Latest: Mortgage News

Newcastle Building Society exits interest-only mortgages

Newcastle Building Society exits interest-only mortgages

Newcastle Building Society has stopped offering interest-only mortgages to new borrowers, following the lead of the Royal Bank of Scotland, Nationwide, Co-operative bank and Coventry Building Society. The decision will not affect existing Newcastle customers and applications for interest-only mortgages received before 14 December will still be processed. Prior to the credit crunch, interest-only mortgages […]

December 19, 2012 More
Large deposits still challenging first-time buyers

Large deposits still challenging first-time buyers

The Council of Mortgage Lenders (CML) is forecasting a positive year in 2013 for the UK property market, but first-time buyers are still struggling to find the large deposits required by mortgage lenders. The CML has recorded a steady increase in mortgage lending with 49,500 home loans advanced for house purchases in October. This represents […]

December 12, 2012 More
Nationwide lends £2.5 billion to first-time-buyers

Nationwide lends £2.5 billion to first-time-buyers

Nationwide Building Society lent £2.5 billion to 20,000 first time buyers in the first six months of 2012-13. This is double the amount it lent in the first half of the 2011-12 financial year and nearly as much as it lent to 24,000 first time buyers in the whole of the year. In proportion to […]

December 3, 2012 More
Coventry Building Society stops interest-only mortgages

Coventry Building Society stops interest-only mortgages

Coventry Building Society has stopped offering interest-only mortgages, following similar moves by RBS and NatWest, after demand for this type of product fell. Nationwide and the Co-operative bank stopped offering interest-only mortgages earlier this year. Colin Franklin, sales and marketing director at the Coventry, said: “Residential interest-only mortgages have declined to less than 2% of […]

November 30, 2012 More
Brokers securing mortgage for those turned down by banks

Brokers securing mortgage for those turned down by banks

Mortgage brokers are successfully securing mortgages for 29 per cent of those who have had their application rejected by a bank, according to a study by property group Countrywide and YouGov. The main reasons for banks rejecting mortgage applications were insufficient earnings and income, and a poor credit score, the study found. It identified a […]

November 20, 2012 More
CML reports increase in mortgage lending

CML reports increase in mortgage lending

Mortgage lending increased by 13 per cent in the third quarter according to the latest figures from the Council of Mortgage Lenders, suggesting that the Funding for Lending (FLS) scheme is having a positive effect. August was a particularly strong month, with 53,900 loans advanced, including 20,700 loans to first-time buyers. The strong August figures […]

November 12, 2012 More
First-time buyer mortgages remain in short supply

First-time buyer mortgages remain in short supply

The Funding for Lending scheme (FLS) is failing to boost the supply of mortgages for first-time buyers, according to financial information service Moneyfacts. FLS, which was launched by the Treasury and the Bank of England in August, is designed to reduce funding costs for lenders, allowing them to increase their lending to businesses and individuals, […]

November 2, 2012 More
Mortgage approvals increased in September

Mortgage approvals increased in September

An increase in the number of mortgage approvals in September suggests that the ‘Funding for Lending’ scheme, launched by the Treasury and the Bank of England, may be starting to give the property market a boost. According to Bank of England figures, the number of loans approved for house purchase increased by 2,103 to 50,024 […]

October 29, 2012 More
Stricter mortgage rules delayed until 2014

Stricter mortgage rules delayed until 2014

The Financial Services Authority (FSA) has confirmed that it will introduce rules designed to prevent irresponsible mortgage lending, but it has put back the date for their introduction from summer 2013 to April 2014. Under the tighter regulations, which follow the FSA’s Mortgage Market Review, lenders will have to carry out a more in-depth assessment […]

October 25, 2012 More
Tesco launches sub-2% mortgage rate

Tesco launches sub-2% mortgage rate

Tesco Bank has launched a record-low mortgage deal, but only for those who can afford a deposit of at least 40 per cent of the value of the property, as well as a £995 fee. The two-year deal offers a rate of just 1.99 per cent and is fixed until the end of 2014. Tesco […]

