http://complete-mortgages.co.uk/news http://complete-mortgages.co.uk/news http://complete-mortgages.co.uk/images/complete-mortgages.png Complete Mortgages - Mortgage, Financial, Company News and more en info@complete-mortgages.co.uk Copyright 2012 2012-02-20T08:58:10+00:00 http://complete-mortgages.co.uk/blog/fear-of-being-sued-makes-lenders-toughen-criteria/ http://complete-mortgages.co.uk/blog/fear-of-being-sued-makes-lenders-toughen-criteria/ Fears that they could be sued if a borrower’s repayment vehicle fails to pay off their interest-only mortgage are behind lenders’ recent criteria changes, trade bodies have claimed. The Council of Mortgage Lenders and the Intermediary Mortgage Lenders Association are warning that proposals in the Mortgage Market Review could pave the way for lenders being sued should the repayment vehicle not cover the mortgage balance at the end of the term. The Financial Services Authority’s latest MMR paper, published in December 2011, puts the onus on lenders and says they must judge whether the repayment vehicle has the potential to repay the mortgage. John Heron, chairman of IMLA, says that if a lender is expected to check the appropriateness of a particular vehicle, it raises questions aboutwhere the responsibility lies if it fails. He adds: “If it is going to be judged in retrospect, will lenders have been expected to assess the robustness of the repayment vehicle according to information at the time or future considerations? “You can understand why lenders are likely to address this by constraining their criteria.” Meanwhile, in its latest News & Views newsletter, the CML warns: “The FSA clearly states that ‘the repayment of a mortgage is the ultimate responsibility of the borrower’. “But borrowers and the Financial Ombudsman Service will need to clearly understand that despite lenders having to assess the probability of the chosen repayment method meeting its target, borrowers, not lenders, will actually be responsible for the repayment method they choose.” Ray Boulger, senior technical manager at John Charcol, says lenders are not willing to take the risk. He says: “The MMR puts so much responsibility on lenders to ensure any investment plan will produce sufficient funds to pay off the mortgage that they are understandably not prepared to take the risk of being sued by borrowers for any shortfall.” Last week, Lloyds Banking Group announced a string of interest-only restrictions. It will no longer accept cash savings, including ISAs, as a suitable repayment vehicle. It also placed restrictions on using stocks and shares as a repayment vehicle and specified that pensions must have a minimum current value of more than £1m. This followed Santander reducing its maximum LTV for interest-only from 75% to 50% the previous week . Complete Mortgages are whole of market mortgage brokers based in Guildford, Surrey.  We have many years of experience and are equipped to deal with all types of mortgage, no matter how complex.  Please contact us on 0845 658 6060 / 01483 233014 for a consultation. Fear of being sued makes lenders toughen criteria // Financial New Mon, 20 Feb 2012 08:58:10 -0800 http://complete-mortgages.co.uk/blog/rise-in-90-mortgages-brings-hope-for-first-time-buyers/ http://complete-mortgages.co.uk/blog/rise-in-90-mortgages-brings-hope-for-first-time-buyers/ There’s no doubt that the economic downturn has really hit the property market in the UK, in particular, we have seen a severe shortage of first time buyers. Why? One of the biggest reasons is that historically it was much easier to obtain a competitive 90% mortgage for first time buyers. But since the credit crunch hit the UK, the lending criteria for mortgages has made it very difficult to obtain a mortgage at all unless the buyer could provide a deposit of 25%, or more. It seems things may be changing for the better for first time buyers… Even despite the recent decision to hold interest rates at 0.50%, larger lenders have once again begun to offer 90% mortgages to first time buyers and those without substantial deposits; a sign that brings hope for anyone looking to get onto the property ladder.  We haven’t such a large number of available products since 2008, which is truly a breath of fresh air for first time buyers, and something that Complete Mortgages is very excited about. Nationwide recently extended its range of 90% mortgages making them available to more of their customers, whereas historically they were only available to existing customers. Other lenders who are employing competitive rates include NatWest, Halifax, Northern Rock and Santander. This competitive market makes it all the more important that you work with a mortgage broker who can help you determine the best product for you, Complete Mortgages can do just that. What you should know about 90% mortgages for first time buyers: - • Although there are many more products now available for first time buyers, lenders are still being very careful to consider the buyers credit history. • You will be in a better position to secure a 90% mortgage as a first time buyer if you have a good affordability profile; meaning you are employed or self-employed, without large amounts of existing debt including credit cards and loans. Many lenders also look to see that your bank account is in good shape, proving that you have managed your money well.  • Despite the fact that low rates are available for borrowers with a 10% deposit, there will likely be fees attached to most 90% mortgages that are available. So with 90% mortgages for first time buyers becoming more readily available, how will you find the right one for you? It is important to find a mortgage broker you can trust to give you mortgage advice, keep you informed of exclusive deals, and help you find the cheapest rates. If you are a first time buyer looking to secure a mortgage in Guildford or Surrey, Complete Mortgages can give you the mortgage advice you need to get you onto the ever important first rung of the property ladder. Rise in 90% mortgages brings hope for first time buyers // Product New Tue, 14 Feb 2012 18:17:37 -0800 http://complete-mortgages.co.uk/blog/help-for-households-inflation-falling/ http://complete-mortgages.co.uk/blog/help-for-households-inflation-falling/ The headline rate of inflation has dropped to its lowest level since November 2010, in a sign that the pressure on cash-strapped households has continued to ease. The consumer prices index (CPI) rate fell to 3.6% on an annual basis in January, from 4.2% in December. The performance mainly reflects last year's increase in VAT being stripped out of the calculations. The figure also remains in line with the Bank of England's forecast that inflation will average just over 3.4% in the first three months of 2012. Help For Households: Inflation Falling // Financial New Tue, 14 Feb 2012 12:44:45 -0800 http://complete-mortgages.co.uk/blog/mpc-votes-for-more-qe/ http://complete-mortgages.co.uk/blog/mpc-votes-for-more-qe/ The Bank of England’s Monetary Policy Committee has voted for more quantitative easing at its February meeting. The committee has increased the size of its asset purchase programme by £50bn, taking it to a total of £325bn. It has also voted to keep the base rate on hold at its historic low of 0.50%. The MPC last increased its QE programme in October 2011, by £75bn to £275bn. MPC votes for more QE // Financial New Thu, 09 Feb 2012 12:24:56 -0800 http://complete-mortgages.co.uk/blog/gdp-shrank-by-0.2-in-q4/ http://complete-mortgages.co.uk/blog/gdp-shrank-by-0.2-in-q4/ The UK economy contracted by 0.2% in the final quarter of 2011, data from the Office for National Statistics reveals. The preliminary gross domestic product estimate for Q4 2011 shows that production output decreased by 1.2% in Q4, compared to an increase of 0.2% in Q3. Construction sector output fell by 0.5% in Q4 2011, compared with an increase of 0.3% in the previous quarter. Output of the service industries was unchanged in Q4 2011, following a rise of 0.7% in the previous quarter. GDP shrank by 0.2% in Q4 // Financial New Wed, 25 Jan 2012 10:23:08 -0800 http://complete-mortgages.co.uk/blog/uk-inflation-falls-to-4.2/ http://complete-mortgages.co.uk/blog/uk-inflation-falls-to-4.2/ The UK consumer prices index has fallen to 4.2% in December, according to the Office for National Statistics. The consumer prices index is down 0.6% from 4.8% in November. The retail prices index fell to 4.8%, from 5.2% in November. The 0.6% fall in CPI marks the largest month-to-month fall since November and December 2008, the falls came from downward pressure on petrol, gas and clothing prices. RPI downward pressures came from petrol, oil & other fuels, gas, clothing and footwear. Both RPI and CPI have fallen markedly since September 2011, when RPI reached a 20-year high of 5.8%, while CPI stood at 5.6%. The Bank of England’s target rate for CPI is 2%. Last month, Bank of England executive director and chief economist Spencer Dale said inflation would fall to around 3% by March 2012. UK inflation falls to 4.2% // Financial New Tue, 17 Jan 2012 10:31:39 -0800 http://complete-mortgages.co.uk/blog/base-rate-kept-on-hold-and-no-more-qe1/ http://complete-mortgages.co.uk/blog/base-rate-kept-on-hold-and-no-more-qe1/ The Bank of England’s Monetary Policy Committee has today voted to keep the base rate on hold and maintain the size of the asset purchase programme. At its January meeting the MPC opted to keep the base rate at its historic low of 0.50% and quantitative easing at £275bn. In October the MPC voted unanimously to increase its quantitative easing programme by £75bn to £275bn. This programme is expected to complete in February.   