The view for 2008

Monday, December 31, 2007

As 2007 draws to a close are outlook for 2008 is as follows:-

Interest rate cut in January/February 2008 to 5%.

House prices to fall by 2% in the first half of 2008 before recovering ending in negative growth for the year.

First time buyers in a better position to negotiate a good deal.

We would like to wish you all a happy new year from Solution Mortgages.

MPC voted unanimously for rate cut

Friday, December 28, 2007

The Monetary Policy Committee members voted unanimously for a rate cut to 5.5% in December.

The rate cut was ordered, despite the threat of inflation from rising food and oil costs, as it was viewed that the credit market turmoil posed a greater threat to the economy than inflation at present.

The MPC also looked at a bigger cut than the 0.25% they made which could mean lower rates on the way in 2008. However they did feel that making a bigger cut at this point would put to much upward pressure on inflation.

If you have any queries on this story or others like it, please feel free to contact Solution Mortgages on 0845 123 1260.

Options available to avoid repossession

Thursday, December 27, 2007

Homeowners who fall behined with their mortgage repayments still have options available to them to avoid repossession.

Homeowners should act quickly if they fall behined with their repayments. The first thing to do is contact your existing lender and advise them that you are having difficulty making your payments. Do not ignore the situation. Lenders are more likely to help you if you are open and honest with them. A payment plan can usually be worked out.

If you have agreed to a payment plan but again missed payments you could consider looking at a remortgage. Again, in the current climate you will have to act reasonably quickly as the more payments you have missed the less likely you are to be able to source a new mortgage.

If you have missed payments on your current mortgage or are facing repossession, please call Solution Mortgages on 0845 123 1260 or apply online at www.solution-mortgages.co.uk to see how we can help.

Landlords finding tenants at a faster rate

Wednesday, December 26, 2007

The average time it takes a landlord to find tenants has dropped in the past twelve months.

The average time now stands at 1 week to find a tenant.

As affordability for mortgages for first time buyers declines, more and more buyers are having to move into rented accommodation.

The vast majority of landlords know their local area and have a good understanding of the level of appetite for rental properties within it.

If you are a landlord or are looking to become a landlord and need a mortgage or remortgage and have bad credit please feel free to contact Solution Mortgages on 0845 123 1260 or apply on line at www.solution-mortgages.co.uk

Gross lending falls 8% in November

Tuesday, December 25, 2007

Gross lending fell 8% in November down to £30.7 bn according to the Council of Mortgage lenders.

This is primarily due to the lack of available funding rather than the lack of consumer demand.

The number of mortgages available has vastly decreased in the wake of the credit crunch. Lenders are effectively looking for reasons not to lend in the current economic climate. With many lenders securing funds from the money market which are effectively shut at the moment and the lack of investors buying mortgage backed securities their is little appetite for lenders to write volume business at present.

However the new year could bring some recompense as the 3 month London Interbank Offered rate will be reviewed in March 2008. This is the benchmark that many lenders will price their products on for the early part of next year.

It is important to review your mortgage an remortgage options in the new year, especially if you are coming off a 2 or 3 year fixed rate. You may find a payment shock in store, despite the recent decrease in interest rates.

If you want to see what options are available and if you have poor credit, please feel free to contact Solution Mortgages on 0845 123 1260 or apply on line at www.solution-mortgages.co.uk

Are lower interest rates on the way in 2008

Monday, December 24, 2007

It is likely that we will see lower interest rates in 2008 despite concerns about inflation. The rising prices of oil and food production are an issue but the threat of recession is likely to worry the Bank of England more, and therefore interest rates are likely to head lower in 2008 to combat this.

There is a tough credit environment at the moment and this is likely to continue in the short to medium term. Consumers are going to have to tighten their belts and wait for better times.

Borrowers who are coming off fixed rates in 2008 are in for a hard time, as they will find interest rates higher even with the recent rate reduction. If you have bad credit and need to look at a bad credit remortgage feel free to get in touch to review your options.

2008 should see the Bank of England cutting interest rates towards 5% and retail price inflation falls towards 3%.

