Latest Mortgage News

February 9, 2010

Nationwide lowers LTVs on remortgage deals

by Gill Montia
Nationwide has lowered the deposit required for some of its most competitive remortaging deals, from 40% to 30%. From today, all the lender's existing 60% loan-to-value (LTV) fixed and tracker remortgage loans are available at up to 70%. Since the onset of the credit crisis, remortgaging activity has been in a steady decline as lower interest rates and impaired credit histories meant borrowers ...

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February 4, 2010

Santander profit grows 13%

by Kay Murchie
Spanish banking giant Santander has today revealed a 13% rise in fourth-quarter net profit to €2.2 billion (£1.9 billion). Meanwhile the bank, which is the second largest banking group in the world after HSBC, said gross income grew almost 24% to €10 billion. For the 2009 year as a whole, net profit was up 1% to €8.94 billion, with good performances in continental Europe, Latin ...

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Santander announces new two-year mortgages

by David Masters
Santander has launched new two year tracker and fixed rate mortgage products, and has reduced the rate on its five year fixed rate mortgage. The two year mortgages are available to both first time buyers and home-owners at up to 70% loan-to-value (LTV) Interest on the fixed-rate mortgage is 3.44%, while interest on the tracker mortgage is 2.49%. The five year mortgage is available at ...

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Twenty per cent rise in home loans on offer

by Gill Montia
The UK's mortgage market looks set to continue its recovery into 2010, with a 20% rise in the number of home loans available since the beginning of the year. According to Moneyfacts.co.uk, the surge has led to a 26% increase in deals offering up to 90% loan-to-value and therefore requiring the size of deposit accessible by first-time buyers. The financial ...

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February 3, 2010

Mortgage brokers upbeat on 2010

by Gill Montia
Mortgage brokers are feeling upbeat about 2010 and predicting a good year ahead for the UK mortgage market. Research carried out by Platform (part of Co-operative Financial Services) found that 66% of participants in its Intermediary Outlook Survey are expecting improvements. Seventy-four per cent of respondents believe UK house prices will rise by up to 5% during 2010 and the same proportion think low ...

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February 2, 2010

Mortgage market improving for first time buyers

by David Masters
A wider selection of mortgages is now available to first time buyers with a small deposit, according to moneysupermarket.com The price comparison site found buyers with a deposit of 15% have 22% more mortgages to choose from compared to December 2009. Buyers with a deposit of just 10% can choose from an 11% larger range of mortgages compared to December. In addition, the average interest rate on mortgages has fallen. Hannah Mercedes Skenfield, moneysupermarket.com ...

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December dip in house purchase mortgage approvals

by Gill Montia
UK lenders sanctioned an additional £1.2 billion in mortgages in December 2009, according to Bank of England statistics. The figure fell below the revised November total of £1.6 billion, but remained above the previous six-month average of £0.9 billion. The annual rate of growth slipped to 0.9% (1% in November) but the three-month-on-three month measure held steady at 1.2%, when ...

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January 28, 2010

Positive shift in mortgage affordability

by Gill Montia
Homeowners in England and Wales saw a 20% drop in the proportion of their take-home pay spent on monthly mortgage repayments in 2009. The latest mortgage affordability research from Barclays' Woolwich lending arm reveals that in December 2008, mortgage borrowers spent an average £196 of every £1,000 of their monthly take-home pay on their home loans. However, a year later the proportion has ...

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Equity release holding steady

by Gill Montia
The UK's equity release market held steady in the final quarter of 2009, taking into account seasonal factors. According to industry body, Safe Home Income Plans (SHIP), volumes declined by 1.9% on the previous three months while the value of the average advance showed a 4% increase. With more homeowners seeking flexible deals, the number of drawdown mortgages sold rose by 5% to 3,057, or 54% of the ...

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January 27, 2010

Many SVRs “disjointed” from base rate

by Gill Montia
The collapse of the remortage market as borrowers coming to the end of fixed-rate deals opt to remain on reversion rates, is prompting lenders to raise their standard variable rates (SRVs). According to Moneyfacts.co.uk some borrowers on SVRs have benefited from the record low 0.5% base rate but others have not been so lucky. The financial website's spokesperson, Michelle Slade, says: "Many ...

