More compensation payouts to be issued by Halifax

High Street banking giant, Halifax, has recently admitted that it may have to pay out more compensation to customers over a mix up with its mortgage rates. Earlier this year the lender identified around 600,000 customers who may be eligible for compensation over confusion about mortgage rates, about half of whom ended up receiving compensation payouts. The lender has now stated that there could be another 250,000 people who may be eligible with around half of them expected to actually receive compensation.

The compensation that the lender pays out could be up to £4500 per person based on a mortgage of £150,000 where the borrower has been affected for three years. The payouts will equate to either 1 percent of the mortgage interest for each year that the borrower has been affected or will be a fixed compensation payout. With tens of thousands of borrowers potentially set to receive compensation, Halifax could have another huge bill on its hands.

The confusion has arisen over Halifax increased the cap on its standard variable rate mortgages from 2 percent above the Bank of England base rate to 3 percent above. The UK’s financial regulator, the Financial Services Authority, expressed concern that wording on documentation may have led borrowers to believe that they would receive advance warning of any such changes. Halifax subsequently came to an agreement with the FSA over paying compensation to customers who were affected.

A Halifax official said: “In February 2011, we agreed a voluntary agreement with the FSA in relation to a customer contact and goodwill payment programme with specific Halifax mortgage customers. We have subsequently identified a further group of customers that are eligible for inclusion within the programme. We are now in the process of writing to these borrowers explaining what this means for them.”

Tags: payout, Mortgage loan, compensation payouts, uk, Mortgages, year, standard

Mortgage markets still look bleak

According to a leading industry group the mortgage market in the UK still looks bleak, with the lenders stating that it has become ’stuck in a rut’. Over the course of February it is claimed that the low levels of lending have continued. Officials have said that the level of lending for the month of February were nearly as low as they were for January, with around £9.5 billion of gross lending.

The Council of Mortgage Lenders released the figures, and they have stated that it is likely that this year will continue to be a challenging and difficult one when it comes to the mortgage and property sectors. Another survey has revealed how the cost of renting has shot up as a result of so many people being unable or unwilling to get a mortgage, which has resulted in a higher demand for rented property.

The Council of Mortgage Lenders has said that part of the problem stems from restrictions amongst lenders when it comes to granting mortgage finance. However, the group also said that there was a definite drop in consumer appetite for new borrowing, with many people too worried about their financial situations and their job security to risk taking on a huge mortgage.

One official also commented on the increase in rents and demand for rented property, stating: “The fierce competition among renters in many areas of the country has cut short the traditional lull we tend to see between December and February. The consistently constrained level of lending to home buyers has bolstered demand – and rents – in the private rental sector during what is typically a slower period. With the mortgage market even more sluggish since the start of 2011, this backlog of frustrated buyers has increased even further and rents have risen correspondingly.”

Tags: huge mortgage, drop, Mortgages, industry, job security, official, result, council of mortgage lenders

Interest rates need to rise in the UK

It has been claimed by an organisation that the base interest rate in the UK needs to be increased in order to keep inflation under control, with the group claiming that it is necessary to increase the rate this year and increase it further over the course of next year.

The claim was made by the Organisation for Economic Co-operation and Development, which has stated that the base rate needs to be increased this year and by the end of next year needs to be at around 3.5 percent in order to keep a lid on inflation, which has already been soaring past the government target of 2 percent.

The base interest rate has been at its lowest level in the history of the Bank of England for well over a year now, standing at just 0.5 percent. However, inflation has been soaring and some officials now believe that in order to bring inflation down the base rate will need to be increased.

If the base rate does go up the cost of borrowing could also rise, which means that consumers may have to pay more interest on loans and mortgages. The OECD has said that whilst the government made the right move by reducing the base rate to this rock bottom level during the recession it was now time to consider increasing it.

A report from the OECD stated: ‘The gradual drift up of some measures of inflation expectations implies a need to increase interest rates earlier than previously thought and no later than the last quarter of 2010. The projected increase of core inflation to the Bank of England target warrants an increase of the policy rate to 3.5% by end-2011.’

Tags: inflation, cost of borrowing, order, interest rate, Mortgages, finance, borrowing, OECD

Lenders consider lower deposits from borrowers

A number of recent reports have suggested that some lenders in the UK are now considering lower deposits from first time buyers. This comes after a particularly difficult couple of years where many first time buyers and low income families have been unable to get a mortgage because of the extortionate deposits that lenders have been demanding from customers. Read more

Tags: Super jumbo mortgage, mortgage, extortionate deposits, United Kingdom, traditional mortgage, Mortgage loan, Consumer fraud, Mortgages

Lenders push borrowers into costly fixed rate deals

It has been claimed that some lenders have been trying to push their borrowers into costly fixed rate deals at a time when the base rate has been at an all time low of just 0.5 percent for the last eight months. Read more

Tags: would make sense, fixed rate mortgages, low base rate, financial, Mortgages

Mortgage defaults are yet to peak

A recent report has suggested that whilst many people may already have fallen behind with their mortgage repayments the level of mortgage defaults in the UK has not yet peaked, and that it could be some time before the level of defaults hits its worst. Read more

Tags: Mortgages, government, mortgage defaults, United States, recent report, crunch, mortgage arrears, england

