Mortgage lending limits

STRUGGLING borrowers are being urged not to sign up to alternative mortgage products without checking all the details - or risk losing their home. The Financial Ombudsman Service (FOS) has reported an increase in complaints about second charge mortgages . This is a type of loan you secure against your property , alongside your standard mortgage. It usually has a higher interest rate than a typical mortgage - although they can be as little as 3.5% - but the FOS said it had seen instances of second charge mortgages with rates of up to 35%. That compares with an average rate of 3.89% on a standard five-year fixed mortgage, according to Moneyfacts. The main reasons you would take out a second charge mortgage are if you want to borrow more but your existing mortgage provider won’t lend you any extra, or if you have other unsecured debt that you want to consolidate. read more in debt I OWE YOU I was £13,700 in debt but I've nearly … [Read more...] about Warning over second-charge mortgages with interest rates of up to 35%

MORTGAGE lenders are blocking new applications from buyers amid a flurry of demand as interest rates rise. At least four mortgage providers have temporarily stopped processing applications. Coventry Building Society, Cambridge Building Society, Saffron Building Society, and Suffolk Building Society have all hit the pause button on new business. The move comes just days after the Bank of England hiked the base rate of interest to 1.75% and mortgage holders were urged to lock in to cheap deals while they were still available. Experts have warned of a mortgage "ticking time-bomb" as millions of homeowners on fixed deals which expire in the next 12 months are sitting on a knife edge, as mortgage rates are already thousands of pounds higher . Ray Boulger, technical director at broker John Charcol, said: "Lenders with the most competitive deals are receiving more applications than they can cope with and so they have two choices: increase their rates to reduce … [Read more...] about Mortgage warning over ‘ticking time-bomb’ as FOUR lenders to stop processing applications

FINANCIAL firms have been ordered to end rip-off charges and fees as part of new rules to protect customers. The Financial Conduct Authority (FCA) is asking firms to also make it easier to cancel or switch products and to improve customer support waiting times . Information about products should also be helpful and accessible. Examples of rip-off fees include buy now, pay later firms charging 0 percent interest and then raking in cash in charges, the FCA said. The regulator also highlighted financial products where the fees are more expensive than any benefits offered. However, customers will have to wait until 2024 for the new Consumer Duty rules to be fully implemented. Read more on lending DEBT BUSTED Thousands of payday loan and doorstep debts written off - are you affected? BANK IS CLOSED I'm fed up with lending money to family and never getting it back Initially, companies will have 12 months to … [Read more...] about Three rip-off fees that financial firms will be banned from charging under new FCA rules

THE odds are stacked against solo first-time buyers as house prices reach eye-watering highs. It's one of the main reasons why Zahraa Al-Afadi ditched plans to buy alone and bought a £426,000 flat in Brighton with her mum instead. Property prices have rocketed since the Covid crisis and the average home now costs an average of £283,496 - 12.8% higher since last year, according to latest Land Registry figures. A lack of houses on the market, the stamp duty holiday and high demand have fuelled growth over the past couple of years. Heftier price tags means bigger deposits - and single buyers can often struggle to afford getting on the ladder. Pharmacist Zahraa, 25, found she was priced out of the sort of home she wanted on her budget. Read more in Money ISA ISA BABY I lost £1,000 due to Isa loophole - how you can avoid it DRIVE ON We sold our car to help save up £20,000 deposit to buy our first home … [Read more...] about I’m 25 – astronomical house prices meant I had to buy my £426,000 first home with my MUM

THE auctioneer raises his gavel and calls for final bids. My finger is poised over my mouse – one click and I could be the owner of a three-bedroom house. Then, to encourage a last offer, the auctioneer drops the amount he is asking for. “I’ll let you have it for another 500 – can I tempt you, internet?” he says. The winning bid comes in and the gavel falls. The whole thing takes less than six minutes. ­Welcome to the world of online property auctions . Here I take a look at all you need to know about buying at auction. MODERN-DAY AUCTIONS TODAY I am sitting at my desk, headphones in, watching the monthly SDL Auctions property auction on my computer screen. READ MORE ON MONEY HOME SWEET HOME We cut £11,000 off deposit for £217,000 first home - and you can do it too COMPUTER SAYS NO Mortgage warning as FOUR lenders to stop processing applications I am one of more than 1,000 people watching to see around … [Read more...] about Buying a house at auction is a real rush – here’s our tips for purchasing online

Cost of living: Why Bank of England has increased interest rates This article contains affiliate links, we may receive a commission on any sales we generate from it. Learn more SUBSCRIBE Invalid email We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info Banks are now fighting it out in a popularity contest for the best interest rates on the market. The move by Santander is therefore a bold step in enticing savers who want a greater return, especially given the cost of living crisis . Related articles Waspi woman outraged as Liz Truss refuses to give pension help WASPI 'sick and tired' at Truss and Sunak's state pension age stance Santander has increased rates on its 1I2I3, Select and Private Current Accounts. They all now pay … [Read more...] about Santander increases interest rates on three bank accounts in good news for savers

HOUSEHOLDS have been warned energy bills could top £5,000 next year, according to experts. The cost of an average family’s annual energy bill could reach nearly £5,300 from April if wholesale prices for gas and electricity do not fall soon. Experts at the energy consultancy firm Auxilione predicted that the price cap on energy bills could reach £3,628 in October, from £1,971 today. It could then rise again to £4,538 in January and peak at £5,277 in April. This is the worst forecast yet for the millions of households set to face crippling bills this winter. As it stands, the nightmare scenario would mean that an average household will spend £442 on energy in the month of April alone. READ MORE IN MONEY GOING UP Exact amount your energy direct debit will rise by this winter explained HELPING HAND Full list of energy suppliers handing out up to £1,500 bill help The energy price cap works by setting a … [Read more...] about Energy bills to hit £5,300 as price cap forecast rockets AGAIN