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.