Offset Mortgage Could Save Savers

With high inflation and low savings rates, savers are losing money in real terms. This is further exacerbated by tax deductions.

In the current climate with base rates at an historical low, it is and has been increasingly difficult to get a decent return on savings, however savers looking for a mortgage do have an option: the offset mortgage. Read more

August House Prices

House prices fell 0.6 percent in August, this more than reversed July’s rise and surprised economists who expected them to stay flat.

Nationwides chief economist, Martin Gahbauer suggests that; “the three months rate of change fell from 1.2% in July to 0% in August, suggesting that house prices have essentially stagnated over the summer. Read more

Mortgage For Over 55

Many over 55s have a substantial amount of debt. Figures show that large amounts of people approaching retirement are falling to save anything to help support them when they finally do leave work.

Reports paint a picture of a divided Britain with a growing gap between the ‘super’ rich and the very poor. More than 1 in 5 people are struggling and an increasing number are entering retirement ‘saddled’ with debt. Read more

Banks Tell Borrowers to Spend Less

Banks are more concerned than ever over people’s finances as food, energy bills and petrol prices rise and high inflation is putting a dent in many households already tight budget.

Repossessions have been kept lower than many experts had forecast by the Bank of England slashing the base rate to 0.5% and keeping it there for more than 2 years. However banks fear that repossessions could rise substantially when the rates increase. Read more

Are loan restrictions easing?

Research on mortgages for UK property shows that restrictions are ‘too strict’. Some experts believe that lenders have gone ‘too far’ in holding back and mortgage finance and therefore the housing market has become ‘stuck’ as a result of this.

The Financial Services Authority (FSA) has already been called upon to use their newly gained powers of oversight to help ease mortgage lending restrictions. Experts have found the move necessary in order to help stimulate the market. Read more

100% Loan to Value Mortgages

100% mortgages meant there was no need for buyers to save up a deposit before getting on to the first rung of the property ladder. These mortgages became very popular with first time buyers who struggled to save a deposit.

In June 2007 there were 216 100% mortgages products on the market and 136 products with a loan to value (LTV) ratio of over 100%. Read more

Base Rates Remain at Record Low

With the Bank of England base rate remaining at a record low since March 2007 the question on most savers and borrowers lips is when will rates rise.

The Monetary Policy Committee (MPC) voted in June this year to keep the base rate on hold at 0.5%. But after more than 24 months of flat interest rates it is now time for borrowers and savers alike to start preparing for the inevitable rate increase. Read more

Variable or Fixed Rate?

With the economy seeming to be slowly climbing out of the recession, millions of home owners are facing a dilemma! Is it time for them to fix their mortgages long term or opt to stay with a variable deal while the rates are still low.

Figures show that the average interest rate on variable loans are now just 2.87%, this is much lower than the average at the start of 2007, just before the financial crisis hit, which was approximately 6.23%. Read more

Mortgage Overpayments

Monthly mortgage payments are a ‘given’ in most peoples mind, with borrowers accepting they will have this debt for at least 25 years. Although overpaying the mortgage each month can save large sums over the life of the mortgage.

With a mortgage being the most long term financial responsibility anyone has, anything that cuts it down in years or decreases the overall amount borrowers will have to pay back is always a good thing. Read more

Interest Rates On The Rise?

The bank of England has signalled that families should prepare for a rise, after 2 year of historic low cost borrowing; interest rates are on the way back.

Higher borrowing costs could be a major problem for home owners who have been lulled into believing that their monthly mortgage repayments would stay low for years. Read more

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