The Financial Services Authority has announced today that one in five people are worried about making mortgage payments in 2008. Many 100% mortgages deals and borrowers whose fixed rates will be coming to an end this year will be extremely concerned what their new payment will be.  

The FSA is so concerend that they will be launching a £2m advertising campaign. Northern Rock is only offering 100% mortgage borrowers the standard variable rate when borrowers fixed rates expire. Other lenders have not passed on all the rate reductions as they are struggling to make profits.

“Economic conditions are getting tougher, putting pressure on family finances,” said Chris Pond, FSA director of financial capability. fsa.gov.uk 

The poll of 2,011 people aged over 16, of whom 573 were mortgage holders, found that 19% of those asked were concerned about meeting the cost of their mortgage repayments.

Last month, the Council of Mortgage Lenders (CML) cml.org.uk/cml/statistics said repossessions rose by 21% in 2007 to 27,100 homes, the highest figure since 1999, which reached over 70,000.

Many 100% mortgage borrowers and people who’s fixed rate is coming to end would be wise to start shopping around and talking to a mortgage broker. If they are gtting into any difficulty they should talk to their lender as soon as possible, or contact a  free independent debt advice service.

For a long time there have been calls for free advice funded by levies from companies regulated by the Financial Services Authority. More so now with Bad credit mortgages and 100% mortgages being a regular topic in the news due to the current changes in the world economy.  

A report conducted on by Thoresen Review of Generic Financial Advice, commissioned by the government, suggests a £12m two-year pilot project.

It said a telephone; internet and face-to-face advice service should be funded by the government and by levies from the financial services industry. 

Otto Thoresen, the head of the financial services firm Aegon, was asked by the Treasury to design a national money guidance service. His review suggested that people would use such a sales-free service for significant life events that affect finances, such as starting work, buying a house, having a baby, divorce or retirement.

Many first time buyer mortgages now require a deposit of between 5 and 10%. Some lenders are insisting more stringent credit checks. A minor change in your credit report in the wrong direction like a late or missed payment on your credit card is likely to see you declined for any of the best mortgages available.

The Citizens Advice Bureau has gone on record saying there service is busting at seams. Good quality debt advice should be available to everyone.

Looking for a shared ownership mortgage. Many first time buyer mortgages are for a shared ownership mortgage which suits their needs?  Every one wants a cheap shared ownership mortgage deal at the best rates available.Shared ownership mortgages are usually arranged on a 100% mortgage, 50% or 25% part rent part buy basis. For many people across the country this can be the only way to get a foot onto the housing ladder they are very popular with first time buyers.When you buy a shared ownership property, you only buy a percentage stake in the property, usually 25 to 50 per cent – from a housing association. Although this can be affordable, as you only own a percentage of the property you will miss out on some of the equity growth if the housing market starts to rises again. You can, however, staircase which means buying another portion of the property later on. Many lenders insist that this option must be available.

Cheap shared ownership mortgage rates enable a borrower the following benefits, Low interest rates, easy repayment options. Remortgage loans replace the existing shared ownership mortgage with a new one from either the same lender or a new lending company. It helps to reduce monthly payments and release home equity. Competitive shared ownership mortgage deals help individuals become financially stable.

Getting a cheap shared ownership mortgage could be a way of reducing your monthly outgoings for other expenses.  Many lenders are now offering more competitive interest rates to attract new business, ask your broker to source different deals from different lenders to compare which is the cheapest shared ownership deals

Once you have registered for with an affordable housing company you will be assessed for eligibility. If you are accepted remember to enquire what the rent will be for the share you will be renting as your broker will need to know when applying to a lender for a decision in principle.

100% mortgages lender Northern Rock has decide to pull out of the high risk 100% to 125% mortgages market. This type of loan has been a favourite of many borrowers who have used this 100% mortgages product to secure a property and get a loan.

The 100% mortgage product has been criticised for encouraging people to take on larger loans. The reality is most people were just consolidating existing loans and getting the same rate as their mortgage. In a rising mortgage market this concept worked very well. As the property was increasing in value this gave the owner a sense that existng loans were being paid off.

Tens of thousands of Northern Rock customers may eventually be forced to remortgage at much higher interest rates when their current offers expires many two fixed rates at 5.99% will be coming to an end in 2008.

“Our present lending appetite has changed,” said a bank spokesman.

“And demand for this product has now fallen to negligible levels, so we are withdrawing it,” he added.

If the nationalisation rescue of Northern Rock fails, we could all lose a possible 3,500 pounds each. The exposure to the tax payer’s money has doubled since the beginning of the year. Many borrowers who have borrowed against thier property with a 100% mortgage will owe thier money to the Bank of England.

100% mortgages have been the Northern Rocks loan of choice in the last few years. When credit conditions were relaxed and borrowing large amounts against on rising property prices was a safer bet.

It looks like The Bank if England wants its money back now. They will be aiming to reduce there mortgage based assets. When these 100% mortgages come to the end of there fixed rate period many borrowers will be looking to find a new competitive rate. Many 100% mortgages lenders are pulling out of the market Alliance & Leicester have announced a temporary withdrawal of there 100% mortgages and 100% plus mortgages products.