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

Why are lenders NOT allowing interest only mortgages

Lenders are failing to meet the demand for interest-only mortgages from responsible borrowers, per brokers. This week Leeds Building Society launched two new interest-only fixed rate deals, each of which come with £1,000 cashback, an area of the market that is not subject to the level of competition it once was. Jaedon Green, director of product and distribution at the lender, said that borrowers looking for interest-only deals felt “deserted” by lenders, a claim that has support among some brokers. Scott Farrell, read more

Bank of Scotland in line for a payout to a mortgage prisoner

Bank of Scotland has been ordered to pay a customer back thousands of pounds who was forced to stay on a standard variable rate after being told he could not afford to switch to a cheaper rate. The customer, who wishes to remain nameless, paid out as much as £12,550 over an 18-month period when the lender, which is part of Lloyds Banking Group, refused to allow a product transfer, the Telegraph reported. In May 2015, the borrower was turned down by the lender after he tried to switch his existing interest-only read more

Clydesdale Bank talks the biggest load of Cr*#

Homeowners are still being forced to undergo strenuous credit-checking if they wish to move their mortgage from one property to another, more than two years after the regulator warned that this should not be necessary. As a result, some borrowers are losing low-rate deals which contractually they are entitled to keep. Lenders continue to put customers who want to "port" mortgages through stringent affordability assessments - despite the FCA explicitly saying that they do not need to do this. Telegraph Money has read more

FCA look at relationship between Estate agents and Brokers

The FCA will consider links between estate agents and mortgage brokers as part of a review of the mortgage market. Some agents earn money from referring customers to brokers. In a report updating a review of the mortgage market which was first announced in May, the regulator said that it would consider relationships between brokers, lenders and estate agents. It said it was concerned that these relationships were creating conflicts of interest as consumers were spending more than necessary if pressured to use read more