The Halifax Bank has followed the Nationwide's increased deposit with a similar move. It also will now only offer it's best rates to the two-thirds of home buyers with at least a 25% deposit.
The Halifax now has 3 rates of lending, those borrowing less than 75%; those borrowing between 75% and 90% and those borrowing 90% to 95%.
Brokers will also no longer be able to arrange 97% loans, although Halifax branches will still offer these, with a premimu of 0.35% on the interest rate.
The changes will leave new borrowers with the Halifax and subsiduaries Bank of Scotland and Inteligent Finance better off by 0.1% if they are able to pay a 25% deposit, but 0.14% worse off if the deposit is 75% to 90%.
Showing posts with label homes. Show all posts
Showing posts with label homes. Show all posts
Friday, 4 April 2008
Wednesday, 26 March 2008
Mortgage Deals Crash
Research has revealed that the number of mortgage deals on offer to customers has dropped from 15,599 last July to 5,785, according to Moneyfacts.
Lenders are removing deals and changing conditions daily. Conditions can change to raise minimum deposits or pay higher rates. This will have a huge impact on the hosuing market, with only 1 in 3 houses expected to sell, according to Henry Pryor, property expert from website Primemove.com.
He said that many will find their dream home, but will not be able to raise a mortgage for it and that sellers must be realistic with prices and expect to raise 10% - 15% less than last summer.
This drop is not just in the troubled sub-prime market. The 'prime' market has also dropped from 3,803 deals to 2,540 in the same time period.
Deals that have done include the 100% and 125% mortgages. Only Abbey now offers a 100% mortgage to the main market, with other lenders offering 100% deals that require further securities, e.g. parental involvement.
Lenders are removing deals and changing conditions daily. Conditions can change to raise minimum deposits or pay higher rates. This will have a huge impact on the hosuing market, with only 1 in 3 houses expected to sell, according to Henry Pryor, property expert from website Primemove.com.
He said that many will find their dream home, but will not be able to raise a mortgage for it and that sellers must be realistic with prices and expect to raise 10% - 15% less than last summer.
This drop is not just in the troubled sub-prime market. The 'prime' market has also dropped from 3,803 deals to 2,540 in the same time period.
Deals that have done include the 100% and 125% mortgages. Only Abbey now offers a 100% mortgage to the main market, with other lenders offering 100% deals that require further securities, e.g. parental involvement.
Tuesday, 26 February 2008
New Housing Market Gloom
Persimmon has reported falling levels of interest in new homes, compared to this time last year. 12 months ago it had forward reservations of £1.3bn, now it is down 19% to £1.05bn.
Footfall through sites is also down 13% on the same period, with cancellations up 20% as potential buyers refuse to commit with banks and building societies tightening lending conditions.
Chairman John White complained of 'a very challenging year' and was cautious about the spring selling season. 'When confidence returns and sentiment improves we anticipate a return to a stronger market,' he said.
'In the meantime we remain cautious. Understandably, potential purchasers are currently taking longer to make decisions about the timing of their house purchase. There remains an underlying demand and desire for new homes but we have been experiencing a period of a "wait and see" approach.'
Footfall through sites is also down 13% on the same period, with cancellations up 20% as potential buyers refuse to commit with banks and building societies tightening lending conditions.
Chairman John White complained of 'a very challenging year' and was cautious about the spring selling season. 'When confidence returns and sentiment improves we anticipate a return to a stronger market,' he said.
'In the meantime we remain cautious. Understandably, potential purchasers are currently taking longer to make decisions about the timing of their house purchase. There remains an underlying demand and desire for new homes but we have been experiencing a period of a "wait and see" approach.'
Monday, 25 February 2008
Nationwide Increases Deposits
Nationwide has increased the deposit homebuyers must produce for their best available rate from just 10% of the property price to 25%. With average house prices in London in excess of £300,000, this will mean a £75,000 deposit is required to secure the best possible rate.
High loan to value mortgages are steadily disappearing, with 125% mortgages being pulled last week. This goes hand in hand with the credit crunch and the number of mortgage defaulters stteadily rising. Banks are reacting to this by making it more difficult to get high levels of credit.
Borrowers unable to rise the extra 15% deposit will still be able to borrow from the Nationwide, but only by paying a further 0.2% - almost effectively removing this months rate cut.
High loan to value mortgages are steadily disappearing, with 125% mortgages being pulled last week. This goes hand in hand with the credit crunch and the number of mortgage defaulters stteadily rising. Banks are reacting to this by making it more difficult to get high levels of credit.
Borrowers unable to rise the extra 15% deposit will still be able to borrow from the Nationwide, but only by paying a further 0.2% - almost effectively removing this months rate cut.
Monday, 14 January 2008
No Home Insurance For Floods
Insurers have warned that government spending on flood defences is too little and that they may not insure home owners in at risk areas against flood damage. If insurance firms decide not to cover high risk areas from flood damage, 570,000 properties could be left susceptible to loss if they were hit by further flooding.
The Government's latest spending review announced it would spend just £2.15bn on flood defences, which is not enough according to the Association of British Insurers and they have warned that much more is required.
Stephen Haddrill, director general of the ABI, said: 'Government spending for the next three years is less than we were asking for, even before the floods.' and said the spending plan shows that Chancellor Alistair Darling has 'completely failed to grasp the importance of improving Britain's flood defences'.
The ABI had urged the government to spend £2.25bn over 3 years, but it believes that there is a need for more investment. Insurers have so far spent £3bn putting right the damage caused by this year's floods.
An ABI spokesman said: 'We have committed to continue to provide cover for households in high risk areas, but we will now have to review this.'
Norwich Union, the UK's largest insurer, warned in August that its premiums for homes with increased risk of flooding would be hiked by 10%.
The Government's latest spending review announced it would spend just £2.15bn on flood defences, which is not enough according to the Association of British Insurers and they have warned that much more is required.
Stephen Haddrill, director general of the ABI, said: 'Government spending for the next three years is less than we were asking for, even before the floods.' and said the spending plan shows that Chancellor Alistair Darling has 'completely failed to grasp the importance of improving Britain's flood defences'.
The ABI had urged the government to spend £2.25bn over 3 years, but it believes that there is a need for more investment. Insurers have so far spent £3bn putting right the damage caused by this year's floods.
An ABI spokesman said: 'We have committed to continue to provide cover for households in high risk areas, but we will now have to review this.'
Norwich Union, the UK's largest insurer, warned in August that its premiums for homes with increased risk of flooding would be hiked by 10%.
Subscribe to:
Posts (Atom)
