Insurance
Money
Providers
Blog
News
Newsletter
News Archive
Get the latest deals, news and advice in your inbox with our no-spam guarantee!
News in Mortgages
Subscribe to our e-mail newsletter to receive the latest news headlines and special offers in your inbox. You may also be interested in our blog commentary updated on a daily basis. For more info on our editorial team click here.
Buy-to-let mortgage lending increases by a third
Loans for buy-to-let mortgages have risen 32 per cent year-on-year, according to figures from the Council of Mortgage Lenders (CML).
However, despite this increase the current level is five per cent lower than the fourth quarter of 2011 but it is still only a third of the level it stood at in 2007. More »
By Jonathan Dawes, Mortgages - Fri 11 May 2012
Mortgage fraud up by 8%
Fraudulent mortgage applications are on the rise as rates of the crime grew by eight per cent in the past year.
Figures from Experian revealed that 34 out of 10,000 mortgages were found to be fraudulent in the past year, compared to 15 out of 10,000 in 2006. The company believes it has been driven by consumers struggling to afford the rising cost of living.
It is the fifth year in a row that this type of crime has increased and it was found that 93 per cent of these cases were down to individuals making false claims on their applications such as lying about earnings, attempting to cover up a poor credit history and "misinterpreting" their current unemployment status.
Nick Mothershaw, Experian director of identity and fraud said: "UK fraud is down to first parties misrepresenting their circumstances, and the products such as mortgages and insurance that have seen fraud soar over the last year have a significant first party fraud element to them."
Mortgage fraud is a major problem in the UK with the National Fraud Association predicting that it will cost the country £1 billion in 2012. More »
By Jonathan Dawes, Mortgages - Thu 19 Apr 2012
UK households hit by rising inflation
Property markets are the latest sector to be hit by the recent rise of inflation in consumer price index (CPI).
The rate took an unexpected increase to 3.5 per cent over March, up by 0.1 per cent from the previous month. Figures from the Office for National Statistics (ONS) are believed to have been driven by the high price of food and clothing.
Research by Moneysupermet.com has revealed that 65 per cent of Brits have had to put important life decisions on hold due to high cost of living and rising utility bills. More »
By Jonathan Dawes, Mortgages - Wed 18 Apr 2012
Number of FTBs rose in February
The number of first-time buyers improved in February, according to figures from the Council of Mortgage Lenders (CML).
Research by the organisation found that the amount of loans given out to property investors grew by four per cent from January and also saw a 17 per cent rise from February in the previous year.
In the month, the CML noted that 14,100 loans worth £1.7 billion were taken out in February by first-time buyers as more people had been taking advantage of the stamp duty holiday before it was abolished on March 24th.
Others looking to get on the property ladder have been encouraged by the government's NewBuy scheme which sees buyers pay five to ten per cent of the value of a property to secure a home.
Paul Smee, CML director general, said: "It is encouraging to see the continuing year-on-year improvement in house purchase lending. However it is not yet clear whether the end of the stamp duty concession will lead to a falling off in first-time buyer numbers." More »
By Jonathan Dawes, Mortgages - Tue 17 Apr 2012
Mortgage loans fall by 7%
Loan applications for mortgages fell by seven per cent in March to reach the lowest level since December 2010.
Approvals for home purchases dropped sharply in the past month to 43,450 and the reduction was the first year-on-year fall since May 2011. While the Council of Mortgage Lenders (CML) revealed that the amount of lending in February had remained steady at £10.7 billion, but was up 14 per cent on the same period in the previous year.
The latest Mortgage Monitor by e.surv found that the March drop was driven by a fall in the amount of first-time buyers that are taking out money to purchase a property.
This was believed to be down to banks reducing the availability of high loan-to-value schemes.
Richard Sexton, e.surv director, said: "The tactic boosted activity during last autumn and early part of this year, albeit artificially, and veiled a multitude of underlying weaknesses in the market. Now the banks can no longer afford to take on extra costs." More »
By Jonathan Dawes, Mortgages - Mon 16 Apr 2012
Homeowners warned of rising mortgage rates
Homeowners are being warned of the rising costs of mortgages and have been advised to check their current arrangements.
Research by Moneysupermarket.com has found that since rates hit the lowest level in October 2011 they have begun to slowly increase once again. The average figure for a two-year fixed mortgage has now risen back to 4.15 per cent.
It has not been helped by a number of lenders announcing a hike in standard variable rate (SVR) from May 1st. Moneysupermarket has advised borrowers to shop around for the most competitive deal to ensure they do not rack up bills.
