If indiscriminate is the opposite of discriminate then the mortgage market has swung the pendulum from one extreme to the other. Historically mortgage lending discrimination was ‘the practice of banks, governments or other lending institutions denying loans to one or more groups of people primarily on the basis of race, ethnic origin, sex or religion. [...]
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Mortgage Lending Cycles
This graph shows the sharp decline in mortgage lending since the onset of the credit crunch. Banks have been unable or unwilling to lend because: Falling house prices mean there is greater risk of negative equity. Therefore banks have been requiring higher deposits making it more difficult for people to buy a house Lack of [...]
Historical Interest Rates in UK
The sharp decline in interest rates. Interest rates peaked in 1990 when the UK was fighting to stay in the ERM and keep the value of the Pound fixed. The combination of high interest rates and strong pound reduced the inflation, created by the Lawson boom, but, also caused a deep recession. After the UK [...]
Mortgage Interest Rate Forecasts
The Bank of England face a dilemma over the future of interest rates in the economy. On the one hand the slowdown in the Housing market could lead to a wider economic slow and possible recession. On the over hand inflationary pressures are actually rising, due to a variety of cost push factors. If the [...]
Advantages of a Large Mortgage Deposit
Traditionally, the minimum deposit for a mortgage was 5%. This gave homeowners a LTV ratio of 95%. For a house worth £70,000 this would require a deposit of £3,500. In recent years there was an increase in popularity of 100% mortgages and even 125% mortgages. However, with the credit crunch making mortgage lenders more nervous, [...]