If you would like to discuss your bad credit remortgage options, speak to Solution Mortgages on 0845 123 1260 or apply on line at http://www.solution-mortgages.co.uk/

Joint mortgages could help first time buyers

Friday, December 21, 2007

Joint mortgages could be the way forward to helping first time buyers who are desperate to get on to the property ladder.

It can provide an affordable option in the current market even if you have bad credit.

Prospective purchasers can team up with a friend or family member and take out a joint mortgage. The cost of the repayments can be met by both parties and both incomes can be taken into consideration when applying.

If you have bad credit and need a bad credit remortgage you can still apply in this manner. Speak to Solution Mortgages today about a bad credit remortgage on 0845 123 1260 or apply on line at http://www.solution-mortgages.co.uk/

Lenders slow to pass on rate decreases

Thursday, December 20, 2007

Mortgage lenders have been slow to pass on the Bank of Englands latest rate cut.

Despite the good news that a decrease in interest rates should bring, many homeowners are yet to feel the benefit.

Some lenders have indicated that there will be product reprices in the new year.

In the current economic climate it would be beneficial for borrowers to receive the reduction in borrowing costs, especially around Christmas time.

The Bank of England cut rates by 0.25% to try to boost the economy in the wake of the credit crunch which has been gripping industry since the end of August.

Debt consolidation mortgage

Wednesday, December 19, 2007

A debt consolidation mortgage is sometimes called a bad credit remortgage, poor credit remortgage, adverse credit remortgage or a sub prime remortgage.

Many people who take out a debt consolidation mortgage are looking to sort out their finances by consolidating any other loans and credit cards into one monthly payment along with their mortgage. The reason why it is attractive to carry out such a process, is that the interest rate on your mortgage will be a lot less than the interest rate on unsecured loans and credit cards.

If you are considering conducting a debt consolidation mortgage you should consider that you are securing unsecured debts to your home and that you may also be increasing the term on your mortgage. This could mean that you pay more in the long term.

Perhaps recent interest rate rises have pushed up the cost of your current unsecured borrowing and you have been unable to meet all of your payments. This could be a reason for taking out a debt consolidation mortgage.

You are effectively using the equity in your property to pay for your unsecured borrowing. This is fine if house prices keep rising but you should also consider the implications if house price fall.

If you would like to speak to someone about a debt consolidation mortgage, please feel free to call Solution Mortgages on 0845 123 1260 or apply on line at www.solution-mortgages.co.uk

Remortgaging with CCJ's

Tuesday, December 18, 2007

If you have County Court Judgements and need to remortgage, speak to Solution Mortgages to see how you can go about remortgaging with CCJ's.

Remortgaging with CCJ's is not impossible and depending on the size and the date of the CCJ, Solution Mortgages will be able to find a product to suit you. We will present you with all the information on a CCJ remortgage so you can make an informed decision whether to proceed.

County Court Judgements are entered in court against someone who is in debt. You do not have to owe a particularly large amount to receive one. More and more people are getting CCJ's these days as the cost of living is becoming more expensive with rising interest rates and utility bills and council tax.

Creditors begin the process that lead to CCJ's being placed on an individual once it has been confirmed by the court. The CCJ appears on your credit file, so when you apply for further credit, lenders will be able to see the extent of any credit issues.

The lenders that Solution Mortgages have access to when considering remortgaging with CCJ's, will consider applications from people who have CCJ's.

If your CCJ'S are over two years old, they are usually ignored by specialist lenders.

If you are considering raising finance and want to go about remortgaging with CCJ's, please feel free to call Solution Mortgages on 0845 123 1260 or apply on line at www.solution-mortgages.co.uk

CCJ's, mortgage arrears

Monday, December 17, 2007

If you have CCJ's or mortgage arrears and need to raise finance by way of a remortgage, speak to Solution Mortgages today.

A County Court Judgement (CCJ) occurs when a person is unable to pay his/her creditors. A civil case can be brought to the county court in England and Wales or the Sheriff Court in Scotland. The court can make a judgment against the debtor that then remains in force until such time that the debt is repaid.

