‘Mortgages’ News
MoJ figures show an increase in repossession orders
Posted 2008-05-8
New figures released by the Ministry of Justice have found that the number of repossession orders made by courts in England and Wales has risen.According to the research, the number of possession orders, considered to be the first phase in repossessions, rose to 38,688 in the first quarter of 2008, equating to an increase of 16 per cent from the same period last year.In addition, the number of repossession orders issued by the courts reached 27,530 in the first three months of the year, compared to 23,438 in the first quarter of 2007.Caroline Davey, from the housing charity Shelter, told BBC News that the banks must take a large part of the blame for the current situation, by withdrawing their 100 per cent products from the market."Those lenders have now retracted all of those mortgages. But what they havent done is put their hands in their pockets to help the many thousands of people who are struggling, having taken out mortgages they simply cant afford," she said.In 1990, the number of repossession actions reached 37,498....
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Bad news for homeowners
Posted 2008-05-7
The Bank of England (BoE) has today announced that interest rates will be held at five per cent, meaning mortgage holders are unlikely to see a reduction in their payments.Following a quarter-point reduction in April, the bank opted against slashing the base rate over fears about inflation as well as the soaring prices of oil and food.Homeowners and those looking to buy had been hoping for a reduction in the rate from the BoE as the last cut, from 5.25 per cent to five, was not passed on by most lenders.Speaking to the Guardian, Nicholas Leeming of propertyfinder.com said that action is needed by the bank in order to revitalise the housing market."The Bank of England cant afford to wait another month before it acts again. The housing market has come to a standstill but theres no shortage of buyers, just a shortage of mortgages which is now impacting the wider economy," he said.Decisions on interest rates are taken by the banks Monetary Policy Committee....
First-time buyer values fall
Posted 2008-05-6
The price of a house for first-time buyers is being affected by their dwindling numbers, it has been claimed.Moneyextra.com has claimed that the average price of a property that a first-time buyer is willing to pay was £170,559, a 5.75 per cent decrease on the previous month and 4.78 per cent lower than a year ago.Research by the price comparison site also revealed that the number of people securing mortgages with dual income applications rose to an all-time high of 44.79 per cent.Robin Amlot, senior editor of Moneyextra.com believes the market is now a buyers one."While it may be getting tougher to get a mortgage now, it would appear that those first time buyers who are in a position to buy are now driving much harder bargains with sellers. Housing is very definitely a buyers market," he said.According to housing charity Shelter, the price of the average first-time property increased from £52,674 to £159,494 in the decade to 2007....
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Funding a property on unsecured debt is ‘very dangerous’
Posted 2008-05-5
House buyers are being warned about the perils of purchasing a house using unsecured loans and other funds.Peter Beckett, the business development director at iammoving.com, claims that with the housing market in such a delicate state, raising a deposit with credit card and unsecured loans is "very dangerous".Recent research has found that three out of ten first-time buyers are using unsecured funds to buy their first property."The whole housing market is at a turning point, whereby the prices are coming down and first-time buyers are looking for ways to be able to manage to get on the ladder. But it is a very dangerous thing to do it on the back of unsecured debt," he said.Mr Beckett added that unless one feels confident about their job security, such forms of financing are unwise.Research from iammoving.com revealed that 17 per cent of first-time buyers are borrowing money from friends and family to purchase a house....
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Buy-to-let mortgages become scarce
Posted 2008-05-5
The number of buy-to-let mortgage products has decreased significantly over the last month, which could point to a housing disaster, an industry expert has claimed.According to research from Moneysupermarket.com, the number of deals available to landlords fell by 40 per cent in the last month, while the number of people renting property increased by five per cent.Louise Cuming, head of mortgages at the site, believes that the trend could lead to a worrying situation in the future."Our research shows the number of buy to let products has decreased from 4025 to 674 in just one year, with nearly 600 of these products removed since March 31st. I fear we will soon see many people unable to buy or rent," she said.The research also found that 11 per cent of people who had considered getting a mortgage feel they have been priced out.In related news, recently an advisory firm to potential buy-to-let investors, Inside Track, went into administration and customers have threatened legal action for their losses of several thousand pounds....
