http://www.londonmortgageadvice.co.uk/news/article/121 Following Nationwide’s announcement earlier this week that it will also reduce some of its rates by up to 0.3% from today,Abbey has reduced the rates on all flexible and tracker-rate mortgages by 0.05%, in addition to reducing some fixed rates by up to 0.17% for borrowers with higher deposits. The changes, made today, follow Nationwide’s announcement earlier this week that it will also reduce some of its rates by up to 0.3% from today. As a result of the changes, Abbey’s five-year fixed-rate mortgage now has a rate of 5.75% (£1,499 fee). Other products include a two-year fixed rate at 5.95% (£995 fee), a three-year fix at 5.87% (£999 fee) and a two-year tracker deal at a rate of 5.97% (£999 fee). All new rates apply to loans of 75% loan-to-value (LTV) for both homebuyers and remortgage customers, and include a free valuation and help with legal costs. A spokesperson for Abbey Mortgages said the lender’s sensible approach to risk over the last two years has allowed it to reward lower LTV business with competitive rates.“The current mortgage market poses an opportunity for financially strong lenders such as Abbey,” the spokesperson continued. “Last month we announced a UK net lending share of 16%, and since then we've seen an exceptionally strong pipeline of new business, as well as continuing to benefit from the improvements we've made in retaining our existing mortgage customers. “Abbey had already decreased rates on its flexible rate and tracker mortgages by 0.1% in response to the Bank of England's recent cash injection. This additional 0.05% reduction anticipates future falls in LIBOR (London Interbank Offered Rate – the rate at which banks borrow from each other to fund their mortgage lending) and will further support the Bank of England's action in helping to bring liquidity back to the UK mortgage market.” Use our mortgage calculators to work out the difference a rate change could make to your monthly repayments. 2008-05-16 http://www.londonmortgageadvice.co.uk/news/article/120 The chances of more Base Rate cuts are unlikely for the foreseeable future. Charcol. The Bank of England is now in a Catch 22 situation: leave the Base Rate where it is and the mortgage lenders, who are sorely needed to keep the property market healthy, are unable to source cheap enough funds to lend at affordable rates; cut the Base Rate, and inflation rockets. If the ongoing program of Base Rate cuts is slow, so will be the recovery, however, if slower cuts results in more cuts being needed, homeowners on longer term trackers could potentially be the winners and see their payments steadily reduce by a percent and a half by the end of 2009. The HomeBuy scheme, which formerly allowed key worker first-time buyers to part buy, part rent a property, has been expanded to allow all first-time buyers with an annual income of £60,000 or less, to apply for the scheme. However, although the expansion of the scheme will allow many first-time buyers to buy a share of a property without a deposit, the HomeBuy scheme’s administration has not been well known for its speedy service in the past. Furthermore, paying a mortgage as well as rent each month, can often be more expensive than renting or buying elsewhere. 2008-05-15 http://www.londonmortgageadvice.co.uk/news/article/119 The number of loans for house purchase declined to 46,500 in March, down 1% from 47,200 in February. The continued decline in lending for house purchase has been partly attributed to the shortage of funding in the mortgage market, which is itself due to credit market conditions. Remortgaging activity increased in the first quarter of 2008 to £33.3bn, accounting for 44% of gross lending, up from 35% in the fourth quarter of 2007 and the marking the highest market share in three years. This is likely to be driven by the large numbers of borrowers exiting short-term fixed-rate mortgages. The average first-time buyer borrowed 89% of the property’s value and 3.35 times their income in the first quarter of 2008, down from 90% and up from 3.32 in the first quarter of 2007. House purchase transaction volumes will continue to deteriorate in the coming months as recent approvals data from the Bank of England has shown. Since the introduction of the Special Liquidity Scheme, there has been a slight improvement in credit market conditions, with LIBOR [London Interbank Offered Rate – the rate at which banks loan money to each other] moving in a more helpful direction. But LIBOR still remains high relative to the Base Rate and any improvement in credit market conditions will take time to feed through into the mortgage market. 2008-05-14 http://www.londonmortgageadvice.co.uk/news/article/118 During the first quarter of 2008,more than 38,000 mortgage possession claims were issued 16% higher than in the first quarter of 2007, according to the Ministry of Justice. More than 38,000 mortgage possession claims were issued A possession claim refers to the process by which a claimant applies to a county court for possession of a residential property. Orders for possession, which allow the claimant to apply for a warrant to have the tenant(s) evicted, were granted to 27,530 people. More than 37,000 landlord possession claims were issued during the same period, 4% higher than in the first quarter of 2007. Of the 37,000 possession claims, 28,503 orders were made to landlords, 10% more than the first quarter of 2007. An estimated 41% of these orders, were, however, suspended. 