Mortgage News

As well as increasing the eligibility for the Government Homebuy schemes beyond key workers, and out to any first time buyers with household income of less than £60,000, the government has made £200m available for purchasing shares of unsold new homes for social tenants or shared equity schemes.

Michelle Slade, analyst at Moneyfacts.co.uk, comments "It is now five weeks since the last base rate cut and still 24 lenders (25%) have not announced their intentions with regards to their standard variable rate (SVR).

The CML welcomed today's announcement in the government's draft legislative agenda of plans to provide more help for first-time buyers, in particular the widening of access to shared equity schemes.

Mortgage lending for house purchase remained subdued in March but remortgaging levels held up well in the face of funding constraints, according to data released by the Council of Mortgage Lenders.

In April, borrowers responded to headlines of falling house prices and rising costs of living, by seeking security in fixed rates and exercising caution about investing in buy-to-lets.

The Association of Independent Financial Advisers and the Association of Mortgage Intermediaries respond to joint HM Treasury and CLG announcement on additional support for homeowners facing financial difficulty.

Citizens Advice Head of Consumer Policy officer Sue Edwards said: "We have seen a very sharp rise in the number of people coming to us with mortgage arrears, and evidence that in too many case lenders are using court action as a first rather than a last resort.

The Council of Mortgage Lenders welcomes the increased resources announced by the Government today to strengthen and underpin the advice available to borrowers facing repayment difficulties through Citizens Advice Bureaux and other providers.

A new £10 million package of measures to support home owners who may be facing difficulties with their mortgage, is announced by Chancellor of the Exchequer, Alistair Darling and Housing Minister Caroline Flint.

Commenting on the rise in repossession orders announced, Nicola O'Reilly from the National Consumer Council, said: "Lenders must do more to help home owners before they get into debt by targeting vulnerable customers, such as those coming off fixed rate deals.

Alliance & Leicester is launching a new range of mortgage products, which will be available via brokers, branches and our call centre from Friday 9 May 2008.

"The MPC's decision to leave Bank Rate unchanged this month was widely expected, despite conditions continuing to deteriorate in the mortgage and property markets," comments Ray Boulger of leading independent mortgage adviser, John Charcol.

Sean Gardner, founder of MoneyExpert.com, said: "In recent months it's actually the rate of LIBOR that banks have been most concerned about, so movements in the base rate aren't as important as they used to be.

The Council of Mortgage Lenders was unsurprised by today's MPC decision to keep rates on hold at 5%. Michael Coogan, CML director general, commented:

The credit crunch is now hitting home in a way which few would have forecast in the days after Northern Rock crisis first hit the headlines.