‘Mortgages’ News
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....
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Young people concerned about debt
Posted 2008-04-23
New research from Abbey Banking has found that debt is a big concern for young people in the UK.A survey of 11 to 15-year-olds found that 21 per cent fear getting into debt as an adult while nine per cent are worried about not being able to afford a mortgage when they got older.Speaking to Money High Street, Steve Shore, director of Abbey Banking, believes parents can help teach their kids about saving and alleviate some of their fears about their future finances."Kids should also be taught about products such as current accounts, as this will hold them in good stead for later years and helps teach them to manage their money and spending early," he told the site.The survey found that young people were worried about needing a financial aid tool such as an IVA.According to Moneyfacts, parents should begin putting money aside for their children from the moment they are born....
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Mortgage approvals fall
Posted 2008-04-22
New figures released by the British Bankers Association (BBA) have revealed that 35,417 new mortgages were approved in March, a 46 per cent fall on a year ago.The figure is the lowest recorded since September 1997 and overall mortgage approvals, which include equity withdrawal and refinancing, fell to their lowest since 2000.David Dooks, BBA statistics director, believes the tightening of conditions by banks, coupled with pressure on personal finance, have had an effect on the demand for mortgages as well as loans and credit cards."The consequences of low banking sector liquidity show up clearly in March data; reduced product ranges and tighter criteria resulted in slower mortgage lending and significantly fewer loan approvals," he stated.BBA figures show that the average loan approved for a house purchase decreased by 4.8 per cent from March last year, to £158,000.The Royal Institute of Chartered Surveyors believes the credit crunch will continue to affect the residential property market....
Mortgage fees have ‘doubled in a year’
Posted 2008-04-20
Application fees on the best value fixed-rate mortgage deals have nearly doubled in the past year, according to new research.A report, conducted by mform.co.uk, has revealed that fees on the five most competitive fixed two-year deals have moved from an average £999 to £1,478, while the average fees for three-year deals have moved from £578 to £1,132.Francis Ghiloni, mform.co.u...
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BoE’s unveils £50 billion plan
Posted 2008-04-20
The Bank of England (BoE) has today unveiled a plan to allow banks to take government-backed bonds in exchange for mortgage-backed securities.It is hoped that the £50 billion cash injection will allow banks to lend to one another and to consumers, following recent financial difficulties and has been backed by the British Bankers Association (BBA).Mervyn King, the governor of the bank, says the aim of the scheme is to restore confidence in the banking system and financial markets."The BoEs Special Liquidity Scheme is designed to improve the liquidity position of the banking system and raise confidence in financial markets while ensuring that the risk of losses on the loans they have made remains with the banks," he said.One of the conditions of the aid, is that banks will be required to give the BoE assets with a higher value than the bonds which they are receiving.The BBA represents the views and interests of 223 banks in the UK ...