Whilst the global cr4edit crunch has hit all sectors of the mortgage industry extremely hard over recent months the news has been dominated by stories about how lenders and consumers have really suffered as a result of the effects of the credit squeeze. Lenders have found it increasingly hard to get finance for their mortgage lending operations, and therefore have had to tighten credit conditions, increase the cost of borrowing, and remove various mortgage products from the shelves. This has, of course, impacted on consumers, who have found it increasingly difficult to get an affordable mortgage due to lack of accessibility, availability, and affordability. (more…)
Archive for May, 2008
Brokers complain over lack of access to mortgage deals
Saturday, May 31st, 2008
Repossession levels have continued to rise
Saturday, May 31st, 2008A recent report has shown that the number of people in the UK who are at risk of losing their homes through repossession has rocketed by nearly 20% in the past year. Homeowners have been hit with a variety of rising costs over recent months, which have seriously affected the ability of many homeowners to keep up with their mortgage repayments. Many homeowners began struggling nearly two years ago, when interest rates started to rise thick and fast, taking the base rate from 4.5% to 5.75% in under one year. (more…)
Slump in lending levels fuelled by credit crunch
Thursday, May 29th, 2008According to a recent report the global credit crunch that has swept across the financial markets in the UK has resulted in a slump in lending levels in the mortgage markets, with a 17% year on year drop indicated in mortgage lending levels. In March the amount lent out in mortgage loans came to around £26.3 billion, and this was a drop of over £5 billion compared to just one year earlier, before the credit crunch took a hold in the UK. (more…)
The struggle gets tougher for first time buyers
Thursday, May 29th, 2008Over recent months there has been a great deal of speculation over house prices in the UK, with the general consensus being that house prices are set to fall by as much as 20% over the next year or two. With house prices having soared by 200% over the past decade, this may seem like a drop in the ocean – particularly considering that the average income has only gone up by around 53% in the same period. However, it is the news that many first time buyers have been waiting for, as for many falling house prices meant that they could finally look at getting their foot onto the first rung of the property ladder. (more…)
Gazundering becoming a common practice
Wednesday, May 28th, 2008Over recent years with the property boom in full swing in the UK many of us have come across the expression gazumping, as potential buyers battled it out to get their hands on a property, trying to outbid one another as the seller rubbed his or her hands together in glee. However, with the downturn of the property market and the bursting of the housing bubble has come the practice of gazundering, where would be buyers are dropping their offer price at the last minute leaving worries sellers in a real predicament. (more…)
Consider a credit union for your finance needs
Tuesday, May 27th, 2008Most people are only too aware of how difficult and expensive it has become to get any sort of finance these days, with the global credit crunch maintaining its grip on the UK money markets and lenders exercising increased caution with regards to who they will lend to. Even finding an affordable personal unsecured loan has become extremely difficult if not impossible these days, and this has marred the chances of many consumers who are looking to raise finance. (more…)
Protecting your personal data
Tuesday, May 27th, 2008Over recent months more and more of us have become aware of the importance of protecting our personal data, and the problems that can arise as a result of failure to do this. Personal data can include name, address, date of birth, national insurance details, banking details, etc. Some people have been cynical in the past with regards to the level of damage that someone can cause if they get a hold of your personal data, and one of these cynics was the television presenter Jeremy Clarkson. (more…)
How hard will it be to get an adverse credit loan?
Tuesday, May 27th, 2008In the past getting an adverse credit loan could be difficult, and many people with damaged credit found it difficult to get some forms of finance. However, although many lenders would not consider lending to those with damaged credit in the past, and many others charged extortionate rates of interest on loans for those with damaged credit, it was usually possible to get some form of finance even with an adverse credit rating. Getting finance in the UK over recent years has been a pretty relaxed process, and the ease of getting credit has probably been a major contributory factor in the growth of the nation’s huge personal debt mountain. (more…)
Lenders needs to be more careful on checking applicant information
Monday, May 26th, 2008A recent report has shown that a worrying number of lenders are failing to carry out important checks into the income of applicants that apply for unsecured finance, and there are concerns that this could lead to many people getting into unmanageable debt levels and could result in an increase in bad debt levels in the UK. (more…)
Acknowledge and deal with your debts
Monday, May 26th, 2008It can be very tempting for those with a high level of debt and financial commitment to simply try and ignore their financial worries once difficulties set in. Many people think that burying in their heads in the sand and trying to ignore financial worries means that they will not get stressed over the situation, but in fact failing to address this sort of problem can actually make the whole situation much worse, and could ultimately result in health problems, family problems, credit problems, and even legal action – or worse still loss of your home if you have secured finance. (more…)
Is the First Plus special offer a good deal?
