Financial News
For the first time since July 2005, there has been a decline in gross lending, the Council of Mortgage Lenders (CML) has announced.
The total figure stood at £30.7 billion for November, an eight per cent decrease from the corresponding period in 2006.
Abbey National and the Yorkshire Building Society have become the latest lenders to lower their fixed-rate tracker mortgages.
The moves come on the heels of a long-awaited cut in the Bank of England's base rate of borrowing and are being seen as an attempt to maintain market competitiveness.
Mortgage products available from Abbey now include two or three-year deals at 5.89 per cent interest; a five-year deal at 5.79 per cent; and a range of ten year mortgages with between 5.64 and 5.94 per cent interest.
The popularity of long-term fixed-rate mortgages has grown in recent years, especially among first-time buyers, it has been reported.
According to Mortgage Express, people looking to get onto the property ladder enjoy the "peace of mind" given by fixed-rate deals.
Only one per cent of Brits are in "peak financial condition", according to a new study.
Research by Abbey rated individuals' financial condition on a score of zero to 100, where zero is financially fit and 100 is financially obese. It analysed the number of financial products an individual has, the competitiveness of these products and how often they shop around for a better deal.
The bank found that the average person is 43 per cent financially overweight, with uncompetitive mortgage rates being the biggest factor.
Last week's decision by the monetary policy committee to cut the base rate to 5.5 per cent may not mean 2008 will be an easier year for mortgage-holders, according to the Council of Mortgage Lenders (CML).
Sue Anderson, head of external affairs at the organisation, commented that although the decision has helped to restore consumer faith in the industry, it may not lead to an increase in credit availability.
The Bank of England's monetary policy committee cut the base rate to 5.5 per cent yesterday and the news is an "early Christmas present" for homeowners, says Fair Investment.
The investment firm claims that the decision will help first-time-buyers onto the housing ladder and reduce monthly payments for people with variable rate mortgages.
Consumers are being deterred from long-term fixed-rate mortgage deals, reveals a new study.
According to research by YouGov for the Council of Mortgage Lenders (CML), although 43 per cent of people would prefer a medium or long-term deal when considering a fixed-rate deal, there are a number of factors which put them off.
Extending a home can lead to higher insurance premiums, warns the Basement Information Centre.
The advisory service claimed that anything that may add to the value of a property can increase the cost of insuring the building.
Mortgage approvals are not reducing as dramatically as preliminary reports suggested, claims the Council of Mortgage Lenders (CML).
Following a report by the Bank of England that revealed net consumer credit growth more during the month of October than in September.
Three-quarters of people in the UK do not understand how a one per cent difference in mortgage rates would affect their loan, according to new research.
Nationwide Building Society explains that a difference of one per cent on a five-year fixed-rate mortgage could equate to more than £4,000, but that 28 per cent of people think it would only be worth between £500 and £2,000.
Nearly one quarter - 23 per cent - admitted they had no idea what a one per cent increase of decrease in rates would be in monetary value.
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