Owner: Solution Mortgages News URL:http://www.solution-mortgages.co.uk/news/ Join Date: Fri, 04 Apr 2008 05:54:43 -0500 Rating:0 Site Description: Blog updated daily on latest mortgage/remortgage news and other financial comment. Also information on Solution Mortgages.
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UK housing market and mortgage weakness 2008-04-04 05:02:53 Many lenders are taking comfort from the initial assessment that the UK market will experience a soft landing for house prices in 2008.However, the overall picture is likely to disguise a wide variation in house price growth and transaction volumes across sectors and regions. Localised sharp falls in demand could result in house prices for certain types of property falling by around 10%.These localised and more limited falls can translate into significantly higher levels of arrears and losses for lenders.The importance of maintaining consumer and business confidence cannot be understated as increased price volatility is inevitable as volumes slow to much lower levels.Lenders now have a declining appetite for risk. The credit crunch has resulted in lenders reducing their overall exposure to Read more:housing market
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Problems in the mortgage market 2008-04-03 11:38:23 Companies working in the mortgage market have experienced a significant series of events which completely changes how mortgage business will be done in the future.A lot of anger has been directed at lenders for changing criteria and hiking interest rates when the UK Bank of England base rate has been going down.The problem is that there are good reasons behind lenders decisions over the last few months. The industry has experienced an under supply of very competitive and innovative mortgage products in the last 6 months. There could now be the prospect of a shortfall of funding throughout the full range of product sectors over the next 12 months.The situation has led to lenders no longer providing the major distributors with exclusive products, but also to the withdrawal of their product r
How much of a problem is world inflation? 2008-04-02 08:34:52 In the current economic climate The Governor of the Bank of England believes the threat of inflation is a higher priority than the meltdown in the financial sector.The Bank has recently dampened down expectations of an interest rate cut based on world inflation pressures and concerns that this could translate into spiralling wage costs.Wage inflation does need to be watched closely as there is usually a time lag from higher goods price inflation feeding into wages and other costs.The risk facing the world economy is that central banks will accommodate any rise in world inflation as this could lead to stagflation. For example in China inflation has now reached 7%. This is a far cry from the UK governments 2% target and will quickly affect imported costs around the world.In light of this a r
Rate cut needed soon! 2008-04-01 10:27:40 The Bank of England's Monetary Policy Committee (MPC) needs to cut bank base rates by 0.5% by early summer to boost the struggling mortgage market.Interest rates need to be reduced from 5.25% to 4.75% by early summer. That would help matters. It will make things slightly easier for consumers and the housing market.The move should reduce borrowing costs and help borrowers become more optimistic.Confidence in the mortgage market is rapidly slowing and was dented further in the Budget, where the Chancellor failed to throw any life lines.Indeed Solution Mortgages Sales Director Scott Morrissey said "At the current time lenders are actually putting rates up while interest rates have been coming down. Only a cut of 0.5% over the next few months should be enough to see the reduction in rates pass
Building Societies feeling the credit crunch 2008-03-31 05:52:33 Building Societies are now feeling the credit
crunch as a range of lenders have withdrawn products in recent weeks.Lenders are now targeting low loan to value (LTV) business as there are less risks associated with this type of business.Many smaller building societies have been inundated with business and can not cope with demand and have also been withdrawing products. Some have withdrawn all of their ranges.In the last month the availability of residential and buy to let products has dropped significantly.Credit scoring is tighter and maximum loan sizes are being reduced which is making it harder and harder for people to get mortgages.Some lenders have restricted lending by reserving its best deals for those with a 25% deposit.Other lenders have dropped the maximum LTV on self-cert busine Read more:Building