CML revises repossession forecasts again

It has been reported that the Council of Mortgage Lenders has once again cut its forecasts for repossession numbers in the UK, having taken more recent industry figures and market conditions into consideration. Read more

Tags: Business Finance, time, CML revises repossession, cml, Mortgages, council of mortgage lenders

More lenders starting to look at lower deposits

Over the past couple of years things have been very difficult for first time buyers, and one of the things that has really affected the abilities of first time buyers to get onto the property ladder is the huge deposits that lenders have been demanding since the onset of the global credit crunch. Read more

Tags: Banking, demand, 5% mortgages, cry, interest rate, property, low deposit mortgages, Mortgages

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: Mortgages, mortgage, Association, building societies association, FSA mortgage lending

Huge mortgage gap between those with big deposits and those with small ones

A recent report has highlighted the ever growing gap between mortgage borrowers that have a large deposit to put down compared to those that have only a 10 percent deposit. Read more

Tags: number, interest rate, competitive rates, mortgage deposits, debt, housing, Mortgages, eighteen

Quarter 2 sees repossession levels fall

The second quarter of this year has seen repossession levels fall in the UK according to a recent report. Repossessions have been rocketing in the UK as a result of the global credit crunch and high interest rates. Read more

Tags: repossession levels, Mortgages, industry, repossession, repossessions, high interest rates, lenders, mortgage defaults

Now could be the time to get on the property ladder

According to the results of a recent survey that was carried out many Brits think that it is now a good time to purchase a property and get onto the property ladder. The Building Societies Association carried out the survey, and the results showed that whilst market conditions continued to be difficult in the mortgage sector many Brits were still convinced that this was a good time to buy due to various other factors. Read more

Tags: first time buyers, the Brits, economics, property ladder, Business Finance, Mortgages, Royal Institute of Chartered Surveyors

Half of mortgages now have percentage fees

It has been revealed that in the current difficult mortgage market around half of all mortgages now have percentage fees attached to them, according to a recent report. Read more

Tags: half, 49 percent, borrowers, mortgage focus, mortgage percentage fees, spiral

More first time buyers try and get mortgage advice

According to a recent report more first time buyers are now looking to get mortgage advice, as the market continues to throw hurdles in the way of the average first time buyer. Read more

Tags: Mortgages, whilst, business, low, latest figures, first time buyers, mortgage advice

Supermarket giant to start offering mortgages next year

Supermarket giant Tesco has announced that it plans to start offering mortgages next year with plans to open a new call centre in Glasgow that will create around eight hundred new jobs. Read more

Tags: ideal time, finance, time, tesco mortgages, Mortgages, northern rock, supermarket mortgages, street banks

Brits try and make ends meet by taking in lodgers

In the ongoing difficult financial climate many households in Britain have been struggling to make ends meet, and this situation has been made worse by the ongoing recession, which has resulted in soaring unemployment levels leaving many households with a vastly reduced income. Read more

Tags: twelve months, Household, recent report, Mortgages, Insurance, lodgers, Brits, rent room

Yorkshire bank seen increase in mortgage activity

It has been reported that the Yorkshire Bank has seen an increase in mortgage activity of late, with an increase in mortgage applications from interest parties as well as an increase in the number of mortgage applications that are being approved by the bank. Read more

Tags: yorkshire bank, Mortgages, increase, May, borrowers, income households, mortgage applications

Banks take taxpayer’s money but won’t lend any back out!

Over the past year the UK government has spent billions of pounds bailing out the banking industry following the global credit crunch and the ongoing financial crisis. Banks have run into severe difficulties in terms of their finances, and at one point the banking industry in the UK was said to be on the verge of collapse. Read more

Tags: mortgage applications, high interest rate, banks, move, interest, business

Are banks becoming more generous with their lending?

A number of reports that have been released recently have suggested that mortgage lending amongst banks in the UK has been increasing, and whilst the past couple of years has seen lending becoming increasingly restricted recent figures have indicated that mortgage lending levels have increased to their highest in around fourteen or fifteen months. Read more

Tags: Financial services, mortgage lending, mortgage market, fifteen months, state, anyone, banks

Report claims lenders being less stringent over home loans

Whilst lenders have been exercising increased stringency when it comes to home loans and other types of finance since the onset of the global credit crunch a recent report has suggested that some lenders may be easing up on their lending criteria now. Read more

Tags: housing, stringency, home loans, Credit (finance), Mortgages

Watch for Rising Fixed Rates on Mortgages

Leading mortgage brokers are warning that as the recession comes to a close, fixed rates for mortgages are going to rise. With the current low rates, there has never been a better time to lock in for a fixed term and save money in the coming years with low monthly payments. Ray Boulger, the senior technical manager at broker John Charcol, says borrowers should act now because rate hikes are imminent. Read more

Tags: Mortgage loan, fixed rate mortgages, better time, senior technical manager, outstanding balance

Homeowners struggle to get better mortgage deals

It has been revealed in a recent report that many homeowners across the UK are struggling to get new and more affordable mortgage deals, as the recession and the difficult financial climate results in lenders still being very careful about their lending criteria. Read more

Tags: Mortgage loan, homeowners, cheaper finance, attitude, struggle, report, better mortgages, Mortgages

