‘Mortgages’ News
Offset Loans Can Save Consumers Money
Posted 2008-02-18
Intelligent Finance, a division of Bank of Scotland initiated in 2000, recently released research showing that if offset loans were as popular in the U.K. as they were in England, U.K. residents could collectively save £345 billion or nearly £70,000...
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Benefit of Fixed Rate Mortgages Seen
Posted 2008-02-17
With the majority of fixed rate mortgages offered only lasting for five years, Chancellor Alistair Darling recently made a call for 25 year fixed rate mortgages to increase in opportunity-and even become normal-in the future. Currently, Nationwide is the only major mortgage lending company in the U.K. that offers a 25 year fixed rate mortgage. Chancellor Darling’s reasoning behind his desire for wider availability of affordable long-term fixed rate mortgages is to bestow homeowners with added security in the current unstable financial conditions. Chancellor Darling explains, “For many households, particularly those on low incomes, fixing the level of mortgage repayments for several years makes real sense. It can also contribute to wider macroeconomic stability. The popularity of the fixed rate mortgage is apparent. After Nationwide initiated the offer of their 25 year fixed rate mortgage in March 2007, they announced that it sold out within only five weeks. ...
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CML Concerned Over Mortgage Fraud
Posted 2008-02-14
According to Council of Mortgage Lenders (CML), the trade association for the mortgage lending industry, U.K. mortgage lenders want increasingly tighter rules so that mortgage fraud is reduced. Specifically, the mortgage lenders are upset about sales of newly built city centre flats. Mortgage lenders are concerned that in the current unstable property market conditions, developers are offering deals of buyers that inflate the new home’s cost. Many of these deals include cash-back offers, free holidays, paid legal fees, and buying white goods. The CML publication states, “In recent years, discounts and incentives have had the effect of making the real value of new homes less than transparent. This is bad news for genuine buyers and for lenders. Buyers may find themselves with a mortgage worth more than the property’s value, while lenders may find themselves exposed to fraud and the risk of loss.” ...
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Mortgage Holders: Pay off Loans Early
Posted 2008-02-8
Mortgage experts John Charcol recently advised mortgage consumers to consider paying of their mortgage early. According to the company, mortgage consumers may be able to pay off mortgages early by paying mortgages at the same rate as they did before the interest rate drop. John Charcol spokesperson, Katie Tucker, explained that, “For many people, the mortgage is what dictates when you can retire. By paying it off even a few years early it can make a difference to your quality of life not only because of age, but because of the money you free up to spend on other things.” Perhaps as evidence of the spreading view of property as an excellent investment, John Charcol research indicates that more first-time homebuyers are moving in as couples. ...