Author: interestratesinfo

HOMEBUYERS pressurised into using estate agents’ mortgage services face being “ripped off”, warn experts as cases of conditional selling rise.

Conditional selling, banned under industry regulations, happens when estate agents try to strong-arm or incentivise buyers to use their mortgage broker.

Buyers who refuse are told it could affect their chances of securing the property.

It’s an underhanded practice that has been around for a long time say brokers. But recently it has become more widespread.

If persuaded, buyers could wind up paying too much for their mortgage, for the property and for extra services such as insurance and legal work.

Sun Money explains how to spot signs of pressure selling and what you can do to avoid it.

Read More

Such was the effect on households of the rise in the cost of mortgage deals that followed the Liz Truss mini-Budget in September 2022 that Chancellor Rachel Reeves is planning legislation intended to prevent a repeat of similar shock announcements on spending and tax. 

Read More

My husband and I jointly own our home, which has a £86,000 mortgage left to pay. It has 18 years left and we have one year remaining on our current 1.69 per cent fixed rate.

Our property has about £260,000 equity in it due to house prices rising in the past and extensive renovations. 

We are both 49 and work full time on average salaries. We have no pension apart from state pension; our only asset is the property. We have a plan to downsize once our daughter, who is 10, leaves home to help pay for retirement.

My question is, is it worth trying to pay the mortgage off faster?

We could probably put a £20,000 lump sum towards it, and make an overpayment of £500 each month. This would mean we could pay it off in six years rather than 18. 

But would we be better off just putting the money into pensions instead? 

Read More

Estate agents’ body Propertymark has issued a report called ‘A Dickensian Legal Process’ exploring why it takes long and longer to exchange contracts on a property for sale.

In March 2016 78% of transactions progressed from offer acceptance to exchange of contracts within 12 weeks, whereas in March 2024 the figure was just 29%.

While most agents in the report blame solicitors’ ways of working for delays, at least one has it in for lenders, saying: “I think lenders are taking too long to send out mortgage offers. Generally, the whole system is much slower to the previous 30 years.”

Timothy Douglas, head of policy and campaigns at Propertymark, comments: “It is not new news that the amount of time taken to complete a purchase on a home is becoming increasingly tedious and lengthy. However, it’s important more than ever considering that the time taken to complete is up to six months and longer in some cases, to understand the fundamental issues causing this.

Read More

Mortgage rates have been falling in recent weeks, which opens up opportunities for buyers and homeowners to save on their monthly payments.

Last week, for example, Barclays cut its mortgage rates by up to 0.33 percentage points and Halifax, First Direct, Nationwide and Virgin Money also made cuts. 

Many people stick with the same lender when the time comes to remortgage, in what is knowns as a product transfer. 

But often it pays off to move bank or building society, as the one you are with may not offer the best or cheapest mortgage for you. 

You told me you have researched today’s rates using This is Money’s mortgage comparison tool, which is a great place to start and will give you a flavour of the best deals.

Read More

Barclays is cutting selected fixed rates for residential purchase and remortgage by up to 0.33 percentage points, laying the gauntlet down to other lenders with its table-topping rates, writes Jo Thornhill.

The latest reductions will push Barclays five-year purchase fixed-rate to the top of the best buy tables with a rate of 4.09% (60% loan to value) with an £899 fee. Barclays Premier banking customers can secure the same deal at a rate of 4.08%.

Barclays has also slashed remortgage rates and is offering two-year fixed rates from 4.70% (4.67% for Premier banking customers) with a £999 fee (60% LTV) and equivalent five-year rates from 4.36% (4.31% for Premier customers).

Coventry for Intermediaries has cut selected residential fixed rates by up to 0.18 percentage points and deals across its buy-to-let range by up to 0.15 percentage points.

Read More