Guaranteed Rent Scheme | Lukewarm reception to new property database
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Guaranteed Rent Scheme | A new national property database that will give banks an overview on the economic circumstances of mortgage customers in Northern Ireland has received a mixed reception. The credit agency Experian has launched the national database for property-a new service that provides important details for each of the properties 24 m across England, Scotland, Wales and Northern Ireland. It will use a combination of real estate agent information, expert data and land registry is registered to provide property valuations and details of the property type. Siobhan McAleer, CEO of The Mortgage Shop, said that while the database would be advantageous to some in the industry the advantages for the consumer would be much smaller. "The new property database may prove useful for mortgage lenders in particular" sa to give them some assurances about the value of a particular property and enabling them to adopt a belt and braces approach to application, she. "It could also potentially save lenders and brokers time when researching the value of a property, with all of the required information by using the mouse instead of having to source manually. "Apart from that, however, I am not entirely convinced of its use and can't see it to make any significant difference to the consumer. Paddy Gray, Professor of housing at the University of Ulster, said that while the database is going to be excellent in providing information on all properties in the UK, it can cause problems for existing customers. -It is useful to have properly updated information so that financial institutions do not ever go the route again of sub prime minister lending that contributed to the housing market in 2007 and left people with loans that they could not pay leads to many repossessions, "he says. "I would be concerned, however, that some institutions may use this information to review the loans that have been assigned to existing customers and use that as a way to increase the interest rates on those high loan to value ratios or negative equity. "This could put further pressure on the most vulnerable and can lead to increased homelessness by repossessions. "Financial institutions must act responsibly to both new and existing customers." View the original article here
http://bit.ly/Rgn2jj
Guaranteed Rent Scheme | A new national property database that will give banks an overview on the economic circumstances of mortgage customers in Northern Ireland has received a mixed reception. The credit agency Experian has launched the national database for property-a new service that provides important details for each of the properties 24 m across England, Scotland, Wales and Northern Ireland. It will use a combination of real estate agent information, expert data and land registry is registered to provide property valuations and details of the property type. Siobhan McAleer, CEO of The Mortgage Shop, said that while the database would be advantageous to some in the industry the advantages for the consumer would be much smaller. "The new property database may prove useful for mortgage lenders in particular" sa to give them some assurances about the value of a particular property and enabling them to adopt a belt and braces approach to application, she. "It could also potentially save lenders and brokers time when researching the value of a property, with all of the required information by using the mouse instead of having to source manually. "Apart from that, however, I am not entirely convinced of its use and can't see it to make any significant difference to the consumer. Paddy Gray, Professor of housing at the University of Ulster, said that while the database is going to be excellent in providing information on all properties in the UK, it can cause problems for existing customers. -It is useful to have properly updated information so that financial institutions do not ever go the route again of sub prime minister lending that contributed to the housing market in 2007 and left people with loans that they could not pay leads to many repossessions, "he says. "I would be concerned, however, that some institutions may use this information to review the loans that have been assigned to existing customers and use that as a way to increase the interest rates on those high loan to value ratios or negative equity. "This could put further pressure on the most vulnerable and can lead to increased homelessness by repossessions. "Financial institutions must act responsibly to both new and existing customers." View the original article here
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