Mortgage applications for purchase on the rise
June 20, 2009
For the first time since 2007, the number of mortgage applications was higher than the number of remortgages last month.
Recently, we reported that the figure for mortgage lending dropped in May by 2 per cent when compared to April, however this decline was due to a sharp decrease in the number of remortgage applications.
These figures were reported in the Monthly Mortgage Index from John Charcol mortgage advisors. The rise in number of house purchase mortgage applications meant that new mortgage applications accounted for Read more
Dunfermline social mortgages likely to go to Nationwide
June 19, 2009
Nationwide has been announced as the Bank of England’s (BoE) preferred bidder to purchase Dunfermline Building Society’s social housing loans section.
Earlier this year, the Nationwide acquired Dunfermline’s mortgages, branches and savings business, however, the social housing loans section was passed to a subsidiary of the Read more
Mortgage lending down in May
June 18, 2009
The level of mortgage lending in the month of May fell according to figures from the CML (Council of Mortgage Lending). The figure fell to £10.3 billion, around 2 per cent lower than the previous month.
The CML noted that the level of mortgage lending for home buyers has been rising recently whilst remortgage lending has dropped off as we have noted in previous articles.
Although recent reports from indexes and reports from the likes Read more
Longer term mortgages for UK homeowners
June 17, 2009
UK homeowners will be taking an increasingly longer time period to pay off the mortgages according to insurer Aviva, formerly known as Norwich Union.
Aviva has stated that an increasing number of mortgage lenders are now offering up to 40 years mortgage terms. At the same time, the average age of a first time buyer is now Read more
FSA chairman warns mortgage protection insurers
June 16, 2009
Earlier this week, the chairman of the FSA, Lord Turner publicly attacked insurance agents for making threats to water down their mortgage protection for unemployment and stated that he would investigate any attempt to increase prices as a result of the recession.
We have seen mis-selling scandals in the past over endowment mortgages and this scandal is still a large feature of CeMAP training courses. Lord Turner warned insurers they could be in danger of repeating this mistake with unemployment protection.
With unemployment at record high levels, concern has Read more
Mortgage charges too high for boomerangers going home
June 15, 2009
The term boomerangers has been coined to describe those struggling homeowners who are being forced to return home to live with their parents following the credit crunch.
For those who are returning home however, some have been shocked by the high level of the mortgage charges to do so.
The charges are for what mortgage lenders call a ‘consent to lease’. This is when a mortgage lender will permit a change to the terms and conditions of a mortgage allowing a borrower to let out their home under their current mortgage rather than moving to a buy-to-let mortgage deal, which normally requires a higher level of equity in the home and also a higher interest rate.
This ‘consent to lease’ is generally only granted if the borrower is experiencing financial difficulties or can prove they need to move for work reasons. In other words, they are not Read more
Tracker mortgage costs increase
June 14, 2009
According to figures from the Bank of England, the cost of a tracker mortgage has increased in May as mortgage lenders have yet again increased the margins on their deals.
The Bank of England base interest rate remained steady during May and the Libor, the rate at which banks charge each other for lending, actually fell. Despite this, the average cost for borrowers with a 25 percent deposit still increased from 3.86 percent to 3.99 percent during May.
Many mortgage advisors have been advising buyers to consider Read more
Is it too late to get on the property ladder?
June 13, 2009
For those shopping round for a mortgage at the moment, they may be disappointed by the interest rates they find.
It was only last year when buyers had the opportunity to pick up mortgage deals at under five per cent. Only a few weeks ago, it was possible to pick up long term fixed rate mortgages at some low rates with a good deposit. Just a few short weeks later, already the national average has increased and is showing little signs of dropping for Read more
Mortgage lenders withdrawing mortgage offers at last minute
June 12, 2009
According to the property recovery specialist company, Property Portfolio Rescue (PPR), some mortgage lenders have been withdrawing their written mortgage offers just before the exchange of contract.
PPR has reportedly claimed that these lenders are approving the mortgage applications in an effort to increase the number of mortgage approvals, however, they are then only processing Read more
How politicians may look to change the mortgage market
June 11, 2009
If you choose to take CeMAP training and become a mortgage advisor, you are becoming involved in what is one of the key issues in most people’s lives and a very influential area at that.
When it comes to elections, housing and mortgages are often a key issue and no more so than right now. When it comes to the general election that could happen any time from now up until this time next year, it will be interesting to see how the politicians use the current mortgages market in their manifestoes.
We have already seen some efforts from the Labour government, most of which were written off as being too little too late but Gordon Brown has spoken still of simplifying the mortgage market. Rumours have run rife about using the nationalised Northern Rock to offer standardised mortgage deals. There has also been talk with the Financial Services Authority (FSA) about limiting the amount that people can borrow using standardised loan to value or income ratios and banning 100 per cent mortgages completely.
For several years there has been talk of Read more
