‘Mortgages’ News
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 ...
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Confidence in UK property hits 30-year low
Posted 2008-04-14
The Royal Institution of Chartered Surveyors (Rics) has recorded a historical low in confidence in the UK housing market. The latest report has shown confidence drop in March to a 30-year low, with 78.5 per cent surveyors reporting a fall in house prices rather than a rise last month. ...
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Mortgage rates set to rise despite cut
Posted 2008-04-10
Mortgage rates are expected continue rising in spite of yesterdays interest rate cut by the Bank of England (BoE), it has been claimed.While Nationwide yesterday lowered its base mortgage rate by 0.25 per cent in response to the BoE move, a number of its fixed-rate deals have increased by between 0.12 per cent and 0.32 per cent.That comes on the heels of a 0.2 per cent spike in rates just a fortnight ago, and embodies a trend which is being echoed throughout the wider market.Alliance and Leicester has also increased its rates for the second time in a week, and Britannia Building Society and Royal Bank of Scotland have both also sent their rates northward - confounded the base rate cut.Alluding to the Banks attempt to offer interest rate relief, Peter Bolton King, chief executive of the National Association of Estate Agent, said the decision was "welcome" but he urged lenders to follow suit.He concluded: "It is now more critical than ever that mortgage lenders adopt a similar approach and lower mortgage rates in line with todays drop."...
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HSBC extends olive branch to homeowners
Posted 2008-04-9
HSBC has gone against the grain in the current mortgage market by pledging to match the interest rate of any borrower coming off a fixed-rate deal.The offer comes in sharp contrast to recent news emanating from the sector, which has seen a slurry of lenders rein in mortgage approvals.An estimated 1.4 million borrowers are set to come off their fixed-rate deals this year and one recent report from Fool.co.uk suggested that the average rate has jumped from 4.3 per cent in 2006 to 6.3 per cent today.But with HSBCs new promotion, dubbed the Rate Matcher, homeowners will now be able to secure a re-mortgaging deal as low as 4.54 per cent.A maximum loan-to-value ratio of 80 per cent applies on the deal, as does as arrangement fee of between £599 and £999.The Rate Matcher promotion is available for the next five weeks only and it is open to HSBC customers as well as people who have taken out a mortgage elsewhere....
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FTBs pool resources to get on ladder
Posted 2008-04-8
With the economic downturn gathering pace, it has been claimed that first-time buyers (FTBs) are becoming increasingly adept at securing a mortgage.Home Sale Network, the national network of over 750 independent estate agents, has released figures which sure that 57 per cent of its members have recorded an increase in the number of FTBs taking out a joint mortgage.While eight out of ten such borrowers are clubbing together with their partner to get a foot on the ladder, some 14 per cent are teaming up with a family member and five per cent are buying with friends.Commenting on the findings, David Pank of estate agent Manning Stainton said that the findings illustrate the resilience of FTBs in an increasingly unfavourable marketplace."In March, on average, in our region ten per cent of our sales were to first time buyers," Mr Pank said. "Buyers are having to find new ways to get the necessary funds together to get on the to property ladder, whether thats buying with their partner, a group of friends or a family member."Recent research by fairinvestment.co.uk found that 44 per cent of FTBs are considering buying property abroad in order to get on the housing ladder....
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Dramatic 2.5% house price decline
Posted 2008-04-7
In its latest monthly house price report, Halifax has revealed that the value of property in the UK has dipped by 2.5 per cent.That marks the steepest monthly decline since September 1992 and means that the average British home is now worth just 1.1 per cent more than it was a year ago.With Nationwide also reporting five consecutive monthly dips - and a growing number of commentators downgrading their assessment of the market - the latest report has predictably raised eyebrows."Risks are mounting of a substantially sharper drop," warned Howard Archer, chief UK economist at Global Insight. "There is now a very real danger that a drop of more than 20 per cent in house prices could occur over the next couple of years."That assessment has been backed up by the likes of the International Monetary Fund and Capital Economics, but it is something that housing minister Caroline Flint has dismissed as overly pessimistic.She told the BBC there are few parallels with the current economic climate and that seen during the housing crash of the 1990s, insisting a more moderate, transient downswing is the most likely outcome....
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Five-year mortgages gain sheen
Posted 2008-04-6
Consumers are increasingly warming to five-year fixed rate mortgage deals due to uncertainty in the current financial climate, it has been claimed.New research from Abbey has found that of 1,000 mortgage borrowers, some 24 per cent said they would be most likely to opt for a five-year fixed deal if they had to remortgage tomorrow.That figure is double where it stood just one month ago, indicating that anxieties over the property market have begun to take root.And according to Nici Audhlam-Gardiner, director of Abbey Mortgages, consumer jitters are being fuelled in large part by a slurry of worrying reports about the mortgage market.She noted in particular one recent report by MoneySupermarket.com which found that the availability of mortgage products has fallen a massive 60 per cent in the past seven months alone."Not too long ago borrowers felt that shopping around regularly was the way to get the best deal," Ms Audhlam-Gardiner began."Now homeowners faced with a dwindling number of mortgage deals seem keener then ever to lock themselves into a deal for longer than two years such as a five-year fix."...