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 mortgage lending fell 30% in 2008
The Council of Mortgage Lenders (CML) has today revealed that mortgage lending in 2008 fell by 30% compared to 2007. As if this was not worrying enough the CML is suggesting that mortgage lending will continue to fall from the next six months to hit record lows. While the total fall across the calendar year was 30%, the trend would seem to be downwards with a 47% downturn in December 2008 alone co...
Read MoreMortgage approvals fall by 16%
25/11/2014 Mortgage approvals have fallen by 16% in the last 12 months, providing further evidence that the housing market is slowing down, according to the British Banking Association (BBA). BBA said that a total of 37,076 mortgages were approved in October this year, which is the lowest figure for 17 months. Additionally, the total value of these mortgages was around £6bn, which is a 13%...
Read MoreNorth-south house price divide widens
14/10/2014 New data from the Office of National Statistics (ONS) has shown the north-south house prices divide is at its biggest ever. The difference between the average house prices in London and in the North East has grown to its widest in history, with a £360,000 gap. An average house price in London is £514,000, while in the North East it stands at £154,000. London saw an increase of...
Read MoreFCA: No evidence interest-only mortgages were mis-sold
The Financial Conduct Authority has said that there has been no mass evidence collected in relation to the mis-selling of interest-only mortgages to homeowners in the UK. Since the news that over a million people with interest-only mortgages face a shortfall when it comes to...
Read MoreGovernment plans to build 100,000 discounted starter homes
16/12/2014 The Government is planning to build 100,000 new, discounted homes for first time buyers over the next five years. The “starter homes” will be available to any first time buyers under the age of 40 years, and will cost at least 20% below market value. Buyers will be prevented from selling their homes for a set number of years after their purchase. As well as helping first t...
Read More