|    FM Home   |    FM News   |    FM Forum   |    FM Blog   |   
Tuesday 16th of September 2008

Latest Mortgage News

The latest news on mortgage rates, mortgage deals; residential and Buy-To-Let markets:

September 16, 2008

First-time buyers rely on parental support

by Gill Montia
First-time buyers rely on parental support
Price comparison website, Moneysupermarket.com, has reported that over 50% of the first-time buyers that approach mortgage lenders using its site are receiving financial support from parents. Those attempting to get a foot on the property ladder have been particularly hard hit by borrowers raising deposit requirements and according to research from Moneysupermarket, parents are providing help with initial costs, such as deposits, ...



September 15, 2008

Wall Street crisis could threaten UK mortgage market

by Gill Montia
Wall Street crisis could threaten UK mortgage market
A crisis on Wall Street is likely to put further pressure on the UK's frozen mortgage market, which had been showing signs of a thaw in recent weeks. Over the weekend talks to rescue investment bank, Lehman Brothers, ended in disarray and the 158-year-old institution is today filing for bankruptcy protection. The bank is a major underwriter of mortgage-backed securities which ...



September 12, 2008

Abbey cuts rates for 15% deposit holders

by Gill Montia
Abbey cuts rates for 5% deposit holders
Abbey's latest cut in mortgage rates offers a glimmer of hope to potential first-time buyers because the lender is reducing interest on some deals that require only a 15% deposit. In recent weeks leading lenders have been trimming rates regularly, with Co-operative Bank, HSBC and Nationwide all taking action this week. However, the best rates have been reserved for those with plenty ...



Nationwide and Co-op Bank cut mortgage rates

by Gill Montia
Nationwide and Co-op Bank cut mortgage rates
Nationwide and Co-operative Bank are cutting mortgage rates. In the case of Nationwide, interest on certain fixed-rate and tracker deals is falling by up to 0.3%. The building society is also introducing a new two-year fixed-rate home loan, available from 5.58% and with a £999 fee. The lender says it is waiving some reservation fees for a limited period, but only for existing ...



September 11, 2008

Leicestershire folk spoilt for mortgage choice

by Gill Montia
Leicestershire folk spoilt for mortgage choice
Home buyers in the Midlands have a wider choice of loans than elsewhere in the country. So says Moneyfacts. The financial information provider has researched mortgage availability on a regional basis and declared that prospective borrowers are faced with a postcode lottery. Leicestershire is the UK's prime mortgage county because it is home to a number of smaller building societies with deals exclusively ...



Lenders sweet on 40% deposit holders

by Gill Montia
Lenders sweet on 40% deposit holders
New research from fool.co.uk shows just how dramatically the mortgage market has swung in favour of those who have large deposits. According to the financial website, home buyers looking for a loan-to-value (LTV) ratio of 60% can access around 4,588 mortgage products. For those even better placed and needing to borrow less than 60% of their property's value the choice of home ...



September 9, 2008

First-time buyer mortgage approvals fall 48%

by Gill Montia
First-time buyer mortgage approvals fall 48%
The Council of Mortgage Lenders (CML) has reported that in July, 47,400 house purchase loans worth £7.1 billion were approved. The figures are similar to June's but represents a 51% fall in volume and 54% decline in value on July 2007. Remortgages rose by 14% to 85,000 but in value terms were 16% down on June, at £11.9 billion. July saw little monthly ...



HSBC cuts fixed rates by 0.56%

by Gill Montia
HSBC cuts fixed rates by 0.56%
HSBC has cut rates on its entire range of fixed home loans by a minimum of 0.46% and a maximum of 0.56% The UK's biggest bank says it is passing on the benefits of lower funding costs to customers. Borrowers signing up for the lender's fee-free two, three and five-year fixed-rate mortgages will gain from a 0.56% reduction and interest on fixed-rate deals ...



September 5, 2008

Abbey cuts rates

by Gill Montia
Abbey cuts rates
From 5th September, Abbey is reducing rates on a number of its mortgage deals. The lender is cutting interest on its two, three and five-year fixed-rate home loans by up to 0.30%. In the case of the five-year fix with a 75% loan-to-value (LTV) ratio the rate comes down to 5.89%. The two-year at 75% LTV is down by 0.20% to 5.79% and the three-year at 75% ...



September 4, 2008

Lenders look for extension of Special Liquidity Scheme

by Gill Montia
Lenders look for extension of Special Liquidity Scheme
The Bank of England's Special Liquidity Scheme (SLS), which has been providing funds for UK mortgage lenders, is due to end on 20th October. According to Swiss investment bank, UBS, British banks may have already borrowed as much as £200 billion from the scheme, well above the £50 billion mooted when it was launched in April of this year. The market ...



