Mortgages not repaid in retirement

Mortgage debt averages £38,000 for pensioners with a mortgage. Scottish Widows research reveals that a fifth of pensioners have not repaid their mortgage by the time they retire.
Commenting on the figures Jerome Thompson from Reef stated " The average age of first time buyers is increasing. Considering the number of borrowers with endowment shortfalls and those on an interest only mortgage, it seems inevitable that the number of pensioners with outstanding mortgages will increase. It is essential that borrowers consider how they are going to repay their mortgage and should talk through their options with their broker."
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House buying slows

According to July's survey from the Royal Institute of Chartered Surveyors, the number of new buyer enquiries is falling at its fastest rate for the last 3 years.
Meanwhile house prices rose for the 21 st month in a row. The survey also showed that confidence amongst Rics members in sales turned negative for the first time since March 2003 following buyers response to market conditions and a possible rate hike in autumn.
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Advice from Mortgage Brokers Growing

According to research by Abbey, mortage advice from Brokers is growing in the first time buyer sector.
Samantha Cook from Wiseman Financial Management explained "We are seeing increasing numbers of first time buyers and those seeking a remortgage. It seems that buyers are realising that a good broker can source from across the market place and often obtain exclusive mortgage deals as well."
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Mortgage exit charges -has the con been stopped?

The financial services regulator, the FSA, has announced that the majority of lenders have either scrapped or fixed their exit charges. The regulator took the view that recent increases in charges were unfair and illegal and gave the industry an ultimatum to rectify the situation or face the possibility of court action.

The city watchdog took action after lenders increased their fees, an example being Alliance and Leicester who raised fees from £195 to £295 in August 2005 , without explanation. An estimated 150,000 customers have been able to claim refunds of unfair charges over the last six months. The refunds are normally between £100 and £200 for every regulated mortgage. Most lenders now charge a fee that cannot be varied or have removed the fee altogether.

Sam Cook of Wiseman Financial Managment told Reef "I am pleased to see the regulator has acted to protect borrowers against unfair charges. The concern remains that lenders will simply recoup any lost income by putting up other charges".

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House prices

House prices increased by 0.7% in July according to the Halifax House Price Index. The index values average house prices at £198,915 an annual rise of 11.2%

Jerome Thompson from Reef commented "I would expect house price growth to continue to stabalise following the five interest rate rises since last summer. This is the fourth month in a row where growth has been below 1%."

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Bank rates

The Bank of Engl;and has held rates at 5.75%. The monetary policy committee froze rates following last months raise of .25%.

Jerome Thompson of Reef commented, "There remains a strong likelihood that rates will be raised to 6% by autumn as strong inflationary pressure remains."
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