Clare Francis, mortgage expert at the price comparison website, said: "Mortgage rates are nudging upwards so anyone looking for a mortgage or whose mortgage deal will end in the next few months should act sooner rather than later to secure one of the current rates in case they rise further."
The recession continues to bite hard on some households and a recent survey by Scottish Widows revealed that 4.4 million Brits admitted to struggling with their finances. More »
By Jonathan Dawes, Mortgages - Wed 11 Apr 2012
Mortgage lending remains steady for February
Mortgage lending has remained steady for the past month but is up on the previous year's figure.
The Council of Mortgage Lenders (CML) revealed that the level of borrowing stood at an estimated £10.7 billion but was 14 per cent higher than February 2011 when the figure was £9.4 billion.
It comes after the organisation revealed that the amount of first-time buyers had increased by 23 per cent in 2012 as many people looking to get their foot on the property ladder were becoming more confident in the housing sector.
Bosses at the CML have said that February's figure is "almost identical" to January when £10.65 billion was lent and added that the rate was aided by "brisk" house purchases.
Bob Pannell, CML chief economist, said: "Although a seasonal decline is expected over the winter months, our forward estimates suggest that February was the seventh month in a row of higher year-on-year lending." More »
By Jonathan Dawes, Mortgages - Wed 21 Mar 2012
FSA voices concerns over mortgage market
The Financial Services Authority (FSA) has described the current mortgage market as a "ticking time bomb".
As the level of first-time buyers was reported to have grown by 23 per cent, officials at the FSA have warned that even a wide-scale clampdown on mortgage lending will not be able to stop the problem.
In the financial watchdog's Mortgage Market Review it estimated that £120 billion of repayments are due over the next ten years, which will put increased pressure on homeowners within the UK.
The FSA has described the move will present a "significant challenge" to borrowers and now the organisation wants to stop irresponsible lenders putting more property investors under further financial restraints.
Martin Wheatley, managing director of the FSA's conduct business unit, said: "There is a ticking time bomb that's been created over the last 20 years and what we're trying to do is to make sure that that ticking time bomb does not get any worse from here on in." More »
By Jonathan Dawes, Mortgages - Thu 15 Mar 2012
Rate of FTBs increases in 2012
The amount of first-time buyers trying to get onto the UK property ladder has increased for the first month of 2012.
Statistics by the Council of Mortgage Lenders (CML) revealed that 23 per cent more people were attempting to buy a home in 2012 compared to the figure from the previous year.
The beginning of the year is a traditionally slow month for the housing market and bosses at the CML have stated that, despite these figures, this January has been no different.
It adds to the slight improvement in confidence within the market as house prices and remortgage lending levels began to fall.
The CML reported in January that mortgage lending had hit £11.7 billion for December 2011 but it seems that the market is beginning to show signs of improvement.
Paul Smee, director general of the company, said: "The year-on-year rise in house purchase lending suggests that lending levels are generally rising although we expect the trajectory to be bumpy rather than smooth this year." More »
By Jonathan Dawes, Mortgages - Wed 14 Mar 2012
Scottish govt plans mortgage support scheme
The Scottish government is planning to set up a mortgage support scheme in a bid to get more people on the property ladder.
A three-year initiative will be a nationwide indemnity scheme and aims to encourage and aid people to get a mortgage by providing a guarantee. It will help those who could afford the payments but have their mortgages stunted by high deposit payments.
The Council of Mortgage Lenders recently reported that Northern Ireland was the only area of the UK that had bucked the trend and seen the amount of mortgages rise highlighting dropping prices as the cause of the increase.
Alex Neil, cabinet secretary for infrastructure and capital investment, said that the scheme will allow homeowners to purchase mortgages at 95 per cent of the property's value and believes it can create 22,800 new construction jobs.
He said: "The scheme will inject new life into the housing market, with the aim of helping thousands of households to be able to buy a new home that they can afford." More »
By Jonathan Dawes, Mortgages - Mon 5 Mar 2012
Homebuyers confused by technical jargon
British homebuyers continue to be confused by technical jargon involved when taking out a mortgage or purchasing a property.
Research by Nationwide Building Society has found that a lack of knowledge of mortgages is putting off first-time buyers (FTBs) trying to get their foot on the property ladder.
The survey revealed that 40 per cent of potential buyers were confused by jargon with FTBs the most likely group unaware of many terms used by estate agents.
