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Borrowers feel the pinch as mortgage costs rise
Nationwide has increased the cost of popular two-year and three-year fixed-rate mortgage deals with a ten per cent deposit by 0.5 per cent. New customers that sign up for such products will see a significant rise in their mortgage repayments following the building society's second price hike in a month. Meanwhile, Nationwide has also introduced increases of at least 0.2 per ...
18th Jun 2008
Fixed rate borrowers facing higher mortgage costs
Homeowners opting for two-year fixed rate mortgage deals are being charged interest at a significantly higher level than the previous decade, according to a new study. Research by Moneyfacts.co.uk indicates that hard-up borrowers on these popular mortgages face an average rate of 6.75 per cent, a ten-year high. Meanwhile, customers looking to sign up for five-year fixed ...
17th Jun 2008
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Libor changes could boost mortgage market
Closer regulation of how much banks charge each other for short-term loans could lead to mortgage customers receiving better deals, according to an industry expert. Darren Cook, spokesperson for Moneyfacts.co.uk, claims that the British Bankers' Association's (BBA) planned changes to the inter-bank Libor rate setting process could increase liquidity within the market. He ...
13th Jun 2008
Fixed mortgage application charges soar as lenders avoid "risky borrowers"
Mortgage providers are charging customers 66 per cent more in mortgage fees now than they were in September 2006, according to MoneyExpert.com. Research by the firm shows that average application charges for fixed rate deals now stand at £860.25, up from £517.19 less than two years ago. This rise has been mirrored in a 14 fold increase in the amount of fixed deals ...
12th Jun 2008
Retiring homeowners face mortgage worry
Pensioners and people heading towards retirement have an average mortgage debt of £37,316, according to a new study. Research by Key Retirement Solutions suggests that a third of homeowners aged over 55 have not yet completed their mortgage repayments, with the average amount owed rising by 20 per cent year on year. Dean Mirfin, business development director at Key ...
11th Jun 2008
Property market set to bounce back
Demand for property will begin to pick up in the near future as lenders start to lower mortgage interest rates, according to an industry expert. Peter O'Donovan, head of mortgages at Bestinvest, claimed that the housing market will bounce back from the recent downturn once price levels become affordable for first time buyers. He said: "First time landlords or people ...
10th Jun 2008
Buy-to-let investors struggling to make ends meet
A growing number of landlords are finding it difficult to secure rents from tenants on time, according to a new survey. Market research firm BDRC claims that this has forced nearly one in five (17 per cent) buy-to-let investors to skip a monthly mortgage payment during the past three months. Only two in five investors polled are optimistic about the future of the private ...
10th Jun 2008
'Mortgage lenders not interest rates responsible for housing market slump'
An increasing number of people are unable to get on the property ladder because lenders are demanding large deposits before granting new mortgages, according to an industry expert. Robin Amlôt, senior editor of Moneyextra.com, claimed that demand is being stifled despite relatively cheap mortgage interest rates. He said: "First time buyers are being pushed out of ...
10th Jun 2008
Borrowers turn to re-mortgaging
The slowdown in the UK property market will lead to more re-mortgaging as homeowners try to top up their finances, according to an industry expert. Pauline McCallion, editor of Your Mortgage, claimed that while the rate of lending has slowed recently, sales of re-mortgages will help to balance falling demand from other sectors. She said: "You're seeing an increase in ...
6th Jun 2008
Homeowners 'should consider equity release to counteract falling property prices'
Consumers planning to withdraw equity from their homes should act quickly to avoid being stung by declining property prices, according to a financial expert. Alex Edmans, Saga personal finance adviser, said: "With falling property prices customers will see a reduction in the amount of equity they can raise, therefore if you are considering arranging equity release in ...
4th Jun 2008