Mortgage holders urged to discuss sustainability - Mortgage Calculation

Mortgage holders have been urged to communicate with their tenants more in order to ensure their properties create fewer carbon emissions and use less power.

Ian Fletcher, director of policy the British Property Foundation, observed that the most effective way for people in rented accommodation to act sustainably is to interact with their landlords .

According to Mr Fletcher, many of the carbon reduction schemes tend to encourage residents and property owners to pursue energy-saving strategies separately, which he suggested is a mistake.

"I think the problem - as per a lot of issues in the sector - is communication; the two parties - tenant and landlord - working together to deliver the best sustainability outcomes," he told Money News.

Meanwhile, Michael Coogan, director general of the Council of Mortgage Lenders, recently welcomed the Financial Services Authority's decision to defer implementation of extending the approved persons regime to all those who sell mortgages . ?

Fixed rate mortgages are still quite high, says expert

Fixed mortgage rates are still "comparatively quite high" as a result of lenders not reducing their margins, it has been claimed.

Ben Wilkie, editor at What Mortgage, explained that lenders have not reduced fixed rates to correspond with interest rates because the market is not "as competitive as it once was".

However, MoneyFacts has claimed that the average rates for two, three and five-year fixed deals stand at their lowest levels since its records began in 1988.

A future increase in interest rates might not lead to an instant rise in fixed mortgage rates and could result in lenders reducing their margins, Mr Wilkie added.

"A lot of people are thinking that if the market gets more competitive, then the actual rates won't rise that much; it is just that the margins that lenders charge will get smaller," he said.

First direct claimed recently that 25 per cent of mortgages sold in 2010 have been on a fixed-rate .

Mortgage provider announces rise in profits

Buy-to-let mortgage firm Paragon has reported a 32 per cent rise in profits.

The mortgage lender withdrew from the market in February 2008 but is back writing new loans after securing a ?200 million funding facility in September.

Landlords were witnessing very high levels of rental demand, Paragon said, explaining that the current depressed state of the housing market has led to would-be home buyers renting in larger numbers and for longer periods.

At the end of September, the company's buy-to-let portfolio stood at ?8.3 billion.

However, it insisted the credit performance of its mortgages over the year had been "exemplary".

"Low interest rates have increased affordability for customers, reducing the incidence of new arrears and assisting the correction of past arrears," the company added.

"The loan books continue to be carefully managed and credit performance remains in line with our expectations."

Founded in 1985, the Paragon Group is one of the UK's largest providers of mortgages and personal loans .?

Changing mortgage products is a gamble, says expert

Britons are currently having to "gamble" on the course of the interest rate by choosing between taking out a fixed or standard variable rate mortgage, it has been claimed.

Ben Wilkie, editor at What Mortgage, observed that that homeowners would need interest rates to rise by "at least one per cent" before fixed-rate deals become the best option.

"If they were to get a two-year fixed now and then the rate only goes up by one per cent in the next 18 months, then they probably would end up spending more money than they would if they were on a standard variable rate . It really is a gamble whichever way you go," he commented.

Figures from first direct show that the percentage of people taking out fixed remortgages has increased recently with 33 per cent of all deals being for fixed products in the last month.

This compares to the year-to-date average of 25 per cent.

"As we get closer to people thinking that rates are going to go up, I think that more people will take out the fixed products," Mr Wilkie noted.

BoE reveals drop in mortgage approvals

New Bank of England figures have revealed that mortgage approvals dropped for the sixth month in a row.

Some 47,185 loans were approved for those buying a new home in October, the lowest level since February.

This news has prompted experts to claim that the UK mortgage market is "severely depressed" and that house prices show no signs of improving.

Paul Diggle, an economist at Capital Economics, said that the latest figures underline the message that the mortgage market is experiencing a lull in activity.

"We expect it to remain that way throughout 2011," he said.

"The troubles in the mortgage market are still with us. With little chance of a meaningful recovery in mortgage approvals for the foreseeable future, we expect that credit conditions will continue to weigh on house prices for some time to come."

Meanwhile, the Mortgage Works recently added new fixed and tracker rate products to its prime residential range.

Added to this, the provider has made improvements to its existing products.?

The Mortgage Works launches new products

The Mortgage Works (TMW) has added new fixed and tracker rate products to its prime residential range.

On top of this, the provider has made improvements to its existing products.

New products include two-year trackers from 3.49 per cent with no early repayment charge after July next year.

