British consumers have become mortgage prisoners as mortgage lenders exit the market in droves. The British middle class now find themselves trapped in high rate mortgage deals with no prospect to remortgaging to a better deal as lenders turn their backs on the specialist lending market
The credit and mortgage boom of the last 10 years fuelled an explosion in specialist lending from non bank mortgage lenders, lending freely to the self employed and those with poor credit histories. Since the collapse of the mortgage and lending markets lenders have exited the market leaving borrowers trapped in high rate mortgages and with no viable alternatives from a mortgage market that now assesses new applicants in the strictest terms with only the most credit worthy getting access to the best deals or any deal atall, says mortgage and property website obligo.co.ukIn Britain, mortgage poverty is associated with low earners and the working classes. However, as a consequence of the credit bonanza of the last 10 years the suburbs of Britain are home to a new class of families weighed down by mortgage debt, locked into expensive mortgages and with no means of reasonable escape. Ray Bohringer, spokesperson at mortgage and property website obligo.co.uk said “ consumers are telling us they are locked in deals from which there is no way of exiting or remortgaging. These borrowers have mortgages with lenders who are now out of the market or who have ceased lending. These borrowers took deals on short term fixed rates and expected to remortgage to a new fixed rate or cheaper deal as they been encouraged to do by the market, the regulator and consumer groups. Sadly deals for consumers who are self employed, with a poor credit history or unusual circumstances are longer available and there appears to be no light at the end of the tunnel?” Bohringer went on to say “ borrowers may find their situation hopeless, but I would urge them to try renegotiate the terms with their existing lender if possible. In some instances lenders are reducing penalty and exit charges and in some cases they have reportedly even paid borrowers to go elsewhere. If direct action with your mortgage lender fails find a reputatable broker and see what can be done. Even in the current market there are lenders who will listen if the loan to value and circumstances are right”.
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Obligo is a new mortgage business based around a revolutionary concept that will provide consumers with tools and information about UK mortgages, whilst retaining a human aspect to case underwriting and application management.Obligo intends to change the way UK consumers approach mortgages. Obligo is a unique collaboration of information and resources from both the UK mortgage and property markets.Features that have recently only been available through websites and entities are collectively presented to the consumer in a simple, easy and effective manner. Real-time house price information, automated property valuations (AVM), consumer guides,market analysis and expert market commentary is available together with industry leading mortgage calculators and application tracking systems.Obligo Ltd is a privately held company with a highly experienced and proven management team with proven track records in start-up aquisitions and sales in the mortgage and other sectors.The founders have set a course in the changing world of financial services to deliver transparency and efficiency to the UK mortgage market .
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With lending becoming ever more difficult experts are expressing surprise that the Financial Services Authority (FSA) in the UK has been so slow in granting new banking and lending licenses so says mortgage and property website obligo.co.uk
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An unprecedentedly low Bank of England Base Rate has meant that thousands of borrowers are now paying considerably less for their mortgages than they have done in the past or indeed expected to. However with continued economic uncertainty is it time to stay with a variable mortgage or jump ship and take a fixed rate – mortgage and property portal obligo.co.uk ask the question.
