UK: Mortgages up 25% in March

The number of mortgages advanced for house purchase increased by 25% in March this year, compared with the previous month, according to the Council of Mortgage Lenders (CML).

The number of first-time buyers rose by 27% over the same period, while remortgage numbers increased by 23%.

However, the CML warned that remortgage figures remain weak, and are expected to stay this way for some time.

Mortgage lending also recorded a 45% year-on-year increase, marking the ninth consecutive month of annual increases.

Michael Coogan, director general of the Council of Mortgage Lenders, said: “Today`s figures indicate there is currently some momentum to house purchase lending, but for the sake of the future health of the housing and mortgage markets, the new government will need to focus on the critical issue of funding and how to address the issues arising from the repayment of the emergency support provided during the financial crisis.”

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Mortgage rescue claim is rejected

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Donna Parsons was told that under the Mortgage Rescue Scheme the government would buy her home, pay off her debt and rent her home back to her.

But despite showing four bank letters threatening repossession she had not been sent one from her mortgage lender.

“There is just no flexibility, it must be notice from the lender,” she said.

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The Homeowners Mortgage Support (HMS) scheme is being offered by 10 banking groups and building societies, with other institutions lined up to join the scheme soon.

The scheme means that borrowers who suffer a temporary loss of income could cut their mortgage interest payments by up to 70% for up to two years.

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900,000 homeowners pushed into negative equity, says mortgage body

Falling house prices have pushed more than 900,000 homeowners into negative equity, according to the industry body representing mortgage lenders.

The latest data from the Council of Mortgage Lenders issued yesterday, reveals that the north-east of England has the highest proportion of people trapped in properties worth less than their mortgages.

There, one in 10 owner-occupiers are in negative equity. By contrast, in East Anglia and Scotland it is one in 100.

The council said that its latest national estimate compares with the more than 1.5 million homeowners left struggling under the weight of their home loans following the early 90s housing market crash.

Read more: 900,000 homeowners pushed into negative equity, says mortgage body

UK homeowners pay off £8bn of mortgage debt

British homeowners are benefiting from the cuts in interest rates by paying off their mortgages in record amounts, figures showed today.

A huge £8bn of mortgage debt was repaid in the fourth quarter of last year, according to Bank of England figures, as Britons with tracker mortgages responded to the sharp fall in interest repayments by pumping the spare cash into paying off their capital.

It follows figures earlier this week showing record inflows of savings into building societies and data last week showing a rebound in the proportion of income people are saving, as those in employment take the opportunity to pay off debt and prepare for leaner times as the country sinks into recession.

Read more: UK homeowners pay off £8bn of mortgage debt

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