Buy to let investors to be hit hard by recession

It has been claimed that the buy to let industry is set to be hit hard as a result of the ongoing recession, with buy to let investors expected to lose money and take a real financial hit in the current economic and financial climate. Read more

Tags: recessions, Many investors, mortgage, finance, potential pitfalls, Mortgages, lending, uy

Banks still turning down thousands of mortgage applications

It has been revealed that whilst many reports have claimed that restrictions on mortgage and general lending have started to ease off recently banks are still turning down thousands of mortgage applications every month, further hindering the recovery of the housing market. Read more

Tags: Mortgages, month, bank of england, mortgage applications, stringent regulations

Tips for Buying a Flat With Friends

Many times friends decide to pool their resources and buy a flat together. The combines resources and credit ratings gives them more borrowing power, which in turn allows them to purchase a larger flat in a better area of a city. Read more

Tags: Mortgages, idea, document, group mortgages, best process, house buying, way, buy flat with friends

One year high for fixed rate mortgage lending

According to recently released figures fixed rate mortgage lending levels have recently hit their highest level in the space of around one year, as first time buyers and existing homeowners that are ready to refinance try and secure low rates clamour to take advantage of the all time low base rate, which still stands at 0.5 percent, which is the lowest level in the three hundred and fifteen year history of the Bank of England. Read more

Tags: higher deposit levels, lending, fixed rate mortgages, council of mortgage lendres, first time buyers, mortgage, Mortgages

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

Tags: 90% LTV mortgages, Loan to value, worrying, importance, 90% mortgages, Business Finance, loan, Mortgages

Homeowners must be wary of repossession

Over the past couple of years the world of many homeowners has been rocked because they have suddenly found themselves threatened with the loss of their home through repossession. Thousands of struggling homeowners have indeed ended up losing their homes to repossession, whilst some have taken action early and managed to avoid losing their homes. Read more

Tags: Mortgages, afresh, top, Citizen's Advice Bureau, anyone, busy getting court, repossession, homeowners

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

Tags: Mortgages, rent free, Mortgage loan, week, kidults, abbey mortgages, adult living, current climate

Interest rate could rise again quickly

The chief economist at the Bank of England has warned that whilst the base interest rate in the UK has plummeted to its lowest level in history over recent months, following a series of six interest rate cuts in as many months, there is a good chance that it could rocket back up again in the future if policymakers decide that the rate needs to go up in order to keep inflation in check. Read more

Tags: Mortgages, Central bank, order, Index, bank of england, lending, interest rates, access

CML releases repossession figures

The Council of Mortgage Lenders released figures last week that showed the level of repossessions in the UK had increased by 50% in the first three months of this year compared to the first quarter of the previous year. The number of repossession is said to have soared to 12,800 in the first three months of the year, and this was up from 10,400 in the previous quarter and from 8,500 in the first three months of 2008. Read more

Tags: repossessions, Lenders released figures, repossession numbers, council of mortgage lenders, buy-to-let, house market

Prices of UK Homes Still Falling

With the increases in mortgage lending that occurred in the UK during the month of March, many homeowners felt that the recession was nearing an end and that they would soon start to see an increase in house prices. Read more

Tags: house prices, home buyers, housing market, fact, Mortgages

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

Tags: house value, households, bank of england, Mortgages, situation, negative equity, property market, fall

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

Tags: hsbc, debt, Mortgages, property, lloyds, hsbc mortgages, mortgage debt, small deposit mortgages

HSBC’s £1bn boost to first time buyer market

HSBC has allocated £1 billion to a new 90% loan to value product which it is hoped will give a much needed boost to the first time buyer market. Read more

Tags: United Kingdom, leading the way, support, first time buyer, deposit, Mortgages, credit, hsbc

The pros and cons of the base rate cuts

Between 2006 and early 2007 many people were horrified as a result of the base interest rate increases which saw the base rate rise from 4.5 percent to 5.75 percent. Borrowers and homeowners found that their financial commitments went up considerably, although the rate increases came as far better news for other groups such as savers, who hoped to get better returns on their money as a result of the rate increases. Read more

Tags: Mortgages, base rate, savings, bank of england, Loans, interest rates

Banks decides to look at quantitative easing to assist economy

Over the past six months the nation has seen the UK’s base interest rate drop dramatically from 5 percent in October of last year to just 0.5 percent by March of this year. This came after a series of six interest rate cuts from the Bank of England in as many months, taking the base rate to its lowest level in the three hundred and fifteen year history of the Bank of England. Read more

Tags: series, bank of england, Mortgages, interest rates, industry, level

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

Tags: 15% deposit mortgages, Financial Services Authority, no deposit mortgages, low deposit mortgages, Mortgages

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

Tags: bank of england, large number, first time buyers, Mortgages, housing market, first time buyer, Mortgage loan

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

Tags: mortgage deals, mortgage, official, personal finance, market

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

Tags: demand, Mortgages, free mortgage, offer, income borrowers

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

Tags: recent report, mortgage arrears, Mortgages, housing charity, professional advice, scotland, Mortgage repossession, something

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

Tags: wreak havoc, National Association of Estate Agents, Mortgages, massacre, Mortgage broker, council of mortgage lenders

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

Tags: latest cut, survey, Royal Institute of Chartered Surveyors, government, Mortgages