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Brits take advantage of foreign property investments
Posted 2008-05-1
An international property specialist has reported an increase in people looking to remortgage their overseas properties.Since the start of the year Assetz Finance has reported a 40 per cent increase in the number of Brits looking to remortgage their properties in France and Spain.With it becoming increasingly difficult to secure funding in the UK, more residents are looking to take advantage of the European base rate and some attractive deals being offered on the continent.Katy Hepworth, overseas mortgage manager of Assetz Finance, says that while servicing mortgages in Britain is one people are looking to remortgage, it is not the only one."Repaying more expensive UK debts is not the only reason overseas property owners choose to secure mortgages and release equity from their foreign properties. Many borrowers use the funds for projects such as further property purchases and renovation," she said.Assetz is a property specialist, with interests in the UK and around the world....
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Fool.co.uk: House prices could fall by 20 per cent this year
Posted 2008-04-29
House prices could fall by up to 20 per cent this year, according to financial site Fool.co.uk.David Kuo, head of personal finance at the site, believes that the latest mortgage approval figures from the Bank of England are further proof of the distress the housing market currently finds itself in.Responding to news from Nationwide that it had recorded a sixth consecutive month of falling house prices, Mr Kuo believes the worst is yet to come."The recent mortgage approval figures from the Bank of England are further proof that the property market is in the midst of a severe downturn. ...
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Some good news for first-time buyers
Posted 2008-04-28
First-time buyers are being advised to sit and wait to see how the mortgage market develops in the near future, as there is the possibility of significant reductions in house prices and very high savings rates.Andrew Hagger, from Moneyfacts.co.uk, believes that if those looking to secure their first property resist the urge to buy now, they could reap the rewards in the long term."If property prices were to fall by 15 per cent in the next 18 months then those who are itching to get their foot on the housing ladder could benefit from a double whammy of very high savings rates and the falling cost of that elusive first property," he said.Mr Hagger also noted that the number of savings accounts offering attractive interest rates should encourage consumers to save regularly over the next 18 months.A recent report by Newcastle Building Society found that ten per cent of people preferred to keep their money at home as opposed to a savings account....
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Mortgage lending approvals likely to fall further
Posted 2008-04-28
Following the release of the Bank of Englands (BoE) mortgage approvals data, the Council of Mortgage Lenders (CML) believes that the number of mortgages agreed will continue to fall.The Banks figures show that the number of approved mortgages fell from 72,000 in February to 64,000 in March.In response, the CML has conceded that conditions will get worse before they get better, citing the fact that the BoEs Special Liquidity scheme, which injected £50 million into the financial markets, is not designed to revitalise the mortgage market."We hope that some of the liquidity will be recycled down into the mortgage market. But it will take some months for this to happen and mortgage lending volumes are going to continue to fall before they improve because of the funding gap of the funding gap of around £30 billion," it said in a statement.The number of agreed mortgages was the lowest since records began in 1999 and was a 44 per cent reduction on the same month last year....
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First-time buyers turn to family for help
Posted 2008-04-27
More first-time buyers are turning to their families for financial help, an industry expert has claimed.Following the withdrawal of all 100 per cent mortgages from the market, the Council of Mortgage Lenders (CML) has claimed that an increasing number of first-time buyers are looking for financial assistance from their families.Bernard Clarke, a spokesman for the CML, claims that parents who bought their properties in the 1970s and 1980s have seen significant equity growth in their own properties and are therefore able to help their offspring with their deposits."Family is increasing the main option for first-time buyers. It is another option, but its only open to those who are able to call upon that help, and whose relatives are able to provide it," he said.Recent CML statistics showed that, in February, first-timers made up 37 per cent of the market.Abbey was the last mortgage provider to withdraw its 100 per cent mortgage deal, when it did so earlier this month....