The Nationwide Building Society has reported that the current economic situation is dictating the way in which potential property owners look at mortgage products. The building society found that, in comparison to last year, 44% more mortgage holders said that they would probably consider applying for fixed rate mortgages.

Additionally, around 50% of respondents said that they were now more likely to compare different types of mortgage deals in comparison to last year.

A spokesperson for the Nationwide said that it is in borrowers best interests to shop around for the best mortgage packages.

The Council for Mortgage Lenders recently revealed that fixed rate mortgages represented nearly 70% of all successful mortgage applications in June

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With the housing sector still being squeezed by the current credit crunch, the Council of Mortgage Lenders (CML) is set to introduce new regulations on how the value of properties are assessed. It is hoped that these new rules, which will be introduced in September 2008, will help to clarify certain aspects of the housing market.

However, industry insiders suspect that this move could result in first time buyers finding it even more difficult to obtain a mortgage.

A spokesperson for property advice website, FirstRungNow, said that ,in the current climate, it is quite possible that houses that have just been built will suffer a price fall within the first twelve months after purchase. This means that if a prospective buyer obtains a mortgage for an amount that is equal to or higher than the property’s value, they may well find themselves in negative equity.

Although the changes by the CML will produce more transparency buyers may quickly find that a new mortgage is not as affordable as they might have first thought.

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The current increase in mortgage rates is placing householders under serious financial pressure. There are many property owners who are seeking a variety of solutions to the current situation. However, most homeowners will have to start with the basics in order to handle rising mortgage costs.

Firstly, you should consider trimming your expenditure on leisure activities and save as much money as possible. You may think that you are already doing all you can but it is always helpful to conduct a regular review of your finances. To your surprise, you may find that you are spending money on services or items that are not essential.

Secondly, you should consider joining a payment protection and/or serious illness policy. The taking out of these policies can ensure that you have adequate cover in the event of unforeseen unemployment and/or sickness.

Finally, if you still believe you are unable to cope with your mortgage repayments you should speak to your lender about your financial situation. The lender may be able to make a series of recommendations that can assist you with your current problems. Additionally, you can seek advice from debt support agencies such as the Citizens Advice Bureau.

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The UK’s housing market was rocked by more gloomy news as the Council for Mortgage Lenders (CML) announced that repossessions had risen by 48% in the first half of 2008. The unwelcome news shows that increasing numbers of homeowners ,who are already under serious financial pressure from the soaring costs of fuel, food and utility bills, are now finding that they are unable to cope with the rise in mortgages rates.

The CML’s report revealed that repossessions have risen to 18,900 in comparison to the previous year’s figures of 12,800.

Some of the UK’s major financial institutions have requested that property owners should not be panicked by the current situation. However, the onset of the credit crunch is set to continue to hamper the housing market as the CML has projected that 45,000 homes will be seized by lenders by the end of 2008.

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UK financial industry watchdog ,the Financial Services Authority ( FSA ), has decided that it will remind mortgage lenders that customers ought to be treated fairly. During recent research the FSA had found that lenders would need to strengthen their customer service standards when dealing with issues that concerned arrears and repossessions.

The watchdog was alarmed at the way in which some finance providers appeared to have little or no interest in a borrower’s circumstances before commencing recovery action. Additionally, these firms found it all too easy to subject borrowers to court action.

The FSA recently revealed figures that showed that repossessions had risen by 41% in the first quarter of 2008

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The Land Registry has reported that house prices have fallen for ten consecutive months. The government organisation also found that ,on average, house prices had risen by only 0.1% during the previous 12 months.

The average house price is now said to be £180,780. The value of the average property in central London is now £345,135, which represents a fall of 2.5%.

Some experts registered concerns about the London property market as it is usually viewed as a good indicator of national trends.

There were some signs of stability in the housing market in the North East region as house prices increased by over 4%. Further data released from the Land Registry revealed that there was a significant drop in UK property sales in April with sales falling to 60,000 from over 95,000

Industry analysts continue to believe that the housing sector is still in a dire situation, despite the fact that some major lenders had cut their mortgage rates

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The Financial Services Authority (FSA) has declared its intention to step up its fight aginst fraudsters by contacting major mortgage lenders to warn them that they must increase their security measures. The FSA has also outlined its main strategy in tackling this type of crime.

To date the FSA has contacted the British Bankers Association and the Council of Mortgage Lenders in order to highlight growing concerns over the way in which mortgage applications are being handled and to point out the fact that lenders have a duty to combat criminal activity.

In the past year the Financial Services Authority has taken action to ban 17 people who are involved in the mortgage lending industry and have issued a series of financial penalties in order to curb fraudulent behaviour. In one case a mortgage broker received a whopping £129,000 penalty.

The mortgage industry monitor has also indicated that it plans to review whether mortgage brokers will require their approval. The FSA is currently planning to examine the practices of around 200 mortgage brokers.

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The UK’s leading car price guide has warned that car owners ,who have increased their mortgages in order to finance the purchase of a new vehicle, may be heading for serious financial difficulties. According to Parker’s Car Guide car buyers who have re-mortgaged their properties to pay for their motors will now find that their car value has decreased significantly whilst loan repayments have soared.

The Bank of England has reported that British homeowners have borrowed over £310 billion since 2000 in order to pay for items other than their properties. Those homeowners who have raised funds to buy a new car are facing the prospect of losing thousands of pounds to high interest rate charges and may have to repay twice the amount of the car’s actual cost.

Parker’s has recommended that those people, who have bought a car by increasing their mortgage should seek financial assistance immediately. They are also advised to pay off the extra amount that has been borrowed as soon as possible. Anyone who is thinking of using their mortgage to pay for a new car should not do so especially with the UK under pressure from the current credit crisis.

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Mortgage industry experts are suggesting that the UKs mortgage market is showing signs of recovery as the Nationwide building society announced that it is to cut the rates on all of its major fixed rate mortgage packages and selected tracker deals.

The lenders two year fixed deal for those borrowers who have a 25% deposit has dropped from 6.48% to 6.18%. Earlier in the month the rate had been set at 6.55%.

The Nationwide’s rate reduction has come shortly after some of the UK’s largest lenders including Halifax and thae Abbey National, had already made similar cuts.

Analysts have predicted that the turmoil that has been created in the mortgage sector because of constant rate increases, may now be at an end.

The rise in rates has been attributed to the global credit crunch but economists are confident that the Bank of England will now seek to cut interest rates in the coming months.

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With the UK economy showing signs of falling into recession it is now being widely reported that first time applicants for mortgages are being rejected by lenders. The indications are that although housing prices are falling, they still remain out of reach of first time buyers who are being hampered by mortgage lenders requests for larger deposits.

Unfortunately, this means that first time buyers who find that they cannot obtain a mortgage are now being forced to look at rental accommodation. Landlords are seeing an increase in demand for their properties and appear to be benefiting from the instability in the housing sector.

Given that it has never been easy for mortgage applicants to get their first property, some market experts had believed that the fall in property prices would help to ease the financial pressures involved in the buying process. However, the onset of the credit crunch has meant that the majority of mortgage lenders are withdrawing many of their financial products as they carry out a series of belt tightening measures designed to protect profits.

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