You are here: Home » Blog » Archives for Abigail
| Full Name: | Abigail Strode-Gibbons |
|---|---|
| E-mail Address: | Abigail@GoRemortgage.co.uk |
| Registration Date: | 2010-04-08 12:39:06 |
| Biography: |
27-May-2011 | Posted By: Abigail | Comments: (0)
Figures from the banks present a subdued but steady picture of today’s mortgage market.
According to the BBA (British Bankers’ Association), there was some growth, with net mortgage lending – taking into account repayments – increasing by 2.2% in the year to April.
23-May-2011 | Posted By: Abigail | Comments: (0)
Home improvements are in the air – though too late for troubled DIY chain Focus Do It All. Rivals Wickes, more at the no-frills end of the market and catering for the building trade too, are taking over a clutch of stores.
Now’s the time of the year when the thoughts of householders traditionally turn to extensions and refurbishments. But current difficulties in the housing market are giving added impetus to the plans of many of us.
10-May-2011 | Posted By: Abigail | Comments: (0)
Average house prices have continued their “modest decline” according to the latest monthly survey from Halifax. But the market is benefitting from a number of factors – including the affordability of mortgage payments.
The lender’s figures show that house prices fell 1.4% in April, leaving the price of a typical home at £160,395. The fall contributes to an annual decline of 3.7%. Prices remain above levels seen in the spring of 2009 – but down by as much as a fifth on those at the peak of the market in 2007.
18-Apr-2011 | Posted By: Abigail | Comments: (0)
Prospects for the mortgage market look brighter. That’s the message from recent surveys, based on data from the early months of 2011.
Figures from the Council of Mortgage Lenders (CML) show an improvement after the doldrums of January, with an 8% increase in the number of loans to 32,300 in February.
06-Feb-2011 | Posted By: Abigail | Comments: (2)
Latest house price figures present a mixed picture. According to the Halifax, prices fell 2.4% over the last 12 months, leaving the average price of a home in the UK at just over £164,000.
Coming after similar figures from the Nationwide, the overall impression is of a sluggish property market. But the reported quarterly falls are at the low end of expectations, and well below those seen in the depths of the recession.
The Halifax also reports a slight increase in activity, with house sales up by 38,000 – though at 884,000 the total remains very low by historical standards.
The figures were in line with the trend, noted by the Royal Institution of Chartered Surveyors, for homeowners to hold back from putting their properties up for sale. This should itself work against dramatic falls in prices.
For many, the opportunity to remortgage is proving a more attractive option than braving the property market, and going to the trouble and expense of moving. Remortgaging can release funds to improve existing accommodation, or make staying put more affordable given the competitive deals available.
Halifax housing economist Martin Ellis commented that he expected interest rates to remain low, “supporting a favourable affordability position for many existing mortgage borrowers and those entering the market.”
07-Sep-2010 | Posted By: Abigail | Comments: (0)
Interest rates are likely to be kept on hold when Bank of England rate setters meet this week, according to most analysts. If such predictions are proved right, that will mean 18 months with base rate at 0.5%.
The record low rate has helped see many mortgage borrowers through tough times, with the interest rate on millions of home loans being linked, directly or directly, to the Bank’s base rate. And for new borrowers, or those seeking to remortgage their homes, tracker deals have proved understandably popular. Others have been content to continue paying their loans at their lender’s standard variable rate (SVR) as fixed-rate deals have lapsed. Recently, however, with higher inflation bringing fears of interest rate rises in the coming months, many borrowers have been taking advantage of lower rates on 5-year fixed-rate deals for example.
Behind the calls to keep interest rates down lie anxieties about prospects for the economy, including the housing market. While economic growth has been unexpectedly high in recent months, it is feared that a rate rise now could derail a recovery that leading economists describe as “muted” or “subdued.” And while opportunities remain for borrowers to secure an attractive deal, lenders remain cautious and selective in their approach. In that environment, an experienced broker such as Go Remortgage can be of invaluable help in researching the market and finding the right deal for you.
18-Aug-2010 | Posted By: Abigail | Comments: (0)
Inflation remains stubbornly above target, according to latest official statistics. And that’s bound to lead to speculation about interest rate rises.
The Consumer Prices Index (CPI) fell by just 0.1 percent in July, leaving the annual rate at 3.1% – well above the government’s 2 % target. Bank of England governor Mervyn King has admitted to surprise. The governor has long argued that inflation will drift down as temporary factors, such as fuel price increases, drop out of the picture. Now, according to the Bank, the planned VAT rise will help keep inflation above 2% throughout next year.
Minutes from this month’s meeting of the Bank’s Monetary Policy Committee show rate-setters again divided. One member, Dr Andrew Sentance, again voted for a small increase in interest rates.
Many looking to buy or remortgage their homes are bound to take the view that higher-than-expected inflation could lead to a rise in rates before long. It’s that perception which has been fuelling the popularity of fixed-rate deals recently, as borrowers seek certainty about future payments.
However, many economists believe that the Bank’s base rate will stay at its historic low for many months to come. Surveys, and the Bank’s own forecasts, show signs of slowing growth – as budget measures take effect and spending cuts bite. With earnings growth low and plenty of spare capacity in the economy, there will be downward pressure on prices. One group of forecasters, Ernst & Young’s ITEM club, has even suggested it could be years before rates need to rise.
