Help For 'Mortgage Prisoners' Sought By FCA

Thousands of "mortgage prisoners" who are paying high borrowing rates but are unable to switch to better deals should be given more help, the UK's financial regulator has said. These homeowners took out mortgages before new, stricter rules on affordability were brought in. The Financial Conduct Authority (FCA) also said about 30% of borrowers failed to find the cheapest mortgage deal. However, it said competition in the market worked well for many people. The FCA's comments came in an interim report into the mortgage market. Read more on the BBC website.

http://www.bbc.co.uk/news/business-44001514

Pension Freedoms Spark Flood of Cheap Buy-To-Let Mortgages

The number of cheap buy-to-let mortgages on the market has risen by more than three-fold in the run up to new pension freedoms, new research shows.  In total, investors can choose from 226 different fixed rate deals compared to 162 six months ago and 71 a year ago, according to data from Moneyfacts, which analyses financial products. It defined this as two-year fixed deals below 3pc or five-year fixed arrangements with rate under 5pc. Lenders face fewer rules on buy-to-let mortgages as it is treated as business lending, in contrast to residential lending which is tightly regulated by the Financial Conduct Authority. Read more on the Daily Telegraph website.