Bank of China makes play for UK mortgage market
The Bank of China has this week made a play for the UK mortgage market by increasing its loan-to-value ratio from 75% to 80% on residential mortgages. The rate on buy to let mortgages has been increased from 65% to 75% and for commercial mortgages from 65% to 70%. While the Bank of China may not be the most recognised name in the UK mortgage market it does offer a number of mortgage instruments with rates ranging from 2.8% on the residential side to 3.88% from the buy to let division and 4% on commercial mortgages.
It is interesting to see that the Bank of China believes the UK market has value at the current level and is willing to take more of a risk to attract new business. Whether this will impact upon the overall market in the current economic melee remains to be seen but it is certainly a positive move by one of the strongest banks in the world.
The Bank of China operates in the UK through direct sales to the UK population as well as through a network of financial advisers and brokers. Many brokers have been complaining about a lack of competition in the UK mortgage market and will be happy to see movement in this particular area.
Council of Mortgage Lenders plays down mortgage recovery
Michael Coogan, the director-general of the Council of Mortgage Lenders (CML), has played down hopes of a short-term recovery in the UK mortgage market. Despite signs that demand may be returning to the market, the director-general suggested that these "green shoots" have no roots. So what does this mean for the UK mortgage sector?
The CML believes that the UK mortgage market will r...
BBA confirms increased mortgage lending in May
The British Bankers Association (BBA) has today confirmed that May saw an increase in mortgage approvals compared to April and March. When you consider that members of the BBA account for around 75% of new mortgages in the UK the indication is that UK mortgage lending continues to recover. So how will this impact upon the UK property market? While there is no doubt that property prices and prop...Read More
Mortgage liquidity is the key to the UK economic revival
While there is no doubt that the UK economy has shown signs of life over the last few months, there are serious concerns that a reduction in mortgage liquidity in 2010 could force a second slump in the UK property sector. An influential report by Ernst & Young highlights this particular issue and seems to be gathering more and more supporters in the city. So what exactly is happening?
Customer service letting lenders down
Over 2.2 million borrowers in the UK say that they are unhappy with the customer service of their mortgage company, according to checkmyfile.This sees an increase of over 20 per cent in dissatisfied customers since last year, when 58 per cent of borrowers said the customer service provided by their mortgage company was actually either "very good" or excellent".A survey this year showed that poor c...Read More
Stamp duty doubles for first time buyers
The amount of stamp duty paid by the average first time buyer has almost doubled since 2002, it has been claimed. According to a study conducted by Halifax, the average first time buyer paid around £960 in stamp duty five years ago. However, last year first time buyers were forced to pay out an average of £1,750 - an increase of 82 per cent. The rise has been attributed to the period of sustaine...Read More