Co-op shelves two year mortgage
May 19, 2008
Over recent months many lenders have decided to take a variety of mortgage products off the shelves due to lack of funding or lack of supply compared to demand. In a recent announcement the Cooperative Bank stated that it was taking its popular two year mortgages off the shelves for now, as it was unable to keep up with demand. Many banks and lenders have suffered difficulties in securing finance for their mortgage lending operations due to the credit crunch, and this has affected their ability to keep up with demand. Read more
House hunting season gets off to a slow start
April 17, 2008
Industry experts have reported that the spring house hunting season this year has got off to a very slow start, as the effects of the credit crunch continue to bite, and potential buyers struggle with trying to raise the money that they need to purchase a property. The global credit crunch has impacted heavily in the housing and mortgage sectors, and the additional predictions that house prices are going to fall over the next two years is also affecting consumer interest in purchasing a property. Read more
Experts state long term fixed rates may not be best
April 9, 2008
In a recent report a number of industry experts have stated that longer term fixed rates, such as the 20 and 25 year fixed rate mortgage terms that the Chancellor of the Exchequer has been pressing for, many not be the best choice for many consumers. Alistair Darling has said that longer term fixed rate deals for 20 or 25 years could prove beneficial to homeowners because they can provide peace of mind and security, and can also benefit the housing and mortgage markets by providing increased stability. Read more
Former government adviser casts gloomy outlook for house prices
April 3, 2008
A former government advisor and senior economist has cast a gloomy outlook for house prices, predicting that the value of the average property in the UK could plummet by 20% over the next two years, leaving some homeowners facing the pitfalls of negative equity, and seeing many others lose thousands of pounds off the value of their properties. Should this situation come to fruition the average house price could fall from £200,000 to £160,000 in the space of two years. Read more
Chancellor pressing for long term fixed rate mortgages to be made available
March 31, 2008
Since Alistair Darling took over as the Chancellor of the Exchequer last year one of the issues that he has been addressing on a regular basis is the housing and mortgage market, and how increased stability can be brought to these markets. The chancellor has been stating for some time that long term fixed rate mortgages are necessary in order to bring stability to the markets, and this is something that he has brought up recently in his first budget. Read more
Rise in gross mortgage lending for January states CML
March 2, 2008
Officials from the Council of Mortgage Lenders stated recently that there was a rise in gross mortgage lending for the month of January. The figures show that despite the turbulent housing market January saw a rise of 11% in gross mortgage lending compared to December. CML officials claim that in January lending levels rose to £26.5 billion compared to £23.9 billion in December. Read more
Darling says longer term fixed rate mortgages to become the norm
February 17, 2008
Chancellor of the Exchequer Alistair Darling has stated that there is to be a radical shake up the mortgage market, which will result in longer term fixed rate mortgages for twenty five years becoming the norm. Darling has been looking for a longer term borrowing solution for homeowners in light of the level of homeowners that have struggled to keep up with their mortgage repayments following higher interest rates. Read more
Experts predict cut in interest rates
February 13, 2008
Many economists are predicting that the Bank of England will be cutting interest rates this week following the Monetary Policy Committee meeting. It is widely predicted that the Bank of England will cut rates by 0.25%, taking the base rate from 5.5% to 5.25%, which will give borrowers on variable rate loans a little more breathing space. The Bank of England last cut the interest rate by 0.25% in December, but despite high expectations did not cut the rate in January due to inflationary pressures. Read more
Over one million could lose their homes in next 18 months
February 11, 2008
Officials from the Financial Services Authority, the UK’s financial regulator, have warned that over the next 18 months over one million homeowners in the UK could end up losing their homes. Read more
Second UK home for two million Brits
February 6, 2008
According to a recent report around 5% of the adult population in Britain has a second home in the UK, equating to more than two million people with a second home. The figures show that more than two million people have a family home and on top of that have another property within the UK. Read more
Interest rate cuts called for by BCC
January 25, 2008
Following the Bank of England’s decision to keep interest rates on hold for January, the British Chambers of Commerce has called for further modest interest rate cuts in order to avoid a marked slowdown in the economy. After the Monetary Policy Committee meeting earlier this month the Bank announced that interest rates would be kept on hold at 5.5%, and this disappointed many consumers and industry bodies who had been expecting an interest rate cut. Read more
Bank of England decides to keep rate at 5.5%
January 16, 2008
Following the last Monetary Policy Committee meeting held last week, the Bank of England has decided to keep interest rates on hold at 5.5%. Interest rates fell from 5.75% to 5.5% in December in a move that was welcomed by both industry and consumers. This followed a series of five interest rate hikes of 0.25% each between August 2006 and July 2007, which saw many homeowners struggle to keep up with repayments on their mortgages and saw the level of repossessions in the UK rocket. Read more
Lenders warned by FSA
January 6, 2008
The UK’s financial regulator, the Financial Services Authority, has issued a warning to lenders stating that the credit crunch means that things will get increasingly difficult in months to come, and that lenders need to make sure that they do something to curb their lending and minimise on financial impact. Stating that the credit crisis could yet get worse the FSA stated that lenders need to have strategies in place and look at reducing lending. Read more
Experts offer suggestions for fixed rate mortgage customers
January 3, 2008
Over recent months concerns have been growing within the housing and mortgage sector over the many homeowners that are due to come off cheap fixed rate mortgage deals in the coming months. Many took out cheap fixed rate loans tow or three years ago when interest rates and fixed rate were much lower. However, when they come off the fixed rate deal, as the term comes to an end, they could be hit with a rise of hundreds of pounds a month in repayments, as their interest rate shoots up to the lender’s standard variable rate. Read more
Former fixed rate customers feeling financial pressure
December 30, 2007
According to information from the Bank of England over one fifth of consumers that have come off cheap fixed rate mortgage deals this year have struggled to keep up with repayments on their mortgage as a result of the interest rate altering. The results of a survey involving two thousand people showed that around 22% of those that had been on cheap fixed rate mortgages had struggled to meet their mortgage repayments after their fixed rate period came to an end. Read more