Latest news with #lenders
Bloomberg
7 hours ago
- Business
- Bloomberg
ECB Pushes Banks to Fix Shortcomings in Private Market Exposures
The European Central Bank's top bank supervisor said the watchdog is pushing lenders to address shortcomings in how they manage risks from their dealings with direct lenders and buyout firms. The comments in a blog post by Supervisory Board Chair Claudia Buch confirm a Bloomberg report on Friday, which said the ECB is escalating its scrutiny of lenders' exposures to private funds amid concerns that the fast ascent of related asset classes raises substantial new risks.
Bloomberg
20 hours ago
- Business
- Bloomberg
Clearlake Overhauls Debt, Gets Fresh Capital for Quest Software
A deal to provide Clearlake Capital Group- backed Quest Software Inc. with $350 million of fresh capital to help fund its artificial intelligence and growth plans is coming at the expense of some lenders who will be pushed down the repayment line. Lenders who didn't participate in the transaction, along with other junior creditors, will be ranked lower, according to people with knowledge of the matter, who asked not to be identified discussing a private matter. That may impact what they can recoup from their investment, they added.
Forbes
a day ago
- Business
- Forbes
Mortgage Rates Today: June 2, 2025 - 30-Year Rates Steady, 15-Year Rates Down
Today's average mortgage rate on a 30-year fixed-rate mortgage is 6.86%, down 1.07% from the previous week, according to the Mortgage Research Center. Borrowers may be able to save on interest costs by going with a 15-year fixed mortgage, which will generally have a lower rate than a 30-year, fixed-rate home loan. The average APR on a 15-year fixed mortgage is 5.90%. But keep in mind that you'll have higher monthly payments since you're paying off your loan in half the time (15 years versus 30 years). If you want to refinance your existing mortgage, check out the average refinance rate. Today's average rate on a 30-year, fixed-rate mortgage is 6.86%, which is 1.07% lower than last week. The interest plus lender fees, called the annual percentage rate (APR), on a 30-year fixed mortgage is 6.89%. The APR was 6.97% last week. To get an idea about how much you might pay in interest, consider that the current 30-year, fixed-rate mortgage of 6.86% on a $100,000 loan will cost $656 per month in principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. The total amount you'll pay in interest during the loan's lifespan is $136,903. Today's 15-year mortgage (fixed-rate) is 5.85%, down 1.88% from the previous week. The same time last week, the 15-year, fixed-rate mortgage was at 5.97%. The APR on a 15-year fixed is 5.9%. It was 6.02% a week earlier. A 15-year, fixed-rate mortgage with today's interest rate of 5.85% will cost $836 per month in principal and interest on a $100,000 mortgage (not including taxes and insurance). In this scenario, borrowers would pay approximately $50,943 in total interest. The current average interest rate on a 30-year, fixed-rate jumbo mortgage (a mortgage above 2025's conforming loan limit of $806,500 in most areas) is 7.5%—0.60% lower than last week. A 30-year jumbo mortgage at today's fixed interest rate of 7.5% will cost you $699 per month in principal and interest per $100,000. That adds up to approximately $152,186 in total interest over the life of the loan. Mortgage rates initially trended downward post-spring 2024. However, they surged again in October 2024—despite cuts by the Federal Reserve to the federal funds rate (its benchmark interest rate) in September, November and December 2024. Rates began to drop again in mid-January 2025, but experts don't forecast them falling by a significant amount in the near future. Mortgage rates are influenced by various economic factors, making it difficult to predict when they will drop. Mortgage rates follow U.S. Treasury bond yields. When bond yields decrease, mortgage rates generally follow suit. The Federal Reserve's decisions and global events also play a key role in shaping mortgage rates. If inflation rises or the economy slows, the Fed may lower its federal funds rate. For example, during the Covid-19 pandemic, the Fed reduced rates, which drove interest rates to record lows. A significant drop in mortgage rates seems unlikely in the near future. However, they may decline if inflation eases or the economy weakens. The amount of house you can afford depends on a number of factors, including your income and debt. Here are a few basic factors that go into what you can afford: Multiple factors affect the interest rate for a mortgage, including the economy's overall health, benchmark interest rates and borrower-specific factors. The Federal Reserve's rate decisions and inflation can influence rates to move higher or lower. Although the Fed raising rates doesn't directly cause mortgage rates to rise, an increase to its benchmark interest rate makes it more expensive for banks to lend money to consumers. Conversely, rates tend