New figures from the Council of Mortgage Lenders (CML) reveal that the number of borrowers in negative equity fell 13 per cent to 719,000 between the first quarter of 2011 and the first quarter of 2012. The number of borrowers paying a mortgage greater than the value of their property fell despite a further small [...]
The Co-operative Bank will stop offering interest-only mortgages from next Tuesday, but the decision will not affect existing customers. A recent report by the Independent on Sunday suggested that a quarter of a million people with interest-only mortgages will reach retirement age by the end of the decade with a substantial capital debt still to [...]
The FSA’s report into lending, due to be published next week, is expected to include proposals to help home owners in negative equity. The Council of Mortgage Lenders estimates that one in 12 homeowners are in negative equity, with their home now worth less than the price they paid for it, making it impossible for [...]
A report by the Council of Mortgage Lenders (CML) has revealed 827,000 mortgage borrowers are in negative equity (a mortgage worth more than their property). However, the figures which relate to the first quarter of the year, are not as bad as they were in the early 1990s, when around 1.6 million households were trapped [...]
Tens of thousands of homeowners who bought during the housing boom face another four years of being trapped in negative equity. According to a new forecast from the National Housing Federation (NHF), those who purchased a property in England at the peak of the market in 2007 paid an average price of £216,800. They may [...]
The Bank of England’s quarterly report covering the autumn of 2009 shows householders’ disposable incomes after tax, housing costs, loan payments and utility bills having fallen by an average £100 per month over the past year. Manual workers, many of whom have been hit by reduced working hours, saw their disposable incomes depleted by between [...]
The National Housing Federation (NHF) has produced an alarming forecast for the housing market in England. The body, which represents not-for-profit housing associations, is predicting “substantial” price falls in 2009 and 2010 followed by a rise of 20% by 2014. According to research undertaken by Oxford Economics for NHF, house prices in England will fall [...]
In a surprise move, Nationwide Building Society is offering a new mortgage with a loan-to-value (LTV) ratio of 125%. The deal is only available to existing customers who are in negative equity and need to move house. Even then borrowers will be selected very carefully. The building society says it can provide a loan for [...]
Only six families have been helped by the government’s Mortgage Rescue Scheme, housing minister John Healey admitted yesterday. Set up in January, the £200 million initiative aims to help vulnerable families at risk of having their home repossessed. Participants in the scheme can choose to have their home bought by the local authorities then rented [...]
Northern Rock is leading the field in “prime” mortgages that have fallen into negative equity. A new report from ratings agency, Fitch, reveals that almost one in six households at the upper end of the UK property market have home loans that exceed the value of their properties. In the case of the state-owned Northern [...]
In its latest Quarterly Bulletin, the Bank of England estimates that between 700,000 and 1.1 million UK homeowners are in negative equity. Negative equity occurs when the market value of a house is below the outstanding mortgage. With house prices falling by around 20% between autumn 2007 and spring 2009, the Bank estimates that between [...]
A member of the Bank of England’s Monetary Policy Committee has taken up the cause of would-be homeowners who need to borrow 100% of the value of a home. Kate Barker, who is also a Government adviser on the UK housing market, has publicly opposed Prime Minister Gordon Brown in his suggestion that such loans [...]
The Council of Mortgage Lenders (CML) has published new research on negative equity in the UK housing market. The Council points out that during the 1993 market downturn, 1.5 million households or more were estimated to be in negative equity. Most eventually recovered their positions and a similar outcome is expected for today’s homeowners with [...]
The Financial Services Authority (FSA) has warned that if during this year house prices complete a 30% fall from their 2007 peak, around 2.5 million mortgage borrowers could end up in negative equity. Around 500,000 of the total would be buy-to-let investors and the remainder homeowners. Such an outcome would leave one in four mortgaged [...]
Research involving 60,000 UK homeowners has led to claims that almost four million households are already in, or close to, negative equity. In terms of UK mortgage holders, the figure equates to one in three, which is double the number seen during the housing market downturn of the 1990s. Research firm, GfK NOP, found that [...]
