04/06/2008 by Dave.

Homeowners are opting to take breaks from paying their mortgages in increasing numbers as the rising cost of day to day living bites.

Nationwide has reported an increase in people taking a mortgage repayment holidays in recent months, with the lender attributing the trend to soaring inflation which has swelled homeowners’ outgoings.

Meanwhile Bradford & Bingley (B&B) has confirmed that that it had experienced a rise in inquiries about payment holidays, while the Yorkshire Building Society has announced that it has also noted more interest from its customers in flexible payment options.

A spokesman for B&B told the Times: “We expect to see that translated into people restructuring their finances, either through taking a payment holiday or extending the term of their mortgage.”

The newspaper calculates that customers with a £150,000 25-year mortgage at 5.5 per cent who choose an interest-only would slash repayments by nearly £250 per month.

Meanwhile, opting to extend the term of your loan by five years would cut monthly bills by £70

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26/05/2008 by Dave.

Families across the country could be wasting close to £500m every year by paying over the odds to their lenders on mortgage protection insurance, research from Columbus Direct has suggested.

The research stated high street banks are raking in cash, with some charging around twice as much as necessary to cover monthly outgoings.Although cover is available from some companies for as little as £400 per year, Columbus estimated that homeowners taking out protection from their lender could be spending around £689 for the same level of cover, essentially wasting around £289 per year. Spread across every home taking its insurance from its lender, this equates to a £471m bill for Britons every year, simply because they are failing to shop around.

“We think that it is scandalous that banks are charging so much to cover their own customers. It is a natural thought to turn to your bank or lender when looking at this kind of insurance but, at the same time, you would expect them to be looking to provide you with a good deal,” commented Rob Thomas of Columbus.

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23/05/2008 by Dave.

With the impact of the credit crunch continuing to take effect in the UK, mortgage borrowers are increasingly using brokers as a source of advice.

That is according to research conducted recently by Alliance & Leicester, which indicated that the tightening of lending conditions has changed the way in which consumers view brokers.
It was discovered that among brokers, as many as 76 per cent feel that they are more frequently being sought by borrowers to provide advice and guidance.

Raj Uppal, Alliance & Leicester’s director of mortgages, commented: “Borrowers are becoming increasingly aware of the importance of making the right mortgage choice and that they can take advantage of brokers wealth of knowledge to ensure this.

“Instead of simply using a broker to source products, borrowers are now making the most of their advisory services to learn about affordability and extend their product understanding.”