to decrease during periods of rate cuts and cooling inflation. Home buyers can make several moves to improve their finances and qualify for competitive rates. One is having a good or excellent credit score, which ranges from 670 to 850. Another is maintaining a debt-to-income (DTI) ratio below 43%, which implies less risk of being unable to afford the monthly mortgage payment. Further, making a minimum 20% down payment can help you avoid private mortgage insurance (PMI) on conventional home loans. If you can afford the larger monthly payment, 15-year home loans have lower rates than a 30-year term. Conventional home loans are issued by private lenders and typically require good or excellent credit and a minimum 20% down payment to get the best rates. Some lenders offer first-time home buyer loans and grants with relaxed down payment requirements as low as 3%. For buyers with limited credit or finances, a government-backed loan is usually the better option as the minimum loan requirements are easier to satisfy. For example, FHA loans can require 3.5% down with a minimum credit score of 580 or at least 10% down with a credit score between 500 and 579. However, upfront and annual mortgage insurance premiums can apply for the life of the loan. Buyers in eligible rural areas with a moderate income or lower may also consider USDA loans. This program doesn't require a down payment, but you pay an upfront and annual guarantee fee for the life of the loan. If you come from a qualifying military background, VA loans can be your best option. First, you don't need to make a down payment in most situations. Second, borrowers pay a one-time funding fee but don't pay an annual fee as the FHA and USDA loan programs require. Comparing lenders and loan programs is an excellent start. Borrowers should also strive for a good or excellent credit score between 670 and 850 and a debt-to-income ratio of 43% or less. Further, making a minimum down payment of 20% on conventional mortgages can help you automatically waive private mortgage insurance premiums, which increases your borrowing costs. Buying discount points or lender credits can also reduce your interest rate. Most rate locks last 30 to 60 days and your lender may not charge a fee for this initial period. However, extending the rate lock period up to 90 or 120 days is possible, depending on your lender, but additional costs may apply. National average interest rates depend on economic and market conditions, including the bond market, inflation, the economy and Federal Reserve set rates based on the loan type and term. In general, shorter terms tend to come with lower rates. Additionally, making a larger down payment signals less risk to the lender, which could get you a better rate. Other factors that can impact your rate include your credit score, debt-to-income (DTI) ratio, income and property location.
Yahoo
a day ago
- Business
- Yahoo
The best mortgage rates on the market right now
Mortgage rates have begun to tick downwards, ending a three-year run of climbing rates. Most major lenders now offer rates below 4pc, with central interest rates on the way down. The Bank of England has already made two Bank Rate cuts this year, with at least one more expected before the end of 2025. However, the heady days of rock-bottom rates and near-free loans are long gone. The difference of a few percentage points between deals can cost you thousands of pounds over the length of the mortgage. To help you navigate this, Telegraph Money has launched mortgage 'best buy' tables, powered by live data, so you can stay informed about the latest rates. Choosing a mortgage can feel daunting, especially for first-time buyers unfamiliar with the process, or existing homeowners facing the prospect of higher bills if mortgage rates are higher than when they bought their property. Borrowers will be keen to find the cheapest possible option that meets their needs but may also have preferences over lender or struggle to meet requirements at some banks. Here, Telegraph Money reveals today's top residential mortgage rates, whether you're buying a new home or remortgaging, for those who prefer to fix or want a variable-rate deal. These rates refresh every day, from Tuesday to Saturday. If you are a landlord, here are the best buy-to-let mortgage rates. How we determine the best rates The best mortgage rates The best remortgage deals Expert opinion: What to consider when choosing a mortgage Mortgage rates FAQs These Best Buy tables show the best mortgage rates widely available in the market. This means certain accounts are excluded, including those that are available only to local or existing customers, buyers using government support schemes, properties with high energy ratings or clients of specific brokers. The data is provided by mortgage lenders and verified by Koodoo, the trading name of Mortgage Power Limited, which is authorised and regulated by the Financial Conduct Authority (FRN 845978) on a non-advised basis. The tables update