More housing bubble fears as interest only mortgages return

iStock_000018295400_ExtraSmallHousing bubble fears were further increased earlier this week, as two banks have announced the return of interest-only mortgages. The announcements come just a year after the Financial Services Authority (FSA) branded these mortgages a “ticking time bomb,” with many borrowers having no way of repaying the debt at the end of the term. The two banks in question, Clydesdale and Yorkshire, have confirmed they will introduce a new product, which will allow borrowers to repay only interest for the first three years ...

Housing & mortgage round up: House prices rises in October, whilst negative equity rates fall

Housing & mortgage round upThe data coming from the housing market is so confusing at the moment that this week’s headline could easily have read “House prices fall over the past year, whilst first time buyer negative equity is double the average”. Whatever spin is put on the headlines, it’s important to look at the underlying numbers, which is exactly what we do this week. We look at the latest house price survey, negative equity figures as well as the ‘interest-only time bomb’, again! House prices rise, but lack momentum After September’s fall ...

Housing & mortgage round up: FSA to clamp down on self-cert and interest-only mortgages

Housing & mortgage round upA big week for housing news and indeed the future of the mortgage market. Firstly this week we look at new FSA proposals to clamp down on the worst excesses of the mortgage industry, then an Interest Only ‘timebomb’ which will affect many older homeowners. Finally, we look at the latest house price figures from the Land Registry, did we see a rise of fall in September? FSA to impose tight new rules on Interest Only and Self Certification ...