgage, fsa

UK doing better than other European economies

It has been claimed in a recent report that the economy in the UK is faring much better than other European economies, and that the UK government deserved credit for its economic policies. Read more

Tags: economic crisis, economy, uk economy, labour government, Regional science, Great Depression in the United Kingdom, credit crunch, Pound sterling

Government moves to help the indebted

It seems that the government has decided to take drastic measures in order to help those in huge levels of debt according to a recent report. Read more

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Base rate at lowest in over three centuries

Following the most recent cut to the UK base interest rate the base rate has now dropped to its lowest level in over three centuries. Read more

Tags: economy, Late 2000s recession in Europe, series, meeting, rate movement, Central bank, base rate

Still no major risk of recession

A recent report from the Ernst and Young ITEM club claims that despite the various factors affecting the economy and the financial climate in the UK, the risk of a recession occurring is still pretty low. The economy has suffered a slow down over recent months, and this is expected to continue over the course of this year. However, it is unlikely to end in recession according to the data on the report. Read more

Tags: england, Ernst & Young, major risk, bank of england, economy, risk, interest rate, cheap no-questions-asked credit

UK facing worst economic crisis in six decades

In a very stark and frank interview with a national newspaper Alistair Darling, the Chancellor of the Exchequer, has stated that the UK is facing its worst economic crisis in six decades. The chancellor insisted that he had to be straight with the public because it was his duty to do so, and he warned that the economic downturn was set to be far more damaging and long lasting than had originally been predicted – mirroring earlier opinions from a number of trade and industry groups. Read more

Tags: crisis, food, The chancellor, Trotskyists, earlier opinions, Chancellor level, economy, state

UK economy in worse shape than imagined

According to the largest manufacturer’s association in the UK, the CBI, the state of the economy in the UK is in worse shape than most actually thought. The CBI has said that the economy is deteriorating far faster than was originally thought, with the association’s director stating that there was “no doubt that the mood has darkened in the last two or three months.” He gave the stark warning to members in a letter. Read more

Tags: Mervyn King, Additions, credit crunch, inflation, Association

Interest rate stays at 5%

Following the July Monetary Policy Committee meeting last week it has been announced that the base interest rate is to remain on hold at 5%. The Bank of England cut the base rate three times since December, taking it from 5.75% to 5%. However, since May the base rate has remained static after inflation levels soared to 3.3%, which is way over the 2% target set by the government. Read more

Tags: meeting, row, uk factories, inflation, Gross domestic product, economy, light, interest rates

Employers say economy at risk of recession

Employers from small and medium sized businesses in the UK have said that the economy is at serious risk of recession. The warning came after a small business survey was carried out earlier this month, with businesses warning that the economy could slide into recession within a matter of months. The survey showed that orders and sales for small and medium sized businesses in the manufacturing and services sector had been drying up over the past three months. Read more

Tags: interest, bank, Late 2000s recession in Europe, recession, economy, mortgage lender

Consumers ‘no longer king’ in mortgage market

The mortgage market has completely changed over the last year and it is now likely that consumers wishing to take out mortgages will be hit with arrangement fees, an expert has commented. Read more

Tags: king, economy, Mortgages, mortgage market, loan, Super jumbo mortgage, editor, move

Euro Doing Better Than Expected

The European Union witnessed a not insignificant amount of economic growth during the first fiscal quarter of 2008. Experts predicted dismal growth for the Euro, in light of the recent slowdown in the global economy. Yet, the vigorous gross domestic product (GDP) figures in European Union countries kept the value of the Euro relatively high, constituting “a last hurrah for the eurozone econonmy,” in the words of economist Nick Kounis.  Read more

Tags: government, light, first three months, growth rate, economy, gdp, rate, country

Numbers threatened by identity fraud rises

Direct Line has responded to the latest Home Office figures on identity theft by adding Identity Fraud Assistance to its home insurance policy.

The latest figures from the government indicate that identity fraud is the UK’s fastest growing crime and it currently costs the economy up to £1.7 billion per year.

Andrew Lowe, head of home insurance for Direct Line, said the numbers threatened has increased over the last eight years.

“Victims of identity fraud could encounter debt collectors, court actions and difficulties getting a mortgage, credit card or bank account if their credit report is not corrected,” he warned.

Meanwhile, figures from Cifas, the UK’s fraud prevention service, show that 136,966 incidents were reported in the period between January and September 2007, almost a ten per cent increase on the findings for the same period in 2006.

In some cases of identity fraud, without expert help and advice, it may take the victim as long as 400 hours and cost up to £8000 before things are put right.

Tags: Victims, identity fraud rises, bank, identity theft, fraud, service, economy

CML: Mortgage lenders to feel the squeeze

Mortgage lenders will feel the pressure of the credit crisis on the market, the Council of Mortgage Lenders (CML) has said.

The CML warned that this “testing time” is yet to come despite gross mortgage lending being up in October, standing at £32.4 billion.

Furthermore, the Building Societies Association (BSA) has revealed that £4.65 billion was lent for mortgages last month, down significantly on last year’s figures for October.

The BSA also reported the highest ever savings levels last month.

