Couples on Average Wages Struggle to Buy Homes

As a child everyone is brought up to believe that when you grow up you buy a home. However in the current climate a generation is being frozen out of owning a home, due to property prices and high deposits, amongst other things.

David Stubbs, senior economist at the Royal Institute of Chartered Surveyors (RICS), said this situation was likely to worsen, adding “access to the housing market has deteriorated as the credit crunch and now the euro zone crisis takes hold of the mortgage lending sector”. Read more

Do Financial Products Need to be Simpler?

People need to be able to choose the right financial service product for their needs, however a vast array of choice is not always a good thing; complexity can cause confusion and inaction.

The government want to see a thriving and trusted financial services marketplace, where consumers can buy the products they need with confidence. Read more

Advisory Panel Calls for Less Consumer Responsibility

Financial services are an important part of everyday life. Financial products help every household to manage their day to day spending, enabling them to save for the future and also insure against loss.

Despite this, many people still struggle to understand exactly what financial products can do for them. Financial services on a whole are confusing and this is not surprising when there are, for example 2,000 savings products on the market currently. Read more

First Time Buyer ‘rush’ is Set to End

The recent decline in the home ownership rate in the UK is due to a combination of factors. The weak labour market and the uncertain economic outlook have certainly depressed the demand for homes, especially for first time buyers. Not forgetting the fact that unemployed rates, particularly amongst younger people, have drastically increased year on year and also real earnings have fallen sharply.

However, current data has shown that house prices in February 2012 have recorded their strongest monthly jump in nearly 2 years, with annual house price inflation picking up to 0.9%. Read more

Financially Excluded Could Revolt

A Bank of England expert suggests that Britain could be faced with another house price boom, fuelled by the ageing population and the rising number of immigrants.

At present, 62.2.million people live in Britain, but the office for National Statistics expects this number to balloon. By 2020, it is expected to hit 67.2 million. Read more

Hybrid Mortgage

Everyone knows that the base rate will increase at some point, but the big question is when and how fast?

Therefore the key decision for borrowers is how comfortable they will feel in taking a risk that in 2 years time rates will not be significantly higher or starting to rise substantially. Read more

Housing Market Renewal Scheme

The housing market renewal or pathfinder scheme, as it was also known, was launched in 2001 by the government. It was a 15 year scheme that was intended to reverse housing market failure in deprived parts of the Midlands and Northern England.

The idea behind the pathfinder scheme was simple; it involved getting rid of cramped flats or smaller terraced houses, especially those with doors that opened directly on the street as many councils believed that people did not want to live in these houses. They then intended to replace them with a house with a front garden. Read more

The Mortgage Market

Housing and mortgage market sentiment has improved a little over recent weeks.

For the time being at least, funding conditions have eased as a result of European Central Bank Operations, therefore lessening the need for UK banks to tighten mortgage pricing and terms. Read more

Is the UK ‘better off’ as the Base Rate Remains Stagnant?

The Bank of England has decided to keep the base rate at a record low of 0.5% for the 34th consecutive month.

Recent figures from the Bank of England suggest that Britain’s home owners have collectively saved more than half a trillion pounds in mortgage interest payments as a result of the low interest rates. This is equivalent to around £50,000 per borrower. Read more

Mortgage Criteria

The mortgage market has now become it seems one where lenders are creaming what ‘they’ believe to be the best applicants.

These applicants are the ones with a credit sore of 1000, unblemished payment history, minimal credit applications in the last 6 months, which is practically impossible to achieve. Read more

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