New evidence suggests that more people are attempting to get hold of a mortgage for the first time – and many of those know that they are safest doing so with the help of a professional mortgage adviser.

With increasing numbers of lenders now re-entering the high loan-to-value space for borrowers with smaller deposits, latest figures from unbiased.co.uk reveal 42% of enquiries for whole of market mortgage advice in February 2010 were from first time buyers looking to get their foot on the property ladder. 

With mortgage rates on high LTV  products also starting to become more competitive since the beginning of the year, 2010 could turn out to be the year of the first-time buyer.

Karen Barrett, chief executive of unbiased.co.uk, says: "It is encouraging to see first-time buyers are back out in force looking to get their foot on the property ladder. Especially as they've been given a helping hand by those lenders who've now re-introduced competitive mortgage rates on high LTV products. This is a positive move, which suggests lenders now have a renewed appetite to compete at the bottom end of the market, after first-time buyers were all but shut out by banks almost two years ago. Hopefully we may see more lenders follow these footsteps.

"It is essential that first-time buyers and also those looking to remortgage seek advice to ensure they are making the best decisions for their individual circumstances. Only a whole of market mortgage adviser can give advice on products from across the market, which suit the individual's needs and financial position."

SOURCE: Unbiased.co.uk, 17/03/10

To Keep up with news and comments on the current adverse credit market please visit the Adverse Mortgage Blog.

If you are struggling because you have spent your savings on helping your kids stay afloat with sub-prime mortgage problems, it might be time for both of you to get some expert financial help.

It's a serious problem – millions of parents in Britain are being forced to postpone their retirement to meet the rapidly rising financial burden of supporting their adult children, according to The Children’s Mutual.

It found that more than half of parents of adult children under 30 year olds say they have no choice but to retire later with four in 10 expecting to work up to five years longer than they wanted because of the cost of their children. The news is worse for nearly one in 10 parents who believe they will now be forced to work over a decade longer, with some abandoning the dream of retiring altogether.

These stark figures show that nearly eight in 10 parents claim their ability to save for their retirement has been impacted by the unplanned financial support being needed by their offspring – with a third of those suggesting it has been significant.

David White, chief executive at The Children’s Mutual says: “Worryingly, the number of parents getting caught in this middle age parent trap will almost certainly continue to rise."

The best thing both the parents and the kids is to get some professional financial help. For the kids, it may be debt management or a sensible way to control their sub-prime debts. And for the parents, it might be a case of finding ways and means to replenish their savings. Both are possible, but only if the problem is addressed head on.

SOURCE: The Children's Mutual, 15/03/10

To Keep up with news and comments on the current adverse credit market please visit the Adverse Mortgage Blog.

Mortgage lenders' data has found that the Government's temporary stamp duty break last year helped more first-time buyers get on the ladder than at any point in two years.

It seems there was a rush to buy properties in the £125,000 to £175,000 bracket before the year-end stamp duty concession expired, according to figures from the Council of Mortgage Lenders.

December saw 24,900 loans to first-time buyers, the highest number since November 2007. At £2.9bn, first-time buyer loans rose 26% from November both by volume and value.

Of those, 55% of house purchase loans were on properties costing under £175,000 and therefore exempt from stamp duty, up from 51% in November. The CML says this clearly indicates a rush to complete purchases before January, when stamp duty would have added an additional 1% of the purchase price onto the cost at that level.

This proves that for first-time buyers, just 1% or a few thousand pounds, makes all the difference when it comes to being able to afford a home. And while the stamp duty break has now ended and all properties worth more than £125,000 have a 1% tax, there are still ways to save more for your first home.

Talk to a mortgage expert about what you can do to save that bit extra for your first home. It might involve some smart investing, and it might take some extra time, but a good mortgage adviser will help a first-time buyer maximise their income, their savings and their potential so as to be able to make that all-important first step onto the UK property ladder.

SOURCE: CML, 12/02/10

To Keep up with news and comments on the current adverse credit market please visit the Adverse Mortgage Blog.

Debt problems are still continuing, regardless of the perceived improvement in the economy, and may of those problems are only going to get worse in 2010 unless people act now.

Debt and benefit problems are currently growing at an annual rate of 21% with employment problems up also 17% in the last year, according to Citizen's Advice. They have had to deal with 10 million debt problems over the last year and unless those debt problems are addressed, they could be seeing a lot more problems in 2010.

Worryingly, latest quarterly numbers show that there are continuing significant rises in the numbers of people seeking advice on mortgage and secured loan arrears, up by 28% on 2008 figures.

In light of this continued demand, Citizens Advice is urging people to avoid starting 2010 with a debt hangover and to budget carefully for the festive season.

David Harker chief executive of Citizens Advice says: "Citizens Advice Bureaux across the country are seeing increasing numbers of people seeking help, with benefits and debt enquiries alone up over a fifth in the last year. Extra funding has meant bureaux have seen more clients, but for many the impact of the recession will be felt for a long time to come.

