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Lib Dems warn more could struggle

The Liberal Democrat Party has warned that more than the predicted one million home owners may be affected by rising mortgage rates.

Its warning follows research by Mortgage Advice Bureau that up to one million home owners could get a financial shock when their two year fixed rate deals run out and they are put on a SVR.

The Lib Dems criticise the government for turning the other cheek while home owners are left to face massive mortgage hikes brought on by rises in the Bank of England base rate.

Vince Cable MP, shadow chancellor for the Liberal Democrats, says: “The assumption made by most commentators is that borrowers are gradually adjusting to rising interest rates.

“But some will face massive increases as a result switching their mortgages.

“The shock to heavily indebted borrowers is much more serious than the government or the Bank of England appear to believe.

“We can expect to see growing evidence of distress in the form of arrears and repossessions, unless the banks are willing to take a more long-sighted and responsible approach to heavily indebted borrowers.

“The recent weakening of the housing market in many parts of Britain may well reflect the difficulties experienced by many mortgage borrowers. The situation could yet get a lot worse.”


Tomorrow brand could soon be yesterday’s news

The recently rebranded Tomorrow could be yesterday’s news if LV= exercises its option to acquire the business from Swiss Re later this year.Tomorrow is the new name for GE Life, which was acquired by Swiss Re last October for £465m. But it was ann-ounced last week that LV= has an option to buy the business […]

Advantage changes self-cert criteria

Advantage has changed the criteria of its self-cert product. First-time buyers now have access to an increased LTV of 90%, up from 85%. In addition, fees can now be added up to a maximum LTV of 97%.Aimed at the mainstream market and launched in March this year, Advantage’s self-cert range of products is available to […]

PMPA pilots near-prime product with Preferred

The Professional Mortgage Packagers Alliance has revealed a pilot exclusive from Preferred.The Preferred near-prime two-year fixed rate of 5.79% is available for purchase only to 80% LTV and is fixed to September 1 2009. There is no self-cert loading, no higher lending charge, and an arrangement fee of 1% applies. Uniquely, this is a no-reference […]

Specialist desk for TMA club members

The Mortgage Alliance has launched a mortgage desk dedicated to dealing with specialist cases. The service offers TMA club members a variety of pre-application services including support with placing mortgages and information on lenders’ criteria on specialist areas including including sub-prime, buy-to-let and self-cert. John Coffield, head of TMA, says he believes that specialist sectors […]


Employer iPMI responsibilities could continue to escalate, says Jelf

New laws in Dubai will put the burden of providing international private medical insurance (iPMI) firmly on the shoulders of the employer in order to maintain the country’s leading healthcare facilities. With 10,000 UK nationals having moved to the country since 2007 and only 16.5 per cent of the total 8.2 million people living there being Emiratis, Jelf Employee Benefits believes this move was inevitable and employer responsibilities could continue to escalate in future.


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