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.
Fixed rate mortgage rates rise
The decision of 14 mortgage lenders to increase the interest rates on a selection of fixed-rate deals has acted to drive up the cost of borrowing, it has been reported.The news comes soon after the Council of Mortgage Lenders (CML) published figures which show that fixed-rate mortgage deals are now more popular than they were just a few months ago.In April, 59 per cent of all new loans were fixed-...Read More
Mortgage activity collapses in January
Despite high hopes that the UK property sector was indeed returning to growth, these hopes were dashed in January with news of a 49% reduction in the number of home loans issued in the UK. It would appear that the stamp duty holiday introduced by the government in 2009, which ended in December 2009, led to a surge in property acquisitions towards the end of 2009. After the stamp duty holiday ended...Read More
Rent arrears ‘more than double’ since 2007
12/12/2013 Figures from the debt charity, Money Advice Trust (MAT), have revealed that the number of people falling behind on rent payments has more than doubled in the last six years.
The MAT has labelled this a “rent debt crisis” and has said that it has received just shy of 20,000 calls in the first nine months of the year from people who have fallen behind with rent. This compares...Read More
Your Mortgage and Divorce
Getting divorced is a situation with a lot of unknowns for those involved, and if a house is under joint ownership there can be complications over who gets what, and who is left with the responsibility of the repayments.
Complications surrounding your share of the property, and what you are likely to get in a settlement is not something that we would deal with, as this is a legal issue....Read More
Nationwide Building Society in merger talks
News that the Nationwide Building Society is in talks with the Derbyshire and Cheshire Building Societies has received a mixed reaction from the markets. It seems the move was prompted by renewed concern that some of the smaller building societies are struggling to cope with the current financial meltdown. The move has been made with the apparent full blessing of the regulators.