The number of mortgages approved for house purchases remained all but static in May, compared with April, at 49,815, according to Bank of England data. The figure was down on the previous six month average and well behind the November 2009 peak of 59,338. The result has disappointed analysts who were hoping to see a [...]
Home buyers with a zero to 40% deposit currently have 1,798 mortgage deals to choose from, according to Moneyfacts.co.uk. Researchers at the financial website have registered a 6% rise in the number of home loans on offer in the past month, taking the total up 68% year-on-year. While those with 5% or less to put [...]
Lenders are backing the proposed regulation of the second-charge mortgage market. Responding to a Treasury consultation, the Council of Mortgage Lenders (CML) has also said it wants to ensure borrowers are sufficiently protected when mortgage books are sold on. On second-charge lending, the body has restated its longstanding position that all residential mortgage lending should [...]
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 [...]
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 [...]
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 [...]
Despite a dip in mortgage lending during the third quarter of 2009, banks and building societies expect the availability of mortgages to improve in the months ahead. According to the Bank of England’s latest Trends in Lending report, a net balance of lenders expect mortgage availability to rise “somewhat” during the final quarter of the [...]
An organisation set up to represent property owners and investors, is calling for the regulation of buy-to-let mortgages. In a new report entitled “Responsible Regulation”, the British Property Federation (BPF) says such a move would lessen the risk of another “black hole of irresponsible lending” occurring in the future. According to the BPF, the Financial [...]
Nationwide has cut rates on a range of its mortgages and is offering a two-year fixed-rate deal at 3.88% for home movers, at a maximum loan-to-value ratio (LTV) of 70%. A two-year tracker is available from 2.94% (up to 70% LTV), and for a three-year tracker, rates start at 3.14% for (up to 75% LTV). [...]
The lack of mortgages available to first time buyers is bumping up rents as would-be homeowners struggle to get a foot on the housing ladder, an industry expert claimed. Nicholas Leeming, director of propertyfinder.com, said the credit crunch is good news for landlords because it will inflate their income. “Rent levels have been recovering in [...]
Leeds Building Society unveiled two new mortgage products this week. The new products include a two-year base rate tracker (BRT) mortgage, and a two-year fixed-rate mortgage. The BRT mortgage is available to homeowners borrowing up to 75% of the value of their property, with interest charged at 2.7% above the Bank of England’s base rate. [...]
Lenders continue to offer mortgages at an “obscene” rate of interest despite the cost of interbank borrowing falling to a record low. Paul Holmes, chief executive of first-time buyer advice site Firstrung, said lenders have “no excuse” for the rates they are charging. Banks and building societies are simply using record low interest rates to [...]
Consumers have seen very little benefit from the Bank of England holding its base rate at a record low of 0.5% for six months, a consumer advice site pointed out this week. Interest rates on savings accounts have dropped, while rates on mortgages, credit cards, and personal loans have continued to rise, said Moneyfacts.co.uk. Research [...]
Mortgage borrowers are becoming less fearful of interest rate rises and opting for variable rate loans in larger numbers. July figures from John Charcol show that while fixed-rate deals retained their popularity, variable-rate mortgages, such as tracker or discounted loans, made up 35% of all mortgages arranged through the broker, compared to 17% of the [...]
Borrowers seeking fixed and tracker rate mortgages are in for a pleasant surprise because arrangement fees have fallen by around 25% in the past 12 months. Research by moneysupermarket.com has revealed that the average two year fixed-rate deal now comes with a typical fee of £957, down 30% the £1,243 average charge this time last [...]
Bank of China has relaunched its mortgage offering to UK customers, having previously focused on the British Chinese community. The world’s third-largest bank says it can provide “straightforward and very easy to understand” variable-rate loans to first-time buyers, home movers and customers who want to re-mortgage. Buy-to-let investors are also being targeted by the bank, [...]