October 24, 2012 More
Mortgage lending slowed in September

Mortgage lending slowed in September

Despite more mortgages being available, mortgage lending dropped to £11.6 billion in September, a fall of 10 per cent from August and 15 per cent lower than September 2011’s figure. The availability of mortgages was boosted by the new Funding for Lending Scheme, but there was little demand from either first time buyers or people […]

October 18, 2012 More
Funding for Lending scheme prompts mortgage cuts

Funding for Lending scheme prompts mortgage cuts

Mortgage brokers have attributed moves by several lenders to cut their mortgage rates to the Bank of England’s recently launched Funding for Lending scheme. Ray Boulger of mortgage brokers John Charcol said that the Funding for Lending scheme was the key to the cuts. “Wholesale borrowing rates have fallen quite quickly since the scheme was […]

October 12, 2012 More
Nationwide stops offering interest-only mortgages

Nationwide stops offering interest-only mortgages

From 11 October new borrowers will no longer be able to take out an interest-only mortgage with Nationwide building society. Nationwide is following the Co-op bank, which pulled out of interest-only mortgages in May, while Santander and HSBC only offer this type of product to house-buyers with a 50 per cent deposit. Nationwide also previously […]

October 4, 2012 More
Mortgage payments rise for Santander customers

Mortgage payments rise for Santander customers

Santander has increased its standard variable rate (SVR) from 4.24 per cent to 4.74 per cent, adding an extra £26 per month to monthly repayments on a £100,000 mortgage. The move, which was announced in August, came into effect today. The increase will affect existing mortgage customers who are on the SVR rate, including customers […]

October 3, 2012 More
Demand for mortgages subdued despite increased lending

Demand for mortgages subdued despite increased lending

Banks and building societies have significantly increased levels of mortgage lending according to a Bank of England survey. Mortgage lending increased significantly in the three months to September and is expected to rise again in the final quarter. However, demand from buyers in the three months to September was subdued, with falling housing prices having […]

September 26, 2012 More
NewBuy reservations hit 1,500

NewBuy reservations hit 1,500

The government’s NewBuy mortgage scheme has reached 1,500 reservations according to the Home Builders Federation (HBF). The scheme is designed to help boost the number of mortgages available to home buyers with smaller deposits. NewBuy mortgages are available to buyers of new build properties who have just a 5 per cent deposit on their new […]

September 25, 2012 More
Mortgage deposits fall for first-time buyers

Mortgage deposits fall for first-time buyers

There are two pieces of good news for potential first-time buyers today, with average deposits starting to fall and the launch of a mortgage indemnity scheme in Scotland. According to the latest figures from the Council of Mortgage Lenders (CML) the average deposit required by a first-time buyer has fallen to 19 per cent, its […]

September 12, 2012 More
Age of first-time buyers nearing 40

Age of first-time buyers nearing 40

New research by Post Office Mortgages reveals that many first-time buyers are nearing the age of forty before they can afford to purchase a home. Most will have to save for a decade in order to afford a deposit on a mortgage, the survey suggests. Post Office Mortgages asked 1,300 homeowners how old they were […]

September 11, 2012 More
Mortgage fees reach record high

Mortgage fees reach record high

Mortgage fees have soared by 70 per cent in the past four years to reach their highest ever level of £1,514, according to comparison site Moneyfacts. In 2008 the average fee paid on a mortgage was just £899. The figures have led to banks being accused of profiteering. A study by Moneyfacts has shown that […]

September 6, 2012 More
Mortgages more affordable for new borrowers

Mortgages more affordable for new borrowers

Although mortgages are at their most affordable for 15 years, approvals are at an all-time low. A new report from the Halifax reveals that payments on mortgage loans now account for around a quarter of take-home pay, due to record low interest rates of 0.5 per cent and weak house prices in many areas. The […]

August 28, 2012 More