2008-05-09 http://www.londonmortgageadvice.co.uk/news/article/117 London homeowners face mortgage rises of up to £230 a month as lenders ratchet up the price of credit, the Bank of England warned yesterday. Many borrowers whose fixed-rate mortgages expire this year are being forced to pay rates around 2.5% higher - the equivalent of £2,748 a year on a standard £150,000 mortgage. An estimated 1.8m borrowers are expected to come off fixed-rate mortgages this year. Some will find another favourable deal, but others face a 'payment shock' as they have no option but to pay standard variable rates, according to the Bank of England's Financial Stability Report. Many young homeowners and lower earning families with small deposits or little equity in their home are likely to be forced to resort to standard variable rates - typically 2.5% higher - as lenders raise the cost of credit. The warning came as: House prices fell 1% in a year, the first annual drop in 12 years. A Bank official said they could collapse by a further third, wiping £57,000 off the average house value. The Bank warned at least 1.7m homeowners could fall into negative equity if the downturn continues. Four in ten mortgage lenders were said to have failed to pass on last month's cut in the base interest rate. The prospect of falling house prices, coupled with soaring borrowing costs, could put mounting strain on personal finances and the overall economy, the Bank of England said in its bi-annual report. 'UK banks have markedly tightened secured and unsecured credit availability to UK households and intend tightening it further over the next few months,' the Bank warned. 'Many high-risk borrowers may find that they are unable to refinance expiring fixed rate mortgage deals and will instead move on to the standard variable rate. As in the U.S., this repayment shock is occurring at the same time as house prices are falling.' The situation will heap pressure on the Bank's Monetary Policy Committee to cut interest rates from 5% when it meets next week. A key member of the committee, David Blanchflower, fears house prices could collapse by a third over the next two to three years unless cuts are implemented quickly. If he is correct, today's average figure of £173,555 would fall by just over £57,000 to around £116,000. His prediction would also plunge far more borrowers into negative equity. Although the existing number is 'small' at around 1%, if Mr Blanchflower's estimate proves correct then at least 1.7m borrowers could find the value of their house is dwarfed by the size of their mortgage. Fears of a continuing slump were heightened by a Nationwide building society report showing the first annual fall in house prices for 12 years. It said the average price was £173,555 in April, down by 1% in a year. The Nationwide report did not offer a regional breakdown but analysts Hometrack found the bigger falls were in East Anglia and the West Midlands. Even London, where City bonus money have fuelled price rises, has seen a fall of 2.2% over the last six months. America's Federal Reserve cut interest rates by a further quarter per cent as it continues to try to steady the U.S. economy. It was the seventh reduction in a campaign that has seen rates cut by 3.25% to 2% since mid-September. -------------------------------------------------------------------------------- The Bank of England report offered some hope that the worst of the credit crisis may be over. Deputy Governor Sir John Gieve said banks were being overly cautious in their lending and were overstating losses. The prices of the stricken financial investments at the heart of the credit crisis had fallen so low they now 'look cheap' and could be a long-term bargain, he said. Sir John added: 'While there remain downside risks, the most likely path ahead is that confidence and risk appetite will return gradually in the coming months.' If he is right banks will not make the losses they have forecast and investors may soon get the funds they to help kick start the housing market - and the wider economy. 2008-05-07 http://www.londonmortgageadvice.co.uk/news/article/116 The credit crunch is set to make rents climb higher. They are 12% higher than a year ago. Over the first quarter of 2008, rents rose by an average of 4%, while they are now 12% higher than at the end of last year, reaching a record level of over £1,000 per month. Yields remained stable in March at 6.3% for the third consecutive month and have increased by 0.2% over the past year. The South West has seen the biggest rise in rental income, with the average landlord making around £17,089 annually, up by 42.2% in the past year. However, Wales has seen rents fall 9.7% over the past year to £10,160 but the area also has the highest rental yield at 7.6%. Difficulties in securing funding are putting off potential home purchasers, increasing the demand for rented accommodation. The backdrop for buy-to-let remains positive across the country – potential residential purchasers are reluctant to buy in the current market or are unable to secure a mortgage and this is fuelling extra demand for rented accommodation. 