New mortgage deals from Leeds, Yorkshire and Skipton

by Gill Montia
New mortgage deals from Leeds, Yorkshire and Skipton
Leeds Building Society is introducing a new range of fixed-rate mortgages. Rates start at 5.95% and a maximum loan-to-value (LTV) ratio of 90% can be accommodated in the offering of two and three-year fixed-rate home loans. No fees are applied to three-year fixed-rate deals and the building society is offering in-house legal services for remortgages, plus a free valuation ...



September 3, 2008

Two-year fixed rate average falls to 6.39%

by Gill Montia
Two-year fixed rate average falls to 6.39%
Financial website, Moneyfacts.co.uk, has reported that the average interest rate charged on a two-year fixed-rate home loan now stands at 6.39%, down from a peak of 7.08% at the beginning of July. Michelle Slade, analyst at Moneyfacts, has confirmed that rates on this popular type of mortgage have returned to the levels seen just prior to the onset of the credit ...



September 2, 2008

RBS and NatWest cut rates

by Gill Montia
RBS and NatWest cut rates
RBS and its subsidiary, NatWest, have cut rates by up to 0.35% on fixed and tracker mortgages. The reductions are the second to be applied since the beginning of August and will benefit new customers and existing borrowers who need to remortgage. Applications can be made through RBS and NatWest branches and RBS and NatWest Mortgages Direct. While the majority of new fixed and tracker ...



New regulations for property valuations

by Gill Montia
New regulations for property valuations
New regulations aimed at preventing inflated property valuations have come into force this week. The measures are aimed at protecting mortgage lenders who have in the past become the victim of deliberately inflated valuations. In the case of new build city centre flats and apartments, prices have plummeted in the past year because of a combination of oversupply and fraudulent mortgage applications backed ...



Borrowers put faith in three-year fixed-rates

by Gill Montia
Borrowers put faith in three-year fixed-rates
Abbey has found that demand for fixed-rate mortgages has risen sharply over the past six months. According to the lender, 52% of respondents to its survey said they would take a fixed-rate deal, compared with 35% in February and 47% in July. Twenty-one per cent of people questioned said they would take out a three-year fixed-rate loan, representing a threefold increase in the ...



September 1, 2008

House purchase mortgage approvals fall to 33,000

by Gill Montia
House purchase mortgage approvals fall to 33,000
Latest figures from the Bank of England show the number of mortgages approved for house purchases falling in July, to the lowest level since comparable records began, in 1999. The month saw the number of loans for house movers decline to 33,000, down from 35,000 in June and 71% below July 2007 levels. The figure compares with an average of 55,000 over ...



New mortgages from Woolwich and Abbey

by Gill Montia
New mortgages from Woolwich and Abbey
Woolwich, which is part of the Barclays group, has launched a Lifetime Tracker mortgage at 1.19% above base rate (currently 6.19%) and with a maximum loan to value (LTV) ratio of 80%. The new loan sits alongside the lender's existing Lifetime Tracker at 0.69% above base rate for mortgages with an LTV of up to 60%. The lender is also cutting rates on ...



August 28, 2008

Leeds BS offers five-year fixed-rate at 5.84%

by Gill Montia
Leeds BS offers five-year fixed-rate at 5.84%
Leeds Building Society has today reduced the interest rate on its five-year fixed-rate home loan from 5.99% to 5.84%. The lender has also knocked £500 off the completion fee, reducing it to £999. However, the rate reduction only applies to customers who sign up for the society's Homecover insurance through to 31 August 2013. Those who prefer another provider will have to pay ...



Morgan Stanley Advantage: what a bunch of muppets

by Brian Turner
Morgan Stanley Advantage: what a bunch of muppets
I took out a self-certified mortgage with GMAC two years ago, because as a company director traditional lenders tend to get very confused when your income is not a straight salaried income-taxed income. Like many company directors, I instead take an income in the form of dividends. On the low interest rates everyone enjoyed at the time a self-cert seemed ...



August 27, 2008

A&L launches new deals and cuts rates

by Gill Montia
A&L launches new deals and cuts rates
Alliance & Leicester (A&L;) is reducing interest rates for most of its mortgage products, with immediate effect. Cuts of between 0.10% and 0.55% across all but one of the bank's home loans are accompanied by the launch of a two-year fixed-rate deal at 5.99%, which is available to both new and existing customers. A 1% arrangement fee applies and loan-to-value (LTV) ...