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

Tags: bed, society, loan, skipton building society, Business Finance, American Home Mortgage, housing, Mortgages

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

Tags: homeowners, mortgage arrears, scotland mortgages, Arrears, housing, debt expert, result, Mortgages

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

Tags: finance, rate deals, bank of england, fixed rate mortgages, Mortgages, council of mortgage lenders, deal

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

Tags: equity release, homeowners, bank, Mortgages, equity release market, uk, Key Retirement Solutions

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

Tags: rescue, consumers, Mortgages, remainder, repossession, scotland, United Kingdom, mortgage rescue plan

Mortgage deals keep disappearing

Since the latter part of 2007 the world of mortgages has seen a lot of changes, and the sector has been in turmoil ever since this time. Read more

Tags: no-deposit mortgage loan, 100% mortgage, Mortgages, property's value, range, Northern Bank, property, low level

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

Tags: variable rate, base rate cut, homeowners, home insurance, bank of england, Mortgages

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

Tags: independent mortgage broker, England figures, Economic history, scared stiff, housing market

Will the rock bottom base rate help homeowners?

Over the past few months the Bank of England has been taking radical action with regards to the base interest rate. With the economy really suffering and heading for recession, and with consumer confidence at really low levels, the central bank was forced to do something to try and ease the difficulties that both consumers and businesses in the UK were facing. To the relief of many industry groups and consumers the Bank of England has taken unprecedented action recently to try and ease the situation, but this does not guarantee that consumers will actually be any better off. Read more

Tags: rapid decline, Mortgages, base rate, bank of england, committee, consumers, Macroeconomics, interest rate

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

Tags: interest rates, confidence, right, base rate, Mortgages, Monetary Policy Committee, committee, bank of england

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

Tags: homeowners, Financial Services Compensation Scheme, average homeowner, Mortgages, john goodfellow, uk

Low deposit mortgage numbers fall

Industry officials have reported that there has been a fall in the number of low deposit mortgages that are still on the market. This could cause huge problems for potential first time buyers, many of whom do not have much in the way of savings to put towards a deposit and none of whom have a previous property from which to take equity to put towards a deposit. Read more

Tags: Mortgages, substantial deposit, none, low deposit mortgages, Real estate economics, fall, credit, Deposit account

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

Tags: repossessions, repossession, repossession levels, homeowners, Mortgages, Personal property law

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

Tags: point, repossessions, economics, day, credit, base rate, rate, Mortgages

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

Tags: stark contrast, property, Mortgages, first time buyers, record, loan

Abbey launches packaged current accounts

Abbey has recently joined the long list of banks now offering customers the opportunity to sign up to a packaged current account, and officials from the bank are hoping that on top of the other achievements that Abbey has enjoyed this year, such as the acquisition of Bradford and Bingley and a larger share in the mortgage market, it will also be able to lure customers away from other banks by offering the packaged current account. Read more

Tags: breakdown cover, bradford and bingley, abbey, bradford & bingley, lloyds, current accounts

Banks could make billions from increasing profit margins

According to a recent report many of the UK’s major banks could end up making billions of pounds in extra profits by increasing the margins on loans and mortgages. It is thought that the banks could end up making around £3.6 billion as a result of these increases, so although the Bank of England base rate has fallen from 5.75% to just 3% over the past year the banks are still set to make huge profits. Read more

Tags: Credit card, bank profits, Loans, profit margins, industry official, money products, Economic history, Mortgages

Frightened banks pull mortgage deals

Recent figures have shown that since the start of October hundreds of mortgage deals have been pulled off the shelves by lenders who are becoming increasingly nervous in the current difficult financial market. Over the past year thousands of mortgage products have been taken off the shelves as lenders have become more and more concerned about lending money out. Read more

Tags: bradford & bingley, banks, Frightened, consumers, market, shop around

What’s going on with house prices and mortgages?

There is no doubt that both the housing and the mortgage market have been going through a very turbulent time over the past year. House prices have been falling month on month, and mortgage availability has become increasingly tight. However, amidst all of the chaos that has been going on in these sectors many people may have become confused over what is actually going on in these markets. Read more

Tags: favour, Mortgages, official, time, bedroom, three-bed home

Consumers still having to pay high deposits for affordable mortgages

Over recent months getting a mortgage has become increasingly difficult and expensive, with many lenders reserving their best deals and lowest interest rates for those that are able to put down a sizeable deposit as opposed to the traditional 5% deposit. The changes in mortgage lending and costs have come about as a result of the global credit crunch, which swept across the nation last summer. Read more

Tags: interest rates, equity, england and wales, arrangement fees, Mortgage loan, Mortgages, lenders, lending

Increasing number of rental properties coming onto the market

Over recent years consumers that were looking to rent a home in the private sector often found that the properties were being snapped up before they even had a chance to arrange a viewing, leaving them to start from scratch and select another property from the limited choice available. However, with the problems that have hit the housing and mortgage sectors recent figures show that a rising number of rental properties in the private sector are coming onto the market. Read more

Tags: official, rent, RICS, rental properties, Business Finance, Mortgages, duty, present

Toughest time in three decades for property sellers

There is little doubt that the housing market is going through some real challenges in the UK at the moment. Homes are losing value hand over fist, with prices going down on a monthly basis, and mortgage lending has become extremely restricted, which means that refinancing on a home or getting a mortgage to purchase a property has become very difficult for some people and nigh on impossible for others. Read more

