A mistake by the Yorkshire and Clydesdale banks means thousands of borrowers will have to pay more.
18,000 customers with Yorkshire and Clydesdale banks have been paying too little on their mortgages for months due to an error by the banks.
The Yorkshire and Clydesdale banks have apologised for the mistake and say they’ve contacted 99% of the 18,000 customers who were affected by the computer error. What will alarm many mortgage borrowers is that a lender can make such a basic mistake and that it then wants them to make up the shortfall. Fortunately, cases like these are rare, but who does this mistake by the Yorkshire and Clydesdale banks affect and what are your rights if your mortgage lender makes an error?
The FSA wants to ban self-cert mortgages. Who could be affected?
The FSA wants to ban self-cert mortgages and make lenders responsible for assessing whether or not a borrower can repay their mortgage.
After the madness of the pre-credit crunch days, when mortgages were two a penny, banks and building societies are now assessing applications much more thoroughly. The market for self-cert mortgages has disappeared and, if the FSA’s proposals go ahead, it’s likely to stay that way. There’s no point in banks and building societies lending money to people that they can’t afford to repay. The question is whether the FSA has got the balance right or whether it will penalise people who’ve started in business or others who don’t have a predictable level of income?
First time buyers are putting down a deposit of 25%, on average, with many relying on parents for financial help.
Many mortgage lenders still insist on a 15% deposit as a minimum. What are the options for helping a first time buyer in your family?
Although house prices are lower than their peak in 2007, it’s the size of the deposit that’s proving a stumbling block for many first time buyers. Figures from the Council of Mortgage Lenders show that the average first time buyer is borrowing 76% of the property’s value, taking a mortgage of 3.21 times their income. With the average property costing over £165,000, that means first time buyers have to find a deposit of over £40,000.
