Article(s) associated to this keyword
- MPs Accuse Lenders of Being Too Cautious
- Borrowing Still Tough as Deposits Go Up
- Mortgage Lenders Slow to Respond Positively
- Bank Cuts Interest Rate a Day Early in Co-ordinated Move
- Fixed Rates Rise Again
- Tesco Joins Mortgage Market
- Increase in Tracker Mortgages in Wake of Credit Crunch
- Rates Up For Those With Small Deposit
- Not Everyone is Raising Mortgage Rates
- Mortgage Approvals Down Again
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.
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.
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.
Nationwide has raised its fixed mortgage rates as other lenders have done so in the wake of recent financial turmoil. Borrowing has become tougher, especially if you don’t have a large deposit.
Britain’s biggest supermarket is joining the mortgage market, to be launched after it buys RBS out of its share of the Tesco Personal Finance joint venture.
Following the collapse of Bradford and Bingley, other lenders have now removed their deals from the market - over 11% of mortgages were pulled.
Following continuing uncertainty on the money markets, HSBC has raised its mortgage rates for those with less than 25% deposit. B&B has announced redundancies and the PM travels to the US for financial discussions.
Northern Rock is cutting mortgage rates when others are raising theirs, leading to suspicions of it using taxpayers’ money to boost its market share. Brokers have seen an increase in enquiries for Northern Rock products since its nationalisation.
Mortgage approvals were at their lowest level in August since records began. A number of factors are keeping people out of the housing market, not least concerns over the economy and jobs. The hope is that the Bank rate will come down soon.
