Credit, Collections & Insolvency News
New polling by YouGov for StepChange Debt Charity shows that nearly one in four (23%) UK mortgage holders has turned to some other form of credit or borrowing in the last three months so that they could keep up with existing borrowing commitments. This comes as the Bank of England is expected to hold interest…
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Mortgage approvals have reached their highest levels in 18 months, indicating a return of confidence to the property market, according to Bank of England data. In March, there were 61,300 net mortgage approvals, the highest since September 2022. Gross mortgage lending also rose to £20.1 billionn, the highest in 13 months. However, mortgage approvals are…
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The average age when an adult buys a home for the first time is 36, according to Office for National Statistics (ONS) data. Homeownership age in 2022 has increased by four years from 2004. The data shows that first-time buyers are increasingly reliant on help from family and friends to get onto the housing ladder.…
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A new report by Lenvi has revealed the growing importance of brand and trust for borrowing decisions and AI innovation, a dip in the number of people factoring green credentials into their decision making and the growing popularity of Buy Now Pay Later (BNPL). The report reveals that borrowers are placing more emphasis on brand…
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The average mortgage term for first-time buyers has increased, with more young people choosing longer mortgage plans, according to analysis by TSB. The data hows a year-on-year increase of the average mortgage term for first-time buyers – up to 32 years in 2023 from 30 in 2021. Overall, first-time buyers accounted for 35% of all…
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Mortgage reforms introduced after the 2008 banking crisis have ’tilted too far’ in support of financial stability, according to a report commissioned by the Building Societies Association (BSA). The report is calling for an overhaul of affordability and repayment rules, which have led to a decline in first-time buyer mortgages. The BSA is pushing for…
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Almost one in five first-time buyers (FTB) are now stretching their mortgage repayments over 35 years, according to new figures from UK Finance. The figures are up from 17% a year ago and 9% before the Bank of England started raising interest rates. Banks have raised concerns about the growing risks posed by longer mortgages,…
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Mortgage holders are repaying record amounts of mortgage debt in the higher interest rate environment, according to the Equity Release Council’s Autumn 2023 Market Report. The report says high levels of debt and a lack of pension savings make it increasingly likely that homeowners will need to borrow against the value of their properties in…
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The Bank of England’s Financial Stability Report has forecast a continued rise in households with high debt servicing ratios and an increase in the use of consumer credit. The report says that while households and businesses are already facing cost-of-living pressures and higher borrowing costs, the full impact of higher interest rates has yet to through…
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With interest-only mortgages recently discussed as an appealing option for UK borrowers, over two fifths (44%) of mortgage advisers have seen an increase in enquiries about interest-only mortgages over the past year, according to new research from global research and insights agency Opinium. Additionally, similar research conducted from Opinium among consumers found that one in seven (15%)…
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Mortgage holders are taking new steps to manage their finances to cope with higher monthly payments and adapting their spending due to inflation, new KPMG research has found. Faced with either the immediate reality or prospect of higher mortgage rates, 1096 mortgage holders were asked whether they have either already taken, or are considering taking,…
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Nearly a third of mortgage holders (32%) do not believe they will pay off their mortgage by the time they are 65, according to a survey by retirement specialist LV=. It has also being reported that HSBC has become the latest lender to increase its maximum mortgage term to 40 years, in response to rising…
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The number of mortgage approvals made to home buyers fell by nearly 10% between June and July, according to Bank of England figures. The figures showed that net mortgage approvals decreased from 54,600 in June to 49,400 in July, while approvals for remortgaging slightly increased from 39,100 to 39,300 during the same period. Net borrowing…
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