Refinance Home – Bad Credit Loans

Mortgage lenders are failing to fully pass on cuts in the Bank of England base rate to their standard variable rate (SVR) customers, according to research by Which? Money.

The consumer group said the average standard variable rate currently stands at 3.48% above the base rate, compared with just 1.95% in September 2008.

Thousands of borrowers unable to move from SVR deals because they have too little equity in their homes and a low income could face financial difficulty when interest rates rise.

More than 40% of borrowers are currently on standard rate mortgages, which kick in after introductory or fixed-rate deals expire.

Which? warned that a 1% increase in their interest rate would add over £50 to the monthly repayments of someone with a £100,000, 20-year mortgage.

The most expensive SVR deals are currently priced more than 6% above the base rate.

The Which? research revealed that more than 20% of lenders have increased their SVR rates since the base rate hit a historical low of 0.5% in March 2009 and that 95% of lenders have failed to pass… Continue To Read This Post..

First-time buyers continued to struggle to get a foothold on the housing ladder last month, figures suggested today.

The e.surv Mortgage Monitor showed the number of mortgage approvals for homes under £125,000, typical first-time buyer properties, accounted for only 23% of all purchase approvals in May, down from 27% in April and just below the 24% average for the whole of last year.

Approvals for properties at this price were running at 31% in August 2006 at the height of the property boom.
The chartered surveyor said first-time buyers are still struggling to secure mortgage funding due to ongoing strict lending criteria from lenders.

Richard Sexton, business development director of e.surv said: “Those with the least equity in their homes need cheaper rates most. It’s important lenders don’t make it too difficult to qualify for the best mortgages. Tightening criteria in May are going against this grain. Some lenders are ahead of the pack and are offering good deals, but for others it’s not enough just to advertise a good headline rate.”

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The average British credit card holder wastes £279 a year by not taking advantage of 0% balance transfer offers.

Lenders are pocketing some £2.3 billion a year in interest payments that consumers could avoid by moving their debt to another card. This is despite the fact that only 3% of credit card users pay their balance in full every month avoiding any interest payments at all.

Research from Moneysupermarket.com suggests that around 65% of credit card holders have never transferred an outstanding balance to an interest-free card. The website’s poll found that a quarter of respondents either couldn’t be bothered to enquire about transferring a balance or didn’t understand how to.

The survey was published in the same week that two lenders introduced record introductory offers. Borrowers who successfully apply for a Barclaycard Platinum card can take advantage of 0% on balance transfers for 17 months, the longest interest free period the lender has ever offered.

M&S Money launched a card offering 0% interest on purchases for 15 months, also the longest period on record for the firm.

Commentators predict… Continue To Read This Post..