Lloyds TSB and Cheltenham & Gloucester slash mortgage interest rates
November 10, 2008
Following the decision by the Bank of England last week to cut the base rate, Lloyds TSB, through its mortgage lender arm Cheltenham & Gloucester, has slashed its mortgage interest rates. The new lower rates are available for house buyers looking for fixed rate mortgage deals.
Lloyds TSB has applied the full 1.5% cut in the base rate to its interest rates, meaning that current customers on Standard Variable Rate mortgage deals, and Tracker deals, benefit from the cut. These new interest rate cuts are available for customers of Read more
Halifax Could Cost Borrowers Millions
November 9, 2008
The Halifax has said that it may invoke a clause in its tracker mortgage contracts if the Bank of England lowers the base rate any further.
A clause in their mortgage contract imposes what is termed as a ‘collar’ on its interest rates, in others words, a rate below which it will not drop and the rate in question is 3 percent. This means that if the Bank of England drops the rate to 2.75 percent or even 2.5 percent or less, then borrowers with the Halifax may not benefit.
This clause also Read more
The Effect of the Base Rate Cut on Borrowers
November 8, 2008
Earlier this week, many were surprised as the Bank of England’s Monetary Policy Committee cut the base interest rate to just 3 per cent, from the existing 4.5 per cent. Although experts had predicted a large rate cut of as much as 1 per cent, none had predicted such a huge cut.
Existing borrowers with a tracker mortgage will be looking forward to a 1.5 per cent reduction in their mortgage, which will have a great impact on their monthly repayments.
The below mortgage lenders have Read more
1970s Style Mortgages Return
November 7, 2008
In a perhaps surprising move to return to the way things were back in the 1970′s and 1980′s, Abbey is introducing a new savings account for first time buyers.
The First Home Savers Account is a way for potential first time buyers to prove that they can set aside a regular amount each month that would meet a mortgage repayment.
The account pays Read more
Abbey Increases Interest Rate Before BoE Meeting
November 6, 2008
Yesterday, the Abbey increased the interest rate on its tracker mortgage products, just two days before the Bank of England is due to meet to determine the base interest rate. This is an unusual move considering that experts are in general agreement that they expect the Bank of England’s Monetary Policy Committee to actually cut the interest rate. Indeed, some believe the interest rate could be cut by as much as a further 1 per cent.
This rather cynical move has come just days after Read more
Warnings Issues Against Interest Only Mortgages
November 5, 2008
Moneysupermarket.com has issued a warning to all homeowners, cautioning them against converting their repayment mortgages to interest only mortgages in an effort to stave off the effects of the current economic climate.
Only last week, Lloyds TSB Read more
Abbey Gains Mortgage Market Share
November 4, 2008
In the third quarter of this year, Abbey has continued to gain a further share of the mortgage market, taking advantage of its weaker rivals who have withdrawn from the home loans area.
Abbey is owned by Santander Group of Spain, and the group has also taken over Alliance & Leicester and recently the savings arm of Bradford & Bingley.
The group has been helped by a strong inflow of retail deposits as consumers rush to find a safe haven for their savings amongst the turmoil of the banking business.
Not only did Abbey Read more
Beijing: New Measures to Boost Property Market
November 3, 2008
Beijing has taken drastic measures in an effort to avoid a housing slump. It has cut mortgage rates by up to 30 percent in some cases, stopped stamp duty and reduced tax on home buying in a new range of policies.
The Ministry of Finance published a statement confirming that the property deed tax is being reduced from 3-5 percent to just 1 percent for those buying their first home if the property is smaller than 90 square metres. This takes effect from the 1st November.
In addition Read more
Lloyds TSB puts an end to interest-only mortgage switching via Cheltenham & Gloucester
November 2, 2008
With the current financial climate many home owners are opting to switch their repayment mortgages to interest-only mortgages as a way to be able to make ends meet. It’s often a last resort for home-owners who can’t afford to make the full payments on their mortgage.
However the option of switching to interest-only mortgages is no longer open to customers of Lloyds TSB and their mortgage provider, Cheltenham & Gloucester.
This news emerged from Lloyds TSB on the back of an increase in repossessions over the three months from April-June, by 71%.
With a mortgage of £150,000, switching from repayment to interest-only could save a borrower over Read more
Mortgages Rise for First Time in a Year
November 1, 2008
According to new figures released by the Bank of England, mortgage approvals increased for the first time in a year in the month of September, albeit they are still very low.
This is the first rise since June 2007, although the number of mortgage approvals was still 67 per cent lower than September’s figures last year.
The total figure for mortgage lending increased by £2.2 billion in September, but this is still below the six month average growth of £3.5 billion.
However, these figures are not likely to change the expectation in interest rates next month. Experts believe that the Bank of England’s Monetary Policy Committee will cut interest rates again next month. Earlier this month, 0.5 percent was cut from the base rate to 4.5 percent.
Howard Archer, of Global Insight, the economic consultancy, said:
“On the positive side for the housing market, the Bank of England seems likely to cut interest rates more aggressively as a consequence of the now-deep economic downturn. Indeed, it looks very possible that interest rates could fall from 4.5 per cent to 3.5 per cent by the end of 2008 and all the way down to 2 per cent in 2009.”
In September, consumer credit also rose by £251 million, however, for this time of year that is a weak rise and hence it supports both survey and anecdotal evidence that the level of consumer spending is weakening.