Base rate kept on hold and no more QE // Financial New Thu, 12 Jan 2012 12:17:59 -0800 http://complete-mortgages.co.uk/blog/sp-downgrades-northern-rock/ http://complete-mortgages.co.uk/blog/sp-downgrades-northern-rock/ Standard & Poor’s has downgraded Northern Rock’s long-term rating following its acquisition by Virgin Money. Its rating has been downgraded from A- to BBB+, while its short-term rating of A-2 has been affirmed, and its outlook has been rated stable. Standard & Poor’s says that under its revised bank criteria, its ratings for Northern Rock must be based on the group credit profile of Virgin Money and Northern Rock. It says its assessment of the consolidated firm’s profile reflects its weak business position, strong capital and earnings, adequate risk position, average funding and adequate liquidity. The ratings agency says the profile also reflects its view of the moderate likelihood of extraordinary government support. It adds that the stable outlook reflects its expectation that the group’s capital and earnings will remain consistent with a strong assessment over the two-year outlook horizon. S&P downgrades Northern Rock // Financial New Mon, 09 Jan 2012 09:23:24 -0800 http://complete-mortgages.co.uk/blog/paragon-launches-new-product-range-and-changes-criteria/ http://complete-mortgages.co.uk/blog/paragon-launches-new-product-range-and-changes-criteria/ Paragon Mortgages has lowered its rental income requirement and launched a new range of products. The lender is reducing its rental income requirement for single unit properties from a previous calculation of 130% at 7% down to 125% at 5%. Its calculation for houses in multiple occupation and multi-unit properties remains at 130% at 7%. A spokeswoman for the lender says this change has been made in order to make its offering more competitive and flexible for landlords. Furthermore, Paragon Mortgages’ sister company Mortgage Trust is scrapping its minimum income requirement, which was previously £40,000 a year. Paragon Mortgages’ minimum income requirement remains at a combined annual income of £25,000. In addition, Paragon Mortgages is launching a suite of 44 products today, with another six products being launched under the Mortgage Trust brand. John Heron, managing director of Paragon Mortgages, says: “The new mix of products has been created to enable intermediaries to offer their landlord clients a flexible and open approach when looking for a buy to let mortgage. “I would encourage intermediaries not to shy away from approaching us if they receive a more complex or unusual request from a professional landlord as we have specific expertise in dealing with complex buy to let property purchases.” Paragon Mortgages is also removing its product fee of 0.25% for limited companies, HMOs and multi-unit properties. Please contact us if you have a buy to let mortgage enquiry and we will search our whole of market panel for the best available products. Paragon launches new product range and changes criteria // Product New Thu, 05 Jan 2012 12:25:39 -0800 http://complete-mortgages.co.uk/blog/virgin-money-to-sponsor-newcastle-united/ http://complete-mortgages.co.uk/blog/virgin-money-to-sponsor-newcastle-united/ Virgin Money has agreed a two-year shirt sponsorship deal with Newcastle United which will run until the end of the 2013/14 season. Virgin will also assume sponsorship of the club from Northern Rock for the remainder of this season, following Virgin’s successful acquisition of the state-backed bank on January 1. Virgin Money announced the acquisition of Northern Rock on November 17. The club will unveil the new shirt this evening when Newcastle take on Manchester United in the Premier League. The first 10,000 supporters with 2011/12 shirts that bring them to the club shop will receive a free Virgin Money sponsored shirt. Virgin Money chief executive Jayne-Anne Gadhia says: “Now that Virgin Money and Northern Rock are united as one business, it gives us great pleasure to continue the shirt sponsorship of Newcastle United Football Club. The Northern Rock sponsorship started in 2003 and it is an important link to the North-East which we are pleased to continue. “Combined with our sponsorship of the Virgin London Marathon and the Edinburgh Festival ‘Fringe on the high street’, the shirt sponsorship of Newcastle United Football Club embeds our involvement in the communities we serve.” Here at Complete Mortgages we are able to arrange mortgages with Northern Rock / Virgin Money as part of our whole of market mortgage panel.  Please contact us for a personalised illustration. Virgin Money to sponsor Newcastle United // Financial New Wed, 04 Jan 2012 17:49:24 -0800 http://complete-mortgages.co.uk/blog/lv-reduces-lifetime-mortgage-rates/ http://complete-mortgages.co.uk/blog/lv-reduces-lifetime-mortgage-rates/ LV= is reducing rates across its range of lifetime and flexible lifetime mortgages. Its lifetime mortgage product for those between 60 and 80 years old will be cut from 6.59% to 6.49%, while the same deal for those aged 81 to 85 will be reduced from 6.69% to 6.59%, and for those aged 86 to 95 it will be cut from 6.79% to 6.69%. Meanwhile the lender’s drawdown product, its flexible lifetime mortgage, will also see rate cuts of 0.10% across all age bands. For those aged between 60 and 80, the rate will be reduced from 6.79% to 6.69%. Vanessa Owen, head of equity release at LV=, says: “IFAs have previously indicated that customers found the guaranteed features of our equity release products, such as clearly defined early repayment charges, really attractive. “I am confident that this, combined with our new lower rates, makes our equity release product an even stronger offering for advisers and their clients.” Complete Mortgages Ltd offers a full Equity Release mortgage advice service.  