Tags: house prices, Royal Institute of Chartered Surveyors, Mortgages, low house sales, huge 84%, three decades, Mortgage fraud

Rate Matcher customers charged increased arrangement fees

Back in April of this year the high street lender HSBC announced the launch of a new mortgage product designed to help homeowners who were on cheap fixed rate mortgages that were due to come to an end. The bank promised to match the current interest rate of those on low rate fixed mortgages with any other lenders, which meant that homeowners whose cheap fixed rate mortgages were due to end would not have to worry about going onto a high standard variable rate. Read more

Tags: Mortgages, finance, Matcher, lender, chancellor of the exchequer, idea, squeeze, arrangement fees

Mortgage squeeze not letting up

The mortgage squeeze in the UK doesn’t show any signs of easing according to officials in a recent report. Officials from the Council of Mortgage Lenders have recently said that the problems in the mortgage market do not seem to be letting up, and tighter credit and lending conditions are still very much in place. The problems in the mortgage sector began last summer with the arrival of the global credit crunch, and since this time the number and availability of mortgages has fallen rapidly. Read more

Tags: tighter credit, plan, Mortgages, mortgage industries, financial markets

Banks need to reduce their mortgage arrangement fees

At a time when borrowing has become increasingly expensive, and when household finances have become tighter and tighter due to the global credit crunch, higher bills, increasing living costs, and higher petrol prices, the UK’s mortgage lenders have decided to deal borrowers another blow by hiking up mortgage arrangement fees, making it even more difficult for the average struggling consumers to take out a mortgage or remortgage. In fact, in the current climate some poor consumers could find themselves facing fees of thousands of pounds to remortgage or take out a mortgage, making the whole process impossible for some who simply cannot cope with that sort of fee. Read more

Tags: fsa, council of mortgage lenders, current climate, UK's financial regulator, issue

No change to mortgage crisis

There has been no change to the mortgage crisis in the UK despite government intervention, according to the Council of Mortgage Lenders. Officials from the CML have said that the problems in the mortgage industry are still ongoing, and the squeeze on credit and mortgages continues even though the government has pumped billions of pounds into the money market and has launched a £50 billion mortgage rescue plan that allows lenders to swap their mortgage assets for government bonds, which is aimed at restoring confidence amongst lenders and increasing liquidity in the mortgage sector. Read more

Tags: change, bank insurance, steady decline, mortgage lending, Mortgages, special liquidity scheme, squeeze, credit

First-time buyers face bigger deposits

First-time buyers are now having to stump up bigger deposits than before to buy their first home, even though property prices have been falling in recent months, it has been reported. Read more

Tags: cash, home, first time buyer, belts, first time buyers, Mortgages, mortgage deposits

First-time buyers “struggling” to get mortgages

People looking to secure funding to get onto the property ladder are more likely to have difficulties than those in more established jobs and who have bigger deposits to put down, according to Cobalt Capital partner Andrew Montlake. Read more

Tags: credit problems, first time buyer, first time buyers, Mortgages, property ladder, working lunch, lenders, Association of Mortgage Intermediaries

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

Fewer mortgage lenders willing to offer £1m deals, says expert

Homebuyers looking to spend in excess of £1 million on a property may have difficulty finding a large mortgage to fund their purchase, according to Bestinvest. Read more

Tags: Mortgage loan, expert, downturn, economic downturn, Financial services, Mortgages

Are you looking to refinance your mortgage?

People in the UK have become far more savvy about finances over the years, and when it comes to mortgages many people have realized that there are some great deals out there that could save them a fortune in interest as well as reducing their monthly repayments. However, for many consumers simple apathy or misguided loyalty has resulted in them staying with the same mortgage provider through thick and thin without giving any thought to just how much they could save by simply refinancing the mortgage, whether with the same lender or with another one.
Read more

Tags: amount, refinance mortgage, Mortgages, Real estate, mind

Expert highlights need to help those struggling with mortgages

Helping homeowners who are struggling with mortgage repayments is one of the key housing issues in Northern Ireland, according to an industry expert. Read more

Tags: price, position, expert, mortgage help, Department

Is a variable rate mortgage the right choice for me?

Consumers in the UK can enjoy a choice of mortgage options these days, and no matter what your needs and circumstances there is a good chance that there is a suitable mortgage product on the market for you. When it comes to mortgages consumers can enjoy options such as the standard variable rate, the fixed rate, base tracker mortgages, capped rate mortgages, and more. The most popular of these are the variable rate mortgage and the fixed rate mortgage, both of which offer benefits as well as disadvantages. Read more

Tags: variable rate mortgages, Mortgages, Real estate, interest, Business Finance, Floating interest rate, UK mortgage terminology, United Kingdom

Getting a mortgage with bad credit

Unfortunately, over recent years we have seen a steep rise in the level of consumer debt in the UK, and as a result of this many people have found themselves struggling to keep up with repayments. This has inevitably led to missed or late repayments, and for many individuals has resulted in a reduced credit score and a tarnished credit history. Your credit rating can have a huge impact on your ability to obtain any form of credit in the future, which includes mortgages, and those with a very bad credit history may experience real difficulties when it comes to getting an affordable mortgage – or any mortgage – from a lender. Read more

