If you are struggling to meet your mortgage payments you should be aware of how your current lender will view and act on the situation. Anyone struggling with their mortgage payments must liaise with their current lender immediately to see if there is a way for the problem to be rectified. Your lender will usually ask you to complete an…
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Buy to let still popular
Buy to let investors remain undisturbed by the credit crunch and see the situation as an opportunity to buy bargain properties. A large proportion of our buy to let clients believe that current market conditions present them with good buying opportunities. Clients are confident about rental demand holding up or increasing in the coming months. Experienced landlords have come to…
Mortgage market outlook
At Solution Mortgages we like to keep people informed as to what is going on in the mortgage market and how it is effecting our clients. The market continues to fluctuate and is still struggling to cope with the events of the past 9 months. A clear indication of just how hard the financial environment really is can be seen…
UK interest rates held at 5%
The Bank of England's Monetary Policy Committee (MPC) has decided to leave interest rates unchanged at 5%. Some in the mortgage industry would have like to see a 0.25% cut but as a company we feel it was the right move. The risks to inflation are to great to warrant a further cut and the effects of the 3 previous…
Bankruptcy too lenient?
Bankruptcy rules could be blamed for making the effects of the credit crunch even worse. Made under the Insolvency Act 1986, bankruptcy is an order against an individual debtor (not a limited company) which signifies that he/she is unable to pay his/her debts. As a result of bankruptcy, bankrupts cannot trade or act as a company director. Bankruptcy is often…
Will interest rates be cut this month?
We have endured another month of liquidity problems in the global market which still 8 months on, shows little sign of abating. There is still a lack of confidence that banks have about lending to each other. There is still a funding gap between the base rate and London Interbank Offered Rate (LIBOR) which continues to drive mortgage pricing. It…
'At retirement' market set to double in 5 years
The 'at retirement' market is expected to double in the next 5 years to be worth over £30bn a year. The market is likely to grow at 20% a year over the next 5 years creating demand for products designed to convert invested assets into income and income draw down products. The rapid growth in this market is partly because…
Mortgage problems
The turmoil that has engulfed the mortgage market since August 2007 has left many UK homeowners with mortgage problems. Consumers who have been coming of fixed or discount rates within the last 8 months have found it increasingly difficult to remortgage onto an affordable rate, as banks have been quick to withdraw attractive rates and increase rates even when the…
Equity release demand increasing
The demand for equity release products has been increasing steadily over the last 12 months. Equity release can be defined as the transfer of an interest in your property to a third party in exchange for a cash sum or a monthly income. You receive the cash but continue to live in the property. The Equity release lender will recover…
Home reversion plans
A home reversion plan is an arrangement where the following conditions are met::- The plan provider buys all or part of a qualifying interest in land (other than time share accommodation) in the UK from an individual or trusteesThe seller is entitled to occupy at least 40% of the land as a dwellingThe arrangement specifies one or more qualifying termination…