Take on a fixed-rate mortgage 'rapidly' by Finance News Bulletin
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Published: 02/12/07
customers are being encouraged to buy into the security of a fixed-rate mortgage before the store of England is tempted to add to the base rate furtherAccording to the price comparison place moneysupermarketcom, the top ten lenders have already raised rates on their fixed-rate crop since the base rate increased by a quarter point in May 2007Louise Cuming, skull of mortgages at the collection, described how a number of lenders, including Abbey, were already rising the rates on fixed-rate packages as the market prepares for what is expected to be a go up next month
"Abbey increased its fixed-rate range on Wednesday and Halifax is doing so nowadays (June 25th) It is only a matter of time before other lenders follow set of clothes and increase their rates again," she said"Borrowers needing the constancy of a fixed-rate manufactured goods should reserve their next deal now if their current mortgage term is set to end almost immediately," she
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With the Tour de France put to hit the roads of the UK from 8th July for the first time since 1994, Halifax Home cover is reminding bike owners to remain as vigilant as likely to counter the threat of theftWith figures suggestive of that 439,000 bikes are stolen in the UK, equivalent to one each second, Halifax Home Insurance says that a number of events can be undertaken to prevent thieves from taking your asset in two wheelsMaking use of the increasing number of bike racks is a high-quality way of preventing theft, while parking a bike in a well lit area is also recommendedUsing a hardened strengthen U-type lock could be a savvy move, as cable locks can be cut with no trouble, while marking a bike with an ultraviolet pen to blot your postcode on the frame may also prove helpfulSenior boss of underwriting at Halifax, Vicky Emmott, commented: "With the travel around de France coming to Britain this year, many people will feel encouraged to get on their bikes"She additional: "Cycling has many benefits both for populace's health and for the environment, but it's important that populace take adequate measures to defend their cycles and also make sure they are.
Read More: Protect Your Bike From Theft, Says Halifax Home Insurance >>Mortgage costs in October rise, study shows - Published:23/03/07
The cost of taking out a mortgage rose again in October, as house prices sustained their upward trend, according to new researchpossessions costs rose by 17 per cent in the month, which brings the yearly change to 86 per cent, figures from Halifax revealedHowever, the bank also claimed that home price inflation may slow in the near prospect, which could help some individuals to find a mortgage they can affordThis is because demand for mortgages is expected to drop, given rising utility bills and senior mortgage rates, Halifax explainedMartin Ellis, chief economist, commented: "Significantly senior utility bills and the increase in mortgage rates over recent months - both in set and variable speed products - are expected to constrain housing demand, causing the annual rate of house cost inflation to ease over the coming months"An specialist at Citizens Advice has warned that increasing interest rates could mean that many borrowers struggle with their mortgage repaymentsSenior money owing policy officer Sue Edwards asserted that borrowers could face a monetary "disaster"Today's Most Popular Results Mortgage Enquiry Form Need Life cover ------ Mortgages - Information Mortgages - Home ------ monetary Services - HomeNone of the information on this website is intended to endorse any exact mortgage product or provide mortgage advice Mortgagescouk is a non-regulated trading name of Financial armed forces Net Ltd[Terms & Conditions]more sites:automobile insurance| home insurance | cheap flights | ink automobiletridges.
Read More: Mortgage Costs In October Rise, Study Shows >>Borrowers set up home in never-never land - Published:08/12/06
All occasions are London occasion Search News in the FTcom siteSearchSearch Quotes in the FTcom siteQuotesYOUR MONEY Your homeBreadcrumb follow direction-finding:FT Home > Your money > Your home Special Report EDITOR’S CHOICELevel of new mortgages leftovers highMortgage arrears alarm could be falseMore than a leg-up for cash-strapped first-timersBorrowers hit after interest base rate rise Councils persuade buy-to-let landlords with lure of steady incomeIf something’s worth action, then it’s worth action twiceLATEST YOUR MONEY STORIESHalifax reports strong house price growthLettings marketplace faces a multiple problemNationwide reports bound in house pricesMore than a stage up for cash-strapped first-timers Leaseholders are enjoying a new purchasing powerMPC rates decision was unanimousDon’t miss the ship on this homebuying boomFT index shows home prices calmingHalifax reports physically powerful house price growthWebsites log on to the power of confidential salesFirst-time buyers and cash-strapped home owners are scrambling to take out interest-only mortgages that could leave them opposite financial damage or forced to trade down the property ladder to pay off their mortgageMortgage lenders’ readiness to market interest-only home loans has prompted fears that these mortgages could be the reason of the next misselling scandal Concerns about the rapid growth of this kind of lending has led the Financial military Authority to launch a review of the sector It pinpointed interest-only mortgages as one of the top “emerging sell risks” and drew notice to “an increasing number of mortgages with the lender not recording that there was a linked refund vehicle in place” It expects to report its answer in the new yearThe Financial Ombudsman Service says it has inward 400 complaints about interest-only mortgages over the past day, a small increase on the day before Some people complained that their lender had promised to put a refund mechanism in place but had failed