Sunday, May 25th, 2008Over recent weeks the secured lender, First Plus, which uses the television star Carol Vorderman to advertise its loan products, has been advertising a new loan product, which offers consumers the chance to enjoy a low starting rate of interest on a secured loan. However, the company and the advertisement have come under fire from officials that state the loan is a debt trap, and borrowers could soon find themselves paying a fortune when the interest rate rockets following the initial period. (more…)
Struggle continues for first time buyers
Sunday, May 25th, 2008According to recent report first time buyers looking to get a footing on the property ladder in the UK are continuing to suffer, even through house prices have been falling, and are now lower than they were this time last year. Whilst many first time buyers may have hoped that falling property prices would at last give them a chance to get onto the property ladder they have found a number of other obstacles in their way over recent months. (more…)
Bank decides to leave base rate static
Friday, May 23rd, 2008In April of this year the Bank of England cut the base rate for the third time since December of last year, cutting it by a further 0.25% and taking it from 5.25% to 5%. Following the rate cut the majority of analysts and economists predicted that there would not be a further interest rate cut in May, as the central bank has not cut rates back to back for seven years. These predictions were proven right, as the Bank of England announced that there is to be no base rate cut for May following the recently Monetary Policy Committee meeting. (more…)
Debt worries result in many consolidations
Friday, May 23rd, 2008According to a recent report an increasing number of people have decided to consolidate as a result of financial woes and worries in an increasingly difficult financial environment. Figures have been taken over the last several years, and officials claim that over the past three years around 6.5 million borrowers have decided to consolidate their debts and move them all over to one provider in order to cut back on outgoings, ease financial management, and have fewer debts to juggle. (more…)
Many lenders ignore base rate cuts
Friday, May 23rd, 2008An industry official has expressed concern that the Bank of England is effectively losing control of retail interest rates, stating that the recent base rate cuts by the central bank have often gone ignored by lenders, who have continued to raise their interest rates despite the base rate cut. Since December there have been three cuts in the base rate, taking it from 5.75% to 5%, but many lenders have continued hiking up the interest rates on borrowing such as mortgages, personal loans, and credit cards. (more…)
Mortgage approvals slumped in March
Friday, May 23rd, 2008Recent figures show that mortgage approval levels have been plummeting over recent months, with the number of mortgage approval levels falling to 64,000 in March. This was a 44% drop from the same period a year earlier, and was the lowest level since records began in 1999. The falling figures have stemmed from the global credit crunch, which has resulted in lenders tightening up on their lending criteria as well as falling house prices, which has put many people off making a purchase. (more…)
Credit crunch means slump in mortgage lending
Thursday, May 22nd, 2008The UK’s financial markets are in something of a mess as a result of the global credit crunch, which made its way across the nation last summer. All areas of finance have been affected, such as loans, credit cards, and mortgages. Consumer confidence has taken a dive, the economy has been adversely affected, and lending conditions have become tighter than ever, as lender struggle to raise funds to finance their lending operations. (more…)
What’s in store for the UK economy?
Wednesday, May 21st, 2008Over recent months the Bank of England and the Monetary Policy Committee have faced a tough decision when it comes to setting interest rates. This is because on one hand the central bank needs to be very cautious about cutting the baste rate because of rising inflation, but on the other hand the bank needs to cut the base rate in order to boost the slowing economy. (more…)
Should brokers have access to all mortgage deals?
