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.
Upwards pressure on mortgage rates
Lloyds bank has today become the second UK mortgage company to increase its standard variable mortgage rate for new customers. This rate will run in tandem with the current guaranteed standard variable rate which the bank promised would never rise more than 2% above the Bank of England base rate. However, the new rate will be introduced from 1 June and will be priced at 3.99% which is obviously we...Read More
Skipton Building Society activates mortgage release clause
The Skipton Building Society has sent shockwaves through the mortgage industry with the revelation that the group will trigger an "exceptional circumstances" get out clause written into the customer mortgage deals sealed since 2002. Despite the fact that the Skipton Building Society never actually defined "exceptional circumstances" it has cited the exceptionally low Bank of England base rate as a...Read More
Is Richard Branson looking at a return to the UK mortgage market?
There is intense speculation today that Sir Richard Branson is looking for a return to the UK mortgage market after selling his original home loans venture, The One Account, to Royal Bank of Scotland a few years ago. He believes that the potential for change in the UK mortgage market has grown over the last few weeks and months and a breath of fresh air could attract the attention of the mass mark...Read More
Co-op pulls mortgage products
The Co-operative Bank (Co-op) has confirmed that its range of two-year fixed rate mortgages will be withdrawn from sale. According to a statement from John Barker, the head of mortgages at Co-op, the products will be pulled as of the close of business tonight. The bank will continue to offer its range of three, five, ten, and 25-year mortgages to both new and existing customers.The decision to wit...Read More
CML forecasts increase in mortgage activity in 2010
The Council of Mortgage Lenders in the UK (CML) has this weekend issued a report suggesting that mortgage lending in the country will pick up in the latter part of 2010. This comes despite the fact that 2010 has begun rather slowly for the mortgage arena although this is due in the main to the ending of the stamp duty concession on 31 December 2009. Despite the fact that the CML also acknowledg...Read More