Lower interest rates by the Financial Services Authority (FSA) prompted many British homeowners to pay their mortgages on time and for the first time Mortgage payments eased in the first quarter of 2009. The FSA added that compared to the last quarter of 2008 when there were only 68,000 fresh arrear cases, there were only 60,000 new arrear cases in the first three months of this year. (more…)

Latest figures from Halifax have revealed that cost of running a household have dropped to £7,300 a year from £8,800 in April 2008 which is lowest in three years. This is mainly attributed to the falling Mortgage Rates. Economist Suren Thiru said that such a drop in running the household would help ease pressure on household disposable income thereby giving some comfort to the homeowners. (more…)

Nationwide, considered to be the strongest of the building societies, was categorical in its statement that it would not be the ‘lender of last resort’ for the mutual sector.

Chief executive Graham Beale said that Nationwide Building Society is not prepared to be “lender of last resort” for the mutual sector. He admitted that lender’s profits dropped by two-thirds last year because of the government’s savings protection scheme. (more…)

Tiny Market Harborough Building Society is at the top of Daily Mail’s Best Buys table with a two-year fixed rate at below 3 per cent.

Harborough Building Society which is Britain’s 32nd biggest building society will charge 2.89 per cent and an additional fee of £1,094 for those with a deposit of 25 per cent. So on a typical loan 25-year loan of £150,000 repayments would be £703 per month and the total cost over two years would be £17,961. (more…)

Fitch, the credit rating agency has downgraded five UK building societies namely Chelsea, Newcastle, Principality, West Bromwich and Yorkshire building societies because of weak economic conditions. “Signs of strain” can be seen on mortgages given out by these five Building Societies. However, it painted a less bad picture compared to Moody’s which gave a very poor rating to as many as nine building societies. (more…)