Seemingly desperate measures are being taken by lenders and businesses across the property market and only this week, UK house building giant Barratt unveiled a number of incentives aimed at attracting the already few buyers in the market.
Barrat has pledged to reimburse any losses up to a maximum of 15% of the property value on a home bought between now and Christmas if the buyer sells at a loss in the next three years.
But the Bank of England is now warning businesses that there is no quick-fix to the mortgage crisis as households would also continue to be affected by falling incomes and higher prices on a range of basic goods.
The house builder has further announced that it is ready to pay stamp duty on sales of property up to the value of £500,000 estimated at £15,000 and would offer part exchange to buyers who are unable to sell their existing homes.
Although the new offer from Barrat seems attractive for would be homebuyers, the deals are only available until the end of the year and are on selected properties likely to exclude most developments in London and the South-east.
Additionally, the part-exchange offer is capped at £250,000 on existing properties while the three-year price guarantee is limited to properties worth up to £300,000.
However, the Bank of England now says it will launch a successor to the emergency funding scheme (known as the Special Liquidity Scheme), which since April has allowed ailing banks to keep lending by swapping risky mortgages for cash from the Treasury.
Market sources say that banks may have tapped the Special Liquidity Scheme for as much as £200bn but even Bank of England Governor Mervyn King believes that any such scheme would not provide a quick solution to the credit crisis.
Last week, the Bank's Monetary Policy Committee (MPC) refused to cut interest rates from 5% because with inflation resting at a 16-year high rate of 4.
4% thanks to an increase in food, energy and oil prices, there was nothing MPC could have done to please businesses.
Today, another lender, Crystal Mortgages announced the launch of two new Bridging Loan products in addition to their competitive 1.
25% product.
This may be good news to those wishing to get on the property ladder but perhaps an act of desperation on their part especially because Crystal are still lending on a first or second charge basis on Commercial or Residential property.
What is even more interesting is the fact that the company is still lending to clients with adverse credit, and also lending is based on a true Self Cert basis.
Crystal says that because many lenders are currently withdrawing from the second charge or adverse sectors the company has spotted an opportunity to expand their lending services.
But the list of lenders offering attractive offers continues to grow with Abbey announcing that with effect from 15th September it will cut rates and add new deals to the range at 85% LTV.
There will also be no upfront element of the booking fee.
Barrat has pledged to reimburse any losses up to a maximum of 15% of the property value on a home bought between now and Christmas if the buyer sells at a loss in the next three years.
But the Bank of England is now warning businesses that there is no quick-fix to the mortgage crisis as households would also continue to be affected by falling incomes and higher prices on a range of basic goods.
The house builder has further announced that it is ready to pay stamp duty on sales of property up to the value of £500,000 estimated at £15,000 and would offer part exchange to buyers who are unable to sell their existing homes.
Although the new offer from Barrat seems attractive for would be homebuyers, the deals are only available until the end of the year and are on selected properties likely to exclude most developments in London and the South-east.
Additionally, the part-exchange offer is capped at £250,000 on existing properties while the three-year price guarantee is limited to properties worth up to £300,000.
However, the Bank of England now says it will launch a successor to the emergency funding scheme (known as the Special Liquidity Scheme), which since April has allowed ailing banks to keep lending by swapping risky mortgages for cash from the Treasury.
Market sources say that banks may have tapped the Special Liquidity Scheme for as much as £200bn but even Bank of England Governor Mervyn King believes that any such scheme would not provide a quick solution to the credit crisis.
Last week, the Bank's Monetary Policy Committee (MPC) refused to cut interest rates from 5% because with inflation resting at a 16-year high rate of 4.
4% thanks to an increase in food, energy and oil prices, there was nothing MPC could have done to please businesses.
Today, another lender, Crystal Mortgages announced the launch of two new Bridging Loan products in addition to their competitive 1.
25% product.
This may be good news to those wishing to get on the property ladder but perhaps an act of desperation on their part especially because Crystal are still lending on a first or second charge basis on Commercial or Residential property.
What is even more interesting is the fact that the company is still lending to clients with adverse credit, and also lending is based on a true Self Cert basis.
Crystal says that because many lenders are currently withdrawing from the second charge or adverse sectors the company has spotted an opportunity to expand their lending services.
But the list of lenders offering attractive offers continues to grow with Abbey announcing that with effect from 15th September it will cut rates and add new deals to the range at 85% LTV.
There will also be no upfront element of the booking fee.
Source...