Tags: Mortgages, interest rate, high interest, loan, rate, bad credit mortgages, tarnished credit history

It’s ‘always worth’ comparing mortgages, says expert

Independent website Your Mortgage has told consumers not to be content with their current mortgages deals because it is “always worth” comparing mortgages from different lenders to try to get a better one. Read more

Tags: Association, Mortgages, Super jumbo mortgage, compare mortgages, finance, Mortgage loan, different lenders, council of mortgage lenders

House building halted as buyers struggle to get mortgages, says FMB

The number of new houses being built in the UK has dropped in recent months because property developers have backed out of projects as people struggle to find mortgages to buy property, according to the Federation of Master Builders (FMB). Read more

Tags: Barratt, divorce, Mortgages, increase, mortgage, lifestyle choices, house builders, lifestyle

Property situation ‘bad as ever’ for first-time buyers

Despite recent reports that house prices are stagnating and even falling in some areas, Firstrung has said that the property situation is “as bad as it’s ever” for people trying to buy their first home. Read more

Tags: market, September, year, home, house, first time buyers, Firstrung, Mortgages

Housing boom an ‘unmitigated disaster’

The housing boom has been an “unmitigated disaster” for the UK’s economy and society, Firstrung has said. Read more

Tags: home, society, UK's economy, first time buyers, Mortgages, housing, housing boom, month

Demand for five-year fixed-rates ‘rises’

Demand has increased for fixed-rate mortgages lasting five years for the third month in a row, according to figures newly released by Abbey. Read more

Tags: mortgage, bank's latest mortgage, Mortgages, periods, Institution, base rate, fixed rate mortgages, director

Mortgage perks are ‘few and far between’

With banks tightening their lending criteria due to the current turmoil in the financial markets, borrowers should not expect to find many extra perks in their mortgage deals, according to Moneyfacts. Read more

Tags: Mortgages, bit, gimmicks, head of mortgages, Miles, additional 50 air, lloyds tsb

Natwest cuts mortgage rates

RBS has announced it will cut mortgage rates and introduce a new savings product in a bid to help borrowers and encourage first-time buyers to save for a deposit. Read more

Tags: fixed rate mortgage, mortgage rates, consumer banking, new savings product, Mortgages

Nationwide tightens mortgage criteria

Nationwide, the UK’s second biggest mortgage lender, has increased the deposit needed by new borrowers to a minimum of ten per cent on all except two of its products. Read more

Tags: bbc, biggest mortgage lender, loan, nationwide mortgages, Mortgages

Government help for mortgages “too slow”

The government should act more quickly when providing aid for mortgages to people in financial difficulties facing repossession, says National Homebuyers. Read more

Tags: mortgage lenders, mortgage payments, large lenders, lender, Mr Coogan

UK mortgage market worst in 30 years, warns expert

British home buyers are facing the toughest conditions in the mortgage market the country has seen for 30 years, the UK’s largest house builder, Persimmon, has warned. Read more

Tags: house, council of mortgage lenders, mortgage market, Darling revealed plans, uk, Merrill, property market, Mortgages

Interest rate cuts may not affect credit availability, says expert

The Bank of England’s interest rate cuts are unlikely to have an effect on the declining availability of credit, says economic research consultancy Capital Economics.

Lenders reported that during the first quarter of 2008 they had reduced the availability of secured credit to households, and expect to reduce it further over the next three months.

This means that borrowers will be faced with putting down bigger deposits for mortgages than before, as well as paying higher mortgage rates.

Similarly, household unsecured credit availability has also dropped over the last three months with predictions that it will also continue to decline in the future.

Vicky Redwood, UK economist at Capital Economics, said that yesterday’s interest cuts would not make “a huge amount of difference” since lenders had failed to pass on previous cuts in interest rates to borrowers.

Borrowers will nevertheless benefit in the short-term from the cuts and lending rates should eventually drop, however Ms Redwood noted that “things are likely to get a little worse before they get a little better”.

Tags: rate, credit availability, little better, bank, Super jumbo mortgage, availability, Household

British parents help children choose first home

British parents have collectively paid out more than £27 billion to help their children buy their first homes, according to new research.

Findings from Abbey Mortgages revealed that an average of £5,874 is given to each child to enable them to take that first step onto the property ladder.

Up to one in seven first time buyers receive money from their parents to invest in their home with one in sixteen borrowing money.

Nici Audhlam-Gardiner, head of Abbey Mortgages, said: “Because house prices have increased so much over the past few years, buying that first home is also a bigger and more daunting investment than it was for the previous generation so guidance is undoubtedly needed.”

The research also showed that finding a home for their offspring also costs parents time, with an average 17.8 hours spent helping with choosing the property and 22.5 hours spent helping them move in.

According to figures from the Office for National Statistics Social Trends survey, more young people are living with their parents for younger with the rises in property being blame, reported ITN.

Tags: head of Abbey Mortgages, borrowing, GBP, Mortgages, british parents, step, Trends, Banking

Tracker mortgages ‘best bet’

Tracker mortgages are the “best bet” for those consumers who want to benefit from falling interest rates this year, according to finance experts.

Moneysupermarket.com said that while rates have been going down, increasing numbers of consumers have been reverting to tracker mortgages.

