Mortgage News | Current Rates | Housing Market News

Mortgage Borrowers Missing Out?

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.

Category: Current Market News Tags: Housing Market, Markets
16-Jul-2010 | Posted By Abigail | Comments (0)

Housing Market At Crossroads

Which way now for the housing market? There have been some healthy signs recently. Barratt is the latest house builder to forecast a hike in profits. According to property website Zoopla, London house prices have made up the ground they lost during the recession, with gains over the past sixteen months amounting to 21.5%. This is good news for those wishing to remortgage or seek additional finance, as the extra equity in their properties means that loans represent a smaller proportion of their value.

Elsewhere, lenders say that price rises are tailing off, or even turning into falls. Government figures show a modest 0.7% rise on completed sales in May. But all this doesn’t mean there’s been a slowdown in sales – on the contrary, many homeowners are now putting property onto the market, after holding off in the uncertain period before the Budget, and spurred on by the demise of Home Information Packs.

A big factor will be the availability of mortgage finance, coupled with the level of interest rates. Mortgages are now at their most affordable in decades, with interest payments taking a smaller slice of our incomes. There’s also been a modest rise in the number of products available to borrowers, with some higher loan-to-value deals now on offer.

But the market is vulnerable to outside pressures. Many fear that mortgage lending (and borrowing) will fall if the economy stalls – and if banking problems in the eurozone spread. For these reasons, industry experts are forecasting flat prices or falls. According to the Royal Institution of Chartered Surveyors, more of its members now expect prices to fall than to rise over the coming months, while accountants PricewaterhouseCoopers think that the market could be subdued for years.

In this climate, say analysts, the FSA’s plans to further restrict mortgage lending look ill timed – lenders don’t need to be told to be cautious. The big unknown remains the timing of interest rate rises, and it’s this which is pushing borrowers who want security in the direction of fixed-rate mortgage and remortgage deals.

Category: Current Market News Tags: Economy, Headlines, Housing Market, Markets
15-Jul-2010 | Posted By Andrew | Comments (0)

FSA Plans Mortgage Clampdown

Doomed financial watchdog the FSA is proposing tough new mortgage rules. The organization, which is set to relinquish its powers to the Bank of England by 2012, wants to clamp down on a range of practices and products – including self-certification, and interest-only mortgages which aren’t backed up by investments.

Interest-only mortgages are under fire as homeowners can be left at the end of the mortgage term with no option other than to sell up. Lenders warn, however, that they can be a vital safety valve when borrowers need to cut back on their payments in a hurry to avoid getting into arrears. Meanwhile, current remortgage deals provide opportunities for those who’ve temporarily taken the interest-only route to get back on track with repaying the capital part of their loan.

Under the FSA’s plans, the onus will be on lenders to vet borrowers by checking income details and ensuring that they can afford their loan. Self-certification, where borrowers vouched for their own financial status, made up a big share of the market before the credit crunch, being especially popular with self-employed borrowers. The FSA wants to rule out any move back to the practice.

Controversially, they are also questioning the fast tracking of loan applications, where a mortgage is initially approved on the basis of a credit check rather than detailed verification of income. Statistically, these loans have a good track record, according to lenders.

Some analysts are warning that further restrictions could unnecessarily exclude creditworthy borrowers and damage the housing market. They also point out that lenders have tightened up considerably on their own practices in the wake of the credit crunch. The FSA will consult on the plans before making decisions early next year.

Category: Finance News Tags: Economy, Housing Market, Markets
14-Jul-2010 | Posted By Adam | Comments (0)

Affordable Deals Boost Mortgage Borrowing

Mortgages are at their most affordable for 35 years, according to recent figures. The Council of Mortgage Lenders (CML) reports that, as a proportion of our incomes, mortgage payments are at their lowest since records were first kept back in 1975. Those moving home spent an average of 9.5% of their income on interest payments in May. Meanwhile, first time buyers spent 13.2% – the lowest amount since 2004.

And with low interest rates continuing to benefit borrowers, lending to house purchasers has increased – along with the number of remortgages.

The number of home loans rose by 2% on the previous month, contributing to a 15% rise over the 12 months since May 2009. There were 6% more remortgages than in April – worth 10% more in money terms. There was also a small rise in the number of loans made to first time buyers, as they benefited from a wider range of products and greater flexibility on the part of some lenders.

The CML has previously forecast that there will be £150 billion of mortgage lending this year. They are now concerned that tough economic conditions will make things trickier for borrowers and make lenders more cautious. In that event, they say, their prediction could turn out to have been too optimistic.

But given current interest rates and the range of products available, borrowers will be looking carefully at the mortgage and remortgage deals on offer.

Category: Current Market News Tags: Economy, Housing Market, Industry, Markets
13-Jul-2010 | Posted By Andrew | Comment (1)

Options For First Time Buyers As Prices Ease

Following figures from Nationwide showing house prices more or less flat last month, the Halifax has reported a 0.6% fall. But to say that the property market has hit the buffers would be misleading.

