One of the biggest changes in the Mortgage Market occurred a few days ago when the massive Lloyds Banking Group announced that they will no longer provide loans on an interest only basis above £500,000.
Given that it is the very customer base who most want to use interest only this is quite a big deal.
They have also gone further with loans below £500,000 in that applicants can no longer just say they will pay the loan off via the sale of the property, their buy-to-let portfolio or general bonus payments, but must have either a pension or some kind of savings plan. Is the return of the Endowment nigh?
Not since the glory days of Morecambe & Wise have a double act so apparently “in tune” with each other graced our TV screens. The pictures last night of Messers. Clegg & Cameron playing off each other with a mixture of business-like seriousness and mock-comic light-heartedness was, it has to be said, scarily refreshing.
By all accounts the two really have hit it off which can only be good news for a country that, love ‘em or hate ‘em, desperately needs “strong & stable Government” to tackle our debt issues.
As expected we have our first Hung Parliament since 1974 and if every party leader was honest, each one of them would admit to being very disappointed.
Whilst Brown did not do as badly as polls predicted a month ago it was very clear that he has not been given a mandate to govern. Nick Clegg admitted it was a disappointing night as many who said they would vote Lib. Dem. did not have the courage of their convictions when it counted most. However, with 23% of the vote equating to just 50 odd seats, the issues of the electoral system are glaringly obvious.
We are finally on the cusp of the General Election with the outcome still not assured and whilst there are a few other trifling matters for the politicians’ to worry themselves about, (apparently we owe someone a lot of money for example), there are some other issues in the mortgage market that are provoking much discussion.
The main issue is around the nature of advice, especially with the news that Tesco, yes Tesco that well known bastion of professional independent advice, aim to enter the mortgage market. The question to ask therefore, is should mortgages be put on the same shelf as the weekly vegetables?
Andrew Montlake, Director and Spokesperson for Coreco, gives his honest and forthright views on the mortgage market, economy and all things property related. Monty was voted "Mortgage Personality of the year 2008" and is the current holder of the British Mortgage Awards "Best Press Spokesperson" title. Expect expert analysis, delivered in a down to earth style with a side helping of exuberance.