"Every community is experiencing a change in circumstances. These new statistics show how many people are struggling as a result of losing their job or a reduction in pay or hours, leading to difficulties managing loan repayments."

This is sensible advice from Citizen's Advice. If you have been dealing with debt through 2009 without any help, it might be time to seek a change and get the advice of a professional. That might come from a good mortgage broker – they are experts in dealing with debts and managing finances. Talk to one today about making your debts work for you in 2010, rather than the other way round.

SOURCE: CAB, 03/12/09

To Keep up with news and comments on the current adverse credit market please visit the Adverse Mortgage Blog.

Almost three quarters of Brits will pay for Christmas on the ‘right now' this year, despite the effect of recession on household budgets, a warning to those who are still spending beyond their means.

According to a study commissioned by money.co.uk, 30m British adults are set to start 2010 staring at an £8bn hole in their collective household finances.

The research found that, whilst 31% of adults are worried about paying for Christmas, just 15% have made an effort to spread the cost over the course of the year. The rest will fund their share of the nation's £11bn Christmas splurge using a combination of credit cards, savings and ‘money available at the time'.  Meanwhile 4.7 million adults admit that they are still paying off debts from last Christmas.

The reliance on paying at the last minute could see many families stretched to the limit financially. If current trends continue, each household will spend close to £500 on food and presents, even though average disposable income per family per week stands at just £164.

As a result, it is likely that many households will feel the January pinch even more keenly than usual, with the Christmas spending hangover combining with winter fuel costs and the long wait for payday adding up to a grim start to 2010.

Chris Morling, managing director, money.co.uk says: "There is no reason at all why families across Britain should not have a wonderful Christmas this year, but you have to worry about the effect all this last minute spending will have in January. Lots of people are likely to be very short of cash going into the New Year, which would not make for a great start to 2010."

The last thing you want to do is start 2010 as most adverse borrowers began 2009. Try and spend within your means this holiday season, making sure you are that much closer to the black next year.

SOURCE: Money.co.uk, 30/11/09

To Keep up with news and comments on the current adverse credit market please visit the Adverse Mortgage Blog.

At the end of the year stamp duty will go back to applying to all properties above £125,000 not the current temporary £175,000 – but many borrowers are trying to get hold of a mortgage before the break runs out.

In fact, homeowners looking to take advantage of stamp duty holiday and buy homes under £175,000 increased nearly 10% in last three months, according to moneysupermarket.com.

The website thinks the end of the stamp duty holiday will have a severe impact to the market, with most of these likely to be first-time buyers. Once the regular tax returns, all those buying a home worth more than £125,000 will have to pay a 1% stamp duty tax. While it doesn't sound like a lot, for a first-time buyer that could be a few thousand pounds less for their deposit.

Hannah-Mercedes Skenfield, mortgages channel manager at moneysupermarket.com, said: "Thousands of house buyers are trying to take advantage of the stamp duty holiday before it is due to end. It is encouraging to see an increase in homeowners looking for this band of property.

"Most buyers looking at this end of the housing market are likely to be first-time purchasers; when the stamp duty benchmark is pushed back to £125,000, and factoring in the huge cash deposit required by the banks, stepping on to the housing ladder is going to be an impossible leap for many. The average house price in all regions is over £125,000, so this benchmark is exceedingly low."

If you want to get in before the break ends, talk to a mortgage professional immediately. It will be tough, but there is still time to take advantage of the stamp duty break. So talk to someone who can find you a great deal, fast – a professional mortgage adviser.

SOURCE: Moneysupermarket.com, 25/11/09

To Keep up with news and comments on the current adverse credit market please visit the Adverse Mortgage Blog.

The mortgage and housing industry is calling for the Government to continue to the cessation of stamp duty for properties under £175,000 for the good of all UK first-time buyers.

The industry says a return to the previous bands for stamp duty for any property above £125,000 on December 31 2009 could have a detrimental effect on the recovery of the housing market in regions that are already lagging behind.

The current stamp duty "holiday" for properties lower than £175,000 is due to expire at the start of 2010 but in a recent survey by the National Association of Estate Agents, 91% of estate agents surveyed felt that it should be extended. Also, 86% of those surveyed felt that the tax is unfair.

The Royal Institute of Chartered Surveyors says more surveyors in many parts of the country believe that they will see a drop in activity in 2010 following the end of the stamp duty holiday.

Simon Rubinsohn, chief economist for RICS says: "The additional transaction cost is still a worry to many, particularly first-time buyers, and is a threat to the market in the areas of the country that are still seeing a weak price environment. A return to the status quo will be of benefit to no one."

Peter Bolton-King, chief executive of the NAEA, says: "We believes that stamp duty is an anachronistic tax which, in its current form, is preventing a recovery in the housing sector – it limits market flexibility, creates regional inequality and its slab structure unfairly distorts the housing market. Now is the time for the Government to take action."

Robert Sinclair, director of the Association of Mortgage Intermediaries, says: "It is rare that the breadth of our industry comes together with such consensus on an issue. But the current stamp duty regime is distorting the market to such an extent that we feel compelled to speak out. We implore the Government to not only listen but, to act in support of our request for change to this damaging tax."