Tracie Pearce, head of product management and pricing at The Mortgage Works, said: "We've strengthened the competitiveness of our prime residential range by introducing several new products, as well as improving the rates on selected existing products.

"This is great news for intermediaries," she explained, "as there is a wider choice of residential mortgage deals to suit a variety of needs."

Meanwhile, Clydesdale Bank was recently named "Best Mortgage Lender in Scotland" at the prestigious Your Mortgage Awards.

Paula John, editor in chief of Your Mortgage, observed that Clydesdale Bank has won the title of 'Best Mortgage Lender in Scotland' every year since the category was introduced in 2004.

According to Ms John, Clydesdale Bank offers a well-priced range of mortgage products to first-time buyers, home movers and remortgagers alike.

Is it time to secure a fixed rate mortgage

Millions of home buyers are wondering what to do with their mortgage, it has been noted.

Writing for the Daily Mirror, Clinton Manning observed that with interests rates at a record low of 0.5 per cent, the only way the cost of borrowing can now go is up.

He explained that rates will not remain as low as they are today and as soon as there is any hint of the Bank of England raising the cost of borrowing, the cost of fixed-rate deals will jump.

"If you are concerned that you may not be able to afford your mortgage if rates start rising, it could pay to lock into a fixed rate deal today," he said.

"It is highly unlikely that rates are going to get any cheaper but if you wait until they start rising you may end up paying a lot more than today."

Earlier this week, the Bank of England announced that mortgage approvals dropped for the sixth month in a row.

Some 47,185 loans were approved for those buying a new home in October, the lowest level since February.

Research shows increases in mortgage products

In the last 12 months, the number of mortgages available to borrowers has grown significantly.

MoneyFacts observed that if a borrower has a 20 per cent deposit, there were 153 mortgage deals available in December 2009.

In contrast, on Monday (November 29th) there were 384 deals, an increase of 151 per cent.

The average two, three and five-year fixed-rates are all standing at the lowest level seen since MoneyFacts' records began in 1988.

According to Michelle Slade, spokesperson for the website, many borrowers have reverted to their lenders? standard variable rate, with rates as low as 2.5 per cent.

"While average fixed rates may be at an all time low, they are still uncompetitive in comparison," she explained.

"A rise in Bank base rate still appears elusive and borrowers are opting to make the most of low mortgage repayments while they can."

Earlier this week, Clydesdale Bank was named "Best Mortgage Lender in Scotland" at the prestigious Your Mortgage Awards.

Clydesdale Bank has won the title of 'Best Mortgage Lender in Scotland' every year since the category was introduced in 2004.

Santander announces mortgage exclusives

Santander has announced that new three and five-year fixed and two-year tracker products are available to existing Santander Current Account and Investment customers.

The provider has also revealed a reduction of 0.04 per cent on 60 per cent loan-to-value two-year fixed to 2.65 per cent.

The products are all available exclusively to existing Santander Current Account customers who have held the account for at least three months and existing investment customers.

Phil Cliff, director of Santander Mortgages, remarked: "As the 'Home of UK Mortgages', we want to ensure we can reward our existing customers and these additions to our product range certainly do just that, demonstrating our commitment to offering a range of highly competitive mortgages to meet our customers' needs."

Earlier this week, Ben Wilkie, editor at What Mortgage, claimed that Britons are currently having to "gamble" on the course of the interest rate by choosing between taking out a fixed or standard variable rate mortgage .

However, he observed that homeowners would need interest rates to rise by "at least one per cent" before fixed-rate deals become the best option.

Halifax blasted for mortgage rate hikes

Halifax, Britain's biggest mortgage lender, has been branded as "cheeky" for ramping up rates for new customers in the wake of a massive taxpayer bail-out in 2008.

This comes after Halifax, which is part of the Lloyds Banking Group, set a new standard variable rate with no cap for new customers.

According to Halifax, it was forced to make the change due to a higher cost of funding through wholesale and retail markets.

Melanie Bien, of mortgage brokers Private Finance, said: "As taxpayer money was used to bail out Halifax when it got into difficulty, this move will be regarded by many as being incredibly cheeky."

Meanwhile, the buy-to-let mortgage firm Paragon recently reported a 32 per cent rise in profits.

The mortgage lender withdrew from the market in February 2008 but is back writing new loans after securing a ?200 million funding facility in September.