2008-05-06 http://www.londonmortgageadvice.co.uk/news/article/115 25,264 people have already fallen victim to the insolvency epidemic in 2008 with 9,614 Individual Voluntary Arrangements (IVAs) and 15,651 bankruptcies reported. Individual insolvencies could reach 101,056 by the end of the year. For these people, insolvency means they have already reached financial stalemate. For others, the current economic climate in the UK is quickly pushing them towards this fate. Today alone, a further 292 people will fall victim to insolvency today and 74 homes will be repossessed. The credit crunch is not the only problem facing consumers. The cost of living has shot up by 9%, more than double the average salary increase of just 3.4% across the UK, which leads to five million consumers spending more than they earn every month. Consumers are facing prices hikes from every angle with annual energy bills (up 13% or £1,114), food (up 11% or £324 a year) and mortgages (up 9% or £1,020 a year) and most recently petrol prices up by 25% to 109.8p per litre. Consumers are being hit from every angle with price hikes across all areas from energy to mortgages right down to a 25% increase in the cost of petrol. This may be making many people feel that their finances are simply out of control. If people find themselves in financial difficulty the worst thing they can do is ignore the problem and hope it goes away, as it won’t. Banks have a duty to help people in financial hardship and free debt advice is readily available from organisations such as the Consumer Credit Counselling Service, National Debtline and Citizen’s Advice. People need to start taking action before they reach financial breaking point. 2008-05-02 http://www.londonmortgageadvice.co.uk/news/article/114 Homeowners sould review their insurance. Income protection could help homeowners protect their ability to make repayments on their mortgage and any other loans. Homeowners not to confuse income protection with mortgage payment protection (also known as Accident Sickness and Unemployment) insurance. MPPI plans typically pay out for a year and may include certain exclusions. The premiums and conditions of the policy can also be changed at short notice. Those with mortgages should check the amount of cover offered, the benefits you are entitled to from the Government and your employer, as well ensuring premiums are guaranteed. You should also consider alternatives, such as critical illness. This could be more suitable for your specific circumstances. The nightmare scenario must be discovering that not only have we been diagnosed with a long-term illness, but the realisation that income is going to dry up in a few weeks as well. Peace of mind can be a few pounds a week spent on a good Income Protection policy. 2008-04-29 http://www.londonmortgageadvice.co.uk/news/article/113 Industry sources said Halifax is drawing up plans to raise up to £5bn of fresh money with a rights issue. HBOS, which owns the Halifax and Bank of Scotland brands, will admit this week that losses from the credit crunch have spiralled to almost £4bn. A final decision on whether to issue shares has yet to be taken by its board of directors. But sources say that HBOS is highly likely to follow rival Royal Bank of Scotland which last week announced plans to raise a record £12bn. HBOS may be forced to make an announcement as early as this morning to confirm to the stock market it is considering a rights issue. However, sources say it will probably not make a final decision until tomorrow, when the bank is due to hold its annual general meeting in Glasgow. Analysts believe HBOS's finances are still relatively strong, and do not think that there is any danger the company could go bust. However, many think it would be prudent for the bank to bolster its cash reserves. The freeze in the money markets has hit HBOS particularly hard. As a mortgage lender it relies on borrowing from other financial institutions to fund its loans. 2008-04-28 http://www.londonmortgageadvice.co.uk/news/article/112 New figures from the British Bankers Association have showed mortgage approvals for house purchase in March tumbling to 35,417 – the lowest figure since the organisation began compiling statistics in 1997. The March figures show the extent to which banks are tightening their belts as they find themselves unable to secure funding for mortgages. The average mortgage for house purchase stood at £158,000 in March, while the average remortgage was £146,000, according to the BBA. Just 129,300 mortgages for all purposes were approved during the month, the lowest level since September 2000, with the market hamstrung by lenders increasing rates and tightening lending criteria. Borrowers needing to remortgage or purchase a home are finding lenders have raised rates to reflect their own higher borrowing costs and increase margins on mortgages. Meanwhile, many are also demanding higher deposits to protect against house price falls and raise the quality of their lending books. Worsening conditions have led to serious problems in the property market. Morgage activity is being pummeled by a toxic combination of stretched affordability and very tight lending conditions. The low level of mortgage activity is not only a consequence of slowing demand for houses due to the elevated affordability pressures facing potential house buyers, but also increasingly due to very tight credit conditions leading to markedly fewer and more expensive mortgages being available. Furthermore, potential house buyers are now having to provide higher deposit levels, which is a particularly major problem for first-time buyers. The rising cost of securing funding on the money markets has seen the inter bank lending rate Libor rise to 0.9% above the bank rate of 5% - the historical average is 0.13%. 