CML director general, Michael Coogan, commented: “The next few months will be a testing time as ongoing pressures in financial markets feed through into the wider economy.

“Funding constraints will continue to restrict lending activity and make loans more expensive.”

The Inflation report recently published by the Bank of England added to speculation that rates may fall, which Mr Coogan explained “should provide some relief for borrowers sooner rather than later”.

Tags: economy, report, lending, Mortgages, lending activity, Inflation report, wider economy, gross mortgage lending

UK business confidence affected by credit crunch

A recent report has shown how business confidence levels across the UK have been affected by the effects of the credit crunch that was sparked in the sub-prime sector of the United States.

The credit crunch made its way across the Atlantic and took effect in the UK and in other countries around the world back in August, and since this time the levels of optimism and confidence amongst businesses in the UK have fallen significantly according to recent figures.

The figures were revealed in the quarterly Business Opinion Survey released by the Institute of Directors in the UK. According to the figures on the reports around a quarter of company bosses were optimistic and confidence about business prospects at the beginning of August before the effects of the credit crunch took hold in the UK. However, more recent figures indicate that this level has now dropped to just 4%, reflecting the adverse effect that the credit crunch has had in terms of UK business confidence.

Around 15% of company bosses stated that the credit crunch had affected sales and performance for their business. Back in August around 77% of company bosses said that their business was performing well rather than badly, but even this has dropped to around 73%. A spokesman from the Institute of Directors stated: “This is a pretty gloomy survey, with the decline in business confidence worrying.”

He also added: “Thankfully, actual business performance remains high. Across the whole economy there is a real divide between the actual impact of the financial crisis to date and expectations of what it might bring in the future. The key question now is whether optimism will bounce back because, if it doesn’t, business investment could be hammered.”

Tom Smith
19th November 2007

Tags: sales, business, economy, concern, confidence

Inflation Report Signals Further Rate Rise

The Bank of England has given clear signals that interest rates may have to rise yet again to make sure that it keeps inflation under control. Homeowners will be dreading the possibility of yet another rate rise as they have seen five quarter point rises already ion the past 12 months.

Experts now believe that the rise will come sooner rather than later after the Governor of the Bank, Mervyn King, said that he believed the turmoil in credit markets – set off by the sub-prime crisis in the US – was far from being an international financial crisis. Given that comment, experts think that he will not be afraid of recommending a further rate rise in the UK in the near future. Indeed, there are some doom-mongers who suggest that an interest rate of 6.5% – or even higher – could be reached.

A quarter point rise on a mortgage of £110,000 would mean an increase in monthly repayments of over £16, and on a mortgage of £200,000 the increase would be £30 a month.

A further quarter point rise now looks likely in September. Mr King said: “[We] cannot be sure if what we’re seeing so far foreshadows a more disruptive move on the markets or whether there’s a more gradual easing of pressure that allows credit spreads to widen to more sensible levels. So it’s impossible at this stage to judge how large and how persistent the tightening of credit conditions is likely to be.”

Adding that he did not see the recent events, which have seen some US investment banks in trouble because of defaults on loans and some big takeovers postponed, as an international financial crisis, he went on: “We are seeing signs of bad loans arising clearly in the US, but I don’t think we are seeing signs of these bad loans in other markets. The developments in [the widening of] spreads is a more realistic pricing of risks which we welcome.”

Mr King said that it was not the duty of central banks to give protection to any financial institutions if they get in trouble for poor lending practices.

The Bank’s quarterly inflation report said that inflation would come back down to 2% if interest rates rose according to market expectations, and that would be one more quarter point rise before the end of the year. It is difficult to see the Monetary Policy Committee waiting too long before implementing the rise. The report said that risks to inflation remained on the upside but not as much as a few months ago. It now expects economic growth to dip to 2.5% in the next two years from about 3% now.

Mr King was concerned that official figures did not accurately measure the strength of the economy, and may be revised upwards. The near term outlook for inflation had the bad news of higher food prices from flooding influencing it.

Inflation was also under threat from rising oil prices and potentially increasing wages demands, but Mr King did note that consumer spending was cooling. However, there has been surprise at the resilience of consumer and housing markets despite the five rises since last August.

Mr King insisted that 6% was not yet a done deal.

Tom Smith
1st October 2007

Tags: Loans, increase, rates, economy, interest, costs, inflation, markets

Base rate set to increase to 5.75 per cent?

The Bank of England’s monetary policy committee may be tempted to increase the base rate to 5.75 per cent at this week’s monthly meeting on Thursday, many commentators believe.

Howard Archer, chief economist at the Global Insight consultancy, claims that the committee will experience a “very tight vote again”.

At last month’s meeting, the governor of the Bank of England Mervyn King’s desire to increase rates for a fifth time since August 2006 was blocked by MPC members for the first time since the bank gained independence ten years ago.

Mr Archer said that only one of the five who voted to hold rates at 5.50 per cent last month would have to change their vote to effect a rate rise.

Last month, Mr King said that Britons should expect a further interest rate increase to cope with an over-heating economy and increasing inflationary pressures.

Despite UK inflation falling to 2.5 per cent in May, this was still some way below the government’s two per cent target.

Tags: month, britons, economy, bank, governor, inflationary pressures, time, mr archer