Should mortgage companies help troubled homeowners?
Over the last few days there have been stories in the press regarding couples who are finding it difficult to keep up with their mortgage repayments, with many on capital and interest repayment deals. A number of homeowners have requested a temporary move to interest only mortgage arrangements although there appears to be resistance within the UK mortgage industry to allow this particular strategy at the moment. So should mortgage companies help troubled homeowners?
If you have read the financial press over the last six months you would be mistaken for assuming that the UK government is putting pressure on mortgage lenders to assist UK homeowners who are experiencing financial difficulties at the moment. However, in reality a number of major mortgage lenders in the UK are refusing to even consider short-term changes to mortgage deals even though they could in many cases save homes from repossession.
While the official line in the mortgage industry at least be one of assistance and consideration, under the surface there is a feeling that more and more mortgage lenders are pulling up the ladder and unwilling to compromise in many areas. Whether the UK government can step in and place more pressure on the sector, with any success, is debatable but one thing is for sure, despite many people believing the worst is over in the UK property sector there are still problems aplenty for many.
Share this..
Related stories
UK savers continue to be ignored.
In a sign of the times it has been revealed that savings rates in the UK continue to fall even though the government and various consumer groups have attempted to place pressure upon the financial sector. The top rate for an instant access savings account has fallen from 3.35% to 3% since November 2009 and the best interest rate for a one-year bond has fallen from 3.95% to 3.30% over the same peri...
Read MoreHas Merrill Lynch Found A Silver Lining To The Credit Crunch?
While news that US banking giant Merrill Lynch has lost £16 billion on the value of its so called toxic investments would normally be of major concern, there seems to be a silver lining for the investment giant. These losses are all UK based (i.e. attributed to the UK division of the investment giant) and set to be offset against future UK profits meaning that the group will pay no UK corporatio...
Read MoreWoolworths stores close for the last time
Today we have seen 200 Woolworths stores close forever as the wind-down of one of the U.K.'s best known retail chains continues at pace. Just under one quarter of the overall group has now been closed with the final 600 stores set to close over the next two weeks. This marks a sad day for the UK retail sector with one of the U.K.'s oldest retail businesses set to disappear forever. While debts of...
Read MoreRecord-breaking sales at John Lewis bode well for the future
UK shopping giant John Lewis has this week announced bumper retail figures for the festive period which bode well for the short to medium term. There was a feeling that, as the festive period came to an end, UK retailers had done better than many had expected and even surpassed the hopes of those more optimistic research analysts. So what does this mean for the short to medium term outlook in the...
Read MoreImportant to 'do your sums' before investing
It has been suggested that people considering investing money in property need to make sure they have properly thought about the financial implications beforehand.There is still a market for investors looking to move into buy-to-let but it is vital that they make sure any investment makes financial sense, according to Neil Johnson, PR and policy manager at the Building Societies Association (BSA)....
Read More