13 November 2009

You could be stuck in your current property...

It has been a very mixed week in the mortgage market! Recent reports suggest that the FSA have admitted to putting increasing obstacles in front of potential new mortgage lenders. Superb! So we’re left with the small number of current lenders, and their inability to share Quantitative Easing monies received from the Government. So much for competition in the mortgage markets and the much trumpeted instructions from the Government and Bank of England for lenders to lend!

As predicted a few weeks ago, the Self Certification (no proof of income) mortgage market has been dealt a major blow. Of the two lenders left, one withdrew last week and it is likely that the ‘last man standing’ will not remain so for long. I’ve no doubt that they will withdraw possibly before the FSA’s mortgage market review request to ban Self-Cert comes in to effect earlier next year. Whilst it is probably true that there has been some abuse of this product, and lenders are not immune from responsibility, it is still suitable for the right people in the right circumstances, especially the self employed. I am concerned that the forced demise of this sector has not been carefully thought through.

UPDATE - since submitting this article on 11/11 for publishing on 13/11, the last lender offering self cert mortgages has now also withdrawn from the market.

2.5 million homeowners are living in their current properties for longer than they had originally planned, reports Unbiased.co.uk. Of those surveyed, one in four homeowners are stuck in their current property due to the fact that they have been unable to sell at the price they envisaged. Another quarter are staying longer than planned because they cannot afford the increased mortgage repayments on their next home!

And finally, with Bank Base Rate remaining at 0.5% for the umpteenth month in a row and with some attractive products available in the mortgage market, this really is a good time to look at a new mortgage. Remember, you can deal with whoever you want to! Speak to your local and independent mortgage brokerage as soon as possible to ensure you don’t miss the right product for your specific requirements. You know who to call!

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