A Christmas gift for a mortgage advisor
December 21, 2008
Mortgage advisors are a strange breed, we find. Highly intelligent (of course), interested in ensuring financial stability and great communicators, but they can also be very difficult to buy for at Christmas.
In the current financial climate, some mortgage advisors are having to look around for ways to diversify their income and those that have already done so are doing very well.
One Christmas gift you could consider Read more
Up to 3 million mortgage breaks
December 20, 2008
According to a report in the Daily Express, figures close to 3 million struggling homeowners could be asking their mortgage lenders for a mortgage payment break due to the financial crisis gripping the world at the moment.
Property experts and mortgage advisors do warn however that although having a mortgage holiday or requesting a mortgage payment break might seem a good idea, people need to understand the implications of this.
Firstly, whilst you take your mortgage break Read more
95 percent mortgage back from Nationwide
December 19, 2008
Yes, it is true, the Nationwide has brought back the first 95 percent mortgage that we have seen in what feels like a long, long time.
The only catch is that borrowers would have to fix for two years at 7.18 per cent, a rather large 5.18 per cent above base rate.
It is expensive and at least £25,000 must be borrowed but at least there is no arrangement fee. The Nationwide’s Read more
Overpaying your mortgage now could pay dividends
December 18, 2008
For those who can possibly afford it, overpaying on your mortgage now is one way to almost guarantee yourself a much better deal when it comes time to remortgage.
As the Bank of England’s recent base interest rate cut means that interest rates on some mortgages are as low as they have ever been, overpaying your mortgage could not only save you thousands and thousands of pounds but could also cut years off your mortgage. Those Read more
US takes drastic steps to boost mortgage market
December 17, 2008
The central bank in America has taken drastic steps in its efforts to boost the mortgage markets and the US economy.
In place of a base interest rate, the Federal Reserve has replaced this for the first time in 75 years with a Read more
Should we be more German?
December 16, 2008
According to recent research by the Bank of England, many households are struggling now with rising debts and increased household bills.
“The typical household reported that the income it had available after meeting household bills had fallen over the past year, and that it had saved less than it had expected,” the survey said. “More households were finding their debts to be a burden than in similar surveys carried out since the mid-1990s.”
The survey was carried out in September this year, at the peak of the credit crunch, and was conducted amongst 2,500 households.
The German chancellor has criticised Gordon Brown’s answer to our problems. The Germans are Read more
Should you get MPPI?
December 15, 2008
The government’s recent announcement that it will enable homeowners to put off their interest payments on their mortgage for up to two years in an effort to prevent the number of repossessions increasing may convince some people that they do not need to bother with mortgage payment protection insurance (MPPI) at all.
However, according to many consumer champions, MPPI will protect homeowners much better than the government scheme will.
More details of the scheme were announced last week, including criteria that the homeowner must fulfil such as not having more than £16,000 in savings.
MPPI starts paying out after a period of either 30 or 60 days of stopping working and pay out for a limited term, usually 12 months. The money does not have to be repaid and although MPPI is usually taken out when you take out your mortgage, it can be started at any time and many mortgage advisors and PPI providers have reported an increase in the number of policies being started at the moment as people become nervous about their job security.
Vera Cottrell, personal finance campaigner at consumer organisation Which?, says anyone with an MPPI policy should think very carefully before cancelling it. “For homeowners who lose their jobs, the government’s new scheme looks like it will only delay interest payments for two years, at the end of which time you’ll either have to pay more or for longer. MPPI, on the other hand, will not only pay the interest for you for a year or more, but will also pay any capital repayments you make as well. So, if you do lose your job, you’ll be significantly better-off with MPPI than under the government scheme.”
The Abbey has to explain its mortgage letter to customers
December 14, 2008
Mortgage customers of the Abbey bank received a letter last week from the Abbey warning that the current housing market crash could have an impact on their mortgage contracts. The letter warned that borrowers would only be able to borrow 90% of the value of their home.
When customers complained about the letter, many were told of a clause that would allow the Abbey to request that its customers pay back any borrowing that takes their mortgage over the 90% value on their property.
Abbey states that it doesn’t plan to enforce that clause, but offers no guarantees about Read more
Homeowners use remortgages to maintain lifestyle
December 13, 2008
According to a study conducted by researchers at Durham University, the lifestyle and living standards of many homeowners depend upon remortgage cash from the increasing property values of the last decade or so.
They believe that if there were a freeze on releasing equity from the home, which in many cases is what is happening now that property values have started to fall, this will plunge thousands of homeowners into what they term a ‘welfare nightmare’.
Although Read more
New mortgage support scheme explained
December 12, 2008
The new mortgage support scheme announced by the government recently met with mixed feelings and this week, more details of the eligibility criteria have been released.
The support offered was Read more
