![]() |
The Debt Test: Are You Making Out a Mountain Out of Your Mortgage?According to the Council of Mortgage Lenders, first-time buyers are the most susceptible group of homeowners to debt, as they are more likely to have higher loan-to-value ratios and commit a higher proportion of their income to mortgage repayments. Despite their susceptibility to debt, there is evidence which indicates that insurance take-up and employee benefits provide recent first-time buyers with a safer foundation than the general population of mortgage borrowers. The Council of Mortgage Lenders (CML) has become increasingly concerned about the ability of current and future home-buyers to pay back mortgages in the event of changing circumstances. Over the past five years, the CML and its partners within the Sustainable Home-ownership Initiative, have sought to improve this issue. Contributing factors to the problem include increasing personal debt levels and a less certain economic environment. This has provoked concern about the sustainability of home-ownership and consumer understanding of financial products, ensuring that the issue of mortgage risk is at the top of the agenda for the UK Government, industry regulators and public as a whole. Over the last year, the Sustainable Home-ownership Initiative has debated the most effective move forward to increase home-buyers' awareness of potential debt and protection from unforeseen events with insurance products, specifically Mortgage Payment Protection Insurance (MPPI). The Financial Service Authority is leading the way to help raise awareness of debt prevention with the "Debt Test" initiative. According to research carried out by the Council of Mortgage Lenders, two thirds of recent first-time buyers say that an online debt test designed to help them assess potential triggers of debt and highlight future borrowing risk would be useful. The mortgage market is also watched very closely by the consumer research website, moneynet. In addition to tracking market behaviour, property values and homeowner incomes, moneynet have endeavoured to become increasingly proactive about educating their visitors, so they fully understand the complexity of the relevant financial products. In addition to their mortgage comparison service and mortgage protection options, moneynet published a comprehensive mortgage guide earlier this year, as part of its series of consumer product guides. Moneynet isn't the only site to offer enhanced information services; Which? also offers a detailed mortgage guide and mortgage search tool powered by Moneyfacts. Both "Switch with Which?" and moneynet take the consumer through the types of deal available, detailing the different interest rate structures including fixed rates, capped rates, discounted rates, stepped rates and standard variable rates. The CML state that there is much evidence to show that first-time buyers appreciate this information, including the "debt test", more so than older households. This is perhaps due to the fact that many first-time buyers have to borrow much more for their initial property, due to high prices, and that they have generated more personal debt than their parents' generation. Whilst personal debt remains a major concern for the finance industry, the government and the public, financial stability remains possible with education. * * * * * * * * * * * * Resources: http://www.moneynet.co.uk/mortgage-guide/index.shtml http://www.switchwithwhich.co.uk/mortgage/index.html http://www.cml.org.uk/ Rachel writes for the personal finance blog Cashzilla:
20-year mortgage refinance rates edge down after upward bounce yesterday | June 7, 2022 Fox Business Credit Conditions in the Pandemic Mortgage Market Federal Reserve Bank of San Francisco Cash-Out Refinance vs. HELOC: Which Should You Choose? Business Insider Finished Basements Are Growing in Popularity. Here’s How Much One Will Cost, and the Best Ways to Pay for It NextAdvisor As Fixed Rates Rise, Should You Consider an Adjustable-Rate Mortgage? | Mortgages and Advice | US News U.S News & World Report Money Refinance Calculator Bankrate.com Today's refi rates decline – July 5, 2022 Bankrate.com Trends in Mortgage Refinancing Activity Freddie Mac Today’s mortgage refinance rates: Steady shorter terms offer best savings chances | March 17, 2022 Fox Business When to Refinance Your Mortgage Business Insider Today's Mortgage, Refinance Rates: June 18, 2022 | Rates Remain High After Recent Spike Business Insider Can You Refinance a Reverse Mortgage? Investopedia How to refinance your mortgage, a step-by-step guide The Washington Post Today's Mortgage, Refinance Rates: June 22, 2022 | Rates Probably Won't Decrease Soon Business Insider The Mortgage Refinance Rush Has Cooled, But HELOCs Can Unlock Housing Wealth Hawaii Business Magazine Is It Too Late to Refinance Now That Mortgage Rates Are Soaring? The Motley Fool Mortgage Refinance As An Inflation Hedge Surfky.com 3.8 million homeowners would still benefit from refinancing amid rise in mortgage rates, says Black Knight Fox Business How Long Does It Take To Refinance A House? Zing! Blog by Quicken Loans Jumbo Loan Refinance Guide | 2022 Rates and Guidelines The Mortgage Reports How Much Does Refinancing a Mortgage Cost? Investopedia 3 Reasons to Refinance Your Mortgage Despite Rising Rates The Motley Fool After Losing Her Home in a Fire, This Teacher Needed a Fresh Start. A Mortgage Refinance Helped Her Do It NextAdvisor 10 Mistakes To Avoid When You Refinance a Home Loan GOBankingRates Home Mortgage Refinancing Disparities During the COVID-19 Pandemic: Insights for Delaware, New Jersey, and Pennsylvania Philadelphia Fed Cash-out mortgage refinancing hits 14-year high The Real Deal Still time to lock in a lower rate: Today's 30-year mortgage refinance rates fall | Feb. 9, 2022 Fox Business Should You Refinance Your Mortgage in 2022? The Motley Fool Can You Refinance A VA Loan? Zing! Blog by Quicken Loans The cost to refinance a mortgage: What to expect | Mortgage | Chase Chase News & Stories 3 reasons it’s not too late to refinance your mortgage CNN Underscored Cash-In Refinance: What It Is And If It's Worth It Zing! Blog by Quicken Loans What Do Appraisers Look for in a Mortgage Refinance? Business Insider Texas' Best Mortgage Lenders & Current Mortgage Rates | US News Loans U.S News & World Report Money Mortgage demand falls to nearly half of what it was a year ago, as interest rates continue to rise CNBC Cash-out refinance vs. no-cash-out | What's the difference? The Mortgage Reports Best Mortgage Refinance Lenders In 2022 Bankrate.com
|