The current depressed state of the housing market has led to would-be home buyers renting in larger numbers and for longer periods, Paragon explained.

Low mortgage approvals influences drop in house prices

Economic uncertainty and low mortgage approvals has seen asking prices for homes in England and Wales drop for the fourth month in the past five.

According to the property website Rightmove, prices fell 3.2 percent this month, their sharpest drop since December 2007.

The annual rate of growth, meanwhile, fell to 1.3 percent from 2.9 percent in October.

"Agents report that the Christmas slowdown has come early this year, as both would-be buyers and sellers are adopting a 'wait and see' policy until the direction of next year's housing market becomes more apparent," commented Miles Shipside, a Rightmove director.

Earlier this month, the Council of Mortgage Lenders (CML) revealed that buy-to-let lending rose by 12 per cent in the third quarter.

This has been largely attributed to ongoing demand for rental property allied to a dysfunctional owner-occupier market.

The CML said that there were 26,900 buy-to-let loans advanced in the third quarter.

Buy to let mortgage lending will take several years to recover, says expert

The buy-to-let mortgage market is likely to take "several years" before it returns to its pre-recession condition, it has been claimed.

Figures from the Council of Mortgage Lenders show that the value of lending to the buy-to-let sector in the last quarter increased by 12 per cent and totalled 26,900 loans .

However, this figure remains low by historical standards and is similar to levels seen in 2002.

Chris Horne, editor of Property Hawk, observed that while buy-to-let finance has "eased" over the last year, there is unlikely to be a sharp recovery in 2011.

"It is the unwinding of the big collapse in the banks," remarked Mr Horne.

He added: "Slowly they are rebuilding their capital position and they are then gaining the confidence to lend to people like landlords . It is going to take quite a few years for the market to return to anything like it was pre-2007."

Meanwhile, a report produced by Upad recently found that some 54 per cent of landlords say they are more confident in the rental sector in November than they were last month - down from 57 per cent in October.?

Santander launches new tracker mortgage

Santander is set to launch a new competitive two-year tracker mortgage available exclusively to existing current account customers.

The new product at 60 per cent loan-to-value and 2.09 per cent is available to Santander Current Account customers hoping to remortgage .

Furthermore, the new offer comes with a ?995 fee and comes with the Remortgage Solution which offers a free basic mortgage valuation .

In addition, it comes with a free basic mortgage valuation or ?250 cashback on completion.

Phil Cliff, director of Santander Mortgages, explained: "As the home of UK mortgages, our latest competitive tracker product rewards existing Current Account customers with a great rate.

He added: "Slashing the qualification criteria to three months ensures that existing Santander Current Account customers - or those who have recently switched and are looking to remortgage - can make the most of this opportunity and get a great product."

Meanwhile, Chris Horne, editor of Property Hawk, observed recently that the buy-to-let mortgage market is likely to take "several years" before it returns to its pre-recession condition.?

Homeowners are struggling with mortgage payments, warns Shelter

The number of Britons struggling to pay their mortgage has nearly doubled during the past year, according to a housing charity.

Around 18 per cent of homeowners now face a constant struggle to keep up with their home loan repayments, Shelter said.

This figure is up from ten per cent last year.

Interest rates rise, unemployment increases and inflation is likely to see the situation get worse.

"Clearly this shows what a difficult year it has been for many homeowners, with thousands of people literally hanging on to their homes by the skin of their teeth," commented Campbell Robb, chief executive of Shelter.

"With potential interest rate rises, higher unemployment and steep increases in food and fuel bills on the horizon, it seems unlikely things are about to get easier for homeowners any time soon."

CML announces mortgage figures

Buy-to-let lending rose by 12 per cent in the third quarter, the Council of Mortgage Lenders (CML) has revealed.

This has been largely attributed to ongoing demand for rental property allied to a dysfunctional owner-occupier market.

There were 26,900 buy-to-let loans advanced in the third quarter, worth ?2.8 billion, according to the CML .

And by the end of September, there were 1.29 million buy-to-let mortgages outstanding, an increase of seven per cent from the previous quarter.

"We would expect buy-to-let demand to pick up further if current rising rental trends continue and house prices remain broadly stable," commented CML director general Michael Coogan.

"However, there is short term uncertainty as a result of the unresolved debate on housing benefit and landlords response to new limits."

This comes after research conducted by Policis suggested that as many as one in five homeowners could become mortgage prisoners if new lending rules are introduced.?

