moneynet in the press

Express & Star (Walsall) – 30th June 2007

BEWARE COSTS OF LUMPING ALL DEBT INTO A MORTGAGE

Homeowners looking to transfer debts racked up on credit cards, bank loans and overdrafts to their mortgage risk getting sucked ever deeper into a debt quagmire, warns online personal finance data analyst Moneynet.co.uk.

As a easy way of managing debts, consumers often opt to consolidate all their liabilities in one place, with homeowners being able to add the whole lot to their mortgage.

“Whilst including the consolidated debt in your mortgage can look attractive, in the long term it could prove to be a very expensive mistake,” said Moneynet.co.uk chief executive Richard Brown.

Express & Star (Stafford) – 25th June 2007

CREDIT HISTORY COULD WELL BE DAMAGED BY TAKING JOINT MORTGAGES

A surge in demand for so called ‘mates mortgages’ and the increase in the number of lenders offering such loans has prompted fears of an accompanying leap in impaired credit records, warns online data analyst Moneynet.co.uk.

According to the British Bankers Association (BBA) and the Building Societies Association (BSA), around 60 banks and building societies are now prepared to lend up to four applicants for a single property.

As a result of ever rising house prices, more first time buyers are looking to secure a first step onto the property ladder. But Moneynet.co.uk chief executive Richard Brown advises that buyers need to be confident that all parties have clean credit records.

“Unpolished credit records could see them fall at the first hurdle – and all concerned could be tarred with the same adverse credit footprint brush,” says Brown.

Brown also points out that, from the mortgage lenders’ point of view, each party to the mortgage is responsible for the entire mortgage debt and monthly repayment.

Mortgage Strategy (Main) – 25th June 2007

SUB-PRIME FACES REGULATORY FLAK

There’s a degree of inevitability about the debate surrounding the sub-prime market. Ever since Mortgage Day, it’s been obvious that the Financial Services Authority would look closely at this sector and this has proved to be the case.

A few weeks ago, Clive Briault, managing director of retail markets at the regulator, made a speech at the Building Societies Association’s annual conference that focussed on the vulnerability of sub-prime borrowers.

Increasingly, potential borrowers are grouping together to buy property and we’ve seen ‘mates mortgages’ become popular.

“Unpolished credit records could see them fall at the first hurdle – and all concerned could be tarred with the same adverse credit footprint brush,” says Brown.

Mortgage Introducer (Main) – 23rd June 2007

KEEP YOUR FRIENDS CLOSE…

The more we read about first-time buyers (FTB) the more we convince ourselves that there is a solution to the dilemma facing those aiming to step onto the property ladder for the first time.

However, Moneynet.co.uk has pointed out the dangers and flaws in the ‘mates mortgage’, with a report that advised applicants to be prepared when taking the mortgage out as an adverse credit history on one individual can damage the other applicants history too.

Moneynet.co.uk chief executive, Richard Brown, said: “As soon as you buy with someone else, your credit files will become linked to each other by what’s known as financial association.

IFAonline.co.uk – 14th June 2007

MORTGAGE ‘MATES’ AT EXTRA RISK

The relentless rise of house prices has caused a surge in demand from first time buyers who are teaming up with friends to take their first step on the property ladder.

Richard Brown, chief executive of Moneynet.co.uk, says, “It’s crucial for all applicants to get their credit reports checked before proceeding. Anybad credit history on the part of one person will be instantly recorded against all parties to the mortgage”. Moneynet.co.uk has created a checklist of precautions to take before taking out a mates’ mortgage.

London Stock Exchange (web) – 14th June 2007

CML WARNING ON INTRODUCTORY MORTGAGE OFFERS

The Council of Mortgage Lenders (CML) has warned that attractive introductory offers on mortgages can prevent consumers from looking for the best deals available, arguing that borrowers need to be aware of alternatives when looking for mortgages.

In related news, experts at Moneynet.co.uk have warned of the financial risks of a so-called ‘mates’ mortgage, advising new buyers who team up with friends to ensure that their credit rating is not compromised.

What Mortgage (web) – 14th June 2007

WATCH YOUR CREDIT WITH MATES’ MORTGAGES

Most lenders now allow up to four people to take out a mortgage together on a single property, however all parties need to be confident that their peers have clean credit records.

It is a common credit myth that the people you currently live with or the previous owners of your home have an impact upon your own credit rating, however those with whom you enter into a financial partnership such as a joint account or a mortgage do affect your own credit rating.

Richard Brown, chief executive of Moneynet.co.uk advised: “Unpolished credit records could see them fall at the first hurdle, and all concerned could find they are tarred with the same adverse credit footprint brush.

Mortgage Solutions (web) – 14th June 2007

‘MATES’ MORTGAGES’ WARNING

A surge in demand for ‘mates’ mortgages’, and the resultant increase in the number of lenders offering such loans has prompted fears of an accompanying leap in impaired credit records, warned an online data analyst. With more first-time buyers looking to team up with friends to secure a first step onto the property ladder, Moneynet.co.uk chief executive Richard Brown advised that buyers need to be confident that all parties have clean credit records: “Unpolished credit records could see them fall at the first hurdle, and all concerned could find they are tarred with the same adverse credit footprint brush. “Brown also pointed out that from the mortgage lenders’ point of view, each party to the mortgage is responsible for the entire mortgage debt and monthly repayment. As such, he further recommended that all parties involved take care to iron out credit pitfalls in advance.

