Home > News > Mortgage and Remortgage

BoE releases Trends in Lending report Brits `prioritising debt repayment` "Sensible lending" needs to be restored for home buying Many households `to miss mortgage payments` Homeowners `increasingly paying off mortgage debt` Booklet produced for those facing mortgage repayment problems Local authority defends decision to offer 100% mortgages Mortgage lending levels `still low` CML welcomes campaign on repossessions Consumers `increasingly offsetting savings against mortgages` Banks `should be encouraged to provide more mortgages` Younger and richer people `benefiting more from mortgage reductions` Bank of England cuts base rate Negative equity `concerning UK mortgage holders` Interest rate cuts `were not anticipated by consumers` Nearly half of young mortgage holders `need help from family` Abbey cuts mortgage rates New arrears guidance issued by CML Mortgage fraud `on the up` CML expresses concerns over sale and lease back schemes

Your Mortgage: US mortgage situation may lower UK confidence

16/07/2008

The USA`s mortgage company situation will have "an indirect effect" on the UK market as confidence may be lowered, an expert has said.

Your Mortgage has commented on the problems faced by US mortgage companies Fanny Mae and Freddie Mac, which between them own or guarantee around half of the outstanding mortgages in the country, amounting to $5.3 trillion (£2.7 trillion).

Shares in the firms dropped by up to 50 per cent last week when they announced billions in losses due to an increase in defaults and possessions in the US housing market.

Those looking at mortgaging or remortgaging may be concerned about the UK market.

However, Pauline McCallion, editor of the independent Your Mortgage website, said a direct effect on the UK market would not be seen but buyers may lack confidence in the market.

"The mortgage markets are so interconnected at the moment so it probably will have an effect indirectly," she said.

Ms McCallion added the two mortgage markets work and are regulated differently. "The central banks in the UK, America and Europe all operate different policies when they deal with different issues," she said.

Your Mortgage offers news and advice on mortgages.

Energy firms `not refunding overpayments automatically` 01/07/2009 - A new report by consumer group Which? has claimed that Average household £7 a week richer but debt levels remain high 01/07/2009 - During May, a typical household had £164 a week left Consumers `cutting back on credit card debt` 01/07/2009 - Many UK consumers are cutting back on the amount of Mortgage debt often greater than house value 01/07/2009 - According to the latest findings from global rating agency Fitch,