FSA recommends changes to mortgage sales

The Financial Services Authority (FSA) has outlined proposals which focus on enhancing the mortgage sales process, the role of intermediaries and improving disclosure of information for customers.

A key element of the proposals is requiring that those selling mortgages ensure that each one sold is ?appropriate' for the customer's needs and circumstances.

By achieving this, the FSA believes that the role of the mortgage seller will be clarified.

Sheila Nicoll, the FSA's director of conduct policy, commented: "This next step of the Mortgage Market Review recognises the importance of the intermediary and ensuring the quality of every mortgage sale.

"It also indicates how the intermediary and other sales staff fit into our vision of a sustainable mortgage market that works well for consumers."

Meanwhile, figures recently announced by the Council of Mortgage Lenders show that the value of lending to the buy-to-let sector in the last quarter increased by 12 per cent and totalled 26,900 loans .

This figure remains low by historical standards and is similar to levels seen in 2002.?

Homeowners to become mortgage prisoners, says Policis

As many as one in five homeowners could become mortgage prisoners if new lending rules are introduced, new research has suggested.

If the Financial Services Authority presses ahead with tough affordability rules, around 19 per cent of current borrowers would be prevented from moving or re-mortgaging .

Furthermore, 30 per cent of people would see a reduction in the amount they could borrow, the economic and social research consultancy Policis claimed.

Within the first year of the rules being introduced, around 483,000 homeowners looking to move and renters wanting to buy a property would be affected, Policis said.

Meanwhile, Obligo, a next-generation provider of financial services to estate agents, recently found that 31 per cent of estate agents are either dissatisfied or very dissatisfied with the financial services provider that takes care of their clients? mortgage arrangements .

Just over half (54 per cent) of the 300 estate agency firms it surveyed said the service they received was average.

Indeed, only 15 per cent said they were satisfied or very satisfied with their existing mortgage arrangements.

Leeds Building Society launches new discount mortgage

Leeds Building Society has launched a new two-year discount mortgage at only 2.80 per cent.

The new product allows the flexibility of ten per cent capital repayments each year and there is no higher lending charge .

According to the provider, the product is ideal for re-mortgages because it offers a free valuation up to ?335 as well as free in-house legal services for standard remortgages .

Kim Rebecchi, Leeds Building Society's Sales and Marketing Director, remarked, "This mortgage at only 2.80 per cent offers good value, particularly when combined with the flexibility of ten per cent capital repayments each year without penalty and no higher lending charge.

"Furthermore, the product is fully portable so if customers do wish to move during the term they can take the mortgage with them."

This comes after Santander announced that it is to launch a new competitive two-year tracker mortgage available exclusively to existing current account customers.?

Buy to let mortgage figures rise

The rise in gross advances is encouraging and reflects an increased level of confidence amongst landlords and lenders in the buy-to-let mortgage market, it has been claimed.

This assertion comes after the latest buy-to-let gross lending and arrears figures from the Council of Mortgage Lenders revealed a 12 per cent increase in buy-to-let gross advances to ?2.8 billion.

On an annual basis, in fact, the volume of lending is up 14 per cent and the value up 33 per cent.

Nigel Terrington, Paragon Group chief executive, observed that tenant demand is extremely strong and the private rented sector needs to expand to deal with the "increased numbers of people wanting to live in rented homes ".

"Therefore, it is pleasing that the value of loans for house purchase hit its highest level since the final quarter of 2008 and the volume of loans rising for the third successive quarter," he remarked.

"Although we are still a long way from normal market conditions and lending is low by historical standards, the market is heading in the right direction and is growing again."?

Barclays updates service for mortgage brokers

Barclays has unveiled an updated IntroTrack service to ensure that any broker submitting Woolwich mortgage applications automatically gets signed-up for the service.

The service allows brokers to receive email updates at each of the six key stages.

Barclays said that this forms part of their continued approach to help intermediaries deliver a great service to their clients.

The IntroTrack service, which now has a new look, allows brokers to obtain a summary of all their mortgage cases helping them to reduce paperwork.

"It is vital that brokers are not waiting around for information, therefore the systems are designed with that in mind to offer a real-time update via email or at the touch of a button whenever they require it," remarked David Finlay, Barclays intermediary business director.

"This will really put them on the front-foot with their clients to deliver excellent service."

Meanwhile, the housing charity Shelter warned recently that the number of Britons struggling to pay their mortgage has nearly doubled during the past year.