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.”

(more…)

The debt burden on pensioners in the UK is rising rapidly, with a third in the red because of loans and unpaid credit card bills, according to a survey by Scottish Widow.

Pensioners with outstanding non-mortgage debt owed an average of £7,344 - £612 more than those who took part in the same poll a year ago.

15% of retired people were still paying off their mortgages, with an average debt of £50,100, up from £42,100 a year ago.

The survey also found that some adults were still relying on their elderly parents for financial support, with 7% of retirees paying towards the upkeep of their grown-up children.

(more…)

Mortgage approvals by major banks have risen to a 17 month high, according to figures from the British Bankers’ Association.

The BBA said that 38,181 mortgages were approved in July - a rise of 7.4% compared with June and 77% higher than a year ago. The number of loans approved for people buying a home was at its highest since February 2008.

The figures suggest that the rise in mortgage approvals could continue into the autumn. However, the BBA warned that, whilst new lending had increased significantly, it was still down on expectation despite greater demand from borrowers this season.

Banks appeared more willing to lend to potential buyers, with the average amount borrowed standing at £139,700 in July.

(more…)

Mortgage lending is still increasing, according to the latest figures from the Council of Mortgage Lenders (CML).

Gross lending totalled £16 billion in July, an increase of 26% on the previous month, though still over a third lower than the same period last year.

The last few months have seen a steady rise in mortgage lending, house sales and property prices, after the massive slump caused by the banking crisis. However, the CML warned that the housing market would slow down as the year progresses.

“The CML’s July gross lending estimate of £16 billion is the highest level in nine months and consistent with the rise in house purchase approvals,” said the CML’s economist Paul Samter.

(more…)

The ten largest mortgage lenders in the UK slashed spending by almost one fifth last year, figures revealed yesterday.

As the credit crunch began to take grip and property prices tumbled, the companies reduced their lending by a total of £50 billion, according to a report from the Council of Mortgage Lenders.

Lloyds and Halifax Bank of Scotland, which merged last year, saw the most dramatic cuts, followed by the Royal Bank of Scotland. Overall lending by the top ten mortgage lenders fell by 18% to £222.4 billion, with only HSBC and Bank of Ireland increasing lending.

“We have seen a significant reduction to lending. Consumers have found that access to mortgage credit is more restricted,” said the CML.

(more…)

The number of house repossessions in the UK fell by 10% in the second quarter of this year compared with the previous quarter, according to a report from the Council of Mortgage Lenders (CML).

However, the 11,400 homes repossessed represented a 14% rise on the same period last year, the CML said.

The group said that early advice for struggling homeowners, low interest rates and a willingness on the part of lenders to allow cash-strapped owners to make affordable repayments had all contributed to the rise. However, it warned the number of repossessions could increase in the next months due to rising unemployment.

“With unemployment rising and the economy still weak, the outlook will remain challenging for the rest of this year and into 2010,” said the CML’s head of policy Jackie Bennett.

(more…)

The housing market is splitting down the middle, with a shortage of properties pushing up prices in the South of England, while selling conditions remain “difficult” in the North, according to a new report.

Whilst overall house prices across England and Wales remained level for the third month in a row, Hometrack reported “the emergence of a clear split in market conditions” between north and south.

The business information service reported price increases in 10% of postcodes, mostly located in the South of England. In the north there were more houses up for sale but weaker demand.

It also takes less time to sell in the south, with the average house selling within 9 weeks, and just 5.6 weeks in London, compared with over 10 weeks in Wales and the north.

(more…)

Mortgage lending rose by 17% today to £12.3 billion, according to figures published today by the Council of Mortgage Lenders.

The group said that the increase was driven primarily by seasonal factors, and that lending had reached only half of last year’s levels.

The mortgage market has seen signs of improvement in recent months, with lenders more willing to offer mortgages to first-time buyers and those with small deposits. However, many would-be buyers are still struggling to aquire affordable home loans, with the majority of lenders demanding a deposit of 25% or more.

Although June’s figure for gross mortgage lending, which excludes redemptions and repayments, was the highest this year, it is still down 48% on June last year, when lenders advanced £24.8 billion.

(more…)

A government scheme to revive the UK’s ailing mortgage market was “doomed to fail” from the beginning, ministers have said.

The £50bn asset-backed guarantee scheme (ABS) has not resulted in the expected increase in sales, according to the Communities and Local Government (CLG) Committee. The committee added that further steps were needed to boost mortgage lending for the housing market to recover.

Skills and jobs within the UK’s construction industry must also be protected, according to the committee’s report. It warned that following the previous recession it took ten years to rebuild capacity in the industry.

(more…)

The UK’s sluggish economy is likely to dampen any recovery in the housing market for months to come, two separate surveys have found.

According to the Royal Institute of Chartered Surveyors (RICS), there will be no “sustained” increase in house prices until more mortgages are made available to consumers.

Meanwhile PricewaterhouseCoopers has predicted further price falls in 2009 and 2010. This warning comes in spite of recent price rises in some parts of the property market.

Recent housing surveys have suggested that the housing market is stabilising, with the Nationwide building society reporting a steady 6% rise in UK house prices since February.

(more…)