Todays buyers are less likely to own a house than those from 20 years ago

I completed an article saying that First Time Buyers have less of a chance of home ownership than their counter parts from 20-30 years ago. See article here It is the first article that I have read stating the truth as to the reason why. Most article that I have read are showing the divide between the static income vs increase price argument but, this one stated the real problem. The real problem is regulation. 20 years ago, read more

Interest only. Will this impact you???

I have read an article about the impact of maturing interest only mortgages and how it will affect aging customers. The FCA estimate that 1.8 million homes in the UK are on Interest Only mortgages and that excludes the Buy to Let market. Many of these do not have a repayment vehicle in place. These mortgages where set up prior to 2008 in most cases and the customers that have this type of mortgage will be coming close to retirement when they mature. The changes in mortgage regulation, as it pertains to customers 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

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

Bank of Mom and Dad, the 10th biggest lender

The "Bank of Mum and Dad" is the 10th biggest UK mortgage lender as buyers increasingly rely on financial support from their parents, a report suggests. Parents will lend £6.5bn this year, according to insurer Legal and General, and be involved in 26% of all UK property transactions. This is up from the £5bn of lending estimated in L&G's equivalent survey a year ago. The average first-time buyer requires a deposit of about £26,000, lenders say. Figures from the Council of Mortgage Lenders (CML) show that the read more

Bank to compensate customers who were late on the mortgages

Over three quarters of a million mortgage customers who fell into arrears and were then unfairly charged twice are to receive compensation. Last year, the City watchdog estimated 750,000 borrowers may have been overcharged after falling behind on their mortgage payments. It has now told banks and building societies they have until July 2018 to compensate customers who may have paid too much, going back as far as June 2010. The Financial Conduct Authority found evidence a flaw in lenders' systems meant when a new read more

2 year fixed rates and re-mortgaging

New data from Moneyfacts has highlighted that borrowers who opted for a cheap two-year fixed rate mortgage two years ago, are more likely to re-mortgage from their Standard Variable Rate (SVR) to a new deal than those whose fixed deals ended in October 2014. Charlotte Nelson, Finance Expert at Moneyfacts, said: “Two years ago, the mortgage market experienced an aggressive drop in rates, which saw the average fall from 3.41% in October 2014 to 3.06% in March 2015. Borrowers who took advantage of lenders fighting to be read more

NHBC accused of issuing Gaging orders to people they are suppose to help

NHBC, the new-build homes warranty provider, has come under fire for forcing homeowners to sign non-disclosure orders after they have successfully claimed for compensation. The Guardian was made aware of the practice, after a new-build home adviser revealed a family they were helping had received an offer from NHBC to buy back their sub-standard home and pay their removal costs, on the condition they did not disclose the agreement. The adviser went on to say that other people have complained of problems with their read more

Parents are committing fraud by lying to their banks about the cost of childcare

Parents are committing fraud by lying to their banks about the cost of childcare – all because they’re afraid they will be rejected for a mortgage. That’s the shocking conclusion of a report from uSwitch, which found several families are forced to conceal the real amount they pay each month in order to buy a home or even re-mortgage their existing property. The comparison site spoke to 1,000 parents of children aged 12 and under who had applied for a mortgage in the last 10 years. It found that one in six had been read more