Repayment of Mortgages

The housing market is very cyclical. It is not just prices that can be volatile, but also equity withdrawal and debt repayment. In the boom years, property owners were taking £50bn of equity withdrawal every year. Mortgage equity withdrawal was adding nearly 9% of consumers spending power. Mortgage equity withdrawal involved re-mortgaging house to gain …

Independence of Bank of England

Independence of the Bank Of England In 1997 the Bank of England was given independence to set interest rates. It is argued that politicians often took political factors into consideration when setting Interest Rates e.g. before an election they could cut rates to speed growth but this may cause inflation. However the govt still retains …

Financial System in the UK

The Role of the Financial Sector in the UK economy Financial intermediaries: These have the role of providing a link between those who wish to borrow and those who wish to lend. They provide 4 functions Expert advice Expertise in channelling funds. E.g. into the accounts with the highest yield Maturity transformation. Can make loans …

London Housing Market

Problems in the London Housing Market First Time Buyers struggling to get on Property Ladder House prices have been rising faster than incomes, making it more difficult for first time buyers to get on the property ladder. The Halifax estimates that first time buyers in London, need an average deposit of over £41,000. Therefore, to …

Gazumping in UK Housing Market

When the owner accepts the offer on a property, the buyer will usually not yet have commissioned a building survey nor will the buyer have yet had the opportunity to perform recommended legal checks. The offer to purchase is made “subject to contract” and thus, until written contracts are exchanged either party can pull out …

Guide to Housing Market

Affordability. The ratio of house prices to disposable incomes. Also can be measured by measuring ratio of incomes to average mortgage interest payments. Affordable Housing. – Housing that is within the budget of key public sector workers and first time buyers. Generally, there is a shortage of affordable housing in the UK – affordable housing. …

Mortgage Equity Withdrawal in UK

Mortgage Equity Withdrawal involves homeowners taking out a bigger mortgage loan to be able to take out cash from the value of their house. Mortgage Equity withdrawal is a way of converting wealth into disposable income. An increase in house prices on its own doesn’t increase consumer spending. However if people can remortgage then they …

Mortgages for Foreigners

  With house prices in the UK averaging nearly £200,000, getting a mortgage has never been more difficult. In addition, immigrants into the UK, face additional hurdles in getting a mortgage because they may struggle to prove that they have a valid credit history and have a suitable deposit. If you do immigrate into the …

Mortgage Help from Government

Will the Government help, if struggling to meet mortgage payments? The government only gives limited help for those people eligible for income support. If you are stuggling to meet mortgage payments and fear your home could be repossesed, these are some of the steps you can take to meet your mortgage payments and avoid repossessions …

UK Home Mortgages

Different Types of UK Home Mortgages When considering which mortgage to take out, a home owner is offered a bewildering range of mortgages. See: Different Types of Mortgages However, there are a few key differences. 1. Repayment vs Interest Only Mortgages A standard repayment mortgage means that you pay both the interest on the loan …

2nd mortgage loans UK

A 2nd Mortgage loan is a loan taken while the 1st mortgage is still being paid off. A 2nd mortgage may be preferable to remortgaging the existing mortgage loan. The 2nd mortgage loan will usually be secured against the existing home equity. Getting a second mortgage loan is a way to be able to invest …