Mortgage arrears are classified as missed payments on your mortgage which the lender marks down as an arrear. This can count against you when applying for further credit.

At Solution Mortgages having one of the above or even both will not necessarily prevent you from obtaining a mortgage or carrying out a remortgage. You will have to prove that you can afford any proposed new mortgage either by way of proven wage slips or a self certification of income. The lenders we have access to will consider applications from people who have CCJ's or mortgage arrears.

If you are looking for a mortgage or carry out a remortgage of an existing property, please feel free to apply on line at http://www.solution-mortgages.co.uk/ or call 0845 123 1260.

Commercial property prices

Friday, December 14, 2007

There are likely to be exaggerated price adjustments in commercial property in the first half of next year before a return to fair value, according to market sources.

The current negative investor sentiment has followed a period of exuberance over the last two years. The chances of a recession are slim as supply and demand fundamentals remain healthy, with little prospect of a major downturn in rents.

A number of investors are likely to take advantage of any price corrections and seize the undervalued property available.

There will be opportunistic buyers snapping up bargains. Prices at the moment are falling on most commercial property assets, though the correction has been more pronounced in some sectors rather than others. Some areas of the market have already shown signs of settling down but it will probably take until the tail end of next year for the whole market to return to fair value.

There are buyers out there who have already noticed a bottoming-out in the market. Since the credit crunch really hit there have been quite a few investors aggressively bidding below the asking price and walking away with the property.

If you are considering purchasing or remortgaging a commercial property, speak to Solution Mortgages on 0845 123 1260.

World banks join forces

Thursday, December 13, 2007

The US Federal Reserve, European Central Bank and the Bank of England are joining forces to provide billions in loans to banks.

The Swiss National Bank has also joined in amid fears the the credit crunch could push the US economy into recession and hurt world economic growth.

The strategy of the US effectively trying to encourage commercial and investment banks to start lending to one another again, has never been seen. It shows the importance that the governments of the world are placing on trying to stave off deteriorating conditions in the credit markets, as it poses a real threat to recession.

There is scepticism about the move however, as the liquidity crisis is fundamentally linked to the US housing market. Until the housing market improves the banks will be nervous, as the fear of further write downs will be on every body's minds.

More than $US60 billion has been lost by the worlds banks in the credit crisis and there could be worst to come.

The total of US sub prime loans is estimated to be $US1.3 trillion. Foreclosure relating to these loans is expected to peak in March.

Both US and UK governments have reduced interest rates in the last week. Since then the US Federal Reserve has agreed to lend $US40 billion to global credit markets over the next month. There will be auctions in which the banks can bid for rates that they are willing to pay for the funds. Two of the auctions will take place this month. Another two will follow in January 2008.

The Bank of England will also inject money through its normal operations when it makes monthly sales of bonds.

A statement by the Bank of England said it's sales over the next two months would increase from £2.85 billion to £11.35 billion.

If you have any questions on this story, please feel free to contact Solution Mortgages on 0845 123 1260.

Commercial finance

Wednesday, December 12, 2007

Solution Mortgages can provide you with a wide range of commercial mortgage facilities.

Our service tailors each mortgage to the individual requirements of the applicant.

At Solution Mortgages, we realise that raising money against your commercial property is an important decision.

That is why we offer flexibility and a quick turn-a-round for all commercial mortgage applicants.

Flexibility

At Solution Mortgages, we aim to be flexible in meeting your commercial borrowing needs. Our commercial mortgage options offer several advantages:

Loans to purchase your business premises.

Re-mortgaging of your business property.

Financing for residential or commercial property development projects.

Self-certification commercial mortgages, which means that you may not need accounts for your business.

Credit problems are accepted, including mortgage arrears, bankruptcies or county court judgements.

Speed

The Solution Mortgages commercial team are able to respond quickly, in most situations. In some instances, commercial mortgages can be completed in as little as five working days.

Our commercial mortgage specialists are available across the whole of the U.K. If we determine we can assist you, we can meet with you, at your place of business, within twenty four hours.

