Mortgage News

12 November 2008

Will mergers of various of the UK’s banks and building societies have a detrimental affect on the mortgage market?

In recent times there have been numerous takeovers and mergers discussed publicly between some of our high street banks and building societies.

Within this timescale we have also seen lenders exit the market, and some of them are major players in the mortgage industry e.g. The Mortgage Business – one of the lending arms of HBOS.

All of the above has the obvious effect of reducing the number of mortgage providers and mortgage products available. Each lender adopts their own underwriting criteria to cases, ensuring that alternatives are available for customers.

My fear is that fewer and fewer lenders are available, which will in turn have the effect of a monopoly held by a small number of banks and building societies over the UK mortgage market.

Competition is healthy and necessary to ensure that applicants are able to secure the best terms possible. One would hope that the ‘thinning’ out of lending societies does not rob the mortgage industry of this essential component.

Holiday Let Mortgages
6 November 2008

Will the merger of Skipton & Scarborough Building Societies affect holiday let investors?

Scarborough were one of a minority of mortgage lenders who were happy to lend on properties with holiday let restrictions and were flexible with their underwriting approach to such cases.

If Skipton do not 'carry the mantle' so to speak, this could cause further problems to an already troubled holiday let market.

As the pound has weakened against other currencies, holidaying within the UK will become more attractive to the British public and overseas holidaymakers, increasing the demand for holiday homes around the UK.

There are many holiday let developments, either complete or still in the process of being built, throughout the UK. This, twinned with numerous holiday let investors keen to purchase, means it's necessary for there to be various finance options available to them.

Hopefully lenders will have the foresight to recognise the opportunity to be had in this niche market and begin to provide further offerings.

Bank Rate Slashed
6 November 2008

Welcome news for any mortgage borrowers who are currently in a tracker rate product has come through in the shape of a slash in the Bank Of England base rate to 3%.

Anyone on an existing tracker rate should feel the benefits on their next monthly payment, as most lenders make the adjustment for the following month.

This is great news just before Christmas and should put more pennies in the pockets of some of the UK's homeowners.