Editors Pick Mortgage Strategy

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FOS rules against HSBC over rejecting mortgage based on age

The Financial Ombudsman Service has upheld a complaint against HSBC for unfairly rejecting a mortgage application on the grounds of age in the first case of its kind. The Sunday Times reports a couple in their forties, who do not wish to be named, were turned down when applying for a joint £250,000 interest-only loan […]

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Carney warns of potential future rate cuts as deflation looms

Bank of England governor Mark Carney says inflation could turn negative in the Spring and warns he would consider cutting interest rates if deflation persists. The Bank’s latest inflation report, published today, suggests there is an increasing likelihood of inflation turning negative before levelling off later in the year. Carney says inflation expectations are sliding in […]

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PRA chief issues warning over rising mortgage terms

Prudential Regulation Authority chief executive Andrew Bailey has raised concerns about lengthening mortgage terms, warning the trend could cause borrowers problems if their income falls in retirement. Addressing a Treasury select committee hearing this morning, Bailey said if mortgage terms continue to increase people could be put in a position where they are still paying them […]

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BoE to stress test lenders against 35% house price fall

The Bank of England will test lenders’ ability to withstand a 35 per cent fall in house prices and a rise in interest rates to 4 per cent under stress-testing proposals to be carried out later this year. In January the European Banking Authority announced a stress test which will assess the resilience of banks […]

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Gambling, steak and milk deliveries: The crazy questions lenders are asking borrowers

Brokers have revealed some of the oddest questions they have come across when processing applications ahead of the mortgage market review’s formal introduction today. The regulator’s focus is establishing affordability, but in the intense scrutiny of applicants’ spending some curious questions have popped up. Here we outline some of the stranger questions lenders are asking […]

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Govt extends Help to Buy 1 until 2020

Chancellor George Osborne is extending the first phase of the Help to Buy scheme to 2020 ahead of his fifth Budget on Wednesday. Speaking to the BBC yesterday, Osborne said he believed buying your own property was a crucial part of an individual’s economic security.  The first phase of Help to Buy allows borrowers with […]

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West Brom borrowers launch legal challenge to mortgage rate hike

More than 150 West Bromwich Building Society borrowers are launching a legal challenge over the mutual’s hikes to tracker mortgage rates. In September West Brom told 6,700 of its buy-to-let tracker customers their rates will increase by 2 per cent on 1 December. The borrowers all have mortgages with West Bromwich Mortgage Company, its now closed […]

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Labour plans to tackle ‘scary’ London house price boom

Labour is investigating how it can tackle “scary” London house prices with more affordable homes and a blitz on empty homes and landbanking in the capital. Rightmove data showed London house asking prices jumped by 10 per cent in one month, rising an average of £50,484 to £544,232 from mid-September to mid October. In an […]