Finance can be utilised for any business reason and can be secured against all types of commercial or residential property, including vacant land.

If you wish to enquire about commercial finance, please feel free to call 0845 123 1260.

Mortgage affordability worsening

Tuesday, December 11, 2007

Mortgage affordability is continuing to deteriorate and in October 2007 interest payments consumed the highest levels of income in 15 years.

First time buyers over 20% of their income towards mortgage interest. Movers contributed 17%. The Bank of England's rate reduction of 0.25% will provide relief to many borrowers over the coming months.

Lending volumes were strong in October totalling £33.5 billion which is a 9% rise from September. The majority of these loans would have been approved before the credit crunch and the run on Northern Rock. Lending is likely to be less in the coming months.

Lenders have responded to the credit crunch by tightening criteria and this will naturally have an effect on the figures.

For those customers who are coming to the end of their fixed rate deals and who have bad credit, feel free to call Solution Mortgages on 0845 123 1260 or apply on line at http://www.solution-mortgages.co.uk/

Mortgages - the view for 2008

Monday, December 10, 2007

The effects of the credit crunch have been seen since August 2007 and as yet shows no signs of abating.

The view for 2008 is tricky. It is likely that overall lending volumes will be down however it should not be all doom and gloom.

The remortgage market is expected to be active, as thousands of borrowers come off 2 year fixed rate deals and seek alternative arrangements than their current lenders standard variable rate.

The buy to let market is expected to remain robust as demand for rented accommodation fuelled by immigration outstrips supply and also fewer first time buyers coming into the market.

The first time buyer market is expected to be weak due to levels of affordability, tighter lending criteria and restricted access to high loan to value deals being available.

The sub prime market is expected to remain tough. Borrowers really need to meet their current mortgage payments in the current climate as many would be unlikely to find a lender willing to help them if they have missed more than 3 payments in the last 12 months. They would also need to show a willingness and the resources to fund their mortgage payments.

In terms of the economy, it would be fair to say that it is slowing but not necessarily moving into recession. The housing and mortgage markets are also slowing but it is unlikely that we will see a slump. Interest rates are likely to fall back to around 5% with the Bank of England already signalling a move downwards last week.

If you are considering remortgaging and have bad credit, please feel free to call Solution Mortgages on 0845 123 1260 or apply on line at www.solution-mortgages.co.uk

Commercial Mortgages

Friday, December 7, 2007

If you are considering buying a commercial premises or are looking to remortgage a premises that you currently have, speak to Solution Mortgages today.

We specialise in financing for small and large commercial properties. We can offer true self cert mortgages from £50,000 to £600,000 to commercial property owners who have been let down by high street lenders and banks. We can also assist borrowers who are wanting to raise between £600,000 and £30,000,000.

We can arrange a conditional offer within 24 hours which is only subject to valuation.

We have access to an extensive panel of lenders who provide commercial mortgages for business including traditional high street banks and specialist lenders who will consider those with previous credit difficulties, bad credit history or insufficient accounts. There is also the option for self certification of income where you do not need to provide proof of income or accounts.

Commercial finance is available for any purpose including:

New business start ups

Buy a property for your business

Buying an existing business

Business turnaround solutions

Short term bridging and debt consolidation

To raise working capital

Property improvement

To finance business expansion

Commercial finance is available on a range of properties including:

Offices

Pubs and restaurants

Shops

Shops with living accommodation

Hotels and guest houses

Industrial units and warehouses

Factories

Farms

The usual maximum loan to value (LTV) you can borrow is 85%. This figure can be increased to above the value of the property if additional security is being provided, such as other commercial properties or the applicants own home.

If you would like to discuss your commercial mortgage requirements with Solution Mortgages, please feel free to call 0845 123 1260 or ask us to call you back by completing your details on www.solution-mortgages.co.uk

Bank of England cuts inerest rates

Thursday, December 6, 2007

The Bank of Engalnd cut interest rates by 0.25% to 5.5% today at the Monetary Policy Committee (MPC) meeting today. This was in response to recent consuming spending figures and problems in the financial money markets.

