Will Bank of England keep base rates low???

The Bank of England’s Monetary Policy Committee has voted by a majority of 7-2 to maintain Bank Rate at 0.25%. The Committee judged that the lower level of sterling continues to boost consumer prices broadly as projected, and without adverse consequences for inflation expectations further ahead. It also expects pay growth to pick up over the forecast period and believes "subdued household spending growth is largely balanced by a pickup in other components of demand". The MPC added that since the August Report, "the read more

Newly-built homes will have to last at least 2,000 years if the sluggish rate of house building continues

The LGA, which represents local authorities in England and Wales, said that the failure to build enough homes for decades meant existing properties will have to house more people and last for much longer. This has led to the country spending nearly as much on the repair and maintenance of existing homes as it does building new ones. Cllr Judith Blake, LGA Housing spokesperson, said: “Our country’s failure to build enough homes over the past few decades is putting huge pressure on our existing housing read more

New regulation on how much you can borrower on a mortgage

Such "reversion" rates are often the same as the lender's standard variable rate, or SVR. According to Ray Boulger of John Charcol, the broker, SVRs can currently be as high as 5.75pc. This could mean that some banks are forced to stress test at a very high rate of 8.75pc. Stringent new rules on mortgage affordability could force borrowers to prove that they could afford repayments almost twice as high as the expected monthly cost of their loan. The Bank of England announced the beefed-up rules on affordability or read more

Could 100% mortgages make a return???

There are growing calls for Britain’s financial watchdogs to relax aspects of the post-crisis regulations and allow the resumption of controversial “100pc mortgages” – where homebuyers put down no deposit whatever. Lenders, brokers, academics and other property commentators claim the “kneejerk” response to ban 100pc home loans lacks logic, is socially divisive and will “store up enormous social and financial difficulties in decades to come”. High “loan-to-value” mortgages have been controversial for many years. read more

Santander is down on lending and trying to blame Bank of England

Santander has reduced its mortgage lending and its loans for car purchase amid Bank of England warnings about reckless lending and a “spiral of complacency” over mounting consumer debt. Its total mortgage lending fell by £1bn to £11.6bn in the first half of 2017 compared with 2016, with lending for buy-to-let down significantly. Net lending – which takes into account how many people r-emortgaged away from Santander – fell over the half year by £200m. Net consumer finance lending – covering car loans and credit read more

First Time Buyers are wealthier and older

Analysis of the official English Housing Survey by UK Finance found that longstanding demographic factors have led to changes in the characteristics of first-time buyers (FTBs). According to the 2015-16 data there are fewer very young (16- to 24-year-olds) and older (55 or over) first-time buyers compared with 10 and 20 years ago. The results also showed that owning a home was becoming increasingly restricted to just the wealthiest people. Two-thirds (66%) of first-time buyers came from the top 40% of earners, read more

Another prediction of a mortgage rate increase

Mortgage borrowers are well-placed to weather base rate rises over the next couple of years, according to the UK Finance mortgage board. The board, formerly the Council of Mortgage Lenders, says the UK could see a rate rise within 12 months. UK Finance says most borrowers are likely to “withstand rate increases higher than anything that is likely over the next couple of years”. The UK Finance mortgage board says many borrowers on fixed rate mortgages would clearly be immune from rate rises, at least for up to two read more

Governement making money on bank buyouts but interest rate raise could cause massive repo

The various government bail-outs during the financial crisis have had a mixed track record in the near-decade since. Lloyds Banking Group has been returned to the private sector, with the taxpayer having made a modest profit on the bank's rescue; Northern Rock's branches were sold to Virgin Money, under whose brand they trade successfully today, while the taxpayer still retains a 72% shareholding in Royal Bank of Scotland that, at some point in coming months, may be sold down. Yet there is another collection of read more

Bank are charging higher mortgage fees. SURPRISE SURPRISE!!!

Despite mortgage rates continuing to fall, fees on fixed rate mortgages are rapidly increasing and are now approaching a four-year high, according to Moneyfacts research. The average fixed rate fee now stands at £1,018, reaching its highest point since August 2013 when average fees then dipped to £1,005. Since the summer of 2013 fees steadily fell, averaging at £886 in July 2014 before climbing back to £929 in July 2015 and £986 in July last year. Charlotte Nelson, Finance Expert at Moneyfacts, said: “With read more

The mortgage market is improvement and the government want to stop it

Mortgage lending is bouncing back as the slowdown in the housing market appears to be at an end. Prices slid earlier this year but buyers are back - a total of 121,464 mortgages were issued last month, reversing some of the falls in April, according to the Bank of England. More than half of those loans went to people purchasing homes. By value total mortgage debt rose by £3.5bn, the fastest pace in more than a year. As a result, mortgage lending grew by 2.9pc on the year, accelerating a touch from the levels seen in read more