RBS throws mortgages lifeline
March 11, 2009
Homebuyers were offered a mortgage lifeline yesterday from the Royal Bank of Scotland (RBS).
The RBS revealed its plan to offer £9 billion of new mortgages throughout the UK and £16 billion in loans for small to medium sized enterprises (SMEs). According to the RBS, there will also be more cash available if customer demand proves high.
This mortgage lifeline will no doubt receive Read more
More people seek mortgage advice
March 10, 2009
According to new research from unbiased.co.uk, those people who used to feel confident enough to talk to friends and acquaintances and dispense their own advice and opinion on mortgages no longer feel confident about this.
62 per cent of house owners in Britain usually feel happy to give friendly advice on mortgages, however, 37 per cent are now less certain of their understanding thanks to the current situation.
The research also showed that 36 per cent of people are seeking Read more
Building societies compete with government
March 9, 2009
The Chief Executive Officer of Skipton Building Society, David Cutler, has pleaded for the government to ensure that building societies have a level playing field on which to compete for UK saver’s funds.
Mr Cutler was pointing out that as UK savers look for the safest place in which to store their funds, the building societies are finding themselves competiting with state-owned banks Read more
Lenders begin to cut cost of mortgages
March 8, 2009
Following the decision last week from the Bank of England to cut the base rate to 0.5%, lenders have finally begun passing those savings onto customers with improved mortgage deals. The Abbey led the way with the new mortgage offers, with a five-year fixed-rate deal of just 3.95% if you have a 40% deposit, and a £595 fee.
This offer beat the best deal offered by HSBC, which was a 3.99% deal on a five year deal, with a £999 product fee. Both deals from the HSBC and Abbey were only available on loans of £250,000 or under.
For borrowers looking to take advantage of new mortgage offers, experts believe that the base rate Read more
Equity release for long term care costs
March 7, 2009
As Britain has become increasingly aware over recent years, there is an aging population issue within the UK as the number of people over state pension age increases.
There is consequently a shortage of accommodation and so those who need long term care are sometimes forced to move miles from friends, family and those who know them in order to get the care they need.
However, those who are looking for long term care and yet still wish to remain in their own home are able to use equity release as a funding option. Alternatively, the funds released from their home could be used for the costs of residential care whilst their spouse can remain in the home.
To advise on mortgages, a person has to take their CeMAP training. However, equity release is a special sort of mortgage advice due to the vulnerability of the people generally being advised and so only those mortgage advisors who have taken the CeRER qualification are able to advise on it.
There is a huge market for equity release as there is an estimated £500 billion of equity tied up in the homes of those over the age of 65. Equity release is a solution for those who wish to remain in their own homes and yet still have a need to release some funds.
Bank of England cuts interest rates to all-time low 0.5%
March 6, 2009
Yesterday the Bank of England cut interest rates once again to an all-time low to 0.5%, and has promised to boost the supply of money to help the economy recover. It has pledged to inject a further £75 billion into circulation, which is known as ‘quantitative easing’.
This reduction marks the sixth time that the Bank of England has cut interest rates in less than five months.
Mervyn King, the Governor of the Bank of England, stated that the plan to revive the economy and the housing market would work, eventually.
Nothing in life is ever certain, but these measures we think will work in the long-term.
I don’t know how long it will take, much depends on the situation in the rest of the world. But if countries work together, these measures will I believe eventually work.
Alistair Darling, the Chancellor of the Exchequer, said that the increased money supply was essential for the UK economy to recover. He did admit that the sixth cut in interest rates in five months would be further bad news for savers, but that it was essential if Britain is to recover from the recession.
In addition, the ‘quantitative easing’ policy devised to kick-start the banks to lend more money should see more mortgage products become available to buyers, and potentially with better rates of interest.
Mortgage savers flock to building societies
March 5, 2009
For those in the process of saving a deposit towards a mortgage, it will be interesting to note that it appears building societies have benefited greatly since the banking crisis has hit.
According to figures from the BSA (Building Societies Association), more than a million customers opened a new savings account with a building society in 2008.
Banks such as Northern Rock, Royal Bank of Scotland, Lloyds/HBOS and the Icelandic banks have all hit the headlines as they have struggled with the credit crunch, leaving building societies to Read more
50% more mortgage holders making overpayments
March 4, 2009
Recently released figures from the Co-operative Bank Mortgages have shown that over the past twelve months the number of customers making overpayments on their mortgages has increased by 50 per cent.
The mortgage lender also commissioned research that reveals why people are making these overpayments.
Four fifths of customers making overpayments at the moment are doing so due to the low interest rates currently available on savings. More than one third are making their additional payments because their Read more
FSA to review financial advisor rules
March 3, 2009
Many people are confused by the different types of financial advisor available to them. Often, someone is reluctant to pay for advice so they look for a financial advisor that can advise them ‘for free’ and instead earn their money by taking a commission from the company that their client eventually places their business with.
The analogy being used in the papers is that you wouldn’t go to a doctor who Read more
FSA to tighten mortgage rules
March 2, 2009
The mortgage regulator for the UK, the Financial Services Authority (FSA) is set to tighten the rules in the mortgages market following the abysmal financial crisis that has gripped the globe in the past twelve months. It was inevitable that this should happen at some point in order to help prevent this sort of crisis in the future, so what exactly does the FSA have in mind?
Prime Minister Gordon Brown has Read more
