Currently viewing the tag: "mortgage lender"

UKAR Chief Executive Warns That Over 20,000 Customers Could Face Mortgage Arrears If Interest Rates Rise This YearUKAR Chief Executive Warns That Over 20,000 Customers Could Face Mortgage Arrears If Interest Rates Rise This Year

The chief executive of UK Asset Resolution (UKAR), who are winding down the loans of Northern Rock and Bradford & Bingley, affectionately known as “Britain’s Bad Banks”, has warned that thousands of its customers could be pushed back into arrears if there is a rise in Bank of England (BoE) interest rates.

UK Asset Resolution (UKAR), seventh-biggest mortgage lender said last week that they had repaid £6.2 Billion (GBP) to the UK Government in the 15 months to the end of March 2014, meaning it had so far paid back £10.4 Billion (GBP) of the £48.7 Billion (GBP) it owed.

However, if there is a rate rise it could potentially make it harder for taxpayers to get their money back after bailing out the bad banks.

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FCA Not Interested In Mis-Selling Of Interest-Only MortgagesFCA Claim There Is No Evidence Of
Mis-Selling Interest-Only Mortgages

The Financial Conduct Authority (FCA) has stated that there will be no further investigation into whether interest-only mortgages were widely mis-sold in the UK.

The FCA have concluded that the vast majority of borrowers with interest-only mortgage deals understood exactly what they were taking on, diminishing the chance of lenders facing mass claims for mis-selling mortgages.

Martin Wheatley, Chief Executive of the Financial Conduct Authority (FCA) responded to an enquiry from the Treasury Select Committee, saying: “The vast majority of customers understood the mortgage product they were sold and understand the need to repay the mortgage balance and have plans, albeit in some circumstances imperfect, on how to repay”.

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Property Investors Celebrate Removal Of Income Requirement From Buy-To-Let Mortgages

Property Investors Celebrate Removal Of Income Requirement From Buy-To-Let Mortgages

Buy-To-Let Mortgages On Offer
Based On Rental Income

There is good news for UK based property investors looking for a buy-to-let mortgage as lenders are beginning to understand how landlords make profit from property. Now one lender is taking the lead and offering buy-to-let mortgages based on rental income without worrying about a borrowers personal income.

Mortgage lender, BM Solutions, part of the Lloyds banking group, has removed their minimum £25,000 (GBP) income requirement from all of their buy-to-let mortgages.

Instead, the lender will make a buy-to-let mortgage offer based on the potential rental income expected to be generated by the rental property purchase, rather than being based on a borrower’s employed earnings.

The BM Solutions Buy-To-Let mortgage affordability calculation remains at 125% of the rental income, but the overall lending criteria have been tightened.

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No Buy To Let Mortgages For Landlords with Benefit Tenants

No Buy To Let Mortgages For Landlords with Benefit Tenants

It has emerged that one of the property investor’s best mortgage resources is going to have restrictions placed on their Buy To Let mortgage products.

The Mortgage Works, who were once the lender of choice for hundreds of UK property investors, have changed their mortgage acceptance and lending criteria to such an extent that they will no longer accept buy to let properties that will be inhabited by any tenants claiming any form of state benefit, local housing allowance (LHA) housing benefit or even the upcoming Universal Credit.

As the major buy to let mortgage lender used by portfolio landlords, this news is a real blow for anyone with DSS tenants or even working tenants claiming Housing Benefit.

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UK Property Prices Expected To Be Subdued In 2013

UK Property Prices Expected To Be Subdued In 2013

No Change In UK Property Prices In 2013

UK Property prices will remain subdued in 2013 as first-time buyers continue to struggle to secure mortgage loans, according to UK mainstream mortgage lender, The Halifax.

The lender said that while the outlook for UK property prices “remains more unclear than usual” it expects “little change” in residential prices during 2013.

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Quick Property Sales Fraud Risk

The FSA has warned homeowners in financial difficulties who are looking to sell their home fast to beware of committing fraud.

FSA Warns of BMV Property Fraud

FSA Warns of BMV Property Fraud

The financial regulator says it has evidence that some below market value (BMV) or distressed property sales may involve fraud, where the buyer (a company or an individual), asks the selling homeowner to state that the property has been sold for its full open market value, rather than the agreed purchase price.

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2012/13 UK Property Hotspots Revealed by Halifax

2012/13 UK Property Hotspots Revealed by Halifax

New data from UK mortgage lender, Halifax, reveals that currently 9 out of the top 10 UK property hotspots are in the South of England.

The mortgage lender analysed data from across the UK and compared the findings with the actual size of property (in square metres) to find the best performing places in the country.

The borough of Westminster in central London is the most expensive area per square metre for property investment, however, it is also the most cramped. Properties in this London borough can cost an average of £7,586 (GBP) per square metre and on average are also the smallest in the UK at approximately 71 m2.

The Halifax data also found that St Albans was the next most expensive area, although property costs are significantly less at an average of £3,227 (GBP) per square metre. However, this is still almost double the national average of £1,668 (GBP).

Martin Ellis, Housing Economist at Halifax, said: “House price per square metre is a useful measure for house price comparison because it helps to adjust for differences in the size and type of properties between locations. Westminster has the most expensive prices in the UK on a price per square metre. Interestingly, it also has the smallest average property size in the country. Not only has Westminster got one of the highest population densities per square kilometre among UK cities, but it also has a large proportion of properties that are flats”.

Edinburgh is the only UK city in the top 10 that is outside of the South of England, with Oxford, Winchester, Chichester and Cambridge all above it as among the most expensive areas.

York was named as the most expensive city in the North of England at £1,830 (GBP) per square metre.

UK residential property values have seen the first monthly rise since three months ago.

A new report by mortgage lender Nationwide found that UK property valuations showed a modest increase of 0.3% in May compared with previous months, after April’s figures recorded a 0.3% fall.

The low volume of residential properties up for sale is sustaining the price increase, according to the mortgage lender.

UK property valuations are still 0.7% lower than they were this time in 2011, meaning the average asking price is £166,022.

This reduction is smaller than the 0.9% year-on-year drop recorded in March and April, said the Nationwide.

Robert Gardner, chief economist at Nationwide said “Demand for homes remains subdued on the back of weak labour market conditions, but the lack of homes coming on the market is providing support for prices. This is in part a reflection of the low rate of building in recent years which has failed to keep pace with household formation”.

The mortgage lender’s findings also showed that consumer demand for residential property outweighs the supply due to rising rent costs as a result of people staying in rented accommodation in the PRS because they are unable to raise the deposit or secure a mortgage to purchase a home of their own.

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