2008-04-26 http://www.londonmortgageadvice.co.uk/news/article/111 The market share for the first-time buyers reduced in March. More positively, the number of houses available rose giving more choice to potential buyers but the number of sales agreed remained sluggish indicating consumer confidence remains uncertain. However, optimistically, the number of buyers on books has increased showing demand is still out there. The global credit crunch, squeeze on mortgage approvals and the media cloud that currently surrounds the property market are undoubtedly having effect on individual’s decisions to buy or sell. There is a constant need to remind people that the underlying factors that keep the property market going - low unemployment, historically low interest rates and a pent-up demand for houses – still exist. In fact, a number of NAEA agents from across the United Kingdom are still reporting stable property markets with many of their branches making steady sales. There are indications that first-time buyers have dropped their market share once again showing a wait and see attitude. Over the next few months it is imperative that the shackles are released on the mortgage market so consumer confidence can be rebuilt, allowing the market to stabilise. 2008-04-24 http://www.londonmortgageadvice.co.uk/news/article/110 The Chancellor of the Exchequer, the chief secretary to the Treasury and the housing minister hosted a meeting at 11 Downing Street yesterday with members of the mortgage and lending industry to discuss the action required to combat the current problems blighting the industry. Delegates from the Council of Mortgage Lenders (CML) and the Finance and Leasing Association (FLA) were in attendance. The industry bodies agreed to review their voluntary arrangements, codes and other commitments and report back to the Government by the end of May 2008. The group also agreed to identify improvements in the availability of information on borrowers facing repayment difficulties and, again, will report back on this topic by the end of May. Other issues discussed at the meeting included shared equity schemes and first-time buyers. Michael Coogan, director general of the CML, added: “We welcomed the chance today to discuss the steps that the industry is taking to support borrowers in the market, and look forward to continuing to work closely with the Government over the coming months to ensure that as few borrowers as possible face the threat of repossession. Early contact with the lender before a payment is missed should ensure the widest range of options is available so customers can help themselves to avoid payment shock.” 2008-04-23 http://www.londonmortgageadvice.co.uk/news/article/109 A scheme to allow banks to temporarily swap their high quality mortgage-backed and other securities for UK Treasury Bills is to be launched by the Bank of England. The move will help alleviate some of the pressures of the credit crunch. With markets for many securities currently closed, banks have on their balance sheets an ‘overhang’ of these assets, which they cannot sell or pledge as security to raise funds. Banks have been reluctant to make new loans, even to each other. Under the scheme, banks can, for a period, swap illiquid assets of sufficiently high quality for Treasury Bills. Responsibility for losses on their loans, however, stays with the banks. By tackling decisively the overhang of assets in this way, the Scheme aims to improve the liquidity position of the banking system and increase confidence in financial markets. Mervyn King, governor of the Bank of England, said: “The Bank of England’s Special Liquidity Scheme is designed to improve the liquidity position of the banking system and raise confidence in financial markets while ensuring that the risk of losses on the loans they have made remains with the banks.” Usage of the scheme will depend on market conditions. Discussions with banks suggest that use of the scheme is initially likely to be around £50bn. The scheme will be ring-fenced and independent of the Bank of England’s regular money market operations, so it will not interfere with the Bank’s ability to implement monetary policy. The British Bankers’ Association welcomed the move, branding it an innovative and unique policy response. It said the banks participating in this arrangement expect it to make a significant contribution to alleviating the pressures in the UK money markets. 2008-04-22 http://www.londonmortgageadvice.co.uk/news/article/108 House prices have taken their worst battering since records began.Prices are falling at the fastest pace for 30 years. It is a picture of lower prices, few buyers and desperate sellers - with worse to come. And the pessimism displayed by the estate agents and surveyors polled by the Royal Institution of Chartered Surveyors help make its monthly report the bleakest since they began in 1978. They say house prices are falling in every region of England and Wales, with the majority falling at their fastest pace since the record started. The North, Yorkshire and Humberside, East Midlands, West Midlands, East Anglia, the South East, the South West and Wales are all on the black list. But the East Midlands is experiencing the worst problems. Prices have been falling for the last 15 months. The speed of the decline is picking up, with prices falling at the 'fastest pace in the survey's history' last month. 