Housing & mortgage round up: Mortgage lending falls, whilst lenders call for ban on Interest Only mortgage

Housing & mortgage round upMortgage approvals fell significantly last month whilst some lenders call for a ban on Interest Only mortgages. At the same time there are signs of life in the government’s NewBuy mortgage scheme. Mortgage lending falls 19% in April Latest figures show that £10 billion was lent to mortgage borrowers in April, higher than the same time last year but down 19% on March....

Mortgages: Claim that lenders are failing to support the NewBuy mortgage scheme

Even though it was only launched a few short weeks ago the government’s flagship scheme to help first time buyers seems to have run into trouble. The NewBuy mortgage scheme is supposed to help people with small deposits, particularly first time buyers, buy new build properties. However, the Home Builders Federation (HBF) have voiced concerns that the scheme has not been embraced by mortgage lenders as it should have been and that it is “not at all what was envisaged”. The Executive Chairman of HBF, Stewart Baseley has sent a letter to home builders in which he said that the NewBuy scheme ...

House prices dropped in October according to Nationwide report

Nationwide has reported a drop in house prices across the last two months. First-time buyers are still finding it difficult to buy a house despite a drop prices. House prices fell by 0.7% from September to October, according to the Nationwide building society, but first-time buyers are being "shut out" by the demand for high deposits in securing a mortgage. The quarter on quarter comparison, which is a more reliable reflection of the state of the property market, showed that prices fell by 1.5%. However, the average price, which now stands at £164,381, is still 1.4% higher than last year.