Likewise, business groups continue to argue against a rise in interest rates. British Chambers of Commerce chief economist David Kern has said that any premature rate rise could trigger a damaging economic setback.
20-Jul-2010 | Posted By: Abigail | Comments: (0)
Late payments are costing UK credit card users a total of £150 million in fees, according to research. Calculations by price-comparison site Confused.com indicate that a quarter of borrowers have been charged for a late payment at some point during the past year, while 1 in 12 have been charged three times or more.
For some it’s just a question of forgetting to pay on time, while for others, pressure on family finances makes it hard to fund a payment, let alone clear the whole balance. But a spokesperson for debt portal Beatmydebt.com suggests that those who can’t afford to pay back what they’ve borrowed each month should “think very carefully” before taking on credit card debt at all.
Many recommend setting up a monthly direct debit to make the minimum required payment each month. That has to be sensible advice, given that more than half of us currently rely on paying our bill by other methods, making a slip-up all too easy.
But this isn’t the whole story. Interest rates on credit card debt are comparatively high, with an average rate of 16.69% according to recent figures from the Bank of England. That’s 33 times the Bank’s own base rate. According to one calculation, a relatively modest credit card debt of £3000 charged at a High Street rate of 17.9% could take as long as 40 years to pay down to zero if only the minimum payment were made each month – longer than most mortgages.
With mortgage interest rates at historic lows, it has to be worth taking another look at your credit card and other borrowings. It may be that by remortgaging could bring your debts under one umbrella and simplify your finances. And a loan secured against your home could also help you reduce your monthly outgoings – taking some of the pressure off that family budget.
18-Jul-2010 | Posted By: Abigail | Comments: (0)
With the news that the Financial Services Authority (FSA) plans to ban self-certification mortgages, many of those who’ve recently set up their own business may be concerned about their mortgage prospects. And those with a deal nearing its end will be wondering about remortgaging in today’s climate.
The proposed restrictions are something of a last gasp for the FSA, which is to be abolished within 18 months. The stress is on lenders verifying information presented to them, and making sure the sums add up – which means that borrowers will not only need the right income but also be able to prove it. To a great extent, this reflects what lenders are already doing: they’ve been far more cautious in their approach since the credit crunch. But lenders are in business to lend – and that means they want to attract as many creditworthy customers as possible.
A self-employed person will need to provide two, or in many cases three, years’ signed-off accounts or tax statements from H M Revenue and Customs to show their income. Some lenders may also want a clear indication of future business and earnings. Those with large incomes seeking bigger loans, typically over half a million pounds, will come under particular scrutiny – but ownership of assets such as savings or investments will be taken into account. Contractors with a consistent record of work will attract some lenders.
Keeping your paper work in reasonable order and at the ready for your application is an obvious starting point. Accountants legitimately look for all legal means of keeping your tax bill low by minimizing stated profits – it’s worth discussing this area with them, as higher profits could boost your mortgage prospects.
A crucial point to remember is that lenders vary in their approach – which is where a knowledgeable broker, such as Go Remortgage, comes in. Lenders confirm that they are already planning new products to fit in with FSA guidelines and suit self-employed borrowers. Your broker can also discuss options for remortgaging or secured loans as a way of supporting your business.
16-Jul-2010 | Posted By: Abigail | Comments: (0)
As many as 1.7 million borrowers currently on their lender’s standard variable rate could save by switching to the best current mortgage deals. That’s the conclusion of latest research by the Yorkshire Building Society.
According to their calculations, there are now no less than 2.3 million borrowers on their lender’s SVR, with1.7 million the total of those have a loan of 85% or less of their home’s value – or in other words at least 15% equity. The Yorkshire’s figures indicate that swapping to a new deal could save this group of borrowers as much as £1.8 billion in total.
Large numbers of borrowers have gone on to an SVR by default in recent years – as they’ve come to the end of two or five-year mortgage deals for example. Analysts point out that SVRs now face stiff competition from the best tracker and fixed-rate deals on offer. Meanwhile, a number of major lenders have deliberately raised their standard rates for new borrowers.
Fortunately, most borrowers currently on their lender’s SVR are free to find an alternative deal whenever and wherever they wish, although those with loans close to their property’s value will find things more difficult. Homeowners with more equity in their properties can take the opportunity both to remortgage and increase their borrowing, perhaps to pay off higher-interest debts or extend their homes.
If you are currently paying your lender’s SVR, it’s worth talking to a reputable broker such as Go Remortgage. They can help you review your finances, and present a range of options to enable you to make an informed choice about your mortgage.
RSS Feed
Atom Feed
The comments expressed in this section are those of the authors and should not be relied upon.
GoRemortgage.co.uk is a trading style of Green Money Limited which is authorised and regulated by the Financial Services Authority for regulated mortgages and non-investment insurance contracts. FSA Number 482743. Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. The overall cost for comparison is estimated to be 5.01% APR. Subject to circumstance, a completion fee may be payable, typically 2%.
aerodesigns