Please contact us on 0845 658 6060 or 01483 233014 and we will be happy to help. LV= reduces lifetime mortgage rates // Product New Wed, 04 Jan 2012 11:20:41 -0800 http://complete-mortgages.co.uk/blog/new-mortgage-lending-rules-set-out-by-fsa/ http://complete-mortgages.co.uk/blog/new-mortgage-lending-rules-set-out-by-fsa/ New rules to stop a resurgence in risky mortgage lending are likely to be imposed in 2013 by the Financial Services Authority (FSA). The regulator's revised proposals still intend to bring in "common sense" standards that will stop home buyers borrowing more than they can afford. Lenders are being told they must better assess the affordability of loans. But some flexibility is being allowed for existing customers who might have been prevented from remortgaging. Lord Turner, chairman of the FSA, said: "While the excesses of the pre-crisis period have largely disappeared from the current market, it is important to ensure that better practice endures in future when memories of the crisis recede and the dangers of poor practice return." The regulator wants to stop any possibility of a return to the early years of the past decade, in which some lenders handed out mortgages with only cursory checks on borrowers' real ability to repay. The most notorious examples were the "Together" mortgages offered by the Northern Rock bank, which granted loans worth 125% of the value of homes. In some other extreme cases, lenders offered mortgages worth seven times a borrower's income, or allowed them to exaggerate their real income, especially in the case of "self-certified" mortgages. The thrust of the FSA's proposals, which are now going out to a further round of public consultation, is still that lenders must judge properly the ability of individual borrowers to repay. "The proposals will see prospective borrowers - whether they are first-time buyers, right-to-buy tenants or home movers - get the right information and advice, at the right time, and ensure mortgage lenders will be properly checking each applicant's realistic ability to repay their mortgage," the FSA said. Specifically, when lenders assess a mortgage application, they will have to: assume interest rates may rise from their current low levels. not let borrowers rely on the possibility of rising house prices to claim they can eventually repay. assess interest-only mortgages as repayment ones, unless there is a "believable" source of money to pay off the loan. Although lenders will still have to check income details in each mortgage application, the FSA is no longer proposing that a borrower undergoes a detailed check of how they spend their money, but only be given a broad assessment of their "committed and essential household expenditure" instead. Under the proposed new rules, interest-only mortgages can still be offered if there is a "credible" plan to repay the loan, which does not involve a borrower assuming he or she can eventually cash in on the rising value of their home. Existing borrowers who already have a loan that might be forbidden under the new rules, such as an interest-only loan, a self-certified one, or one with a very small deposit, will not be prevented from remortgaging. "Existing borrowers will be unaffected and lenders will have the flexibility to provide new mortgages to some existing customers even where they do not meet the new affordability requirements," the FSA said. "We will allow lenders to waive the affordability rules when entering a new mortgage contract - providing the borrower has a good repayment history," it explained. Paul Broadhead of the Building Societies Association said: "The original proposals were in danger of locking credit-worthy borrowers out of the market or imprisoning those with immaculate payment records, but non-standard profiles, in their current homes and loans." "This seems to have been avoided which is good news for the self-employed, those in existing self-certified mortgages and people with negative equity." Paul Smee, director general of the Council of Mortgage Lenders said the new version of the FSA's rules was "workable and appropriate". "The FSA's new proposals seem to strike broadly the right balance," he said. Here at Complete Mortgages Ltd we offer a full advice service from our whole of market mortgage panel, we have already adopted most of the new mortgage lending rules and are fully equipped to handle the most complex of cases.  Please contact us for advice and a personalised illustration. New mortgage lending rules set out by FSA // Financial New Mon, 19 Dec 2011 09:06:12 -0800