Saturday, 25 August 2012

Lenders rein in high LTVs

The number of 90% mortgages has fallen by 26% from 330 products this time last year to the 244 now.

Sarah Davidson, 22 August, 2012
Moneysupermarket said in the past six months alone the number of mortgages available for loans up to 95% of the property’s value has fallen by 43% from 49 products to just 28. In the past 12 months first-time buyer mortgage products have fallen by 31% from 1,786 to 1,225. A number of lenders that were offering 95% mortgages six months ago have since withdrawn them from the market. 

These include Cambridge, Ipswich, Nottingham and Skipton building societies.  Clare Francis, mortgage expert at MoneySupermarket, said: “Our analysis shows the continuing difficulty facing first-time buyers and those with smaller deposits looking to find a suitable mortgage. "Despite the launch of the Funding for Lending Scheme which was designed to encourage further mortgage lending by the banks, there appears to be few signs that the initiative is helping those with small deposits. "It is still early days and we won’t see any data on the impact of the initiative until the end of the year, but so far there is little to indicate that the scheme will kick start the beleaguered mortgage market.”

Monday, 6 August 2012

WOW what a weekend have you ever been so proud to be British??  I know I haven't felt this much national enthusiasm for sport in my lifetime.  The unique opportunity the Olympics gives is the vast variety of sports on offer from a spectator point of view and it has to be said the BBC has done a magnificent job of broadcasting a very broad spread of these events even on their traditional headline channels.

It's a wonder any work is getting done such is the fervour and fever spreading throughout the country on this British wave of success.

As a proud Yorkshireman I would also like to pass on my congratulations to all the Yorkshire Athletes, the Daily Mail published an article stating that if Yorkshire was a country it would have more medals than Japan, Australia and South Africa!!

With all this coverage it's difficult to see underneath this success at the business headlines this week but here are couple of tit bits that people might find interesting -

Tesco Bank has launched 4 mortgage products at competitive rates however they won't go above 80% ltv and they come on a non advised basis so be aware if you decide to use these products they might not fulfil your mortgage needs - get some advice first from a qualified broker!  ING were an example of a bank that went down this road around 2-3 years ago and now they very quickly became aware that they need to ensure the customer is protected by being given the right advice hence opening up all their products to brokers.

Marks & Spencer have also announced that they have decided to start offering more banking facilities and are looking to produce their own mortgage range in the future.

The Bank of England is set to downgrade its growth and inflation forecasts as the eurozone crisis and slowing domestic demand continue to hit the UK economy.
The BoE is expected to reveal in its August inflation report on Wednesday that the UK will have almost no growth in 2012, a marked fall from the 0.7 per cent forecast made in its May forecast.
The forecast, which will be presented by Governor Sir Mervyn King, will also downgrade growth to 1.5 per cent in 2013, down from the 2.1 per cent forecast in May.
According to The Telegraph, King is also likely to say that falling oil and commodity prices and a slowing economy will pull inflation down faster than forecast.
The Bank is expected to say annual inflation will fall below the 2 per cent target by the end of the year, from its current level of 2.4 per cent.

For those on tracker mortgages this seems to be good news as interest rates are normally used to curtail inflation, if' its falling without adjusting it then there's no real reason to adjust it in the near future - 0.5% for sometime then!!