Category: Mortgage Lending
Paragon buy-to-let lending
After withdrawing from the buy-to-let mortgage market back in 2008, Paragon have announced that they have resumed lending with effect from September 2010. Their re-launch includes new products, which are specifically aimed at “professional landlords”, a market which is currently underserved by other lenders. Paragon have stated that as funding has now been secured from Macquarie [...]
Read moreLloyds Buy-to-let Restrictions
From the 25th September, one of the biggest buy-to-let lenders – Lloyds Banking Group, have now introduced further restrictions to landlords. The new restrictions are: Loans for up to three properties, or total lending of up to £2 million. When you consider that landlords could previously borrow up to £3 million or a maximum of [...]
Read moreMortgage approvals drop
During the month of June, there was a substantial decrease in the number of mortgages approved. When you couple this to the decrease in house prices in July highlighted by the Nationwide House Price Index, it looks as though there is a ‘dip’ within the UK housing market. The July property prices showed a 0.5% [...]
Read moreTracker & Variable Rate Mortgages
Based on the most recent interest rate forecast, it appears that both ‘tracker’ and ‘variable rate’ mortgages are likely to be the most cost effective option for borrowers over the next few years. Economists have speculated that the Bank of England’s base rate could remain at it’s current low rate of 0.5% until the end [...]
Read moreThe average UK adult owes £30k
It has been reported that the total personal debt figure in the UK has reached £1,459 billion and secured loan borrowing has increased by £1.5 billion. Despite lending to individuals being £227 billion, the annual growth relating to consumer credit continued to drop to 0.5% The £30k average per person is based on the actual [...]
Read moreUnfair Mortgage Terms
The Financial Services Authority (FSA) have ordered the Chesham Building Society(CBS) to amend their mortgage contract, having deemed it to be ‘unfair’. There were three specific clauses in their mortgage contract causing issue: 1. The ability to apply CBS’s standard variable rate as opposed to the actual rate the borrower’s initial rate should they [...]
Read moreFinancial Services Authority (FSA) to impose checks for mortgages
Lord Turner, the chairman of the Financial Services Authority (FSA) has announced plans increase their scrutiny of mortgage lending. The FSA feel that consumers do not receive adequate protection from disclosure and free markets, as such they intend to ensure that all borrowers can afford their mortgages and that financial products are not mis-sold through [...]
Read moreHouse prices to be hit by loan rules
The Financial Services Authority (FSA) have announced new affordability rules for mortgages. If is thought that the new rules are unlikely to affect borrowers requiring larger mortgages, but instead are likely to suppress house-price growth. The FSA are now applying more rigorous affordability tests which lenders must use when assessing a borrowers means. In the [...]
Read moreRepayment Error – Clydesdale Bank
Clydesdale Bank and it’s sister bank, Yorkshire, have miscalculated mortgage payments for 18,000 of their customers. Those affected are customers with variable rate mortgages, they have been underpaying their mortgage over the last 18 months. This has resulted in a shortfall on customer loans and additional payments of up to £200 per month. National Australia [...]
Read moreMis-sold mortgage misery should the interest rates increase
It is estimated that over 40% of lenders of new home loans did not obtain proof of earnings from their clients. Many clients were offered self certification and fast-track mortgages, despite not being considered a low risk – resulting in many being pushed to their financial limit with high monthly repayments on mortgages they simply [...]
Read more