Home > News > Mortgage and Remortgage

Struggling mortgage holders `should seek advice` Remortgage enquiries `rise in June` Mortgage approvals `up in June` UK mortgage market remains weak, CML says Consumers `should avoid lying on mortgage applications` BoE releases Trends in Lending report Brits `prioritising debt repayment` "Sensible lending" needs to be restored for home buying Many households `to miss mortgage payments` Homeowners `increasingly paying off mortgage debt` Booklet produced for those facing mortgage repayment problems Local authority defends decision to offer 100% mortgages Mortgage lending levels `still low` CML welcomes campaign on repossessions Consumers `increasingly offsetting savings against mortgages` Banks `should be encouraged to provide more mortgages` Younger and richer people `benefiting more from mortgage reductions` Bank of England cuts base rate Negative equity `concerning UK mortgage holders` Interest rate cuts `were not anticipated by consumers`

Decline of endowment loans `gives consumers more choice`

06/09/2007

The wide range of interest-only mortgages on the market is allowing consumers to choose "alternative repayment" methods, according to an industry body.

With a decline in popularity of endowment mortgages, interest-only home loans allow consumers to "continually revise their plans" in line with current fluctuating financial markets, the Council of Mortgage Lenders (CML) has said.

Bernard Clarke, a spokesperson for the CML, said that endowment mortgages, where the borrower sets up an investment plan which will produce a capital sum when the endowment policy expires, had produced returns which were below expectations and that had knocked consumer confidence.

He added: "Many people were in a situation where they were in a shortfall of the amount that they needed. They had to take other measures to tackle that problem - perhaps by switching to a part repayment mortgage or by taking out an extension to their mortgage to cover their shortfall."

Figures produced by the CML found that lending reached a record high for July this year, when £34.3 billion was lent to homeowners.

More than 4 million fear they`ll be made redundant 16/12/2010 - According to R3`s quarterly personal debt tracker, more than 4 Consumers took on more mortgage debt in July 26/08/2010 - Consumers took on £2bn more mortgage debt than they repaid Debts called in by parents 26/08/2010 - According to research, `the bank of Mum and Dad` is Teenagers `scared of debt` 19/08/2010 - Nearly two thirds of teenagers are `scared` of debt, according