Mortgage News

Michelle Slade, analyst at Moneyfacts.co.uk, comments: "One year ago the financial world changed completely as the credit crunch took hold. Today the world of mortgages is a completely different place.

Citizens Advice Head of Consumer Policy Sue Edwards said: "We are concerned about the increase in mortgage arrears and repossessions revealed in the latest data from the Council of Mortgage Lenders released today.

The latest data from the Council of Mortgage Lenders show no surprises in terms of the number of mortgage arrears and possessions cases in the first half of 2008.

Ray Boulger of John Charcol, the UK's leading independent mortgage adviser commented "As today's no change decision by the MPC was expected, the content of the Bank of England's Quarterly Inflation Report due to be published next Wednesday will perhaps be even more interesting than today's decision.

Darren Cook, mortgage expert at Moneyfacts.co.uk comments: "In recent weeks many lenders have announced cuts in their mortgage rates, leading to many people predicting that we may have turned that corner.

With the nation collectively tightening belts, Yorkshire Bank has announced a summer mortgage deal guaranteed to brighten the moods of homeowners.

Abbey is reducing the rates on some of its two and three-year fixed rate and tracker deals by up to 0.10 per cent. This follows the cut on Friday of Abbey's two and three-year deals by between 0.10 and 0.15 per cent.

Sue Edwards Head of Consumer Policy at Citizens Advice said: "We welcome the findings of the FSA's research on lenders' mortgage arrears and lending practices, which mirror CAB clients' experience.

Peter Williams, executive director of IMLA, responds to today's announcement from the FSA that firms must ensure they treat customers who are behind with mortgage payments fairly in current market conditions.

The Council of Mortgage Lenders welcomes the FSA's confirmation that mainstream lenders are largely complying with its arrears and repossessions requirements.

The Association of Mortgage Intermediaries (AMI) has responded to the Financial Services Authority's (FSA) call for mortgage lenders to treat customers who are facing arrears and repossessions fairly.

Commenting on an upcoming crisis at Northern Rock, Louise Cuming, head of mortgages at moneysupermarket.com, said: "The key feature of Northern Rock's £585 million loss in the first half of the year is the significant increase in the percentage of borrowers who are in arrears.

The Financial Services Authority (FSA) has reiterated today its call for mortgage lenders to ensure they are treating customers fairly in the current market conditions as its latest review finds weaknesses in the way some lenders are handling arrears and repossessions - particularly for consumers with impaired credit histories.

RBS and NatWest announces they are to cut rates by up to 0.30% - with the prices on the majority of new fixed and tracker mortgages lowered by at least 0.10%. These deals are available through RBS and NatWest branches.

The most recent intermediary survey conducted by IMLA reveals that brokers anticipate that mortgage volumes will contract slightly over the coming 12 months, while just under half expect house prices will fall.