Louise Cuming, head of mortgages at moneysupermarket.com, said: “At the moment, the percentage of customers that are on trackers… although it’s only 24 per cent, that’s the highest it’s been since back in 2005.”

She added that trend for rates is going to be down, so these products are useful for those spenders where affordability is no issue.

However, moneysupermarket.com warned that tracker mortgages should only be used by those consumers who can afford to risk higher repayments in the future.

The most recent figures from the Council of Mortgage Lenders, for December 2007, show that 29,600 tracker loans were taken out by homebuyers – making up 24 per cent of all home loans.

A survey by Fairinvestment.co.uk last week revealed that 23 per cent of Britons polled would favour a tracker mortgage.

Tags: december, Mortgages, show, Business Finance, favour, tracker, interest

Cash lump sum still needed for overseas mortgages

First-time buyers looking to invest in property outside of the UK will still need a cash lump sum to get an overseas mortgage approved, a property advisor has warned.

BuyAssociation said that it was “quite possible” for consumers to get a mortgage approved on a property abroad, a tactic which can help build up equity quickly.

However, Paul Collins, property editor for BuyAssociation, said that these forms of purchase arrangements can often make getting a mortgage more time consuming, particularly in emerging markets.

“And you will find in a lot of these markets that you won’t be able to get 100 per cent mortgages, so again there is still the issue that you will need some form of cash deposit to be able to actually do that, ” he explained.

A recent study published by UK National Savings & Investments found that 84 per cent of 18 to 30-year-olds believe buying property abroad is a more viable option than buying in Britain.

Tags: Subprime mortgage crisis, cash, Mortgages, overseas mortgages, First-time, first time buyers, investments, tactic

Rate cut could ‘ease financial pressure’

The cut in interest rates by the Bank of England (BoE) will help “ease financial pressure”, claims one financial expert.

According to the Fair Investment Company, the rate cut of 0.25 percentage points to 5.25 per cent by the Monetary Policy Committee (MPC) should help homeowners with mortgages of over £150,000 receive as much as £40 per month back.

James Caldwell, director of the company, said: “The MPC’s decision will come as a relief to many. A lot of people are facing higher living costs and business expenses, so the rate cut is an important step towards easing financial strain.”

However he added that home owners will only benefit if mortgage rates are cut in line with the BoE’s decision.

Mr Caldwell also said that savers will be worse off as a result of yesterday’s decision.

Those savers who hoped the base rate would remain the same for another month “will be disappointed”, he concluded.

However, according to the Newcastle Building Society, despite the effects of the interest rate cut, savers could benefit from the current climate of competition between banks and building societies to offer the best deal.

Tags: pressure, best deal, england, Mortgages, interest rates, Newcastle Building Society, Business Finance

Thousands are struggling with mortgages claims charity

Homeless charity Shelter has called for the government to do more to assist homeowners struggling to meet mortgage repayments after it revealed the number of calls it received had risen by 700 per cent.

The charity said that calls from concerned homeowners had leapt from 10,000 to 80,000 over the past 12 months.

Adam Sampson, the charity’s chief executive, said: “Shelter has seen a massive increase in people coming to us with mortgage problems, and with repossessions set to rise throughout this year we simply haven’t got the resources to help everyone.”

He added that the government needs to work with the Financial Services Authority to repair the “broken state safety net” to ensure that if people do face difficulty there is somewhere to turn for advice.

In its ‘Mortgage and Repossessions’ report Shelter also calls for new guidance to be supplied to judges in county courts so that a tougher line is taken against mortgage lenders who treat customers unfairly.

The recommendations from Shelter come after the FSA warned that as many as one million homeowners could face repossession as the economy slows down.

Tags: county, Financial Services Authority, United States, difficulty, Mortgages, authority, 12 months, face difficulty

House prices tumble at fastest pace since 1995

According to recent figures released by the Nationwide Building Society house prices across the UK took the biggest tumble since June 1995 in November.

The figures from the mortgage lender showed that house prices had fallen by 0.8%, which was the first fall since February last year and the biggest fall in twelve years. The annual rate of inflation on homes has also tumbled, falling from 9.7% in October to 6.9%.

The fall of 0.8% equates to an average £1500 drop in house prices, and this means that the average house price now stands at £184,099. However, this still means that the average house price is around £12000 more than just one year ago. In addition to the house price fall, the Bank of England has confirmed that mortgage approval levels have also slumped, with 88,000 new mortgage approvals in October, which was 12% lower than the previous month and 31% lower than October last year.

Nationwide officials confirmed that the housing market was facing a cooling off period, stating: “Poor affordability, weaker house price growth expectations and the effect of earlier increases in interest rates have all affected demand in the market.”

The Council of Mortgage Lenders added that the effects of the credit crunch and turmoil in the financial markets were affecting the housing market, and that the government needed to invest more money in the financial markets.

Michael Coogan from the Council of Mortgage Lenders stated: “We would like the government and the Bank of England to consider how best to unblock the funding log-jam that some UK lenders are experiencing, so that they can continue to fully meet consumer demand.”

