Lack of funds for UK mortgage lenders
The ongoing credit squeeze that is crippling the financial market, finds it has another obstacle to hurdle over. Unless the Bank of England agrees to loan money to several mortgage lenders next year, Britain could face a £30 billion shortfall in funds.
Financing mortgage demands costs the UK £90 billion annually. With a third of that money effectively being unavailable , it could create a real problem in the housing and mortgage markets.
The Financial Services Authority warn lenders not to worry about profits, but steady themselves for a rough ride over the coming months and make sure they stay afloat, as the Council for Mortgage Lenders continue to beg the BOE for funding assistance.
These are trying times for the housing market as house prices have been shown to be falling and at the same time there is a noticeable dip in the number of mortgages being applied for and accepted.
It is hoped that with all the information at their fingertips, the Bank of England will announce tomorrow that it is cutting interest rates. It is predicted that the interest rates will drop from the current 5.75% to 5.5%. This would go some way to help restore a bit of faith in these turbulent markets, but it is fair to say that it will still remain a pretty difficult time for anyone involved.
Related Articles
A loan repayment holiday is a period of time - normally at the
beginning of the loan term - where the lender allows the
borrower to avoid loan payments. It's a feature that many lenders offer to provide flexibility to their customers. Of
course, not everybody decides that they need to take a payment holiday. However, many borrowers do choose to take
advantage of the option.
Read on...
There are many variables that will determine how much you will be able to borrow. Every loan will be different because of these variables which include your present personal circumstances, the lenders criteria and how much you wish to borrow.
Read on...
Everytime you enter into some kind of contract with a company, you will leave a footprint on your credit record. This can include anything from applying for or getting a loan or mortgage, setting up a contract with a mobile phone company or arranging some kind of insurance.
Read on...
This time last year we were experiencing and enjoying the joys of 'easy credit'. For some people this was a good thing and for others very bad. It certainly led many consumers into a false sense of security and made living a luxury lifestyle on credit all the more appealing.
Read on...
Having a small amount of debt is generally not a problem for many people. It can help us out in those unexpected times of need, emergency situations such as vehicle and home repairs or even just to be able to treat ourselves now and again. The troubles come when people start increasing their debt by applying for store cards, more credit cards and even just paying the minimum amount each month can cause problems.
Read on...
Related News Items
Credit card companies are governed under the Consumer Credit Act and according to Section 75, all purchases between £100 and £30,000 are fully insured and covered by the credit card firms.
Read on...
The newest figures from the Bank Of England (BOE) prove to be a bit of a shocker. Numbers show that the amount of mortgages given out to new buyers has fallen significantly, by as much as 20%.
Read on...
It is becoming increasingly more difficult for homeowners and potential homeowners to even find a place offering mortgages to new customers, let alone being given a mortgage to buy a property with or remortgage your existing house.
Read on...
Despite interest rates only being cut yesterday, 2 of the biggest UK lenders have already passed on the benefits to their customers, as of today.
Read on...
