Date:6 November 2008 I Comments: 6 I Views:8,647

In the news this morning there was debate over the anticipated Bank of England Base Rate change. Many were calling for a 0.5% reduction while other specialists suggested something more drastic like a 1% reduction was needed. There was fear however that a reduction of as much as 1% might scare the markets because if many were calling for 0.5% but the Bank cut them by 1% then what does the MPC (Monetary Policy Committee – responsible for setting the base rate) know that the rest of us don’t…? So a drastic reduction of 1.5% suggests ‘there may be trouble

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Date:20 October 2008 I Comments: 1 I Views:7,777

One of the key factors that contributed towards the current financial climate was people borrowing more than they could actually afford. Lenders were confident that house prices would continue to rise so if they had to repossess houses they would be OK. The property market was booming and it wouldn’t be a problem to sell the repossessed house on. So, that clearly hasn’t quite worked out the way everyone wanted and who is really going to feel the pain? It’s Mr. Joe Public. Now that mortgage lenders no longer want ‘high risk’ business they are starting to tighten their criteria

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Date:3 October 2008 I Comments: 3 I Views:9,616

Whose idea was it to increase the Stamp Duty threshold in a vain attempt at ‘kick-starting’ the property slump? Whoever it was, did much thought, planning and assessing of the potential outcomes take place? Look at it from the eyes of a purchaser. If a house is seen on the market for £190,000 what is the likely offer a potential buyer would have made a few months ago? Because the previous stamp duty threshold was £125,000 a sensible offer would not take this into consideration and would probably come in at about £185,000. Now because of the new threshold, buyers

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Date:28 August 2008 I Comments: 0 I Views:8,807

Quite a few mortgage lenders have started offering tiered mortgage rates. Preferential rates are available to people with low ‘loan-to-value’ mortgages. eg. Your house is worth £200,000 & your mortgage is £150,000. 150,000/200,000 x 100 = 75% The mortgage is at 75% loan-to-value. People starting out on the property ladder (all 3 of them!) may only have a 10% deposit which means their mortgage will be at 90% loan-to-value. Some lenders are now offering cheaper deals to people with mortgages below 75% loan-to-value with some restricting their best rates to 60% loan-to-value. Woolwich has just announced a market leading fixed rate

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Date:7 August 2008 I Comments: 0 I Views:6,675

More news today as mortgage lenders continue to lower rates. Abbey this time announcing a reduction of 0.1% on certain Tracker products and Halifax announcing this week a reduction of up t 0.38% on one of their 2 year fixed offers. (Oh, and not in the news yet, Nationwide are going to follow suit on the 8th bringing their 2 and 5 year fixed rate offers below 6%) So rates are creeping down and so they should! To sum things up, Northern Rock was at one point lending MORE that 100% of the value of a property. This was fine

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Date:14 July 2008 I Comments: 1 I Views:53,866

A mortgage is a debt. There is no disputing the fact but it is a debt many people look at differently to credit cards, car loans and unsecured loans. The reason for this is because of the size and timescale. 25 years is a long time to be paying off the debt and because of the size of the loan it wouldn’t be affordable for many people if it was over a shorter period. Use this simple: > Mortgage Overpayment Calculator An unsecured personal loan paid off over 3 years has the end in sight at the time of taking it out

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Date:20 June 2008 I Comments: 0 I Views:6,284

More movement in the mortgage market sees more rates rise and some disappear (for the time being). Newcastle Building Society has increased all fixed rate products by 0.3% For each £100,000 borrowed that equates to an extra £25 per month in interest charged. Lloyds TSB has increased all Buy-to-Let fixed rate mortgages by 0.3% increasing the amount of rental required by the same £25 per month. If the estimated rental potential of a buy-to-let property purchase can’t support this increase then fewer proposals will fit the required model and Lloyds TSB are likely to do less business. Platform (the intermediary lender of Britannia Building

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Date:4 June 2008 I Comments: 0 I Views:6,741

Imagine deciding to pursue a career in the mortgage industry…. A few months of studying, revision and exams followed by several weeks of ‘feet-finding’ and ‘on the job’ learning. Only to end up in an industry bearing the brunt of the now infamous ‘credit crunch’. Why do these thing always happen to me! OK, I know, there are lots of people facing adversity in a changing marketplace and every mortgage broker, every homeowner and every prospective buyer has had to re-think their position and change tack. But are things starting to settle? It’s been a few days now since any lenders have

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Date:15 February 2008 I Comments: 2 I Views:97,338

Here’s an interesting tool I found while trying to find out which mortgage product reduced the overall debt by the most over a certain period. > Mortgage Balance Calculator < How to use the calculator: This calculator produces ‘amortization’ tables for the mortgage which show the remaining balance at the end of each year. If you are looking at a 5 year fixed offer, you must put in the entire term of the mortgage eg. 25 years then look at the tables to find the end of 5 years. The rate you input is used for the entire term but if you

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Date:14 February 2008 I Comments: 0 I Views:8,055

Squatters rights in the UK allow someone to apply for possessory title after 10 years and provided the registered owner does not object in the following 2 years the squatter effectively becomes the owner. But what happens if a mortgage lender ‘delays’ repossession proceedings for 15 years? Well, a High Court ruling has recently allowed Mr Djabar Babai of Heaton Mersey, Stockport to keep his house after being declared bankrupt in 1993 and having not made any mortgage payments since. Natwest ‘delayed’ proceedings for so long they could no longer repossess the property! ‘because 12 years had elapsed so the deadline for

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