Wednesday, May 21st, 2008One of the traditional ways of finding a suitable mortgage for many people in the UK over recent years has been to go through a broker. Many people who were keen to find the most competitive deal tended to avoid gong from one lender to another in order to browse and compare deals, and get a broker to do the legwork for them, which often saved them time and money. However, in the dark days of the global credit crunch there are many consumers that may find themselves missing out if they go through a broker, and this is something that the mortgage broker industry is not happy about. (more…)
Start of year sees insolvency levels rise
Tuesday, May 20th, 2008According to a recent report the first three months of this year have seen individual insolvency levels rise, with an increasing number of people entering into insolvency plans as a result of difficulties with household finances, which have been strained for millions over recent months. A combination of high mortgage repayments, rising bills, increased living costs, and tight credit conditions have all contributed to the rise in insolvencies according to industry professionals. (more…)
Could you be entitled to a break in monthly mortgage repayments?
Tuesday, May 20th, 2008The burden of keeping up with monthly mortgage repayments has really taken its toll on many households over recent months, and amongst the suggestions put forward by senior government officials such as Alistair Darling is the possibility of mortgage payments breaks to help those struggling to keep on top of their repayments. However, some industry officials state that many homeowners could already be entitled to mortgage payments breaks, and are urging consumers to check the small print on their mortgage loan agreement to determine their eligibility. (more…)
Debt advice companies and charities get new powers
Monday, May 19th, 2008Rising personal debt levels in the UK have resulted in many consumers seeking advice and debt management assistance from one of the number of debt advice companies and charities around, and many have entered into debt management plans through these firms. However, in the past they have experienced difficulties in terms of making arrangements with creditors, who are often unhappy about freezing interest, accepting lower repayments, or writing off a portion of the borrower’s debt. (more…)
Hikes in personal loan rates may mean credit cards are more viable option
Monday, May 19th, 2008According to a recent report some consumers may now be better off using their credit cards as a form of finance rather than opting for a personal loan because loan rates have been hiked up by huge amounts since the onset of the global credit crunch. Credit cards are well known for the high rates of interest charged, but officials state that even so some people may find that they are the cheaper option when compared to a personal unsecured loan with a sky-high interest rate. (more…)
Nationwide asks for larger deposits from borrowers
Monday, May 19th, 2008The Nationwide Building Society recently joined a number of other lenders who have decided to try and recoup the losses incurred by the global credit crunch by asking for a larger deposit from mortgage borrowers. In the past some consumers were able to avoid paying a deposit by taking out a 100% mortgage, and in some cases could even borrow more than the value of the property by taking a 125% mortgage. (more…)
Mortgage lending levels remain subdued
Friday, May 16th, 2008According to recent figures mortgage lending levels in the UK remain subdued, as the global credit crunch continues to wreak havoc in the financial markets. Figures were recently released by the Bank of England, and showed that mortgage lending levels were continuing to fall, with tighter lending conditions and fewer applications from cash strapped consumers contributing to the lower figures.
One official from the Royal Institute of Chartered Surveyors stated: “It is improbable that the bottom of the cycle has not yet been reached given the latest announcement that Nationwide is following the lead of other lenders in requiring new borrowers to now put down at least a 10 per cent deposit to secure a mortgage. This is set to intensify the already significant pressure on first-time buyers.” (more…)
Credit crunch leads to increase fraud on finance applications
Friday, May 16th, 2008According to a recent report the effects of the global credit crunch have gone much further than simply making it more difficult to get finance in the UK. Industry officials claim that many consumers are now committing higher levels of fraud on finance applications as a result of the credit crunch, as they think that this is the only way that they will be able to get credit in light of the tighter credit conditions that have come about as a result of the credit squeeze. (more…)
Finding an affordable loan
Thursday, May 15th, 2008As many people have already discovered getting any sort of finance these days has become far more difficult and far more expensive. The global credit crunch has really taken its toll since last summer, and consumers have had to bear the brunt of the difficulties that have come from the crunch. The cost of borrowing in all sectors, such as mortgages, loans, and credit cards, has gone up, and this has had a serious effect on consumer affordability and spending, which has had a knock on effect on the economy. (more…)
How will government help struggling homeowners?