Slow to react 2008-03-28 06:26:52 The current economic situation is grim. Mortgage rates are rising, lenders are looking for reasons not to lend, the housing market looks unstable and the cost of fuel and energy prices is of grave concern.What does the government seem to be doing about this? Very little.The current liquidity crisis needs urgent attention. The government's working party to ease liquidity problems is something that should have been established already.Instead of urgent action we will have a report in the summer and proposals in time for the next pre-Budget report.Decisive action is required now. The whole handling of the Northern Rock affair shows how misplaced this government is. The government has effectively become a lender having nationalised Northern Rock and the Bank of England has been extremely slow Read more:react
Rate cut on the cards 2008-03-27 07:08:12 An interest rate cut is on the cards to help out homeowners who are finding things more and more difficult with the rising energy bills, higher petrol prices and lack of available mortgages.The threat of inflation is still an issue and is in danger of hitting the 3% limit imposed by the treasury but the global credit crisis is more pressing and a rate cut is still possible.If inflation exceeds the 3% target the governor of the Bank of England is forced to write a letter to the chancellor with an explanation.In this circumstance the Bank of England's Monetary Policy Committee (MPC) would raise interest rates to stave off inflation pressures.Instead the MPC may take the unusual step and lower rates due to the turmoil in the global economy and also the threat of recession in the UK.A cut in i
Arrears on mortgage 2008-03-26 10:24:47 Your mortgage is likely to be the largest amount of credit you ever borrow in your lifetime. As this credit is taken over such a long period of time there are many obstacles that may arise over the period that you are not expecting such as redundancy, divorce or prolonged illness. These may not be things that we think about when we initially take out a mortgage but these factors should not be overlooked.The problem is that if you miss payments on your mortgage you will find it more difficult to get credit in the future. If you do not keep up the repayments on your mortgage it could lead to your home being repossessed.Mortgage lenders usually view mortgage arrears as follows:-A missed payment will be recorded if you fail to make 75% of the amount due in that given month Some lenders take in
Debt consolidation services 2008-03-25 10:28:16 If you are looking for debt consolidation services, look no further than Solution Mortgages.We offer debt consolidation services which will allow you to clear your debts and reduce your monthly outgoings.In modern society it is to easy to get into debt. Banks have been offering cheap credit for years in the form of unsecured loans and credit cards. Now things have changed dramatically and the era of cheap credit has all but come to an end.For those people who have taken out large amounts of credit over the last 10 years are now finding that the interest rates on loans and credit cards are increasing and trying to consolidate debts with other unsecured borrowing is impossible.If you are in this situation you will know that interest rates on credit cards, store cards, overdrafts and car fina
More mortgages disappearing from the market 2008-03-20 08:08:32 People who are looking to purchase a property or remortgage in the current climate, need to act fast.Lenders are changing products and criteria on a daily basis as they wrestle with liquidity issues and problems with pricing.The mortgage market is changing rapidly and you need to try and ensure that you act fast to try and complete the deal as soon as you can to avoid disappointment.There are limited funds around at the moment and products are not being withdrawn without reason.In the sub prime sector it is becoming ever harder to place business and if you have more than 3 arrears in the last 12 months you will really struggle to find a lender. Our lender panel has been whittled down to 5 lenders who are actively writing business at the moment.However we are still managing to complete mort
Interest rates could be cut early 2008-03-19 12:41:42 There is talk that interest rates in the UK could be cut in April, earlier than expected.This is in response to further deterioration in the money markets in the last few days.The Monetary Policy Committee (MPC) members voted 7-2 to leave rates on hold last month. The fact that 2 members voted to cut rates last month is a sign that rates could be reduced to 5% next month.The ongoing deterioration in the credit markets is sufficient for the MPC to act as the prospect of recession far outweighs the prospect of rising inflation. This crisis is serious and rather than worrying about the price of bread they should act swiftly.The pound is weak, the credit markets are still effectively shut and UK families are struggling.While the US Federal Reserve are slashing interest rates, the Bank of Engla Read more:Interest
Mortgage arrears problems up by 35% 2008-03-18 10:15:19 Mortgage arrears have increased by 35% in the first 2 months of 2008 said the Citizens Advice Bureau.This was coupled with an increase in arrears on essentials such as utilities, telephone bills and council tax bills.The higher cost of living is making it a real struggle for many families and the number is growing rapidly.Debts on credit cards and store cards are the largest proportion of debt as well as problems