Many owners – developers and building firms as much as the rest of us – are now putting property on the market, after postponing sales during the recession. Prices were inflated, as sellers waited to see what the general election and then the emergency Budget would bring. Now supply is outstripping demand – but there is also more activity in the market, with Bovis only the latest house builder to report increased sales. Commenting on the Halifax’s latest figure, their economist Martin Ellis stuck by his prediction that prices will remain broadly flat in 2010.

For one beleaguered group, the news that prices aren’t rocketing comes as a relief. First time buyers saving for a deposit can at least be feel that they’re no longer aiming at a target which is constantly racing away from them. In recent years it’s sometimes seemed that many seeking their first mortgage had no chance – unless they could muster a very big deposit or a helpful parent or two.

Conditions have eased, with a number of lenders bringing forward deals with a higher percentage of loan in relation to value, and aimed at first time buyers. Current interest rates mean that mortgages are more affordable. But many lenders are still imposing strict criteria – with the result that, according to the Council of Mortgage Lenders, average deposits were as high as 25% in April, for example.

Where to get a better deal? A reputable mortgage broker can be invaluable here in researching the options available and giving to first time buyers a realistic indication of what they can afford. Though it does seem that, for the foreseeable future, parents and grandparents who can afford to, will play a part helping their offspring take that first step on the property ladder.

Category: Finance News Tags: Housing Market, Industry, Markets
12-Jul-2010 | Posted By Abigail | Comments (0)

Turn Your Home Into A Palace

With the warm summer weather upon us it’s a good time to get on with some home improvements. And it seems that the Queen has had the same idea. It’s reported that the monarch is planning to install double-glazing at Buckingham Palace – quite a job as the place contains some 775 rooms.

With royal funding frozen in the Budget, it’s been said that the Palace has a leaky roof, with footmen strategically positioning buckets – so perhaps that should take priority.

In spite of the financial pressures, remortgaging or secured loans may not be viable options for Her Majesty. But for the rest of us, current interest rates mean that drawing on the equity in our home can make home improvements affordable – especially given the costs of moving to a larger or better property.

Green improvements can help cut down on the running costs of your home. Installing double-glazing is reckoned by the Energy Saving Trust to save the average household £135 a year – and it will also cut down traffic noise. Replacing an old boiler with an energy efficient one can make a big difference to heating bills, bringing in an annual saving of £235 according to the Trust.

Extending your home or creating new rooms, for example in loft space, is a great alternative to finding a new property – especially given the costs of moving. And when you do come to move, you will have more to offer a potential purchaser. It’s always worth consulting professionals to help decide what sort of alterations best suit your home and its location.

Lenders calculate that a loft conversion is the often most cost effective addition to your home. These particularly suit Victorian, Edwardian and many 1930’s houses, with their high, pitched roofs – and the opportunity to add an en suite to a loft bedroom is an added attraction. Installing a modern kitchen is next on the list of alterations likely to add value, according to the Halifax. Adding an extra bedroom can also provide a significant gain (estimated by the Nationwide at some 11%) when you come to sell – as well as making family life easier in the meantime.

An experienced mortgage broker such as Go Remortgage can set out some of the different options for financing your extension or home improvements. Not many of us have 775 rooms to play with – but that doesn’t mean we can’t turn our home into a palace.

Category: Finance News Tags: Business, Economy, Housing Market, Politics
11-Jul-2010 | Posted By Adam | Comment (1)

Mortgages: And Now For The Good News

You don’t have to look very far for gloom about the property market – and the economy in general – these days. In recent weeks, predictions of falling house prices, tough credit conditions and rising unemployment have featured in the headlines.

But as always, there’s a danger of overdoing the gloom. One bright spot for mortgage borrowers is that official statistics have confirmed what a number of surveys have been saying: mortgage rates have fallen recently. According to the Bank of England, the average rate for a two year fixed-rate deal is less than 3.7% – the lowest since the Bank began publishing such statistics 15 years ago. And with economic pressures from the eurozone and cuts at home, it looks as if low rates could be with us for some time yet.

Meanwhile, separate figures from major lenders remind us that a property can be both a home, and a great long-term investment. In spite of the dip following the credit crunch, homeowners have seen the average value of their properties more than double in the last 10 years, according to the Halifax house price index. And, as new figures from Santander show, this is reflected in a big boost to the number of properties worth £1 million pounds or more, with almost 132,000 homes being valued at a million-plus, as against fewer than 27,000 ten years ago.

Unsurprisingly, London has more than three quarters of such properties, while among places away from the orbit of the capital, Edinburgh has 1,665 in total, and Warrington no less than 1,006 so-called millionaire properties.

While of course million-pound homes remain very much the exception, their growing numbers do highlight that, for many of us, the family home has become a vital investment. The equity we have built up in them can offer us the opportunity to remortgage and raise additional funds, or cut monthly payments on other debts. And if this can be done on the basis of a highly competitive interest rate, so much the better.

Category: Mortgage Rate News Tags: Economy, Housing Market, Industry
11-Jul-2010 | Posted By Andrew | Comments (0)

No Change On Interest Rates

Many borrowers will breath a sigh of relief at the news that the Bank of England has kept interest rates on hold – at a record low of 0.5%. The rate has now remained unchanged for sixteen consecutive months. The decision had been widely forecast by economists, but there’s been mounting pressure to raise rates in the light of above-target inflation. Last month, one member of the Bank’s Monetary Policy Committee voted for a rise – the first time since August 2008, when the recession was tightening its grip.