daily between Tuesday and Saturday. Rates are representative for a £150,000 loan value, £275,000 property value and 25-year term. Try Koodoo's comparison tool to see if better deals are available for your circumstances. The information in this article is intended for information purposes and should not be taken as endorsement or advice. Your property may be repossessed if you do not keep up repayments on your mortgage. These 'purchase' rates are for those buying a new property, such as a first-time buyer or a second stepper upgrading to a family home. Those looking for a new deal in their current home need a 'remortgage' deal and we show the best rates further below. Homeowners who need to remortgage their home will be offered different rates than first-time buyers or home movers who need a 'purchase' mortgage. These are the best deals for owners staying put. Chris Sykes, mortgage consultant for Private Finance, said: 'It's important, especially for first-time buyers, to understand how mortgage rates are tiered.' Certain factors will affect the rates available to you. For example, workers who are self-employed or receive much of their income as bonuses may not be able to access the best rates. The size of your deposit also makes a huge difference to the rates lenders will offer you. 'Generally, with every additional 5pc deposit that you put forward, you get a better rate. The longer the mortgage takes, the lower your monthly payments will be. But ask yourself if you want to be paying this in your 70s,' Mr Sykes said. If you want flexibility and don't want to lock in a long-term rate – for example, if you plan to sell up or believe interest rates will fall – then a two-year fixed-rate mortgage might be for you. If you want to protect yourself from the turbulence of interest rates for longer, or you think they might rise, then guaranteeing a rate for five or even 10 years could be a better option. A variable-rate mortgage might suit you if your plans don't suit committing to a fixed-term deal (perhaps you're planning to move house soon, for example), or if you think you could get a cheaper deal than fixes can offer – for example, opting for a variable tracker mortgage ahead of Bank Rate cuts. Alex Ogario, of Knight Frank, said: 'Compared with a two-year fixed rate, a five-year fixed product will tie you in for longer. However, you've secured a rate for that time. So if you want to have more stability, do not need more flexibility and don't want to be exposed to interest rate volatility for this period, then it might be a good idea to lock in a rate now and not have the risk for the next five years. 'However, shorter and longer fixed terms are available, so finding a suitable option that's tailored to your specific needs should be the aim. 'The choice between a two-year and five-year fixed rate often depends on the person's risk appetite. Some people don't want to be exposed to volatility but then others want to keep options open and be able to change course if needed. There is no one-size-fits-all option here and it is also determined by other variables, such as requirements for flexibility and future expectations of interest rate movements.' Mortgage brokers can help you get a better mortgage as they often have access to cheaper deals than you may be able to find yourself. They can also alleviate some of the stress involved with buying a house. If you're self-employed or are struggling to find a lender who will approve your application, it might be a good idea to speak to a broker. They can also be helpful if you spot a better deal while you're waiting for the purchase to go through, and help you switch to it quickly. Mr Ogario said: 'With the volatility and uncertainty that we're seeing in the market, people should be doing their due diligence more than ever and taking advice from experienced and qualified experts. 'Don't go to the shop without your wallet, which means don't find a property without having done any research on finance. Often our most successful and sophisticated clients from a financial perspective are the ones who ask the most questions.' There is no specific minimum salary to get a mortgage, but how much you earn affects how much you can borrow, as lenders want to ensure you can afford the repayments. As a general rule of thumb, lenders will allow you to borrow up to 4.5 times your annual income, although some will be more generous. Remember that income is not the only factor taken into consideration; your deposit and outgoings also make a difference.
Bloomberg
4 days ago
- Business
- Bloomberg
ECB Intensifies Scrutiny of Banks' Exposure to Private Markets
The European Central Bank is escalating its scrutiny of lenders' exposures to private markets amid concerns that the fast ascent of related asset classes raises substantial new risks. The watchdog has signaled that it's sending letters to executives at certain banks cautioning them on their practices in financing private funds, according to people familiar with the matter.
