Some might say ‘about time too…’

During the 2007 housing boom, 23% of mortgages were based on self certification, so called ‘liar loans’, and managed to shore up bad debt within the UK Mortage Industry.

But on Monday the FSA announced plans to ensure that strict vetting is to be brought into place and all incomes are to be verified, unlike previous self cert mortgages.

This can only be a good thing right? You should only borrow what you can comfortably afford to repay? I would think this goes without saying, but with so many of us eager to climb the property ladder has a little lie here and there really hurt?

Looking at the state of the UK’s financial markets today and subsequently its sub prime mortgage industry, I would agree that yes, and not before time.

The Woolwich, Northern Rock and Abbey have reduced their mortgage rates but at what price? Yes, respectively, they are offering rates of between 2.79% and 3.88% but only if you have a whopping 30% deposit.

Looking at it head on the reduction in UK mortgage rates is very competitive and very interesting,
the situation is slightly different when you look at the deposits required. All of the companies in
question would require new mortgage customers to lay down a 30% minimum deposit on their new home to
be able to discuss the lower rates announced today. So again another letdown in the UK mortgage
market with UK banks and UK mortgage providers accused of manipulating customers to increase demand before
reducing overall mortgage rates.

Without a reduction in UK mortgage rates there will be no recovery in the UK property market and ultimately
it will be a lose-lose situation for financial companies and property owners in the UK. When will UK banks
and UK mortgage providers wake up to this fact?

House prices in the UK continued to rise for a fifth consecutive month in September. But how easy is it to still obtain a mortgage?

The price of a typical home rose 0.9% in September to just under £162,000, which are broadly in line with prices in September last year.

In August, prices rose 1.4% from a month earlier and were 2.7% lower on the year.

Economists were expecting a 0.7% monthly gain and 0.3% drop in annual terms in September.