Q Our mortgage finishes in 18 months, but it is an endowment with a shortfall of about £12,000. I do not work as I care for my elderly mother, and my partner is self-employed and earns very little.

We live in a two-bed house with an 11-year-old boy and a nine-year old-girl who share a bedroom. We cannot afford to move and have decided the only solution is to turn our loft into a room for our son. We expect this to cost about £10,000.

My partner will ask the bank regarding a loan, but do you think we would be better off putting the extra borrowing on the mortgage? Of course, we also have the added problem of how we are going to repay the £12,000 when the mortgage finishes. 

A Yes, I do think you would be better off increasing your mortgage by £10,000 to pay for the loft conversion. Uppi Read more…

If you don’t know what is mortgage better to ask. Why because it is very essential if you want to buy a house. You have to know more about the terms. And the mortgage is proper to be known. 

The bankers must be know about the mortgage things. The newspaper often wrote about mortgage problems but not many people understood. Mortgage rates at some lenders spiked by as much as 1 percent on Wednesday and saw little relief on Thursday, according to mortgage brokers. This is the example of the news from media, but sometimes no body cares about this. 

The cause of house price change could be because the value of dollar is dropped. And the information in television U.S. mortgage applications rose last week, reflecting an increase in demand for home refinancing loans as interest rates trekked lower, data from an industry group showed on Wednesday. If you still confuse about this news, you have to call the bankers and ask about this.

Mortgage lending in the UK remained slow last month, according to the latest figures from the Council of Mortgage Lenders (CML).

Total lending for home loans stood at £12bn in September, the lowest September total since the year 2000.

The CML’s figures, which cover borrowing for house purchases as well as remortgaging, were down 1% from August and 7% lower than in September last year, figures that indicate that lending is stagnating after picking up earlier in the spring.

“Gross lending in the third quarter of 2010 was an estimated £37.4bn, a 9% increase from the second quarter and down 4% from the third quarter of last year,” said the CML’s director general Michael Coogan.

“Lending volumes do not seem likely to increase substantially towards the end of the year.

“Funding pressures on lenders remain, and the practical implications of government and public spending cuts are beginning to emerge, with a resulting impact on consumer confidence,” he added.

The official Bank of England figures show that approvals fell from 60,000 in June to 55,000 in July and then 48,000 in August.

Analysts have suggested that uncertainty over the economic effects of the government’s spending review, public sector cutbacks and demands by lenders for increasingly higher deposits from first time buyers are behind the decrease.

Housebuilder Bovis Homes has agreed a deal with Barclays to guarantee mortgages bank taken out by their customers in a bid to offer 90% loan-to-value home loans, showing just how difficult it is to secure a mortgage for first time buyers.

The housebuilding company have joined forced with Barclays to offer the 90% loan-to-value mortgage and will guarantee mortgages taken out by customers, in a bid to raise the demand for new houses.

Bovis have agreed that they will put aside a percentage of the sale of one of their new houses, which will be used to cover the costs of any defaults – taking the financial risk away from Barclays. The money will be given to Barclays if there are any losses on the loan or if the house is repossessed due to problem with payments.

David Ritchie, the chief executive at Bovis, said: “Banks clearly are struggling to justify high loanto-value mortgages because of the capital they need to set aside.”

“There are plenty of people who simply cannot get a mortgage because they don’t have sufficient deposit.”

Chris Keane, head of mortgages at Barclays, said that other lenders and developers could look at doing similar deals to provide more choice to first time buyers. He said:

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According to figures from the British Bankers` Association (BBA), the number of mortgages approved for house purchase increased by 5% during March, the Daily Mail reports.

Throughout March, a total of 34,905 mortgages were approved (by the major banks) for people buying a new property – 20% higher than the figure recorded last March.

The figures also revealed a further fall in net mortgage lending to 2.4bn – the lowest level since July last year, and down from the `recent six-month average of 2.9bn`.

The BBA said the `subdued` net mortgage lending figure was due to homeowners using any spare money they had to pay down their mortgage debt.

Meanwhile, the amount of unsecured debt repaid outstripped the amount of debt taken on for the 12th consecutive month – with consumers paying off 63m more debt than they took on in March.

Despite debt repayments outstripping new spending, the amount of debt taken on through credit cards increased by 148m, while the amount of debt taken on through loans and overdrafts fell by 211m. Read more…