Thursday, May 15th, 2008Following a recent meeting with banking and mortgage officials the government has announced that there will be help in place to assist struggling homeowners that are in danger of losing their homes due to mortgage arrears. This includes those that are coming off cheap fixed rate mortgage, many of whom could face losing their homes when their mortgage interest rate and their monthly repayments rocket once their current deal comes to an end. (more…)
Make the most of the Internet for your finance needs
Wednesday, May 14th, 2008Anyone that needs to find suitable finance or credit can enjoy a number of options when it comes to finding the right finance package or financial product. Whilst it is certainly true that the number of different financial products, and access to these financial products, has decreased over recent months as a result of the global credit crunch there are still a number of finance options available for those looking for credit. There are a number of ways in which you can find out about the different options on offer when it comes to getting finance. (more…)
Lenders need to be more cautious
Wednesday, May 14th, 2008Over recent months we have all heard about the various effects of the global credit crunch, which has created havoc in the UK’s money markets and has resulted in many changes. One of the major changes that most of us have heard about is the tighter credit conditions that have resulted from the credit squeeze. According to reports lenders have really tightened up on their lending criteria, are being far more careful with regards to how much new business they take on, and are being far more cautious about who they will lend to. (more…)
Mortgages could continue to get more expensive
Monday, May 12th, 2008According to a recent report banking officials have warned MPs and the Chancellor, Alistair Darling, that the cost of mortgages may continue to climb over the coming months, despite the launch of a £50 billion mortgage rescue plan introduced by the government, where banks will be able to exchange mortgage assets for government bonds for increased security. Banking officials have stated that the plan may take a number of months to take effect, and in the meantime the cost of mortgage borrowing may continue to get higher. (more…)
Darling wants banks to help vulnerable families
Monday, May 12th, 2008Chancellor of the Exchequer, Alistair Darling, has recently announced that he wants banks to do what they can to help the more vulnerable families in the country, stating that banks need to help struggling homeowners in order to reduce the risk of rocketing repossession levels. Both Darling and the Housing Minister, Caroline Flint, have stated that banks need to give more time to families that fall behind with their repayments. (more…)
The credit squeeze continues
Monday, May 12th, 2008It was in the summer of last year when most of us heard the expression ‘global credit crunch’ for the first time. At that time few of us knew just what a dominating force the credit crunch would be in the world of finance, but over eight months later this phenomenon continues to wreak havoc in the financial markets both in the UK and across the globe. (more…)
Abbey takes huge slice of the mortgage market
Saturday, May 10th, 2008Over the past six months the mortgage markets have been thrown into turmoil in the UK, with lenders scaling back on their lending, and consumers facing ever increasing costs and difficulties when it comes to getting a mortgage or a remortgage. Many lenders have had to rein in their lending over the past six months, with many unable to secure the finance that they need to fund their mortgage lending operations due to difficulties and expense when it comes to inter-bank lending. (more…)
Many unable to access first direct loans
Saturday, May 10th, 2008In a recent announcement the Internet arm of HSBC bank stated that it would be restricting its mortgage lending activities by no longer offering mortgages to those that are not customers of the bank already. Customers of first direct will still be able to access mortgages from the lender even if they do not currently have a first direct mortgage, providing they meet the other eligibility criteria.
First direct is one of many banks and building societies that have had to restrict their lending over recent months as a result of the global credit crunch. Many have had to take various mortgage products off the shelves or have started to offer mortgages only to existing customers or those that live within a certain radius of the branch. (more…)
Debt relief orders could make bankruptcy too easy
Saturday, May 10th, 2008In April of next year the government are introducing Debt Relief Orders, and these orders are a way for low income borrowers with debts to declare themselves bankrupt online without having to go near a bankruptcy court or deal with the traditional hassles of filing for bankruptcy. However, there are concerns amongst some officials that DROs could make it too easy for consumers to escape their debts, and that the system is open to abuse. (more…)
Is debt consolidation the answer?
Wednesday, May 7th, 2008With an increasing number of households finding themselves under financial strain as a result of high living costs, tight credit conditions, and rising bills, it is little wonder that so many have decided to turn to consolidation in order to try and reduce their outgoings, reduce the number of debts that they have to deal with, and ease the financial strain that is has left many teetering on the financial brink. However, it is important for anyone that is considering this step to determine whether consolidation is the right answer. (more…)
CAB still dealing with many debt enquiries
Saturday, May 3rd, 2008An increasing number of households are currently trying to cope with rising debt problems, as rising bills, high mortgage repayments, and restricted access to credit all take their toll on our finances. As a result of this an increasing number of people are now seeking advice with relation to their debts, and the Citizen’s Advice Bureau has reported a significant rise in the number of people that have been contacting the agency with regards to financial problems and debt worries. (more…)