Whatever happens, there may be time to get hold of a property under £175,000 before the tax break ends. Talk to a mortgage adviser right away about getting hold of your first mortgage with a healthy discount to boot.

SOURCE: RICS, NAEA, AMI, 17/11/09

To Keep up with news and comments on the current adverse credit market please visit the Adverse Mortgage Blog.

One third of first-time buyers escaped paying stamp duty in September as a result of the break on the tax on properties under £175,000 – act now to cash in yourself before the tax break ends.

In September 2008, the Government decreed that there would be a temporary break on stamp duty for any property under £175,000 until the end of 2009. According to new data released by the Council of Mortgage Lenders, a third of all first-time buyers benefitted from this in September – and if you want to take advantage of the break you'll have to act fast.

The CML says an estimated 132,500 house purchases under £175,000 have escaped paying stamp duty which otherwise would have incurred the tax at 1%. But by January the tax will be reset and all home purchases over £125,000 will be taxed and first-time buyers will have to find even more money if they want to get onto the housing ladder.

Although lending criteria remain tight, there is clearly demand from new borrowers and for those able to provide the deposit, mortgages are cheaper than in recent years – the CML says the typical homebuyer had to commit just 12.8% of gross income to cover their mortgage interest payments in the third quarter of this year, the lowest figure since the first quarter of 2004.

Paul Samter , CML economist says: “As the end date for the stamp duty concession approaches, we may see sustained levels of activity at the lower end of the market in a traditionally quiet time."

If you want to avoid the extra 1%, you need to act now. Talk to your mortgage broker right away about securing a great mortgage deal before the new year comes along.

SOURCE: CML, 11/11/09

To Keep up with news and comments on the current adverse credit market please visit the Adverse Mortgage Blog.

The number of people who are becoming insolvent is rising every day during this recession – if you are in serious financial problems, you need to get some professional advice right away.

According to the Office of National Statistics, there were 35,242 individual insolvencies in England and Wales in the third quarter of 2009. This was an increase of 28.2% on the same period a year ago. People are finding debts and arrears are too much and are unable to avoid repossession and penury.

This latest statistic was made up of 18,347 bankruptcies, up 6.4%, and 12,390 Individual Voluntary Arrangements, which were up 20.9% on the last quarter. There were also 4,505 Debt Relief Orders, a new individual insolvency procedure similar to IVAs, which came into force in April 2009.

These numbers should be a wake up call to anyone who has not paid their mortgage for a few months, who has been avoiding those red letters from the credit card companies and has been turning off their phone to ignore the calls from the personal loan firms. Putting your head in the sand will only lead to further financial problems.

The ONS says 85% of bankruptcies were made on the petition of the debtor themselves, a number that has risen since 2008. People have become so desperate they literally have nowhere to turn and have voluntary given up.

Bankruptcy is terrible. It means repossession, it means debt repayment for years and years and it means you can't get hold of credit for a long time. For some there is no alternative, but for plenty of those 35,242 people who fell into insolvency may have found alternative solutions with the help of a financial professional. They may have helped them rearrange their debts, found a better way of handling their income or found alternative 'good' debts that could have helped them repair their finances.

There is a lot a financial professional can do for the indebted, but the only way they can find out is by pulling their head out of the sand and pick up the phone.

SOURCE: ONS, 06/11/09

To Keep up with news and comments on the current adverse credit market please visit the Adverse Mortgage Blog.

There is a welcome relief to homeowners and first-time buyers as lenders start to increase their maximum loan to values – the mortgage market is ever so slowly opening up to those with less equity in their property.

According to Moneyfacts, since bank rate reached 0.5% in March 2009, the number of products requiring a minimum of 15% deposit has risen from 169 to 231, those requiring a minimum of 10% have risen from 89 to 105.

But as lenders wanting to appear more accommodating with their loan to value criteria, we are not seeing the same trend in the cost of mortgages, with only few providers cutting rates and the average rates remaining fairly static.

The website says the average two-year fixed rate mortgage is 5.06% at present, identical to July 2009's figure and up from an average of 4.84% more than eight months ago.

Darren Cook, analyst at Moneyfacts.co.uk says: "It is encouraging to see that lenders are becoming more accommodating with their deposit requirements, which should give more opportunities to first-time buyers to take advantage of a buyers market.

"Lenders seem to be getting a bit more comfortable now that property values are levelling out and are prepared to advance to a higher value, but this still comes with a premium with rates relatively higher for smaller deposit mortgage – we need to see more lenders trying to better each other on rates."

To find out whether you have enough equity to get hold of a new loan, talk to your mortgage adviser. They will also outline how much the mortgage is exactly going to cost and how long you will pay that rate – the only way you can find out if a loan is right for you is by talking to someone who can do the maths for you and use their expert eye to compare a loan to your life.

SOURCE: Moneyfacts, 05/11/09

To Keep up with news and comments on the current adverse credit market please visit the Adverse Mortgage Blog.