World Home Mortgage News

So, Professor Keen, an unemployed teenager with a $350,000 loan - is this just an aberration or are we seeing more of these sorts of loans being written?  STEPHEN KEEN: We're seeing a lot more of them, Eleanor. It's something which has become an easy way for financial organisations to minimise their costs in writing loans.  If you look at the scrupulous side of the ledger, just a cost...

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Q&A: Sub-prime lending
BBC News, UK

What is sub-prime lending?  Put simply, it is loans to people who have patchy credit histories or can not prove their incomes.  Many of those taking out a sub-prime loan may have defaulted on a loan from a mainstream lender, such as one of the big High Street banks.  Sub-prime lending takes several different forms.  In its simplest form, it involves doorstep lending - small amounts of cash loaned...

Japan's central bank may raise rates soon
BusinessWeek

Japanese ministers gave conflicting signals Tuesday about what the central bank should do about interest rates amid rising speculation the Bank of Japan will raise rates next week.  Banking and economy minister Kaoru Yosano said that the economic, price and market conditions were beginning to fall into place to allow the bank to lift interest rates after keeping them at zero for five years...

Self-build mortgages
This is Money, UK

Building your own home has become increasingly popular in recent years with soaring property prices making it harder than ever to get ahead in the property market.   A self-build mortgage is exactly what it says, a home loan you take out to finance building your own house. When you take out a self-build loan the money is released in instalments, with an initial loan to buy the land. Payments are...

Law change looms for landlords
BBC News, UK

On 6 July new rules governing the upkeep of large rental property, such as student houses, in England come into force.  Property expert Ray Boulger of mortgage advisers John Charcol looks at the new rules, and what they will mean for buy-to-let property owners and tenants.  Residents in houses in multiple occupation (HMO) suffer a higher incidence of death and injury as a result...

America's housing bubble
The Daily Reckoning, UK

But now, Ben Bernanke is fighting his own war. He is out to prove that he can battle inflation, and win. As we pointed out last week, this use of overwhelming force against a minor enemy may have unintended and unpleasant consequences. It may trigger an unexpected flank attack - by deflation! As the US housing bubble deflates, a lot of people are going to have a lot less money in their...

Mortgage holders to get another reprieve
The West Australian, Australia

Mortgage holders will have at least a month to enjoy their tax cuts with the Reserve Bank set to leave interest rates on hold on Wednesday.  Economists are unanimous in expecting the bank, which held its board meeting on Tuesday, to leave the official cash rate at 5.75 per cent until it gets a clearer view of inflationary pressures across the economy.  With a lack of clear data, and with the federal ...

The Reality of Stagflation
HoweStreet.com, Canada

Now that the Fed has raised rates to 5.25%, and has left the door open for future increases, the overriding concern is that over-tightening will tip the economy into recession. However, given the state of our imbalanced economy, a recession is not only inevitable, but absolutely necessary, and will occur no matter what the Fed does. Furthermore, the coming recession will not come about...

Global Housing Boom May Cool Slowly, Avoiding a Crippling Bust
Bloomberg

The biggest global housing boom in three decades may end not with a bang, but with an extended whimper that will keep the economy growing.  Markets for dwellings in the U.S., France, Spain, New Zealand and parts of China are coming off the boil as home-price inflation slows in response to higher interest rates. So far, the rise in borrowing costs has been modest, giving builders and buyers time...

Home Buying Tips
ABC7Chicago.com, USA

First you need to define the needs of your family rather than just what you want. What you need is typically defined as bedroom count, bathroom count, living room and kitchen space, as well as garage space. By doing this, you will make the process of home searching less difficult.  Second check your credit rating and consult with a good mortgage consultant especially if your a first time home buyer...

Rent-based loan offered for first-time buyers
24dash.com, UK

A specialist mortgage company launched a new home loan for first-time buyers today based on the amount of rent they are currently paying.  All Types of Mortgages Ltd (AToM) has dubbed the product the Rent to Buy mortgage.  It is aimed at first-time buyers who need to borrow more than the traditional income multiples that lenders will advance, and who can show they are able to...