Tag: equity

Houseowners must save to climb property ladder

Houseowners must save to climb property ladder

Not so long ago houseowners could rely on the equity in their existing property, generated by its growing market value, to fund a move to a larger home, but new research from HSBC confirms that this is often no longer an option. The bank suggests that a fall in property prices means that first time [...]

November 15, 2011 | 0 Comments More
BoE reveals housing equity injection slows

BoE reveals housing equity injection slows

According to figures from the Bank of England, Britons increased their financial stake in their homes by £5.8 billion in the first quarter of 2011 – the smallest injection in a year. The figure was much lower than the £7.1 billion in the October to December period in 2010 – which represented the highest since [...]

July 4, 2011 | 0 Comments More
Homeowners pinned down by shrinking equity

Homeowners pinned down by shrinking equity

The housing market downturn has left up to 3.5 million Britons unable to move, according to research from John Charcol. The mortgage broker estimates that one third of UK households with residential mortgages are stuck in their properties because falling prices have eroded the amount of equity they hold and restricted access to mortgage finance. [...]

August 16, 2009 | 0 Comments More
Britons repay £8bn of mortgage debt

Britons repay £8bn of mortgage debt

For the ninth consecutive month UK homeowners paid back more of their mortgage debt than was borrowed. Before the credit crisis Britons tended to use their homes as banks, withdrawing equity for home improvements and to meet a variety of other expenses, including “champagne moments” such as holidays in exotic locations. Recession Britain tells a [...]

April 1, 2009 | 0 Comments More
Mortgage equity withdrawal kept families afloat

Mortgage equity withdrawal kept families afloat

New research from Durham University shows the extent to which some UK homeowners are exposed to the credit crisis because their lifestyles have been funded by withdrawing equity from property. The study, which examined the borrowing patterns of over 8,000 households between 2001 and 2005, revealed that in any year around 40% of homeowners increased [...]

December 12, 2008 | 0 Comments More
Negative equity could afflict three million households

Negative equity could afflict three million households

Analysts at Citigroup are predicting that negative equity could afflict three million (one in five) UK households as the property market downturn continues and the economy enters a recession. The forecast is based on a 30% peak to trough fall in house prices and a current negative equity estimate of around 0.5 million. The figure [...]

November 3, 2008 | 0 Comments More
Britons stop using houses as banks

Britons stop using houses as banks

Homeowning Britons have stopped using their properties as banks, according to figures from the Bank of England. For the first time since 1998, consumers have become more focused on paying off their mortgages rather than remortgaging to fund their lifestyles, or consolidate debts. In the three months to the end of June, the UK’s mortgage [...]

October 3, 2008 | 0 Comments More
Which? warns equity release no quick-fix

Which? warns equity release no quick-fix

Consumer group, Which?, is warning pensioners that using equity release as a quick-fix for financial pressures in retirement can be dangerous. Equity release schemes can provide a lump sum or regular payments in return for taking out a mortgage on a property, which does not have to be repaid until plan holders die or sell [...]

September 22, 2008 | 0 Comments More
One in seven homeowners could face negative equity

One in seven homeowners could face negative equity

Standard & Poor’s (S&P) is predicting that one in seven UK homeowners will face negative equity over the coming 12 months. Figures from Halifax and Nationwide in April show a 9% year-on-year decline in UK house prices and the credit rating agency expects a further slide of 17%, over the coming year. Research by CACI [...]

July 31, 2008 | 0 Comments More
LV= launches lifetime mortgage

LV= launches lifetime mortgage

LV= (formerly Liverpool Victoria) has launched a new equity release product. The friendly society’s Flexible Lifetime Mortgage allows homeowners to draw on the equity in their homes, as needs arise. It also provides a 15-year guarantee on the maximum amount that can be withdrawn, which will be honoured regardless of future trends in UK property [...]

July 28, 2008 | 0 Comments More
Home ownership no longer a pension option

Home ownership no longer a pension option

Friends Provident is urging homeowners to review their plans for financing retirement, if they have been banking on raising cash from property to provide a nest egg at the end of their working lives. The firm’s head of pensions, Jeremy Ward, warns that if house prices continue to fall, people could find themselves in serious [...]

July 22, 2008 | 0 Comments More