Tom Smith
5th December 2007

Tags: prices, house, approvals, government, Mortgages, lenders, fall

CML: FSA findings a ‘wake-up call’

The Council of Mortgage Lenders (CML) has responded to the Financial Services Authority’s (FSA) publication of case studies of good and bad practise in mortgage brokers’ treatment of consumers.

It welcomed the publication, saying that it would act to help improve the quality of overall service.

The CML will support any action against brokers who fall short of targets outlined by the FSA and brought to their attention.

It states that good brokers’ practise is undermined by those who fail to meet industry standards.

Director general of the CML, Michael Coogan, commented: “After three years of regulation, the FSA is right to expect its regulatory standards to be in place across the whole market. These findings are a wake-up call to those brokers who are behind the pace.”

He added that the FSA must ensure its expectations are explained with clarity, a stipulation especially important for small broking firms.

Banks, building societies and other lenders make up the membership of the CML, which supervises 98 per cent of all residential mortgage lending in the UK.

Tags: pace, Mortgages, industry, council of mortgage lenders, practise

FSA clamps down following mis-sold sub-prime mortgages

The UK’s financial regulator, the Financial Services Authority, has come down hard on a handful of brokers that have been found to be mis-selling sub-prime mortgages in an already volatile financial market.

Chaos has resulted from a credit crunch that was sparked in the sub-prime mortgage sector of the United States. In fact, of the three brokers that have felt the wrath of the Financial Services Authority over this issue, one has been closed down altogether whilst the other two have been fined.

The three small brokers include Homebuyer Securities, which was closed down as a result of mis-selling sub-prime mortgages, the Loan Company, and Next Generation Mortgages. The latter two were fined by the FSA but remain in operation.

According to FSA officials the firms had been offering inadequate sales and advice procedures, and as a result of this had put their customers at risk. The companies were all found to be mis-selling sub-prime mortgages, which are mortgages that are targeted towards those with poor credit and those that are unable to prove a regular income.

An official from the Financial Services Authority stated: “Firms who do not comply with FSA standards taint the entire mortgage industry which is totally unacceptable. Any firms who place their customers at risk of receiving unsuitable advice through inadequate business processes can expect strong action from the FSA.”

According to a recent report a fine of £31,500 was imposed on the Loan Company, which was found to be offering inconsistent information and providing mortgage loans without checking that the borrower could afford to make repayments.

A further fine of £10,500 was imposed on Next Generation Mortgages, which was accused of failing to assess customers’ needs properly and failing to provide warnings about the risks associated with its mortgages.

Alan Wright
25th November 2007

Tags: Loans, Mortgages, brokers, fsa, sub prime

Three interest rate cuts predicted for 2008

According to city economists homeowners in the UK will be able to enjoy easier financial management next year with predictions that interest rates will fall two or three times over the course of the year.

Since August 2006 interest rates have risen five times, each time by 0.25%, and this took the base rate from 4.5% to 5.75% in under a year. Since July of this year interest rates have remained stable at 5.75%, despite calls from some agencies for the Bank of England to cut rates.

Economists are now predicting that interest rates could fall back to 5% next year through a series of interest rate cuts. Some economists predict that there may be one interest rate cut by the end of this year and a further one early or mid next year. However, the timing of interest rate cuts will be dependant upon data reflecting continued economic slowdown. GDP growth forecasts have been downgraded for next year, and this is because of factors such as the series of interest rate rises, volatile financial markets, and the current strength of the pound.

One economist stated: ‘Crucially the Bank has validated market expectations that we are going to see two or three interest cuts in 2008.’

Another said: ‘The report is markedly more doveish and indicates that at least two interest rate cuts are likely.’

Any interest rate cuts are likely to be welcomes by homeowners, who have seen their repayment rocket over the past year, with interest rate rises adding hundreds of pounds to the mortgage repayments of some homeowners. There is also set to be financial turmoil for those due to come of cheap fixed rate mortgages deals over the coming months, and an interest rate cut could help to ease the financial impact.

Alan Wright
24th November 2007

Tags: deals, rates, offers, Loans, cuts, Mortgages, cheaper

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

RICS states only rich can afford to be landlords

Officials from the Royal Institute of Chartered Surveyors have stated that in the current economic climate only the rich can afford to become landlords, with investment properties being made inaccessible to many people because of the high level of deposit that many lenders are now demanding.

According to reports the level of deposit required on buy to let properties has increased by 500% since 2002, with the average deposit needed now being around 30% of the property value, equating to an average of around £65,600.

In the first quarter of 2002, according to the report, only around 8% or an average £10,100 was needed to invest in a buy to let property. RICS officials state that the high level of deposit needed means that many potential buy to let purchasers have been put off or simply cannot afford to get their foot on to the buy to let ladder.

However, the Institute states that the situation could ease somewhat next year, with interest rates likely to fall and house prices likely to drop or remain stable. This could see an increase in the number of consumers deciding to invest in buy to let.

One economist from the Royal Institute of Chartered Surveyors stated: “It takes more capital than ever to set up a buy-to-let investment. Would-be investors who have missed out on the impressive returns of previous years are now finding the hurdles to property investment are higher than they imagined. However, existing landlords should be able to use the equity in their past investment properties to fund the deposit needed for new ones, and this should ensure that demand from the buy-to-let sector does not dry up entirely.”

Tom Smith
18th November 2007

Tags: surveyors, landlord, Mortgages, investment, equity

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