2008-04-21 http://www.londonmortgageadvice.co.uk/news/article/107 The recent Bank Of England Base Rate cut had no helpful effect. LIBOR continues to loiter stubborn and high in relation to the Base rate, symbolic of a fallen system where banks lack the confidence to step out of their houses to trade with each other. The connection between Base Rate and LIBOR – the rate at which lenders borrow money – has become elastic, and a pull on one end provides no effect on the other. Previous short-term cash injections have merely brought temporary aid; what the Government needs to do is restore the inter-bank lending and resurrect the confidence of investors in the mortgage backed securities. The new market will inevitably be a more robustly risk-assessed and risk-priced version of its former self. This means that borrowing at high loan-to values or with credit problems will never be as cheap as in the last two years; but the property market should regain health. Mortgage deals can’t be expected to live for more than four days now, but brokers receive a few hours advance notice of the product closures, and can secure money on the rate a client may have been quoted for, before the deal is re-priced upwards. 2008-04-17 http://www.londonmortgageadvice.co.uk/news/article/106 Fears are running high that the mortgage market is in freefall, and that the Bank of England has lost control over the real loan rates that many families face.Alistair Darling has made it his priority to do everything within his means to stem the spreading mortgage crisis. The Chancellor realises the need to move soon, but also warned that the housing market will inevitably slow down.Darling said that nothing could be ruled out when it comes to reinvigorating the frozen money markets. "I want to do everything I possibly can to help the mortgage markets because it is not just important for first time buyers, but for the wider economy.Everybody recognises that the UK housing market is slowing but it's against a background of house prices having risen by 170 per cent, and rising at 10 per cent a year in recent years. You should expect, consistent with what's happening in the UK generally, there to be a slowdown in house prices. It's one of the reasons I want to help restore confidence in the mortgage market and we are also taking broader action to get the markets working 2008-04-15 http://www.londonmortgageadvice.co.uk/news/article/105 House prices remained static in March across England and Wales, according to the latest Financial Times House Price Index. The index, which uses published Land Registry figures making its results different from those recently published by Halifax (which uses its own lending figures), revealed static prices last month. On an annual basis, the rate of growth fell with prices increasing by 5.4%, down from 6.1% in February. This is the seventh month in a row the annual rate has fallen and the lowest annual growth rate since April 2006, according to the index. London saw an annual growth rate of 12.3% (averaged over the last three months), but is continuing to see a downward trend. Apart from London, the Southern regions have seen the largest annual increases – 5.1% in the South West and 7.2% in the South East. However, seven of the 10 regions in England and Wales now have an annual growth rate of below 5%, compared to a year ago when none were in this position. At present, there is nothing to suggest that this downward trend won’t continue in the short term even though the fundamentals of demand and supply, employment and interest rates remain very favourable. Although expectations seem to be set for widespread falls in actual house prices, the facts remain that demand continues and mortgages are still being supplied in volume reflecting the relatively strong economy. The next few months will be critical in terms of likely outcomes with much turning on the part played by the Bank of England. 2008-04-14 http://www.londonmortgageadvice.co.uk/news/article/104 Sixty two percent of those coming off a fixed-rate mortgage this year hope to secure another fixed-rate deal. A customer survey found that41% have a fixed-rate mortgage that comes to an end this year, with 62% hoping to secure another fix after that. However, a bad credit rating may make it difficult for a borrower to secure the best deal. It is vital that homeowners with a mortgage coming to an end in the next few months start preparing themselves now. Getting a copy of your credit report is crucial to ensure that all the information that a lender looks at is up to date. And you should give yourself plenty of time to find the best deal. If you leave it too late, there’s a danger you will miss out on todays best rates. Twenty two percent have remortgaged to help clear debt. But this could be a risky strategy if house prices dip. Planning ahead and choosing their next mortgage deal carefully, homeowners can stay out of financial trouble. 