The British Property Federation (BPF) has called for tougher regulation on buy-to-let mortgages. It said that the Financial Services Authority (FSA) should take the initiative on a “crackdown on reckless lending”, which would help refinance the housing market.

Currently, the federation said, buy-to-let mortgages are treated like business loans, whereas the majority of home loans, such as owner-occupier mortgages, are overseen by the financial watchdog.

The BPF said that it had discussed the status of buy-to-let mortgages with the FSA and Treasury as early as 2005. It added that all three parties had revealed a “wholesale awareness of dubious practice”, but that the FSA and Treasury “said the problem was the other’s responsibility”.

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The Financial Services Authority has told banks and building societies to compensate customers who may have been mis-sold payment protection insurance.

The ruling covers firms that have sold more than 40% of their “single premium” PPI policies at the same time as giving unsecured personal loans. The FSA will also target other companies that have mis-sold PPI when offering secured loans or credit cards.

The regulator has asked firms to reopen 185,000 rejected complaints about PPI.

Payment Protection Insurance is designed to cover debt repayments if you can’t work because of illness or redundancy, and is usually offered whenever you take out a loan, mortgage, credit card or store card, or bought something on credit.

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HSBC, Britain’s largest bank, has promised to boost lending to first time buyers. The bank says it will lend a total of £1.5 billion to home buyers with very small deposits before the end of the year.

The lender, which has launched an aggressive campaign to increase its share of the mortgage market since the onset of the credit crunch, said it will boost lending to home buyers who have managed to raise a deposit of just 10%. HSBC has already lent £1 billion to borrowers in this category this year.

Martijn van der Heijden, head of mortgages at HSBC, said: “Houses prices seem to have bottomed and rates are low – and many of those who put off [buying a house] last year are starting to look around again.”

He added: “HSBC has been out there throughout the recession, staying open for business for our customers. While other lenders were in retreat, we became the UK’s largest lender in the first half of 2009 on a net lending basis.”

Before the collapse of Northern Rock, mortgages with a 90% loan-to-value ratio were widely available. However, lenders quickly removed these deals in early 2008 as the property market began to slump.

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The number of people in arrears on their mortgage payments has risen by 30% in a year, despite interest rates being set at a record low for the past six months.

51,000 more buyers fell behind by over three months on their mortgage payments in the second quarter of this year, it was revealed yesterday, bringing the total number of people in arrears to 403,000.

The scale of arrears has also increased, with those more than three months behind on repayments owing an average of £5,525, up from £4,916 a year ago.

Analysts yesterday warned that the figures could herald an increase in the number of repossessions as more people are made redundant later in the year.

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Mortgage lending is on the up, having risen 19% higher during July than in the same month of last year, according to the Council of Mortgage Lenders (CML).

This marks the first significant increase since February 2007, when the number of home loans increased by 5.6 per cent compared to the same month a year earlier, the group said.

However, the CML said that the figures should be treated with caution, warning that ongoing problems affecting the mortgage market could hinder further growth.

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Tenants’ ability to strike a deal with landlords over rent has diminished as fewer properties are coming onto the rental market, surveyors say.

The falling cost of rents slowed in the three months to July, according to survey by the Royal Institution of Chartered Surveyors (Rics).

As the market stables, homeowners who previously let out their properties are deciding to sell their homes. This leaves tenants with less bargaining power over the price of rent.

However, Simon Rubinsohn, chief economist at Rics, said that tenants were still in a “relatively strong” position compared with two years ago.

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Barclays has lodged an appeal against threatened limits on the sale of the controversial Payment Protection Insurance (PPI).

PPI is supposed to cover loan repayments if the holder is unable to work due to an accident or illness or if they lose their job.

In January the Competition Commission passed a ruling to prevent lenders from selling PPI alongside credit cards, loans and mortgages from October 2010. Instead they must wait seven days before contacting customers to sell them the cover.

In March Barclays lodged an appeal against the ruling, which is currently being heard in court. The bank argued that the ban is not justified by the evidence collected as part of the Competition Commission’s investigation.

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A Nottinghamshire entrepreneur who featured in the Channel 4 series Secret Millionaire has been declared bankrupt.

Property Tycoon Chek Whyte is believed to have debts of around £30 million, and had attempted to make arrangements to continue trading whilst paying off his debts. He was issued with a bankruptcy order following a petition by creditor Halls Furnishings Ltd, which trades as Loft Interiors of Manchester.

The self-made millionaire appeared on the Channel 4 series in 2007 and donated money to a number of good causes in Salford, Greater Manchester.

Whyte made his fortune in the property and construction industry, renovating dilapidated listed buildings such as Colwick Hall and Clifton Hall in Nottingham.

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In a bid to gain an even larger share of the mortgage market, HSBC this morning announced the launch of its cheapest ever home loan - a two-year discount deal with a starting rate of 1.99%.

The Woolwich and Cheltenham & Gloucester have also announced cuts to their fixed-rate mortgages.

HSBC’s discount rate applies to borrowers with a 40% deposit, and is set at a 1.95% discount to the bank’s standard variable rate of 3.94%.The bank was the UK’s largest lender during the first half of the year.

The deposit needed to secure a mortgage has increased sharply over the past year as lenders restrict credit to borrowers. Currently 27% of new mortgage deals require a deposit of 40%, compared with just 7% of deals a year ago. There’s some good news for first time buyers, however, with a slight increase in the 10% deposit tier this year.

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The Ministry of Justice has launched a series of online videos and articles aimed at helping homeowners facing possible repossession.

The advice at www.direct.gov.uk includes articles covering the first arrears right up to what happens at a court hearing, as well as guidance for tenants struggling to pay the rent. Click the links to find advice for homeowners and tenants.

“The Government has taken considerable steps to ensure people struggling to pay their rent or mortgage get the help they need to stay in their homes,” said Justice Minister Bridget Prentice.

“Mortgage repossession figures released earlier this month show that the number of people facing repossession has considerably reduced since this time last year, but we’re not complacent.”

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