One in five homeowners could find themselves in negative equity as the recession tightens its stranglehold, the Financial Services Authority (FSA) has warned. House prices could potentially drop by as much as 30% compared to 2007 levels, the FSA said, leaving 2.5 million mortgage holders owing more than the value of their house. This is [...]
The worst housing market crash since records began has left an estimated 1.2 million households in negative equity, according to Nationwide Building Society. The average house price has dropped from £186,050 at peak in October 2007 to £150,500 today, a fall of over £35,000. This month alone, prices fell 1.3%, or £2,500. At current house [...]
The Financial Services Authority (FSA) has reported that the number of home repossessions in the UK rose to 13,161 in the third quarter of 2008. The figure had increased from 11,054 during the second quarter of last year and was up 92% on the same period of 2007. In addition, the regulator found that the [...]
The downturn in the property market is forcing 60,000 homeowners a month into negative equity. According to the credit rating agency, Standard & Poor’s, research suggests that 335,000 homes will be worth less than their mortgages by the end of October, a rise of 260,000 over four months. If the trend continues, the number of [...]
As the housing market downturn continues, Northern Rock customers are more likely to be facing negative equity than borrowers with other UK lenders. While the number of people in arrears with their mortgage repayments is rising across the banking sector, Northern Rock is more exposed than most of its competitors because prior to the credit [...]
Gender directive could slash men’s annuity payouts
The EU Gender Directive, which came into force today, could see men losing up to £10,000 from their annuity payouts, according to research by PricewaterhouseCoopers. Under the new rules insurers are no longer allowed to take gender into account when setting annuity rates and premiums on insurance products. Men previously enjoyed higher annuity rates than [...]
Home rental costs down in November
The cost of renting a house in England and Wales fell by 0.4 per cent in November, its first dip since March, according to a survey by LSL Property Services. Average rent was £741m during the month, returning to the level seen in September. However, it was 3.4 per higher than in November last year. [...]
Lloyds TSB halts sale of packaged accounts in branches
Lloyds TSB will stop selling packaged account in its branches from 1 January 2013, until its sales procedures are brought into line with those operated by sister bank The Halifax. Lloyds TSB is one of the main providers of packaged accounts in Britain, with around one in three of its customers choosing to pay fees [...]
Housing market recovery to continue next year
Recent improvements in the housing market should continue into next year, according to the Council of Mortgage Lenders (CML) Gross lending is estimated to have increased to £12.9 billion in November, helped by the Funding for Lending scheme which provides banks and building societies with lower-cost funding, which they are then supposed to pass on [...]
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 [...]
Less than half of Brits considered creditworthy
Fifty-seven per cent of UK adults are at risk of having an application for credit turned down by a mainstream lender according to a new report. The ‘Mind the Credit Gap‘ report commissioned by aqua credit cards suggests that even people with a good credit rating and earning more than £50,000 could have a credit [...]
Monthly incomes £22 lower in 2012
The average monthly income of UK households fell by £22 in real terms compared with last year, according to a survey carried out for the Bank of England (BoE) by NMG Consulting. People on lower incomes have seen their income eroded more than higher earners and households still have high levels of debt the BoE [...]
Savers dig deep to fund Christmas
New research from the Halifax suggests that savers are funding their Christmas spending with money set aside for other purposes. Thirty-seven per cent of 2,138 savers surveyed by the bank at the end of November had withdrawn savings in the last three months. The average amount withdrawn was £1,186, more than double the average savings [...]
Financial data at risk from unsafe passwords
According to a survey by the Payments Council the problem of having to remember a different password for several accounts means that many internet users are compromising the security of their financial data. Internet users have 22 password-protected accounts on average and many use the same log-in details for more than one account, even though [...]
Wonga launches Paylater loans on retailer website
Payday loan company Wonga has launched a new Paylater service on furniture firm Cotswold Company’s website. The service, which allows customers to “buy now, pay later” will be introduced on other retailers’ sites in the near future. Although the Paylater branding is similar to Wonga’s, the Wonga name only appears in the small print. A [...]
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