One of Britain’s largest banks has cut its how much it will lend via mortgages in a move that will have wider ramifications for the housing market. Barclays has reduced the amount a borrow can receive as a multiple of their income. This will apply to new customers and even those already […]
lenders
High-cost lenders use exotic holidays to tempt borrowers into taking on debt
The City watchdog has taken aim at high-cost credit firms who try to tempt struggling borrowers into taking out large, expensive loans. In some cases, lenders have enticed customers into borrowing more by suggesting they could use the additional cash to go on exotic holidays. The Financial Conduct Authority has […]
City watchdog bans commission between car dealers and lenders
People buying new cars on finance could save up to £165m per year after the City watchdog banned dealers from hiking interest rates in return for a commission. At present, car dealerships can choose to increase the rate of interest that customers pay above what the credit lender has determined. In return for […]
Mortgage lenders to review cladding rules after declaring homes ‘worthless’
Mortgage lenders will change rules which have made thousands of homes effectively worthless because of fears of flammable cladding – even on buildings where no cladding exists. The rules on cladding were tightened in the wake of the Grenfell Tower disaster in 2017, where flammable material on the side of the […]
Demand for new-build homes surges as first-time buyers are cut out of the market by lenders
Lenders fear the forecast falls in house prices will quickly lead highly leveraged buyers into negative equity. Nationwide, for example, has increased the necessary size of a deposit from 5pc to 15pc. This change disproportionately affects anyone who is trying to get onto the property ladder, and unless first-time buyers have serious […]