with overdrafts.These sharp rises are extremely worrying and paint a bleak picture of the economy. While the credit crunch shows no signs of abating, the UK government shows few signs of tackling the situation. They seem to be more worried about the cost of bread (ie inflation) and sticking to their 2% targets than addressing the finance sector which in turn would be able to ease Read more:Mortgage
Launch of Commercial Lending 2008-03-17 08:44:50 Due to the large number of commercial mortgages that Solution Mortgages has been undertaking we have decided to launch a dedicated commercial mortgage arm called CommercialLending
.Commercial Lending is headed up by Drew Mitchell who has recruited an experienced team of commercial mortgage brokers. The team has over 15 years of commercial mortgage experience, so you can rest assured that you are in safe hands.Commercial Lending specialise in arranging commercial mortgages and remortgages for companies, self employed traders, partnerships and entrepreneurs in order to help you raise the vital capital necessary to help your business expand and grow.If you're looking to achieve any of the following:Purchase a new business or a new business propertyRaise funds for vital refurbishment, machiner Read more:Launch
Finance for construction projects 2008-03-17 06:40:49 The market for new construction is wide, ranging from those who wish to develop a small plot of land to those companies who develop major residential estates and commercial sites.In general, the market for commercial development is less volatile than that for residential development. Residential property is vulnerable to interest rate increases and during times of economic downturn the market can become flat, with fewer people prepared to commit to buying property.The commercial market is perceived as less volatile. In general, changes to interest rates usually pose fewer problems for businesses, as many lease their premises and their rent is fixed for a set period. At present the market for office property is buoyant, with demand in many areas outstripping supply. Demand for other types o
Selecting a commercial property 2008-03-14 08:14:25 Commercial property
is usually advertised in the local and national press, estate agents, trade press and magazines. The internet is also proving a popular place to advertise commercial property.When selecting a property, a number of factors should be considered before making a choice.You should consider the ideal type of property for the business, while compromise may be necessary to an extent, the building should be suitable for the business.You should make sure the business will be able to operate from the premises. Some properties are subject to restrictions on the types of business they can accommodate. In other cases, the local authority may be required to authorise a change of use.It is worth remembering that many companies buy premises that suit their needs at the time, but expand
ASU Insurance 2008-03-12 11:31:22 Solution Mortgages now offer Accident Sickness & Unemploymnet Insurance (ASU insurance) through it's website www.solution-mortgages.co.ukWe do not offer advice on insurance products however it is prudent for any new loan borrower to protect themselves against the possibility of loss of earnings due to accident sickness or unemployment. This insurance is not compulsory and your loan application will not be prejudiced in any way.Your DemandsYou would like some or all of your loan repayments to be paid if you become involuntarily unemployed or ill.Your NeedsYou do not have any way to pay your loan if you have any accident, become sick or are involuntarily unemployed.EligibilityTo be eligible for this insurance policy you must be :-Either the first or second named borrower on your loan off
Solution Mortgages - Pre budget hopes! 2008-03-11 10:15:34 The mortgage market is still reeling from the emergence of the credit crunch last August. When the chancellor, Alistair Darling makes his Budget speech tomorrow, we will all be waiting with bated breath.It will be made by the first chancellor to preside over a run on a UK bank since savers lined the streets outside Overend, Gurney & Co in 1866.At Solution
Mortgages, like the majority of mortgage brokers in the UK will be hoping for a mortgage market friendly budget
.The global credit crisis has the potential to bring the home buying process to a standstill and there is a danger that the first-time buyer and seller markets could collapse.The crisis has forced some lenders to pull back from the 95% LTV market and those offering 90% LTV are becoming diminished.First time buyers are the lif
Treating customers fairly 2008-03-10 10:53:56 At Solution Mortgages Limited we are committed to offering our customers
