Mortgages still costing consumers a lot of money
According to recent figures consumers in the UK are still paying a fortune to take out a mortgage, even though the swap rates, which are indicative of interest rates on mortgages, have come down slightly. A number of lenders have cut the interest rates on some of their mortgage products over the past couple of weeks, but officials have said that the cost of mortgages is still running high for consumers.
Several months ago the government launched a £50 billion mortgage rescue scheme in order to try and ease the problems in the mortgage markets, but whilst many welcomed the move officials have said that it has still to take effect.
One official from the Council of Mortgage Lenders stated: “Neither the cost nor the availability of wholesale funds has improved for lenders since the Bank of England launched its special liquidity scheme, helpful though that scheme is.”
He added: “This means that cost and availability to customers has not improved either. And this in turn means that consumers are now beginning to give up and demand is falling, with confidence in the housing market falling with it.”
Another industry professional said: “There doesn’t appear to be any let up in the misery for borrowers. Lenders need to start playing the game fairly and pass on the cut in swap rates as quickly as they pass on the increase.”
Many lenders and industry officials have predicted that the situation is set to get worse in the mortgage and housing markets over the coming three months or so, and this means that consumers could still find it expensive and difficult to get mortgage finance.
Recent additions:
- Secured loans – the risks and benefits
- Chancellor warns banks about arrangement fees on mortgages
- House price slump could last several years
- Why you should beware of doorstep lenders
- Five things to look for when getting a loan
Related Posts
Rent to Home-buy scheme deemed unsuccessful
The Rent to Home-buy scheme that was launched by the government in the hope of enabling more people to get onto the property ladder has been deemed unsuccessful. »
Only one family saved by mortgage rescue scheme
A recently released report claimed that whilst the mortgage rescue scheme launched by the government had been aimed at stopping many families from losing their homes, only one family had actually benefited from it. »
CML stands up for mortgage lenders
The Council of Mortgage Lenders has recently spoken out to defend its member banks, after some banks were criticised for failing to pass on base rate cuts and were accused of making a profit. The CML insists that its member banks are actually profiteering, and recently released a statement to this effect.»
Hope for council tenants in Dundee that want to buy their homes
Over recent years a variety of mortgage lenders have launched special deals for people living in council houses who are interested in buying their homes and getting onto the property ladder. »
Landlord and tenants worried about tenant deposit scheme
It has emerged that both tenants and landlords are becoming concerned about the effectiveness of one of the three tenant deposit schemes that were set up to protect the deposits of tenants, with concerns that measures that have been put into place to cut costs could actually end up affecting the quality and effectiveness of the scheme.»
Leave a comment
More from Mortgage News category
Ads and sponsors