In 2014, the FPC introduced two recommendations to guard against a loosening in mortgage underwriting standards: the ‘flow limit’ which limits the number of mortgages that can be extended at LTI ratios higher than 4.5; and the ‘affordability test’ which specifies a stress interest rate for lenders when assessing prospective borrowers’ ability to repay a mortgage.
Nearly half (45%) of prospective first-time buyers say they were rejected for a mortgage once, and a further 20% say they were rejected for a mortgage more than once. The main reason for a rejected mortgage application was that the prospective first-time buyer has poor credit history (21%), followed by an administrative error (21%) and not having a large enough deposit (20%).
Rising for the fifth consecutive month, average UK house prices continued to break records in November by soaring to £272,992, according to this morning's report from Halifax. The figures revealed that quarterly house price inflation is now at its strongest level since late 2006 and sees Wales as the strongest performing region once again with average prices breaking to £200k barrier for the first time ever.
State pensions support millions of people across the UK, providing them with crucial financial support- with some relying on it as their sole source of income once they have retired. This money is paid in one of two ways and amounts with people on the full, new State Pension receiving £179.60 per week while anyone who receives the "old" basic State Pension (category A or B), is paid £137.60 per week.
As of 30 June 2021, there are around 195,000 mortgages in the population of closed books with inactive firms. The FCA estimates that there are 47,000 mortgage prisoners within this total, who are able to switch and would save money on a new mortgage rate. The inactive firm closed book population has reduced from around 250,000 in 2019, when the FCA estimated that 170,000 were up-to-date with payments and would be eligible to switch under new regulatory rules.