Mortgage Articles
Northern Rock To Be Nationalised
Despite the bid battle to buy out failing bank Northern Rock, the government made its mind up to nationalise. Chancellor Darling said the takeover offers weren't sufficient enough to satisfy taxpayer risk. Trading of the bank's shares will be suspended as a result. Along with this decision, Darling is facing criticism from the Conservative party who say this move is 'catastrophic'... Read More
Property 'Sale & Rent Back' Schemes Should Be Regulated
Sale and rent back schemes are becoming more and more popular in the headlines lately due to unscrupulous buyers looking for a quick profit. Buyers prey on desperate sellers who often times are facing repossession and end up selling their home for as little as 50% of the market value whilst being told they may remain in the home as a renter. Dodgy buyers then sell the property evicting the old owners. Charity groups now asking for Government intervention and regulation... Read More
Repossessions Dominated By Sub-prime Market
It comes as no surprise that lenders specialising in sub-prime finance will tend to see a higher rate of court action and repossession amongst their clientele. Recent figures last week revealed a dramatic rise of repossessions last year with 2008 not looking much better. Some retail lenders, including banks and building societies, were found to have a high number of repossession cases in relation to their market share of mortgages... Read More
Will Inflation Rise Affect Future Interest Rate Cuts?
The recent cut in the base rate by the Bank of England is a positive sign toward rejuvinating consumer confidence and stabilising the economy. However, any further cuts will depend on the Bank's ability to keep inflation under control. Last month in January, British factory gate inflation rose to its highest point in more than 16 years. The inflation target for 2008 is aimed at 2 per cent... Read More
Does Rate Cut Mean Cheaper Mortgages?
As most predicted, the Bank of England dropped interest rates down a quarter point to 5.25% last Thursday. The question on everyone's mind is will this cut be passed on to mortgage borrowers? Lenders are focusing more on making a profit on their current portfolios than focusing on the lion's share of the market. Expect some lenders to reduce their current rates but by how much and will the average mortgage holder be better off than last year?... Read More
Virgin Group's Plan to Cut Jobs At Northern Rock
As expected, Branson's Virgin Group is the main bidder to put forward rescue plans this week. One stipulation set forth by the Treasury is whoever buys out Northern Rock will have to repay taxpayers bail-out money within 3 years. This means the new owner of the failing bank must repay £40bn in three short years. If Virgin agrees, the only option may be to reduce jobs... Read More
House Price Predictions For 2008
Despite reports toward the tail end of last year, January's figures are not revealing much in terms of price growth or decline so far. Some major UK banks still see evidence of weakening market activity and experts predict prices could fall this year and next, wiping out gains made over the last 18 months. It is hoped that the second half of 2008 will reveal improvements in rates, prices, and stability... Read More
Mortgage Approvals Down
The British Bankers' Association (BBA) said that the last month of 2007 reported the lowest number of mortgage approvals since the BBA began recording these figures ten years ago. Obvious factors affecting the economy began with the US sub-prime crash which lead to tightened lending here in the UK. Brokers and experts are expecting the Bank of England to cut rates further in February and possibly once more before the end of 2008... Read More
The Government’s Northern Rock Proposals
Whilst the government carefully decides each Northern Rock proposal, Richard Branson's Virgin Group seems the most likely candidate to purchase the ailing bank. It is suggested that Chancellor Darling will decide who buys the bank, as opposed to its shareholders, and the Treasury will expect to make their share of any profits once sold. If the bank fails to be sold, it will shift into "temporary public ownership"... Read More
Mortgages Under 5% Again
Lately, in almost every form of media there has been mostly bad news and gloomy predictions for the UK housing and mortgage industry. Lenders are still tightening criteria making it more difficult for some to obtain a mortgage, particularly those with adverse credit. However, there is a glimmer of good news. Some lenders are now offering sub-5% mortgages in anticipation of a further drop to the base rate this year... Read More
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