Bank of England rates feed through to those in the money markets – and strongly influence what the rest of us pay when we buy a property or remortgage our home. Most tracker mortgages are tied directly to the Bank’s base rate.

But borrowers have seen costs fall across the range of mortgage deals during the current, prolonged phase of low rates. Recent figures from Moneyfacts, for example, show that the average cost of a two year fixed-rate deal is at its lowest in seven years. Calculations by the Halifax, meanwhile, suggest that the cost of running a home has fallen by 6% on average over the last two years, largely thanks to lower mortgage payments.

Economists have gradually extended the timescale of their predictions for a rate rise. A big factor is the progress of the economic recovery. With governments throughout Europe bringing in spending cuts and tax rises, its possible that sluggish growth will keep interest rates low. Some are predicting a slow build up in rates next year.

In the meantime, mortgage borrowers should take a close look at the their current deal to make sure they are getting the best out of the lower interest rates on offer.

Category: Mortgage Rate News Tags: Economy, Housing Market, Industry, Markets
09-Jul-2010 | Posted By Abigail | Comment (1)

On Top Of Your Mortgage?

Fixed rate, standard variable rate, tracker? Given the choice available, and the ever growing pressures on our time and attention, its understandable that 15% of borrowers aren’t quite sure about what sort of mortgage deal they’ve got. A similar proportion don’t know when their current deal expires. That’s according to figures from the new Consumer Financial Education Body.

More worryingly, no less than three quarters of us aren’t clear about the effect a 1% change in interest rates could have on our finances.

The CFEB is launching a campaign to give advice about handling a mortgage as interest rates and personal circumstances alter, with the slogan “Stay on top of your mortgage”. Perhaps the most striking number from the body’s research is that more than half – 54% of those questioned – had no plans to review their mortgage finances, or would leave it till the last moment.

It’s possible that borrowers have been lulled into a false sense of security by the sustained period of low interest rates. With the Bank of England’s Monetary Policy committee making its latest decision on rates today, the debate about the future direction of policy is hotting up. Most economists are predicting that the Bank will hold rates at a record low of 0.5% for the sixteenth successive month. Nevertheless, there is a growing chorus calling for rate rises to stem inflation – and encourage investors.

Experts say that all this points to the need for borrowers to review their mortgage arrangements regularly. The fact that interest rates are low by historic standards provides a golden opportunity to consider alternative mortgage and remortgage deals – and the potential for reducing monthly outgoings. According to leading broker Go Remortgage, a trained mortgage officer can take the hard work out of researching the market – and present a range of options clearly to the client, enabling them to make an informed choice.

Category: Current Market News Tags: Economy, Housing Market, Markets
08-Jul-2010 | Posted By Adam | Comments (0)

Market Jitters Overplayed?

There are signs of nerves in the property market, and concerns about the availability of mortgages, according to recent surveys. But latest figures give a mixed picture, and there are some positive signs too.

According to research by zoopla.co.uk, around a third of potential buyers think a lack of mortgage availability is the biggest obstacle to house purchase, while 27% reckon mortgages are harder to come by than they were just three months ago. At the same time 23% have the opposite perception – that mortgages are easier to obtain. The same survey also shows that 78% are expecting house prices to go up over the next six months, slightly down from 81% three month ago.

Taken together, the figures indicate a modest fall in confidence – perhaps stemming from a rash of media stories about the latest Bank of England’s Credit Conditions Survey.

The Bank of England reflects the view of major lenders that credit will be conditions will tighten, in the light of a potential default by Greece on its debts. Meanwhile on the home front, the prospect of public sector job losses is depressing expectations. But as we reported last week, the Bank’s survey also showed that defaults on mortgage debt are down – and there’s been a significant move towards remortgaging.

It’s less a lack of demand on the part of borrowers than continued caution among lenders which is causing anxiety about the direction of the market – though in comparison with the dark days of the credit crunch, lenders remain willing and able to lend. But the picture is patchy, and some industry insiders are calling for lenders to relax their lending criteria.

Others point out that leading brokers can gain access to a greater range of lenders and competitive deals – away from the usual suspects on the High Street.

Category: Current Market News Tags: Economy, Industry
07-Jul-2010 | Posted By Abigail | Comments (0)

Page 20 of 46« First «...10...18 192021 22...30 40...»Last »

The Go Remortgage Blog

Mortgage Borrowers Missing Out?

Housing Market At Crossroads

FSA Plans Mortgage Clampdown

Affordable Deals Boost Mortgage Borrowing

Options For First Time Buyers As Prices Ease

Turn Your Home Into A Palace

Mortgages: And Now For The Good News

No Change On Interest Rates

On Top Of Your Mortgage?

Market Jitters Overplayed?

Try Our Free 30 Second Quote!

Go Remortgage Categories

Archives

Useful Links

Search

Feeds

Disclaimer

Quick Links