After being unable to maintain the repayments on her GBP360,000 Northern Rock mortgage Christina Georgiou and her three children have been given just a month to vacate the property they once called home.
There are anticipated to be many thousands of people just like Ms Georgiou who have fallen behind on their mortgage repayments but the irony of Northern rock, effectively a government backed financial institution, throwing people out of their home is sure to stir up controversy.
A particularly relevant fact of this situation is that the Northern Rock lent the money not really knowing if the repayments were affordable. This is much like many other banks and building societies which will strike a sombre note for many observers who may now be expecting this scenario repeated across the country.
The Abbey National has announced rate cuts on their two and three year fixed rate mortgages of up to 0.15 percent, the second round of cuts in the last 10 days.
The lowest 2 year fixed rate Abbey National mortgage can now be had at 6.34 percent, with a fee of GBP999, while the equivalent three year offer is just 6.29 percent. These mortgages require at least a 25 percent deposit to qualify.
Soon to be breaking the 6 percent barrier is a new Abbey National mortgage with a 5.99 percent rate, though the maximum loan to value will be 70 percent rather than the usual 75 percent. This will be for a three year fixed term and has a fee of GBP1,695, with a maximum loan value of GBP250,000.
Liverpool Victoria has just introduced a new Flexible Lifetime Mortgage, accessible to financial advisors through their existing systems.
The Liverpool Victoria mortgage allows customers aged between 60 and 95 to use equity in their property as a cash resource, drawing a minimum of GBP10,000 initially, then in increments of GBP2,000 up to the maximum loan to value amount. Financial advisors will be able to provide quotes for interested parties from their existing Assureweb systems, making it a quick and easy exercise.
Targeting the older end of the market this style of mortgage offered by Liverpool Victoria enables customers to access the value of their home when they may need it most and still retain ownership of the property.