the highest possible standards of service, In doing so we are pleased to support the Financial Services Authority initiative ‘Treating Customers Fairly’.We recognise that both we and our customers have everything to gain if we look after your best interests and treat you fairly in all aspects of our dealings with you.Our commitment to youWe will:provide you with clear information about the products and services we offer including fees and chargesascertain your individual needs, preferences and circumstances before providing you with product detailsprovide you with a swift and courteous serviceencourage you to ask if there’s something you don’t understandgive you access to a formal complaints procedure should y
Remortgaging with CCJ's 2008-03-07 09:49:36 Trying to arrange a remortgage when you have a County Court Judgement (CCJ) registered against you can be problematic. However, if you speak to Solution Mortgages, a CCJ remortgage specialist which should still be able to help you.At Solution Mortgages we have access to a panel of lenders in the UK who will consider people with current and historic CCJs. If you have a an unsecured loan or credit card and have failed to keep up with your payments, the creditor (a person or company to whom you owe money), must issue you with a “default notice” before they take legal action. A default normally occurs when the terms of a credit agreement have not been met and the account is 3-6 months in arrears.The creditor can start court proceedings if you do not comply with the default notice and this
Interest rates left on hold 2008-03-06 09:54:01 The Bank of England have decided to leave interest rates unchanged at 5.25% today which will provide disappointment for many mortgage holders.Many had hoped the Monetary Policy Committee (MPC) would cut rates but we may have to wait until next month now.The main reason for not cutting rates is likely to be the threat of inflation from rising food, fuel and energy prices and seems that this is the MPC's primary concern.However the poor economic backdrop cannot be ignored and rates will have to come down to stop the economy grinding to a halt.The harsh stance also gives little comfort as to what lies ahead in next weeks budget.The rates cuts of 0.5% that we have had since the credit crunch is in stark contrast to the 2.25%cut that the Americans have experienced. The recent cuts in the UK hav Read more:Interest
How to avoid mortgage arrears 2008-03-05 06:15:10 Many mortgage borrowers face the risk of going into arrears on their mortgage this year. The credit crunch with higher costs of borrowing and rising energy and fuel costs are starting to hurt homeowners.
Whatever you do, your mortgage needs to take preference but if you are struggling you should look at your current mortgage and address the situation.
With rates on unsecured loans and credit cards rising, the servicing of these debts is pushing many budgets to breaking point.
Repossessions are on the rise and this looks set to continue in 2008. They are at the highest number since 1999.
You need to act fast if you think that you are going to struggle to cope with these rising costs.
Many peoples low-rate fixes from 2002 and 2005 are due to expire soon and most will receive a payment s
Remortgage - debt consolidation 2008-03-04 06:49:28 If you have debts owing to a range of creditors and you are paying multiple payments each month which are becoming unmanageable, you may wish to consider a debt consolidation remortgage.Debt consolidation is when you take your outstanding debts and consolidate them into one payment which has a lower interest rate than you are currently paying. This therefore lowers your monthly repayments and makes life easier.A debt consolidation remortgage will carry a lower interest rate than any unsecured loan or second charge loan as a first charge mortgage provides better security for the lender which means they can offer a lower interest rate.Securing your debts against your property needs to be considered carefully as failure to keep up with your payments will lead to repossession. You may also en
Sub prime remortgage 2008-03-03 08:54:35 If you are a homeowner and are contemplating a remortgage of your property, you may find it more difficult if you have a poor credit history.County Court Judgements (CCJs), mortgage arrears, defaults, bankruptcy, or having no proof of income all affect your credit rating.Adverse credit will certainly make it unlikely that many traditional high street lenders will be able to help you, but there are other options available and these are called sub prime
or adverse credit remortgages, which, depending on your circumstances, may provide the finance solution you are looking for.At Solution Mortgages we specialise in helping people obtain an adverse credit remortgage. A remortgage is a loan, in the same way that your original mortgage is, secured against the value of your home. It replaces your
