UK Mortgages Direct - 0870 4130 345

A former sub prime, mortgage lender is offering an 8% discount to its borrowers if they redeem their loans early.

Edeus, which started up in early 2006, is making a cashback offer to over 400 customers and may extend to the rest of their customers if it proves popular.

The mortgage lender wants to get the loans off its books but can not find an investor willing to buy.

A spokesperson admitted the idea sounded strange but it was far cheaper than selling the loans in the normal fashion

Read the rest of this entry »

Research by a leading lender has revealed that over 65% Market towns have a higher average house price than the neighbouring towns and cities in the county.

Market towns in Buckinghamshire have the largest premium with homes trading at a premium of 144% to the average house price in the county.

Read the rest of this entry »

Fixed rates should possibly start to come down,as other lenders follow the Nationwides example.

Commenting on Nationwide’s reduction of its fixed rate deals, our spokesperson said: Swap rates, the point that lenders use to determine the price of their fixed rates, have fallen dramatically over the last couple of weeks, coming down nearly 0.7% from their highest peak a month ago. Even the really bad news on inflation has failed to breach their progress downwards, and now lenders are,able to offer better priced products. I would hope to see more and more lenders follow suit by bringing some much needed competition to the mortgage market. Read the rest of this entry »

The Government has just released a new ownership scheme for first time buyers in England earning £60,000 a year or less.

The package of measures announced today by the Housing Minister included a scheme to help struggling first time buyers called Rent to Home Buy. To qualify households earning £60,000 a year or less will be able to rent their new home at a discounted rate upto 80% of the market rent or less for a period of upto two or three years. They will also have the option to buy a  share in their home. The Governmet hopes the scheme will give first time buyers some much needed breathing space to save for a mortgage deposit while taking there first step onto the property ladder.

Read the rest of this entry »

The Council of Mortgage Lenders (CML) has drawn up a blueprint to sort out the lack of funding in the mortgage market.

The documents have already been submitted to the Treasury and the plan could possibly help to significantly reduce the downturn in the housing market.

A spokesman believes that a quick implementation of the mortgage market funding proposal would be of great help, the UK Government could mitigate the difficulties that households and the housing market will otherwise face, as well as helping to restore confidence in the financial system as a whole.

Read the rest of this entry »

The merger of two of the Largest mortgage lenders Abbey and Alliance & Leicester is causing fears over a potential reduction in the customers choice.

Following the confirmation that the Abbey has made a bid for the smaller Alliance & Leicester, it has raised the fear over the potential impact on consumer interests.

While the sale of the ailing bank will bring increased confidence to the mortgage industry which is still reeling in the wake of the credit crunch.

Read the rest of this entry »

A recent poll  has found that 30% of first time buyers are using unsecured loans, borrowings, or credit card debt to put together a deposit for their first home.Of the 250 first time buyers either in the process or having just bought their first home who were polled, over 40% has used there own savings to put down a deposit on their home, which is the safest means possible.

Read the rest of this entry »

Abbey has cut its mortgage interest rates on its two and three-year fixed rate mortgages by up to 0.15%.

This is the second set of rate cuts to be made by the mortgage lender in  the last 10 days.A two-year fixed rate mortgage from Abbey now starts from 6.34% with a £999 fee and a three-year fixed rate mortgage at 75% LTV from 6.29%.

The lender is also adding a new three-year fixed rate deal at 70% LTV to its product range.

This deal has a competitive rate of 5.99% with a £1,695 fee and is available for loans of up to £250,000 . Read the rest of this entry »

UK mortgage interest rates have been kept the same at 5% by the Bank of England today following its latest meeting.

The decision was widely expected, some  calls from business groups had asked for rates to cut amid growing concerns about the economic slowdown.

With the UK at risk of recession, and building firms having laid off thousands of employees.

The Bank however was not expected to cut rates with inflation currently at 3.3%, above the target rate of 2%.

The Bank’s Monetary Policy Committee (MPC) has had to balance out the  evidence of an economic slowdown against the problem of rising inflation.

Analysts said it was tricky dilemma the MPC faced.

“If the MPC reduces mortgage interest rates, it risks losing control of inflation,” said Graeme Leach, chief economist at the Institute of Directors.

“Conversely, if it increases interest rates it risks losing control of growth and could trigger a recession.”

But business groups said the Bank should be ready to cut rates swiftly if further signs of economic slowdown emerge.

“If further gloom descends and the economic downturn gathers pace the Bank needs to be ready and willing to cut rates once again,” said Lee Hopley, economist at the manufacturing body EEF.

Meanwhile, Ray Boulger, of mortgage adviser John Charcol, said the MPC’s decision was widely expected but the central bank was now under pressure to try to revive the economy.

“With the economic news from nearly all sectors of the economy getting worse by the day, a rate cut is badly needed to help restore some confidence to consumers and reduce the financial pressure on both them and industry,” he said.

The Trades Union Congress was also calling for the MPC to combat the  slowdown.

“This was the wrong decision,” said Adam Lent, head of economic and social affairs at the TUC.

“The knock-on effects of the credit crunch and the rush of overly-gloomy headlines are already threatening an over-reaction and deeper down-turn than the actual economic news suggests.”

On Thursday, a report from accounting firm PricewaterhouseCoopers said higher living costs would mean that the consumer squeeze will worsen in 2009 and dent economic growth.

It predicted that the UK economy would grow by 1.75% this year, down from 3.1% in 2007. Read the rest of this entry »

Woolwich has slashed  the rates on its broker mortgage  products by up to 0.30% on some of the deals.

They are cutting rates on its lifetime tracker mortgage products in a bid to encourage consumers to take  full advantage of the flexible, fee free mortgages.The Mortgage Lender  says it is doing this  at a time when many borrowers are waiting for better news on short-term fixed rate deals.

They are  also reducing  rates on offset and longer term fixed rates as well as introducing a more competitive three-year fixed rate mortgage.

At the same time it will be introducing 90% LTV fixed mortgage products to help customers with smaller deposits access the competitive products provided by the  Woolwich.

The best mortgage rate available on a Woolwich Lifetime Tracker through brokers is now 0.99% above base rate, a cut of 0.30%.

This makes it 1.08% better than the average two-year fixed rate in the market which Moneyfacts says is 7.07%.

Andy Gray, head of mortgages for Woolwich, says: “The two-year fixed rate market is hugely volatile at the moment.

“Many customers will be better served by other products such as the Lifetime Tracker which offers a much lower rate than current fixed rates and has no application fee.” Read the rest of this entry »