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Budget 2021: Mortgage guarantee to help buyers with 5% deposit

Budget 2021: Mortgage guarantee to help buyers with 5% deposit

Business
PA MediaA mortgage guarantee scheme to help people with small deposits get on the property ladder is set to be announced at next week's Budget.The government will offer incentives to lenders, bringing back 95% mortgages which have "virtually disappeared" during the pandemic, the Treasury says.Chancellor Rishi Sunak says he will use the Budget to level with people about the pandemic's impact on the economy.Amid the crisis, government borrowing reached £271bn for the financial year. That is £222bn more than a year ago and has pushed the national debt to £2.13 trillion.Explaining the government's economic response to the pandemic, Mr Sunak told the Financial Times: "We went big, we went early, but there is more to come and there will be more to come in the Budget. But there is a challenge [in...

Biden administration may undo certain Trump-era mortgage rules

Finance
Kathy Kraninger, former president Donald Trump's appointee to head the Consumer Financial Protection Bureau.Andrew Harrer/Bloomberg via Getty ImagesThe Biden administration hinted it may dismantle mortgage rules inked during the waning days of Donald Trump's presidency.Those Trump-era rules erase protections for borrowers and may open the door to risky loans that led the housing bubble to burst in the 2008 financial crisis, according to some consumer advocates.The Consumer Financial Protection Bureau said Tuesday it is considering whether to "revisit" the rules, issued in December when Trump appointee Kathy Kraninger led the agency. (She stepped down last month at the request of President Joe Biden.)More from Personal Finance:$ 400 unemployment boost: Republicans revive anxiety over effec...
Mortgage boom helps Lloyds to third quarter profit

Mortgage boom helps Lloyds to third quarter profit

Business
Lloyds Banking Group has posted a better-than-expected third quarter profit as it reaps the benefits of a boom in demand for mortgages.The bank reported a pre-tax profit of just over £1bn for the period between July and September - almost twice what was expected by analysts. Britain's biggest domestic lender received its biggest quarterly increase in mortgage applications since 2008, arranging new lending of £3.5bn.The increase is mostly due to the busy housing market, as hundreds of thousands of people rush to take advantage of the stamp duty holiday on offer for some properties until the end of March.Housing website Zoopla said earlier this week that 418,000 sales across the UK - worth a total of £112bn - are in the pipeline but are yet to be completed. ...

Considering a home purchase in retirement? Here’s how to get a mortgage

Finance
kali9 | E+ | Getty ImagesIf you're retired and are thinking about downsizing or relocating, and it involves buying a home, you might want to look into how you would finance it.You may discover that qualifying for a mortgage is different from the last time you bought a house. Not only have lenders tightened credit during the coronavirus pandemic, retirees generally have left a steady paycheck behind.It can be tricky for retirees to get a mortgage, said Al Bingham, a mortgage loan officer with Momentum Loans in Sandy, Utah."You can have a lot of money but show very little income and have difficulty qualifying for a mortgage," Bingham said. "It frustrates a lot of them."More from Personal Finance:Congress caps Medicare Part B premium spike for 2021Medicare beneficiaries may get $ 200 to help...

Refinancing your mortgage will cost more thanks to an ‘adverse market’ fee

Finance
Getty ImagesIf you've thought about refinancing your mortgage, be aware that it may soon be a more expensive proposition.Due to a 0.5% "adverse market" fee, effective Dec. 1 and imposed on lenders by mortgage backers Fannie Mae and Freddie Mac, many homeowners are expected to absorb at least some of the cost when they refinance (certain refis are exempt, including those for loan balances below $ 125,000)."If you assume it takes two months to close [on the refinance], anything applied for after early October could push to December," said Joel Kan, associate vice president of economic and industry forecasting for the Mortgage Bankers Association.For a $ 280,000 mortgage, the 0.5% fee would mean your lender is an extra $ 1,400 when your loan is sold to Fannie or Freddie. The expectation is...