Steps to survive negative equity
May 31, 2009
Negative equity is something many borrowers are concerned with at the moment. You are considered to be in negative equity when the value of your property is lower than the mortgage secured on it and with falling house prices, this is affecting many people at the moment, so is it a real problem and what can you do?
Pay extra
For those who can afford it, overpaying on the mortgage will increase their equity in the property. However, always check the terms of your mortgage as some mortgage lenders cap the amount you can pay off without penalty.
Moving house
As long as you plan to stay in the property then negative equity shouldn’t be a huge issue as in the long term, hopefully you would be paying off your mortgage and house prices may recover. If you do need to move Read more
Have we reached the bottom of the housing market crash?
May 30, 2009
Yesterday, we discussed the differing reports in the media this week, some of which state the positive figure of a four percent increase in mortgage lending and others discuss how the mortgage market has reached an eight year low.
The reports are based on the mortgages figures released by the British Bankers’ Association (BBA), which are as they are. Both statements are true but how positively or negatively you interpret them depends on your opinion as these statements Read more
Mortgage lending – 4% increase or 8 year low?
May 29, 2009
Each month we discuss how interest rates are changing and how the number of mortgage applications or mortgage lending figures are adapting to the economic climate, as many are looking for signs that the housing market has bottomed out and the recession may be on its way out.
According to figures from the British Bankers Association (BBA) released this week, the number of mortgage approvals for new property purchases increased by Read more
Co-operative Bank launches best buy mortgage
May 28, 2009
The Co-operative Bank has caused a real stir in the media this week as it launches a three year tracker mortgage deal that has gone straight to the top of tracker rate best buy tables.
The tracker mortgage is just 1.89 per cent over the Bank of England base interest rate with a £995 application fee. Unlike many other mortgage lenders, the deal is not purely reserved for Read more
How long should you stay on your standard variable rate mortgage
May 27, 2009
Many mortgage borrowers have reached the end of their special rate mortgage deal now and many of these have chosen to stay on their standard variable rate.
Whilst the Bank of England interest base rate stays at just 0.5 per cent, the standard variable rate, normally the most expensive mortgage rate, is quite cheap with many mortgage lenders and so borrowers are not in the usual rush for a new mortgage deal.
Indeed, it appears the Read more
Eleven years jail for mortgage fraud gang
May 26, 2009
A gang of seven people who colluded to con mortgage lenders out of almost £5 million in mortgage fraud received a jail sentence for a total of eleven years.
The two ‘common’ elements in the fake mortgage applications were 55 year old mortgage advisor David Carter, of Network Financial Services in Rotherham, and 51 year old accountant John Wright. Wright compiled fake accounts for Carter to use in fake mortgage applications.
Five other defendants, one of which was ex-Rotherham United Read more
Offset your family’s savings against your mortgage
May 25, 2009
Recently, we wrote an article about how much an offset mortgage could save you and how it works, and now the Offset Plus mortgage from the Yorkshire Building Society (YBS)has taken the offset mortgage product a step further in an innovative way.
An offset mortgage saves you money by countering your savings against the balance outstanding on your mortgage, even though the savings are still in a separate account and can be accessed instantly.
The YBS is now offering to link a savings account that belongs to parents or another family member to Read more
Alliance & Leicester cuts deposit size
May 24, 2009
The Alliance & Leicester group announced earlier this week that it is reducing the deposit size required in order to qualify for some of its best mortgage deals and interest rates.
The loan to value ratio is being increased from 60 per cent to 70 per cent for its tracker rate mortgages and the loan to value on the best fixed rate mortgages is increasing from 65 per cent to 70 per cent.
The Santander-owned Abbey made a similar announcement last week, which is good Read more
FSA cracks down on mortgage fraud
May 23, 2009
It is a sad state of affairs but figures released by the mortgage industry regulator, the Financial Services Authority (FSA), show that just five months into 2009 the fine levels against individuals for mortgage fraud have already overtaken the fines figure for the whole of 2008.
So far, they’ve fined individuals a whopping £302,445 and even banned nine individuals already from operating within the mortgages industry.
Mortgage fraud committed by individual mortgage advisors usually consists of over-inflating the applicant’s income so they can qualify for the mortgage. This is usually done by Read more
One in five mortgages now for first time buyers
May 22, 2009
By reading mortgages news recently, you would be forgiven for thinking that the first time buyer had become extinct thanks to rising deposit requirements, stricter lending criteria and the recession, however, according to one mortgage broker firm this is far from the truth.
In fact, the mortgage broker in question, John Charcol, has stated that in their April business figures one in five mortgage applicants was a first time buyer.
“The return of Read more
