Archive for July, 2010
New Rules
Tuesday, July 13th, 2010
The FSA want to make it impossible to get a mortgage without proving your income. So unless you have payslips or a P60, or 3 years accounts or tax returns, it will be impossible to get a mortgage. And even then, your mortgage will be limited to, typically, 4 times your income – maybe 5 for some people.
The effect will surely be to stop house prices taking off as they have previously. With lenders cracking down on interest-only mortgages at the same time, I expect the effect will be that house prices will not only cease to rise as much as they have done, but quite possibly result in prices actually falling again, especially when interest rates are eventually increased, which I expect to start in early 2011.
This should see a return to the days of buying a property as a home, rather than as an investment. So if you are planning on buying soon, be aware that your home may end up being worth less than you paid for it for a few years to come.
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Northern Rock. Again.
Monday, July 12th, 2010
They have now stopped the policy of refunding redemption penalties for those still part of Northern Rock Asset Management. So if you want to raise extra money on your mortgage, you cannot do so and will be forced to move to another lender and pay redemption penalties.
This is the opposite of what has been said previously and leaves those customers will no choice but to have to pay redemption penalties.
Northern Rock should be ashamed.
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