Finance Articles
Develop Your Domain Names
Mortgage Sales Hit Problems
The housing market has been buoyant over the past few years, but mortgage providers and first-time buyers are both now facing a tough time. Following announcements from the Bank of England that there has been an overall decline in the total number of UK home-buyers, and a declaration from the Financial Ombudsman Service (FOS) that the number of disputes concerning mis-sold mortgage endowments has now hit record levels, it seems that mortgage lenders are facing a bleak time. Add to this the results of a new survey, by the Edinburgh Solicitors Property Centre, which shows potential first-time buyers fear that they may never get onto the property market, and you start to see a worrying picture of the housing market emerge.
The problem with the mis-selling of endowment mortgage products has recently made the headlines in the world of personal finance. The FOS admitted receiving 70,000 new complaints about endowment mortgages, the equivalent of 1,300 a week, compared to just 300 a week three years ago.
The main grounds for complaint revolve around people who believe that mis-selling had occurred regarding policies. Many consumers feel that the endowment product sold to them was unsuitable either because it would lead to financial short-falls, or because the level of risk involved had not been adequately explained to them prior to the policy commencing.
The sheer scale and number of complaints has lead to changes in regulations and the imposition of deadlines for lodging complaints.
"The number [of complaints] we can expect to receive in the current year will largely be determined by how financial services firms meet the new regulatory requirements on so-called re-projection letters. Most of these letters will warn of likely mortgage shortfalls and many will give, for the first time, an explicit deadline by which any complaint must be lodged.", Walter Merricks, chief ombudsman.
The situation is no better for first-time buyers either. Forming a significantly important sector of the house buying market, a recently published study from GMAC, the financial subsidiary of General Motors, carried out by Professor David Miles, who was originally commissioned to investigate the mortgage market by Chancellor Gordon Brown, has found that dramatically fewer first-time buyers than ever before are currently entering into the housing market.
A report from mortgage lender, Abbey, highlighted that the main concern for first-time buyers is not a lack of desire to buy their own house, but rather a fear over whether they feel they can afford to do so. Just over a third of the potential first-time buyers in the survey, indicated that they wanted to buy a home within the next year, however only 5% were confident that they would actually be able to.
These figures are disappointing when viewed against the backdrop of the initiatives by Gordon Brown to help first-time buyers, through the increase in the zero rate stamp duty threshold announced during the budget, and the introduction of shared ownership schemes with purchasers owning between 50% and 75% of their home and paying rent on the remainder.
Recent reductions in the cost of loans for first-time buyers has also occurred, and many experts believe that the base rate may fall further, creating a spark for further reductions in the cost of monthly mortgage payments. These should all be seen as good news, but new buyers still do not appear to be convinced that now is the right time to buy.
"There are other important influences affecting this group other than the straight affordability issue", GMAC's, executive chairman, Stephen Knight, reported, "Buying property is seen as 'settling down' among 71% of those questioned... .More than half of the people studied felt comfortable with delaying buying a property until they are over 30. This matches with the current average age of a first-time buyer, 34." Stephen Knight also stated that an increasing problem for those who go on to higher education is that, "many graduates, especially those who leave college with large student debts, are unwilling to take on additional financial commitments."
According to research from Moneynet, first time buyers during May were looking for an average mortgage amount of £135,966 for an average property value of £205,284 on an average salary of £39,027. With the average single UK salary around £24-25k, current house purchases are therefore generally requiring the combined funds available from dual incomes, combined with many young families being worried about job security, Stephen Knight believes there are clearly social and financial issues that need to be addressed.
The greatest worry for a quarter of would-be buyers according to the Edinburgh Solicitors Property Centre is that they feel that if they don't get on to the property ladder soon, they never will.
Richard works in Edinburgh for a media company, occasionally writing for the personal finance blog Cashzilla, and drinking too much coffee.
References:
Moneynet
Edinburgh Solicitors Property Centre
Sunday Herald
Other Article Sites
findabook.com moneycd.info a-mortgage.info
about-lemon-laws.info aboutstudentloans.info
all-about-publishing.info auctions-articles.info bestcollege-university.com bestispconnection.com
biblefolder.com blogger-website.com books-used.info brokers-guide.info buywindows.info cable-dsl.info
career-miner.com carpel-tunnel.info cashinaflash.info cashloanreviews.info casinobell.com chat-house.info
clearmycredit.info collegeloantips.info crones.info depression-articles.info
dirnic.net dishguides.info
divers-below.com expodog.info
financewizz.com fire-insurance.info getgood.info handleit.net
it-idea.info
health-supplies.info hosting-right.com insidealert.com insurance-facts.info jobs-employment.info
justgood.info lookgold.net
lowcost-travel.info money-source.info myhostzone.info numisblog.com
peoplesearchfinder.info pr-articles.info realeas.com
refinancing-guides.info spyware-remove.info
telelot.info the-law.info
toppaid.info travel-deals.info travelcorrect.com wedding-guide-site.com
your-blog.info your-credit.info
Home Loan Loan Refinance: Should You Use The Same Mortgage Company?