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January 26, 2010

Mortgage lending stronger in December

by Gill Montia
Mortgage lending by Britain's High Street banks strengthened slightly in December, although the end of the stamp duty holiday is likely to have prompted a surge in completions before the New Year. The British Bankers' Association (BBA) reported net lending of £3.5 billion during the month, up from £3.4 billion in November and showing an annual rise of 4.6%. December approvals for house purchases ...

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FSA defends home owners with mortgage arrears

by Gill Montia
Mortgage borrowers in arrears stand to get a better deal from lenders under new proposals published today by the Financial Services Authority (FSA). The package is aimed at ensuring home owners in financial difficulties are treated fairly, by strengthen existing rules on arrears handling and promoting the regulator's "tough stance" on mortgage fraud. Under the proposals lenders will not be able to: ...

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January 25, 2010

Average loan-to-value ratio eases to 70%

by Gill Montia
The average loan-to-value (LTV) ratio on house purchase loans increased to 70% in December 2009, leaving the typical homebuyer requiring a 30% deposit. According to research from the Mortgage Advice Bureau, the tendency for lenders to require large deposits in exchange for reasonable rates is softening, having improved from an average LTV of 67% in November and 69% across the final ...

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January 23, 2010

Mortgage rate cuts from Post Office and Northern Rock

by Gill Montia
Both Northern Rock and the Post Office have launched new mortgage deals with lower rates. The Post Office has cut the cost of its Bank of Ireland lifetime tracker loans from 3.29% to 2.99%, or from 3.59% to 3.49%, dependent upon the loan-to-value ratio. Bank of Ireland has also reduced the price of its five-year fixed-rate offering by 0.5% ...

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January 21, 2010

Skipton BS raises standard variable rate

by Gill Montia
Skipton Building Society is increasing its standard variable rate (SVR) from 3.5% to 4.95%. The change is effective 1st March 2010 and will occur despite the base rate clinging to an all-time low of 0.5% The lender has evoked "exceptional circumstances" clauses that allow it to remove an SVR cap of 3% above base rate as follows: "Base rate is less than or ...

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Mortgage lending skips seasonal dip

by Gill Montia
Lenders approved an estimated £13.7 billion in home loans during December, the Council of Mortgage Lenders (CML) has reported. Gross lending showed a 14% rise on November and the figure was also 3% up on December 2008. Furthermore, the rise put the annual comparison in positive territory for the first time since October 2007; however, gross lending was still at its lowest since December ...

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January 18, 2010

Remortgaging activity to resurface in 2011

by Gill Montia
Lenders are shunning the remortgage market, and the situation is unlikely to change until 2011, according to housing intelligence outfit, Hometrack. The firm's strategy, risk and economics director, Gary Styles, explains that lenders have been focusing their attention on house purchase lending, in some cases because they have government targets to hit. In addition, remortgaging activity has plummeted as low interest rates encourage ...

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UK mortgage products exceed 2,500

by Gill Montia
New research from moneysupermarket.com shows the number of mortgage products available to UK borrowers increasing for the third consecutive month, and crashing through the 2,500 barrier for the first time since May 2008. The firm's mortgages channel manager, Hannah-Mercedes Skenfield, says: "This is good news for buyers, as passing the 2,500 barrier does suggest that those looking for a mortgage are finding ...

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January 14, 2010

Mortgages at their most affordable in five years

by Gill Montia
Home buyers needed to use less of their income to cover their mortgage interest in November than at any time for more than five years, the Council of Mortgage Lenders (CML) has reported. Home movers were particularly well placed, typically needing only 10.6% of gross income to cover mortgage interest payments, down from 11.1% in October. According to the CML, ...

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Aviva mortgage endowment policies behind target

by Gill Montia
Endowment mortgage holders with Aviva (now incorporating Norwich Union) are at risk of not being able to pay off their mortgages when policies mature. In publishing its 2010 bonus rates, the company has let it be known that nine out of 10 of its mortgage endowment policies are expected to fall short of projections. In 2009, the insurer's with-profits fund produced a return ...

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