The End of the Credit Crunch?
September 10, 2008
Struggling US mortgage lenders, Fannie Mae and Freddie Mac, are to be helped out by the US government in much the same way as the UK government helped out mortgage lender Northern Rock.
The two US mortgage lenders are deemed responsible for the start of the credit crunch both in America and in the UK. Between them, they are responsible for almost half the outstanding mortgages in the US. They, similar to many mortgage lenders, lent money to borrowers who have since struggled to meet their repayments and as such the banks have consequently struggled as a rumoured 9 per cent of borrowers in the US have fallen behind in their repayments.
When the US government announced that Read more
Nationwide takes over Derbyshire and Cheshire Building Societies
September 9, 2008
Mortgage customers of the Derbyshire and Cheshire building societies need not panic at the news that the Nationwide is to take over the two. The move marks a ‘rescue deal’, as described by Graham Beale, the chief executive of the Nationwide Building Society.
Under the deal, the Nationwide is gaining £12 billion of assets and 95 building society branches. Also, the 925,000 members of the two building societies haven’t been allowed a vote in the takeover, and won’t be receiving anything in the way of any financial windfall from the deal. The Nationwide can do this if Read more
Beware CeRER Equity Release Revision Workshops
September 8, 2008
As CeRER (the Certificate in Regulated Equity Release) becomes better known, and mortgage advisors realise the value it can add to their service, there will no doubt be plenty of companies cropping up offering CeRER training courses.
Potential delegates looking to attain their CeRER qualification should be wary of those offering ‘revision courses’. The reason behind this is Read more
Mortgages Being Helped
September 7, 2008
Earlier this week, the Bank of England decided to hold its interest rate at five per cent. This decision was fairly predictable for many experts as it has been prompted by concerns about the level of inflation.
Many experts are predicting that in the next month or two the Bank of England is likely to introduce another cut of quarter a per cent.
In addition, the Council of Mortgage Lenders (CML) has written an open letter to the Chancellor Alistair Darling saying that it is ensuring that mortgages are protected and so those who have or who are taking out mortgages at the moment can be reassured that they do not need to have a major fear of repossession. Read more
Yorkshire Building Society claims renewed confidence in mortgage market
September 6, 2008
As mortgage interest rates begin to fall, Yorkshire Building Society claims that the UK is experiencing renewed confidence in the mortgage market; which in turn is great for those looking to embark on a CeMAP training course and become a qualified mortgage advisor.
Until recently borrowers had remained on their existing mortgage deals as they couldn’t afford to change them, but as the interest rates drop below 6%, and the Yorkshire Building Society reduced its interest rates by anything up to 0.55%, the building society says that borrowers are more inclined to swap their mortgage deals. In fact, according to the Yorkshire Building Society, applications from borrowers to change their mortgage deals have doubled. Read more
Mortgage Rates Still Falling
September 5, 2008
The Abbey is reducing its mortgage interest rates yet again, as have many mortgage lenders in recent weeks.
The mortgage lender is reducing the mortgage rates for their new borrowers on their two, three and five year fixed rate mortgage deals by up to 0.3 percent from today, however, first time buyers will still need to find quite large deposits in order to receive the best mortgage deals available.
According to a spokesperson from the Abbey, fixed rate mortgages are continuing to grow in popularity.
Mortgage lender Lloyds TSB has just announced Read more
CeMAP Home Study Courses
September 4, 2008
Sometimes you just can’t spare the time from your current job to travel to a centre for a CeMAP Training course, or maybe the location is too far away from where you live for you to travel. This doesn’t mean you have to give up your plans of taking a CeMAP course though, as rather than attending a full course you could take a
CeMAP home study course from the comfort of your own home.
This way, the work you do on the CeMAP course will fit in around your schedule, rather than you having to make the time. Also, a home study course works out cheaper than a full
CeMAP training course. Read more
Government Changes To Help Property Market
September 3, 2008
Yesterday, the government announced several changes designed to help the UK property market. They were careful not to say this as such, and the nearest the Prime Minister would come, was to say they were aiming to keep the housing market ‘moving forward’.
It is certainly true that the housing market this year has struggled, however, experts seem to believe that house prices have not much further to fall. The government’s plans are predominantly temporary, and as such will not be incorporated into CeMAP training courses, and even those that are permanent will only be incorporated when the syllabus is updated, which is only done once, and occasionally twice, per year. However, whether you intend to train as a mortgage advisor or are simply looking into
CeMAP to help with your landlord ambitions or perhaps for personal reasons, it is always worth keeping up to date.
Stamp Duty
The headline change is of course the change to stamp duty. The government has Read more
New Rules To Prevent Mortgage Fraud
September 2, 2008
New rules have been introduced to protect both mortgage lenders and borrowers from becoming victims in what has been described as mortgage fraud, where property valuations are over-inflated due to buyers incentives, such as when builders or developers offer items such as fitted kitchens and carpets, cashback payments or free legal fees.
Mortgage lenders have expressed concern that these incentives have meant that some properties have, in the past, been sold at a higher value than they are actually worth. The predominant area for this has been new-build city centre apartments, where prices have now slumped substantially.
New rules such as these will not affect your CeMAP training until the syllabus for the CeMAP exam has been updated by the ifs School of Finance, however, it does no harm to keep up to date with changing circumstances. Read more
Mortgage Advisors Changing Role
September 1, 2008
Mortgage advisors will continue to play a pivotal role in the market despite one report apparently predicting that advisors will go out of business over the next year, an industry figure has stated.
Sir James Crosby conducted a recent investigation into the mortgage sector and he painted a bleak image of the future for intermediary companies. He stated that the decrease of clients could lead to many mortgage advisors disappearing from the mortgage marketplace in the near future.
The Head of Regulation at the ifs School of Finance, Mark Roberts, however, had a different story to tell as he believes that this current turmoil in the mortgage market has positive implications for many mortgage advisors as their knowledge and advice is even more crucial than previously, primarily because customers are implicitly more aware than ever of the importance of finding the right deal for their present circumstances.
Figures from the AMI (Association of Mortgage Intermediaries) back Mr Roberts explanation as their figures show that the number of first-time buyers who consult mortgage advisors prior to their purchase has increased by approximately ten per cent in 2008 when compared to the 2007 figures.
Mr Roberts stated:
“With consumers finding it increasingly difficult to obtain mortgage finance, they are inevitably seeking professional help and there is no reason to believe this is likely to change.”
The ifs School of Finance provides financial education worldwide, to both consumers and professionals, which includes setting the CeMAP syllabus and exams, and is a registered charity incorporated by the Royal Charter.