to do so Others said the risks had not been made clear to themThe Financial Services customer Panel’s latest annual report drew attention to “a worrying height of interest-only mortgage arrangements being made where the lender has no knowledge of how the capital would be repaid at the end of the mortgage wordMisunderstandings over what is being sold are recurrent “We were aware that persons were scrambling on the housing high wire without a safety mesh,” says John Howard, chairman of the consumer panel “They were only realising a few natural life down the line that they had not paid back what they borrowed It is unlucky that the word ‘mortgage’ is still used because that makes persons think they are paying it off”Interest-only mortgages have proved popular with buy-to-let investors because they can put interest costs against rental income and, if they own several properties, they can sell one to meet repayments “More stylish buyers with several properties can move their cash about,” says Melanie Bien, associate director at Savills Private FinanceBut their keen take-up by unparalleled borrowers is what is worrying regulators and many persons in the industry Until the 1990s borrowers who took out an interest-only mortgage were required at the same time to make payments into a pension or endowment rule that would pay off the main This underpinned many home loans but some donation mortgages undershot investment targetsBut increasing competition between lenders led to this obligation being dropped and 16 per cent of loans engaged out by first-time buyers in July were interest-only with no repayment policy particular, according to the Council of Mortgage Lenders (CML) In these luggage, borrowers could find themselves obliged to sell their homes to pay back the unique loanWith the average first-time buyer now borrowing 321 era their salary, the highest figure ever, to get on the housing ladder, the pressure remains strong First-time buyers disburse on standard £135,000 for their first home while the standard national home price is around £220,000 – and even higher in London and the south-eastThe superficial plea of an interest-only loan is clear A £150,000 interest-only loan at 5 per cent would need a payment of £625 a month compared with £877 on a 25-year refund mortgage But, unlike the homeowner with a repayment mortgage, at the end of 25 natural life the interest-only borrower would still have debt of £150,000“This can be a good product for some people but they must understand what they are action,” says the Building Societies Association “People must appreciate that they have to pay the loan off and that they must have some mechanism in place It is a good way for recent alumni, for example, to get on the accommodation ladder in the hope that they will get pay rises in the prospect”But many borrowers do not seem to be planning in front “Demand is senior than we would like,” says Paul Hearnden, director of My Mortgage Direct, a broker “Between 30 and 40 per cent go for interest-only deals The under-35s are totally unwilling to cooperation on their lifestyle They think the value of the property will go up or they will inherit some cash They forget that when they move, the moving costs, agent’s fees and trample duty could eat up all the equity because they have not waged anything off”Fears that borrowing is getting out of hand have been stoked by the launch by Kent Reliance structure Society of an “intergenerational” or everlasting mortgage” that can be rolled over to succeeding generations The civilization says there has been an “exceptional” level of interest since it was offered in August although only a few have been sold so farKent dependence says it carries out every one the regulatory checks as with a normal mortgage” counting a review with the customer after five years It has also on paper to existing interest-only borrowers reminding them that the loan would need to be paid off and reminding them they could switch at no cost to a repayment mortgageThe FSA does not need lenders to insist that borrowers put in place a repayment package but “we would wait for lenders to have a evidence of the borrower’s ability to pay back a loan Without a pay backment vehicle and with inflation eroding borrowings less than it used to this can become a millstone if people wake up to it not on time”Howard, the consumer board chairman, says: “Some lenders have been robust and will only provide a loan if you can show an insurance policy or a pension manufactured goods to pay it off Others have been quite blasé about it”The Yorkshire Building civilization says it does not need borrowers to prove they can repay but it does advise persons to put in place a repayment rule “We would not recommend [an interest-only mortgage] but it can be a useful tool We have done other things to help first-time buyers including increasing the pay multiples we accept”In July the Britannia structure Society took action “to highlight solutions to this potential occasion bomb” It scrapped charges for switching to a repayment mortgage and stepped up its communications with members“Warnings about location up appropriate payment vehicles for interest-only mortgages were previously included into annual mortgage statements but feedback from members showed these were ignored,” it said It has been contacting members to encourage them to take manage of their debtInterest-only mortgages are even more popular with persons moving home, according to the CML In July, 22 per cent of home-movers took out this kind of mortgage by means of the repayment vehicle not specified” compared with 16 per cent of first-time buyers Many movers will have pre-existing donation plans but even if they have, their lenders do not come into view to be in the knowRSS news feeds = requires payment to FTcom* Minimum delay 15 minutesAll times are London timeFT HomeSite mapContact usHelpAdvertise with the FTPress enquiriesStudent offersFT ConferencesFT investigate 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Read More: Borrowers Set Up Home In Never-Never Land >>