Mortgage Wars ‘Bringing Down Costs of Borrowing’
April 22, 2015
Competition for mortgage customers among banks and other mainstream money lenders is leading to a gradual reduction in the cost of borrowing in the UK, relevant brokers have said.
Banks and other mortgage providers are also becoming increasingly willing to offer deals on home loans to borrowers who don’t necessarily have huge deposits to put down as they look to buy a particular property.
Competitive pressures are apparently increasing on mortgage lenders throughout the country, with demand for mortgages having fallen in the UK for three successive quarters, according to the Bank of England’s official data.
The results of which could be good news for consumers and mortgage holders as lenders look to attract new customers in different areas of the country and different elements of the mortgage market spectrum.
With inflation having come down in recent months and the Bank of England’s base rate of interest staying put at 0.5 per cent, most analysts and experts are convinced that the cost of borrowing will remain low for homeowners for some time to come.
Indeed, market watchers have already spotted a rise in relatively low interest mortgage deals being made available to borrowers in Scotland and the rest of the UK.
“The competition to be the lowest in the mortgage market shows no signs of stopping and is great news for borrowers,” said Charlotte Nelson from the financial information website MoneyFacts recently.
“Moneyfacts.co.uk has seen 15 providers cut rates across their ranges in the past seven days alone. Lenders want to appear in the ‘best buys’ so they are constantly reducing rates to remain competitive,” she said.
Downward pressures on mortgage costs should provide some welcome relief for hard-pressed households for whom making mortgage payments can represent a real financial challenge on a monthly basis.
Figures suggest that UK consumers and homeowners are in need of significant relief when it comes to their mortgages, with recent Halifax research pointing to an average £613 increase in mortgage repayments over the past 12 months. Typical net annual incomes among those same households only increased by £15 during that same period.
If you’re worried that the council might take action against you for non-payment of council tax, entering into a Scottish trust deed can be a beneficial step. It stops legal action by all creditors included in the arrangement, and provides a ‘safe haven’ from which to regain control of your finances. As council tax arrears […]
A debt payment programme (DPP) remains on your credit file for six years, along with other default markers and court judgments that have been made against you. This can seriously affect your ability to borrow for this period of time, and longer. Even if you can secure borrowing, lenders are only likely to offer unfavourable […]
If you owe a debt of £5,000 or less, your creditor may send you a Simple Procedure Notice of Claim. This is a relatively new procedure that was brought in by the Scottish government and commenced on 28th November 2016 – their intention being to make it easier to resolve debt disputes. So if you’ve […]
A Bankruptcy Restriction Order may be made against you if it’s believed that you acted dishonestly, recklessly or unlawfully before you were made bankrupt, or during your bankruptcy. Your Trustee will inform the Accountant in Bankruptcy (AiB), and if their suspicions are upheld, a BRO of 2-15 years can be made depending on the seriousness […]
Debt payment programmes (DPPs) are an intrinsic part of the Debt Arrangement Scheme, which allows you to pay off unsecured debt at an affordable rate. If a debt payment programme is rejected by one or more creditors, the DAS Administrator can apply their discretion on whether to approve the plan, after using a test to […]
If you’re struggling to pay your unsecured debts, a debt payment programme could help you to regain control of the situation, and become financially stable again. Debt payment programmes are a fundamental part of the Debt Arrangement Scheme (DAS) in Scotland, and allow you to repay over a longer period of time. These programmes involve […]