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Archive for October, 2009

Northern Rock Gets Another £8bn of Tax-Payers Cash

Wednesday, October 28th, 2009

The EU agreed to give Northern Rock another 8bn today to help it sure up it’s position and offer more mortgage packages to the British public. Based on the fact that banks have done little with the bail-out money to help customers and haven’t passed on the entire drop in the interest rates, who knows what will actually happen with another £8bn.

The money has got a purpose and will go toward creating 2 new companies and boosting the UK housing market to bring back fast house sale deals and increased mortgage lending. This was outlined in this statement on Northern Rock’s website:

Northern Rock Plc “…will also offer new mortgage lending to support the Government’s objective of increasing mortgage supply and sustaining a competitive market”.

The second company will be called ‘Northern Rock (Asset Management) plc’ which claims: “90% of the mortgages held by Northern Rock (Asset Management) will be fully performing and are not in arrears, and this company would not, therefore, be accurately described as a ‘bad’ bank”.

Well let you decide that one.

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A Quick House Sale May Be The Only Way Out Of Irresposible Lending

Monday, October 26th, 2009

So we’re all in agreement then?.. the planet-sized property bubble of 2007 did us no favours and the current mess we’re in is in no small part to do with 100%-plus mortgages and loans of six or seven times an income. All in favour say ‘I’!

‘Nay’.

What?! Who say’s Nay? Why, it’s the FSA.

The Financial Services Authority (FSA) released last week a ‘how the hell did that happen’ report on the UK economic melt-down and the top culprit wasn’t 100% mortgages, but self-certified mortgages. And they may have a point because; by 2007 45% of all mortgages in the UK were handed out without any check taking place on the borrower’s income.

This flouting of a duty of care to deal in responsible lending has left many needing a quick house sale and is just another example of some mortgage lenders not giving a damn. I can’t imagine an off-licence worker would get away with happily serving 45% of her potentially underage customers without checking ID. And i doubt a chef could best serve 45% of his diners based on a guess of what they’d like.

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Those Wondering "Can I Sell My House Fast?" Will Still Be Disappointed With The Open Market

Thursday, October 22nd, 2009

House prices are on the up which is great news for everyone and despite the downturn, the UK housing market has lifted according to figures from HM Revenue & Customs (HMRC).

The stats released last week show that sales of properties above £40,000 rose from 80,000 in August to 82,000 in September. Those wondering “can i sell my house fast yet?” are still going to be disappointed but sales across July, August and September showed an 11% improvement on the previous quarter.

Overall, the total transactions for the year to date is 21% lower than the same period last year. And despite the rise in summer lending, gross mortgage lending for September fell 27% against a year ago.

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The Quick House Sale Strategy My Well Become More Popular

Tuesday, October 20th, 2009

So, we’re told the economy’s on the up and the recession will be over by Christmas (sounds painfully familiar) and then everything can go back to normal, right? Well lets hope not for all our sake.

Do we really want banks and mortgage lenders giving out loans that cover the entire market value of a home and exceed annual income by as much as 5 times? In an ideal world, yes, but the UK (and global) economy cannot handle that kind of high-risk lending.

As a result of it; we all find ourselves with lower priced property and rising unemployment. But thankfully, one of the many QUANGO’s we’ve been hearing all about recently, the Financial Services Authority (FSA) have stepped up and accepted a lesson has been learnt.

It may be one of the taxpayers most expensive lessons on record but the FSA has set out plans to introduce affordability tests for borrowers and put a stop to mortgages without need for proof on income. This means the number of people wanting a quick house sale could rise as the number of mortgages given out may well drop and sellers could find it more tricky to find a buyer.

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