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- Struggling Mortgage Owners Can Defer Mortgage Payments For Two Years
- MPs Accuse Lenders of Being Too Cautious
- Libor Stays High as Base Rate Cuts are Forecast
- Borrowing Still Tough as Deposits Go Up
- Mortgage Lenders Slow to Respond Positively
- Libor Unmoved by Government Rescue Package
- Welcome Rate Cuts for Mortgage-Owners
- Bank Cuts Interest Rate a Day Early in Co-ordinated Move
- UK Government Rescue Plan for Banks
- London High-End Property Prices on the Rise
The Government is launching a new scheme to help homeowners where their income has been hit by redundancies or loss of overtime payments.
The Council of Mortgage Lenders has defended its members against MPs’ accusations of being over cautious with mortgage lending. Some MPs have said lenders are hoarding cash while the market sorts itself out.
Although the three-month Libor rate is remaining frustratingly high, there are expectations for the base rate to be cut again this year and throughout 2009, as forecasts are for inflation to come down, maybe as low as 1% in 12 months time.
As Nationwide announced requirements for higher deposits, and reduced borrowing limits, the cheapest tracker rate on the market comes from First Direct.
Some mortgage lenders have reacted to the Bank of England rate cut or the Government rescue package by raising tracker rates or by increasing their demands for deposits. It is hardly the response the Government would have hoped for.
It is going to take time for the Government’s financial rescue package to have an effect on the markets. That much was evident after the FTSE continued to fall and Libor rate did not follow the base rate down.
The Bank of England unexpectedly cut its base rate by 0.5% yesterday, bringing financial relief to thousands of homeowners as monthly mortgage repayments will now fall.
Following the Government’s £50bn rescue plan for banks on Wednesday morning, the Bank of England cut the base rate by 0.5%, announcing the move a day early. The US Federal Reserve, the European Central Bank and other European central banks made similar moves. The Stock Market responded favourably.
The UK Government is to inject £50bn worth of capital into the banking system in an attempt to get the banking system moving again. In return the Government will receive preference shares. So far, eight banks are listed as taking part in the plan.
A recent survey has found that the high-end property market in London is bucking the downward trend as prices continue to rise, most noticeably with houses worth more than £10 million.