Only 31 per cent knew that LTV means loan to value and refers to the size of money a person would want to borrow whereas a quarter of buyers did not know that they owned the property only when the sale has been completed.
Martyn Dyson, Nationwide's head of mortgages, said: "Buying a property is likely to be the biggest financial commitment most people will make. A lack of understanding of the key terms used during the mortgage process could mean that people end up spending more money than is necessary."
A recent report by the Council of Mortgage Lenders revealed that the amount of loans taken out by property investors had reached £11.7 billion in 2011. More »
By Jonathan Dawes, Mortgages - Thu 1 Mar 2012
Northern Ireland bucks mortgage trend
Northern Ireland was the only area in the UK which saw an increase in the amount of purchase loans for mortgages in the final quarter of 2011.
The Council of Mortgage Lenders (CML) revealed that the country saw the total amount of loans increase by four per cent in the last three months to have a combined value of £240 million.
Bosses at the CML highlighted the reduction in house prices as more and more first-time buyers got on the property ladder.
Due to a low demand, property values have been plummeting and with the economic crisis worsening the there has been a lack of new buyers.
The average house price in Northern Ireland is £137,219, an 8.4 per cent annual drop and this has encouraged more people to get on to the property ladder.
Derek Wilson, chair of the CML Northern Ireland, said: "The increase in house purchase loans are a much needed confidence boost to the market in Northern Ireland." More »
By Jonathan Dawes, Mortgages - Tue 28 Feb 2012
CML: Mortgage lending strengthens
Gross mortgage lending continues to recover as borrowing was ten per cent stronger for January than it was in 2011.
Statistics from the Council of Mortgage Lenders (CML) found that there was a decline to £10.5 billion with borrowing falling by 14.4 per cent from £12.2 billion in December.
Whilst the figures were lower than the pre-Christmas level they were up on 2011's £9.5 billion. This was combined with a report from the Mortgage Advice Bureau which showed that applications were up by 25.8 per cent from last year.
It signals a positive move in the struggling property market as more first-time buyers are getting their foot on the housing ladder.
Bob Pannell, CML chief economist, said: "The increase in lending compared to January last year helps support our view that housing and mortgage market activity may be boosted by first-time buyers seeking to complete deals before the stamp duty concession ends in March." More »
By Jonathan Dawes, Mortgages - Tue 21 Feb 2012
Mortgage lending hits £11.7 billion
The total amount of loans property investors are taking out for a mortgage has hit £11.7 billion, according to new research by the Council of Mortgage Lenders (CML).
Figures from the organisation found that for December 2011 there had been a 12 per cent drop from November's total of £13.2 billion however it was a 12 per cent rise from the same time in the previous year.
Recent research from Halifax revealed that mortgage rates were at the lowest level for 14 years but property company Rightmove revealed that just a fraction of new homes have come on the market since the turn of the year.
The CML said that total lending for the last quarter of 2011 stood at £37.4 billion up on the 2010 figure of £33.6 billion.
Bob Pannell, chief economist at the organisation, said: "The closing months of 2011 saw stronger mortgage lending activity and housing transactions, despite the fact that short term economic prospects are challenging. There is a glimmer of light ahead for households in that real incomes could stabilise and perhaps even start rising by the end of the year." More »
By Jonathan Dawes, Mortgages - Tue 24 Jan 2012
Availability of buy-to-let mortgages increases 104% since 2008
The number of buy-to-let mortgages available in the UK has grown by 104 per cent in the last three years, according to figures from Defaqto. More »
By Jonathan Dawes, Mortgages - Wed 26 Oct 2011
Lenders 'finding it difficult to offer long-term fixed-rate mortgages'
Lenders could find it impossible to offer 30-year fixed-rate mortgage deals with attractive terms in the current marketplace. More »
By Jonathan Dawes, Mortgages - Mon 24 Oct 2011
Mortgage: Scottish first-time buyers' initiative gets an extra £4.65m
A scheme to help first-time buyers get onto the property ladder has been given additional funding, according to the Scottish government. More »
By Jonathan Dawes, Mortgages - Thu 13 Oct 2011
Struggling with mortgage repayments? Contact your lender
Brits struggling to make their mortgage repayments should consult their lenders at the first sign of trouble. More »
By Jonathan Dawes, Mortgages - Thu 22 Sep 2011
SVR mortgages 'still the most popular in the UK'
Standard-variable-rate (SVR) mortgages are still the preferred option for property owners, according to research by unbiased.co.uk. More »
By Jonathan Dawes, Mortgages - Wed 21 Sep 2011