Mortgagestrategy.co.uk – 14th June 2007

MONEYNET.CO.UK WARNS OF PITFALLS OF ‘MATES MORTGAGES’

Moneynet.co.uk is urging consumers to check their credit histories and those if their co-buyers before entering into a so-called ‘mates mortgage’ deal. According to the British Bankers’ Association, around 60 banks and building societies are now prepared to lend to up to four applicants for a single property.

As a result of rising house prices, more first-time buyers are looking to team up with friends to purchase their first property.

But Moneynet.co.uk advises that buyers need to be confident that all parties have clean credit records.

Richard Brown, chief executive of Moneynet.co.uk says “Unpolished credit records could see them fall at the first hurdle, and all concerned could find they are tarred with the same adverse credit footprint brush. “It’s crucial for all applicants to get their credit reports checked out before proceeding. ‘Any bad credit history on the part of one person will be instantly recorded against all parties to the mortgage as they become linked by association. This could make it hard or even impossible to secure credit in the future. “Brown also warns on the need to identify a lender best suited to requirements. He says: “Some lenders, for example, will only take the two highest incomes into account whereas others may take up to four incomes or just look at the overall affordability of the group as a whole.

Lincolnshire Echo – 12th June 2007

WEB WISE

Content: A good place to start if you are thinking about taking that first frightening step on to the property ladder. This independent site compares financial products from hundreds of companies. The mortgage comparison is particularly useful. It is relatively easy to use and will bring up the best deals, explaining in simple terms exactly what you will pay. You can also compare rates on loans, credit cards and savings accounts.

User friendliness: The whole site seems to have been designed with the user in mind.

Looks: Clean and crisp.

Metro (Manchester, Newcastle, London, Leeds, Birmingham) – 11th June 2007

STAYING AFLOAT WITH DEBT

For people juggling several credit cards, an overdraft and perhaps a loan or two, putting it all into a consolidation loan might seem like a good way to bring debts under control.

And, with the property market still looking buoyant, lumping debts onto a mortgage could look like the best way to do it.

But deciding to turn unsecured debt into borrowing, which could lose your home if you cannot service the repayments, shouldn’t be taken likely.

Financial date analysts Moneynet.co.uk said homeowners were also risking getting sucked into an even bigger quagmire.

“Including the consolidated debt in your mortgage can look attractive but, in the long term, it could prove to be a very expensive mistake,” said Moneynet chief executive Richard Brown.

“In other words, consolidating the debt into the mortgage means that you are likely to end up paying nearly twice as much,” warns Brown.

FT Advisor (web) – 8th June 2007

MONEYNET WARNS OVER REPAYMENT CONSOLIDATION

Moneynet has warned homeowners who chose to consolidate debts into their monthly remortgage payments that they could end up in deeper financial trouble.

According to statistics released last month by the charity organization Credit Action, UK debts continue to rise by £1m every four minutes.

Financial Advisor (Main) – 7th June 2007

MONEYNET WARNS OVER REPAYMENT CONSOLIDATION

Moneynet has warned homeowners who chose to consolidate debts into their monthly remortgage payments that they could end up in deeper financial trouble.

According to statistics released last month by the charity organization Credit Action, UK debts continue to rise by £1m every four minutes.

Richard Brown, chief executive of Moneynet, said: “Monthly repayments of £300 for a personal loan of £15,000 over five years may seem expensive when compared to monthly repayments of just more than £100 if consolidated into a 25 year mortgage.

hilippa Gee, investments director of Wolverhampton based Torquil Clark, said: Fundamentally, it is no problem but it has to be an academic-based decision, weighing up the advantages and disadvantages.

“Moneynet is right to highlight issues around it so people do not see it as the cheaper option”.

Mortgagestrategy.co.uk – 5th June 2007

DEBT CONSOLIDATION VIA MORTGAGES IS DANGEROUS

Moneynet.co.uk has warned that homeowners could slip further into the red by consolidating debts through their mortgages

Recent research from Credit Action shows the UK’s debt mountain grows by £1m every four minutes. Moneynet.co.uk says homeowners looking to transfer debts racked up on credit cards, bank loans and overdrafts to their mortgages could end up doubling their debts.

The personal finance data analyst says personal loans could be cheaper in the long term, as they see interest paid over a short period of time. Mortgages see borrowers paying interest for longer periods, typically 25 years.

Richard Brown, chief executive at Moneynet.co.uk, says: "Monthly repayments of £300 for personal loans of £15,000 over five years may seem expensive when

Mortgage Strategy (Main) – 4th June 2007

DEBT CONSOLIDATION VIA MORTGAGES IS DANGEROUS

Moneynet.co.uk has warned that homeowners could slip further into the red by consolidating debts through their mortgages

Recent research from Credit Action shows the UK’s debt mountain grows by £1m every four minutes. Moneynet.co.uk says homeowners looking to transfer debts racked up on credit cards, bank loans and overdrafts to their mortgages could end up doubling their debts.