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.
Million-pound property sales rose 36% last year
Burgeoning house price inflation fuelled a significant increase in the sales of million-pound properties last year, new data has shown. Over the course of 2007, 8,257 properties costing £1 million or more were sold, according to research from Halifax. This represents a rise of 36 per cent compared with the figure of 6,057 recorded in 2006. The areas posting the highest number of sales of high-val...Read More
Should you be looking towards offset mortgage arrangements?
Over the last few months is has become apparent that UK savers have been earning paltry interest on their nest eggs while paying out mortgage interest well above UK base rates. This has brought into play one area of the mortgage market which many people may be unaware of which is the offset mortgage deal. So what exactly is an offset mortgage arrangement? In simple terms the offset mortgage dea...Read More
Bovis Homes guarantees mortgages for buyers
In a sign of how difficult the UK property market is at the moment it has been revealed that Bovis Homes has tied up with Barclays and its Woolwich subsidiary to offer guaranteed mortgages to its customers. While the 90% mortgages will be dispatched by Barclays it is Bovis Homes which will take on the financial risk after agreeing to ring fence some of the company's profit from house sales to cove...Read More
Nationwide Building Society denies being lender of last resort
Much like the Bank of England is seen as the lender of last resort for the financial sector as a whole, the Nationwide Building Society has been forced to deny that it has taken on that mantle for the mutual sector after the bail out of the Derbyshire and Cheshire building societies. So what is happening?
As the Derbyshire and Cheshire struggled under the pressure of the ongoing cr...
Building society mortgage lending falls while savings rise
Building societies saw a rise in savings taken in February, but mortgage lending fell as the credit crunch and a slowing property market take effect.Building society gross lending stood at £3,860 million in February down 5.8 per cent from January and down 8.1 per cent on last year.Net lending taking into account repayments fell to £974 million in February 2008, a fall of 31....Read More