2008-04-11 http://www.londonmortgageadvice.co.uk/news/article/103 The average age of a first-time buyer, currently 34 years old, is likely to increase over the next two years. Recent developments in the mortgage market, whereby lenders have increased product rates and started to refuse to lend to borrowers with little or no deposit, mean many first-time buyers will be forced to wait it out for the next two years while they save a 10% deposit. First-time buyers made up a small 7% of the mortgages arranged in March, compared to 9% in 2006 and 2007. Joint first-time buyers reached a one year high of 58%. The high cost of today’s mortgage rates, combined with the improved deposit-gathering power of a pair, leaves the first-time twosomes in a much stronger position than those buying alone. The number of borrowers taking out a fixed rate in March reached 64%, from 52% in February. It is very rare, and a sign of the turmoil in the markets, that people would opt for fixed rates, when Bank Rate is so widely expected to be cut at least once more this year but borrowers have prioritised the security of an affordable fixed rate this time, over a high rate which has the potential of falling. 2008-04-09 http://www.londonmortgageadvice.co.uk/news/article/102 A rise in unsecured personal borrowing may result in a repossessions increase this year. Bank of England figures, which reveal a rise in unsecured personal borrowing, show the pressure home owners will come under this year through mortgage and personal loan repayments. A recent survey of UK mortgage lenders, found that 16% of repossession cases were due to borrowing from other sources. With unsecured personal borrowing up £2.4bn in February, the biggest rise for more than five years, many home owners may struggle to maintain their mortgage payments and risk losing their homes. Unsecured borrowing has been given a boost by lenders reducing the availability of mortgage equity. In the past, many people in financial difficulty have raised finance by withdrawing equity from their property, but are now being forced into taking out personal loans or increasing their overdraft facilities with high interest rates. As a result, monthly outgoings are increasing substantially, meaning some can no longer afford their mortgage repayments. 2008-04-08 http://www.londonmortgageadvice.co.uk/news/article/101 The squeeze on the availability of mortgages is expected to continue in the next three months, the Bank of England has warned. But it also predicted that demand for home loans was likely to fall slightly during the same period. The Bank, in its Credit Conditions Survey, said lenders expected the rate of homeowners defaulting to rise. Lenders have been raising the cost and tightened the availability of mortgages recently because of the credit crunch. The survey confirmed that lenders had reduced the availability of mortgages in the three months to mid-March and "expected a slightly larger reduction" over the next three months. Our banks have suddenly rediscovered the risks of providing credit - but it may be a bit late for their or our good But lenders are also expected to cut the amount of ordinary loans, not secured against property, such as credit cards and overdrafts, in the next three months. Small businesses were also expected to feel the squeeze, with a slightly smaller fall in corporate credit on offer. The findings increases the chances of the Bank's Monetary Policy Committee cutting interest rates at its next meeting. The outlook for economic growth has deteriorated enough to maybe prompt a rate cut soon. 2008-04-07 http://www.londonmortgageadvice.co.uk/news/article/100 An estimated 37% of people would go for a 25-year fixed-rate mortgage, according to a recent survey. Research also found that a further 28% would be willing to choose a medium-term fixed-rate deal. These figures indicate the country’s nervousness regarding the current economy and the credit crunch. At the moment, households are suffering from soaring mortgage repayments as they come off their fixed-rate deals, and some might even lose their homes because they cannot keep up with the payments. A long-term deal can provide people more security by reducing the risk involved with having a mortgage, which is particularly important for families with low incomes and for first-time buyers, who often have no or little equity. 2008-04-05 http://www.londonmortgageadvice.co.uk/news/article/99 The number of mortgages that track the Bank Base Rate have dropped by almost a quarter since July 2007. Before the credit crunch, people took out mortgages that tracked the base rate because they thought the rate would drop in the future. The loading above the base rate was generally stable in the region of 0.5% to 0.75%, depending on the length of the tracker term. In today’s increasingly difficult conditions, all this has changed. The higher loadings on the base rate have, on average, more than negated the half percent decrease in base rate since then. For two-year trackers, the period with the most plans on offer, the average loading above the base rate increased from 0.49% to 1.17% over the eight months since July 2007, an increase of 139%, while the base rate fell from 5.75% to 5.25% over the same period. It’s a similar picture for three-year trackers with an average loading increase from 0.52% to 1.14%, an increase of nearly 120%. For the other main mortgage term products, there have been increases, even if they have not been quite as swingeing. Not only has the number of mortgages on offer decreased while loading percentages have increased, but application fees have seen huge uplifts since July. Fees for a typical two-year mortgage have gone up from £688 in July 2007 to £1,005 currently, a 46% increase. This gets worse as the tracker term increases, rising to 139% for term trackers. 2008-04-03