Mortgage News

EQUITY RELEASE

This seems to be an area where most banks have decided to restrict lending.

Last year it was easy to borrow against the value of your house with no need to give a particular reason. Now, only a handful of banks offer the facility to release capital and in all cases the reason must be given.

Acceptable reasons are usually renovation, buying a further property or a transfer of ownership for a divorce settlement. We are aware of banks catching people out who have provided renovation quotes when the purpose of the money is for something entirely different. The bank may insist that the borrowed finance is paid directly to the construction companies doing the work and a valuer may re-inspect the property at regular intervals to ensure the work is being carried out.

This is not always the case, but banks do seem to be heading in this direction (clients aged over age 60 can take out lifetime mortgages and don't have to give a reason for the purpose of the funds).

Further good news is that the 12-monthly Euribor is now 1,274%, compared to 1,456% in July, making monthly mortgage payments cheaper clients.

The Sterling to Euro exchange rate has also remained stable, which we hope will also encourage prospective clients to buy property in Spain.

Data supplied by mortgage direct.

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http://www.custom-4u.com/mortgages.html