A refinance provides the mortgagor the opportunity to switch to a lower interest rate or transfer his mortgage to another lending company. Transferring your home loan loan refinance is an option when the interest rates are eating up your budget or when the company is not servicing your loan the way you want it. But there are other considerations when thinking of a refinance.
Mortgage ? Changes Ahead?
Borrowers should be aware of some of the changes taking place in the mortgage industry after two building societies recently implemented rises in their SVR (standard variable rate). As the last Bank of England interest rate has remained steady for over 11 months, and especially as the last move was downwards, this has angered and surprised their customers.
Norton & Associates Inc. Provides; Global Private Investment Funding, Carbon Offset Credits, Commercial Real Estate Investment for Retirement, Resort
Robert H. Norton, President of Norton & Associates Inc., providing P & L Investment Management, Commercial Real Estate Development announcement of a P & L contract to provide private investment funding for a 3,100 acre, Waterfront Sportsman Retreat known as Currituck Point, Hyde County, North Carolina. This Phase I , $30M investment package brings the total asset management over $600M using Global Private Investment Funds.
Should You Pay Off Your Mortgage?
If you have a mortgage on your home, then paying it off early could be option for you to consider especially if the remaining debt is manageable. Conventional financial wisdom could suggest otherwise, but then there is nothing conventional about most debt anyway. Should you pay off your mortgage? Well, that ultimately becomes a personal decision one that you need to explore and decide for yourself.
Tax Trap #2 -- Double Taxation: Isnt Once Enough?
Have you been thinking about incorporating your small
business or self-employment activity? The advantages
are many!For starters, you'll be protecting yourself and your family
from the possible of a business ending lawsuit. Forming a
corporation is Step One on the path known as "Asset
Protection" -- you are moving from the world of unlimited
liability to the world of limited liability.
Take Care When Selecting Used Car Finance
While taking used car finance, there are several factors considered by an individual that will include the factor depending upon the source through which you are planning to buy a used car Buying a car from showroom comprises completely different requirements when buying a car privately
Buying Beach Houses in New Zealand: Real Estate and Investment Opportunities
Buying a beach house in New Zealand offers many possibilities.New Zealand is made up of two main islands, North Island and South Island, giving it miles of coastal lands and perfect beaches to live by.
The Most Profitable Investment You Can Make
Investors are always looking for better investments. Everyone wants to find an investment that will yield higher profits for lower risk. Well there is such an investment and I'm happy to share the secret with you.
Internet & Mortgage Calculations
"You've been approved!" The words you have always wanted to hear when you filled out the home loan application. It swirls through your mind the opportunities and memories you will cherish in your new home.
What Does A Mortgage Lender Look For On Your Credit Report?
1. The Number of Open Credit Accounts You Have - Mortgage lenders always evaluate the number of open lines of credit that a mortgage applicant has. They then analyze that information to determine the risk they would face by funding the mortgage. The mortgage lender will then project a hypothetical situation where the applicant has maxed out all of their available credit lines and are paying the minimum required on all those accounts. This information is then factored into the debt-to-income ratio to see if the applicant would still be able to pay the mortgage every month.
Bad Credit Mortgage Lender - What to Look For
If you have less than perfect credit and are looking to get approved for a mortgage loan, be careful not to make some common, costly mistakes. When dealing with sub-prime mortgage lenders or bad credit mortgage lenders, many people are taken advantage of because of their eagerness to get approved.
The UAE Global Investment Forum 3-4 March 2008, Emirates Palace, Abu Dhabi Under the patronage of His Highness General Sheikh Mohammed Bin Zayed Al Na
Institutional Investor Conferences announces The UAE Global Investment Forum. It will take place on 3-4 March 2008 at the Emirates Palace, Abu Dhabi. The Forum is supported by the Department of Planning and Economy - Abu Dhabi and Co-Hosted by Abu Dhabi Commercial Bank (ADCB) and Sorouh Real Estate. Lead Sponsors include: Abu Dhabi Investment Company (ADIC) and Peachtree Capital Markets. Co-Sponsors include: Abu Dhabi Securities Market, Coughlin Stoia Geller Rudman & Robbins LLP, Injaz Mena Investment Company PSC and The National Investor (TNI). Airline Partner: Etihad Airways.
Purchase Order Financing - A Tool To Finance Your Growing Orders
Do you have more purchase orders than what you can handle? Is lack of financing preventing you from fulfilling those orders? One of the most frustrating things that can happen to a business owner is to turn orders away ? good orders ? because you don?t have the financial capacity to fulfill them.
UNIVEST Group Participates as a Supporting Organization in the 'Investment in Oil & Gas Forum 2007' in Dubai
UNIVEST Group has participated for the first time as a Supporting Organization in the "Investment in Oil & Gas Forum 2007" event which was held on the 23rd and 24th of October at Habtoor Grand Resort and Spa in Dubai (in cooperation with TAQA, Ashurst, and Las Consult: Investments Finance & Consultancy).