In a further reshaping of the UK mortgage market, the maximum length of a fixed-rate deal is down to 15 years, following Manchester Building Society’s withdrawal its 30-year fix. Prior to the credit crisis, the Government was proposing to help lenders offer more affordable long-term fixed-rate products, which at the time were common in the [...]
Mortgage experts have been urging homeowners to opt for fixed-rate mortgages for weeks, to hedge against an inevitable rise in the base rate. However, new research from Moneyfacts shows that lenders are launching and withdrawing fixed-rate deals with almost indecent speed. Last month the average time scale for borrowers to secure a fixed-rate mortgage fell [...]
Northern Rock is once again offering mortgages to existing customers. The move follows a gap of well over a year during which period borrowers coming off fixed deals either reverted to the Rock’s standard variable rate or were forced to go elsewhere. The nationalised lender is strictly interested in retaining its best customers and only [...]
European equities markets were higher Tuesday as banks came back from big declines on Monday, helped by a statement from Societe Generale’s (Euronext: GLE) CEO that his bank is healthy. The FTSE 100 was up 0.87 percent to 5,174.25 in London, while the FTSE 250 added 0.27 percent to 10,011, with banks the best performers [...]
Rics: Housing market remains in the doldrums
The Royal Institution of Chartered Surveyors (Rics) has today reported that the UK housing market remained weak in August with house prices falling further. According to the Institution, homeowners remain reluctant to put their properties up for sale, while buyers continue to struggle to secure a mortgage and remain uncertain about the economic climate. The [...]
CML: Mortgage lending edges higher in July
The Council of Mortgage Lenders (CML) has reported the number of loans for house purchase rose in July. According to the Council, there were 48,400 loans advanced for house purchase in the month – up by 1,000 from June’s figure but almost 7,000 lower when compared with July 2010. Commenting on today’s figures, Paul Smee, [...]
UK inflation edges higher in August
The Office for National Statistics (ONS) today announced Consumer Price Inflation (CPI) rose to annual rate of 4.5% last month from July’s rate of 4.4%. However, the figure was in line with analysts’ expectations. Higher inflation continues to be led by rising food costs but the main reason behind last month’s rise was a 5.1% [...]
Fresnillo down on silver prices
European equities markets were lower Monday on the possibility that Greece could default soon and on speculation that Moody’s Investors Service could cut its rating on several big banks with holdings tied to Greece. The FTSE 100 was down 1.63 percent to 5,129.62 in London, while the FTSE 250 dropped 1.65 percent to 9,983.75 as [...]
IFS warns of tough times for UK households
A report by the Institute for Fiscal Studies (IFS) has warned that households will be squeezed for the next decade as they suffer from the harsh spending cuts introduced by the Government. It said households are suffering one of the worst attacks on their finances since the Second World War and that the impact of [...]
ICB final report recommends ring-fencing
The Independent Commission on Banking’s (ICB) final report has been published today and is recommending that UK banks should ring-fence their retail banking operations. According to the report, ring-fencing would protect banks from riskier investment banking divisions and would “make it easier and less costly to resolve banks that get into trouble”. The ICB, which [...]
Tullow Oil leads 100 in London
European equities markets were significantly lower Friday on an increased possibility that Greece could default on its debt as soon as this weekend, raising the concern level over the European region’s debt problems and ratcheting up worries that the economic recovery is faltering. Additionally, markets reacted to the resignation of European Central Bank board member [...]
SMMT: UK car sales rise in August
The Society of Motor Manufacturers and Traders (SMMT) have revealed UK car sales saw their first rise in 14 months in August. According to the trade body, car sales rose by 7.3% in August compared with the same month in 2010, with sales of smaller cars rising by more than 30%. The Ford Fiesta remained [...]
Factory gate inflation higher than expected in August
The Office for National Statistics (ONS) has today revealed UK producer output prices held steady in August – remaining at the highest annual rate since October 2008. According to the ONS, output prices (factory gate) annual inflation for all manufactured products held steady at July’s upwardly revised reading of 6.1% in August. The figures were [...]
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