Key factors to consider when remortgaging 2008-02-29 04:22:50 Solution Mortgages has compiled a list of information that you should give serious consideration to when considering a remortgage. Please find these listed below:-Lending into retirementIf your mortgage period extends into retirement it is your responsibility to ensure that you will still be able to repay the mortgage. Your income is likely to reduce after you retire and you will need to have a plan in place to cover the payments.You should seek financial advice or get in contact if you are unsure of what your future income will be or are concerned that it may not be sufficient to meet the payments.Interest only mortgagesIf you are taking out an interest only mortgage you must be aware that you are ONLY PAYING THE INTEREST on the loan and NOT ANY OF THE CAPITAL. Therefore if you remain on Read more:factors
Solution Mortgage's bad credit remortgages 2008-02-28 08:40:30 When looking for a bad credit
remortgage you can search for suitable options online such as SolutionMortgage
s and many websites allow applicants to apply for a bad credit remortgage online. Before committing to anything, make sure you understand the type of mortgage you are being offered and the various payment options available.Solution Mortgages can take care of every aspect of your remortgage and can make it easy to find a bad credit remortgage to suit your needs. Solution Mortgages take care of everything from the initial research to third party surveyor visits.Once you are comfortable with the deal you are being offered, we can either visit you and explain and complete all the paperwork with you or send everything to you in the post. Any queries can then be directed to us over the ph
Buildings and contents insurance 2008-04-07 10:21:19 It is very important to both lender and the borrower that the mortgaged property is adequately insured. For the lender, the property is the prime security for the loan that has been made and it is essential that it is insured against any event that would adversely affect its value. Similarly, the borrower needs to protect his home.From a lender's point of view, insurance
of the property's contents is not so critical. The borrower, however, should insure his contents, although not all do. Combined policies have become much more common in the past few years.Many buildings insurance policies are now index-linked. This means that the level of cover that is put in place at the outset is automatically increased annually in line with a recognised index that reflects increases in house building co Read more:Buildings
Innovative solutions needed for funding crisis 2008-04-09 11:19:27 It has taken only 9 months for the once thriving mortgage lending sector to be brought to it's knees by global investors losing confidence in mortgage backed securities.The specialist (sub prime) sector has been hit hardest with many lenders either constantly repricing, withdrawing products or withdrawing from the market entirely. The majority of these lenders depended on the securitising their assets, so they cannot continue to lend in the current situation.The closing of businesses and redundancies are rising among lenders, packagers and brokers and this is having an adverse effect on the wider market. Potential mortgage customers without a sizeable deposit and those with poor credit histories are being left stranded with few lenders to turn to.The result of all this will be unsustainabl Read more:Innovative
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Interest rates lowered to 5% 2008-04-10 08:02:49 Interest rates in the UK have been cut by 0.25% to 5% by the Bank of England's Monetary Policy Committee (MPC) today.It is an attempt to stave off the threat of recession in the UK economy and to try and offset the ongoing credit crunch.It is the 3rd cut in interest rates that the bank has made since December 2007.The problems in the credit markets are obviously overshadowing the threat of inflation as the governments 2% target on inflation has already been breached. However, the lack of funding for mortgages, the possibility of house prices falling and further deterioration in the wider economy was enough to make the MPC cut rates.We are hopeful that the rate cut will be passed on to borrowers but it cannot be certain. Lenders are reeling from sub prime losses in the US and the lack of li Read more:Interest
Sub prime lending 2008-04-11 08:09:58 The current market conditions, particularly in the sub prime
area have been triggered by events in the US where an entirely different set of circumstances has led to a liquidity crisis, a slump in the housing market and real fears about the health of the overall economy.The conditions in the UK sub prime market are fundamentally different. Some UK sub prime lenders did relax their criteria and price for volume rather than always risk. However the extent at which this was done added to sound underwriting practices and the relative stability of the UK housing market, means we are significantly different to the US.It now seems that everyone has become an expert in sub prime lending ranging from the government and more over the media. The media still do not understand what sub prime means! Eve
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