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.