The MPC noted that although output in the UK has expanded at a quick pace for the past 2 years, there are signs this is beginning to slow.

Looking forward households and businesses spending is starting to deteriorate and this is in line with the projections in the November Inflation Report.

Cuts in interest rates are needed to keep the inflation rate close to the governments target in the medium term, so the MPC obviously felt that there was no need to delay a cut today. The signs of slowing demand in the housing market and mortgage markets were of more concern than the current risk to inflation.

The conditions in the money markets have deteriorated and the availability of credit has been reduced, which poses risks to the outlook for output and inflation further down the line.

Although risks of inflation do remain the MPC look like they will take a 'wait and see' approach.

The minutes of the meeting will be published at 09.30am on Wednesday the 19th of December 2007.

Cut interest rates to save the economy

Wednesday, December 5, 2007

The Bank of England is being urged to cut interest rates tomorrow or watch the current issues facing financial markets escalate and spill over into the wider UK economy.

The Bank of England's Monetary Policy Committee (MPC) has no reason not to cut rates tomorrow. Failure to act now could result in panic moves being made in 2008.

There is a clear danger of an economic slowdown. The government are concerned with inflation as rising food and oil prices bite but the effects of doing nothing now would seem to outweigh these issues.

The Bank of England are likely to follow the examples set in the US and Europe by providing further liquidity to financial markets by lowering interest rates by 0.25%. Further cuts may follow.

If this does happen tomorrow it is likely that mortgage lenders will move to lower rates also.

Bankruptcy and mortgage arrears

Tuesday, December 4, 2007

You will have a bad credit rating if you have experienced bankruptcy or mortgage arrears in the past.

You may also have a bad credit rating if you have never had a bank account or if you have lived at lots of different addresses. This is because lenders like to know who their dealing with and feel more comfortable lending to someone they can see has a history of repaying.

Having been bankrupt before, will not stop you getting a mortgage now. Specialist lenders are able to offer mortgages to people who have previously been bankrupt and have products available within their criteria. The interest rates will reflect the risk and it will usually mean that the longer you have been discharged the better the rate will be.

Bad credit mortgage lenders offer a wide range of bad credit remortgages to people with bad credit and once you have had your mortgage for 2/3 years and have maintained your payments, you could move back to a main stream lender. The idea behind specialist lenders is to enable you to buy or remortgage your property for home improvements etc while your credit is bad but also to give you the opportunity to repair your credit at the same time by giving you the chance to prove you can maintain your payments.

If you wish to discuss a bad credit remortgage please feel free to call Solution Mortgages on 0845 123 1260 or apply online at www.solution-mortgages.co.uk

Bad credit mortgages

Monday, December 3, 2007

If you have bad credit and need a mortgage you are unlikely to obtain one from a high street lender. A bad credit mortgage (also known as sub prime) are available through companies like Solution Mortgages.

You will have bad credit if you have been declared bankrupt, fallen into arrears on a mortgage or suffered other debt problems. You may have incurred a County Court Judgment (CCJ) against your name or have defaults on credit cards and loans. These will all affect your credit rating and in turn effect your ability to get a mortgage.

If you have found a property and are in need of a mortgage and encountered difficulties obtaining one on the high street, you could get in touch with Solution Mortgages. Similarly if you are looking to remortgage and have been turned down by either your current lender or a high street lender, feel free to get in touch to see how we can help you.

The choices available for a bad credit mortgage or remortgages is vast today. Most banks and building societies have a specialist lending arm to deal with enquiries from people with bad credit. This coupled with the large number of US investment banks who have sub prime lending arms in the UK, all affords the bad credit mortgage borrower, a number of choices.

Interest rates for bad credit mortgages are slightly higher than traditional high street lenders but this is to reflect the risk to the lender. The associated fees and set up costs will also be higher than on the high street.

There is a wide range of fixed, capped, discounts, trackers and flexible bad credit mortgages that are available and it is important that you shop around to find the best deal for you.

If you would like to discuss any of the issues raised above, please call 0845 123 1260 or apply online at http://www.solution-mortgages.co.uk/