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.
Northern Rock Expect A Jump In Mortgage Arrears
In line with the rest of the sector, Northern Rock is making plans for an expected increase in mortgage arrears as the slowdown in the economy continues to bite into the property market. The company has announced plans to double the number of staff in their debt management department ahead of the expected rise, although the staffing numbers will fall after a couple of years.
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
UK banks believe mortgage approvals set to fall
A survey by the Bank of England has today cast a shadow over the third quarter and latter part of 2010 with UK banks on the whole expecting a decline in mortgage approvals. Many believe that we will see a tightening of the fiscal environment in UK in the short-term, something which could well continue into 2011 unless the UK economy shows signs of improvement. Should we be alarmed? The realisat...Read More
Have UK regulations been lax in the buy to let mortgage market?
The revelation of a £41 million hit, much of which is connected to an alleged buy to let mortgage fraud, has plunged the Chelsea building society into difficulties. This is not the first time we have seen buy to let mortgage difficulties in the UK over the last few months, with the Bradford & Bingley (the largest buy to let mortgage provider in the UK) having to write off significant bad debts ju...Read More
Funding for Lending – Mortgage Approvals on the Rise
There is a positive outlook with regards to the housing market, as British mortgage approvals hit a record high since January, according to figures released by the Bank of England (BoE). October saw a total of 52,982 mortgages approved for house purchases, a rise from the 50,415 approved in September. This beat the forecasts set by economists who settled on a figure of 51,500 when making projec...Read More