Mortgage Rates at a 23 Year Low

The Mortgage ‘Prisoners’

Fixed-Rate Mortgages Discounted to Tempt Borrowers

Repossessions on the Rise

According to the Council of Mortgage Lenders (CML), repossessions have risen in the first three months of 2011.  Although the figure is 10% lower than the same period for the previous year, the 9,100 homes repossessed in the first quarter of 2011 represents a 15% rise on the last quarter of 2010.  The group has predicted that a total of 40,000 people will lose their home this year, which, if realised, would be an increase of 3,700 (10%) on 2010. read more...

House Prices Fall in April

The latest house price indices published by the Halifax showed house prices down 1.4% for the month of April, citing weak household confidence.  The quarterly figure is down by 1.2% and 3.7% on one year ago – leaving the average house price at £160,395.  However, the other big mortgage lender Nationwide painted a slightly rosier picture for the housing market, stating that prices had fallen by 0.2% in April and that the average house price was now 1.3% lower than 12 months ago. read more...

 

Cash Buyers Controlling the Housing Market

 

Mortgage Lending Rebound in March

Figures from the Council of Mortgage Lenders (CML) have shown that mortgage lending picked up in March after a lull at the start of the year.  In fact home loans being taken out in the month rose by 21% compared to February.  Gross lending reached an estimated £11.3bn in March but this still represented a 2% drop on March 2010. read more...

 

The base rate and remortgaging

The Bank of England's base rate (which is decided by the Bank's Monetary Policy Committee) is the rate at which the Bank lends to banks/financial institutions. read more...

 

Who Does the Best House Price Survey?

We hear a lot about the movement of house prices from a variety of sources.  Each one seems to take data from different points within the house buying process and can therefore be quite different.  The following is a summary of how the main players compile their figures. read more...

Nationwide Report House Prices on the Up

However, these modest rises are failing to keep pace with inflation (the Consumer Price Index shows the current rate of inflation at 4.4%), so in real terms, property value is still on the decline.  Following the release of the figures, Nationwide said that these modest rises were unlikely to be the start of a consistent climb and that it expected house prices to be flat or even fall slightly, over the rest of the year. read more...

Councils Pioneer Scheme to Help First-Time Buyers

Five UK councils are set to pioneer a scheme to assist first-time buyers by topping up their home deposits.  Many first-time buyers are currently frozen out of the market because of the high deposits that lenders currently require.  The scheme is called ‘Local Lend a Hand’ and is aimed at buyers who can afford the monthly mortgage repayments but do not have a hefty lump sum saved up.  The councils involved so far are Warrington, Northumberland, East Lothian, Blackpool and Newcastle-Under-Lyme. read more...

 

House Price ‘Dip’ for February

The Halifax have reported a drop in house prices of 0.9% for February, which cancels out the rise of the same proportion that it reported for January.  The lender said that prices were now 2.8% lower than twelve months ago with the typical UK home now costing £162,657. read more...

 

Housing Market “Treading Water”

Data just released by the Nationwide building society suggests a mini recovery in the housing market.  It said that house prices rose slightly in February by 0.3%, leaving them 0.1% lower than they were 12 months ago.  Seasonally adjusted prices that are more or less flat over the last six months have prompted the building society to state that the housing market is “treading water.”  The average house price cited by the Nationwide now stands at £161,183. read more...

Government Calls to Help First-Time Buyers

The housing minister Grant Shapps summoned various parties to “frank and open” discussion on the difficulties currently facing first-time buyers.  The Government estimates that 1.4 million households want to own their own home but currently can’t obtain a home loan.  Present at the meeting was the Council of Mortgage Lenders (CML), the Building Societies Association (which represents lenders) and various watchdogs and regulators.  Mr Shapps used the meeting to discuss options such as creating new products specifically aimed at first-time buyers as well as shared ownership and specialist insurance for lenders. read more...

Less Home Repossessions in 2010

Figures recently released by the Council of Mortgage Lenders (CML) show that the number of homes repossessed in the UK last year fell by 24%, to 36,300.  The number of homeowners in arrears by 2.5% or more of their outstanding loans also fell by 13%, to 169,000 - proving that the continued level of interest rates has been beneficial to many people. read more...

Impending Interest Rate Rise Creates Mortgage Dilemma

Panicking homeowners on tracker mortgages have created an increase in demand for fixed-rate deals.  Borrowers are scrambling to get a cheap fixed-rate mortgage before an expected rise in interest, and this in turn has prompted thirty-five lenders to increase their fixed rate deals – almost overnight.  Mortgage Broker London and Country has seen a 40% increase in enquiries since the news of high inflation sent shockwaves through the mortgage market.  Traditionally the Bank of England increases the base rate of interest to keep inflation under control. read more...

Tenants Struggle to Pay Rent

According to data recently released by the Association of Residential Letting Agents (Arla), during the last six months of 2010, 40% of landlords reported a rise in tenants struggling to raise their rent.  The figure has gone up from 35.9% and is the first such rise in 18 months.  The Arla poll surveyed 554 letting agents and was conducted in the final three months of 2010. read more...

Mortgage Lending Hits 20-Month Low

The British Bankers Association (BBA) is the latest organisation to release figures showing that there is currently little life in the housing market.  Its figures for November suggest that mortgage lending by the major UK banks fell to a 20-month low.  The 29,991 home loans approved in the month was half the level seen in November 2009 and the net lending (taking out redemptions and repayments) figure of £1.46bn was the lowest figure since August 1999.  read more...

 

Bank of England Warning for 2011

The Bank of England wasn’t really getting into the spirit of the season when it warned recently that many homeowners could be facing mortgage misery in the coming year.  This warning was aimed at the eight million borrowers who are no longer on fixed mortgages.  Two thirds of the country’s twelve million mortgage holders are now on floating deals – either tracker deals or the lender’s standard variable rate (SVR) – which means that they will face an increase in payment if there is an upward change in the Bank of England’s base rate.  It is currently held at 0.5%, an historical low, but many experts believe that the bank will be forced to put it up in 2011 to keep inflation under control. read more...

 

The Benefits of Buying a Luxurious New Home - Arthur Sperks

There are many benefits to buying a luxurious new home. These include the simple advantage of not having had anyone live in the home before you, meaning that there is no need to worry about tearing up dismal carpets or scraping off layers of wood chip wallpaper. You can instead, simply enjoy the luxury and security of an entirely new building. read more...

 

Property Market Still on the Slide

Data from three different sources show that the property market is still in decline.  The Land Registry, HM Revenue and Customs and the Nationwide have all added to an already gloomy outlook created by mortgage rationing and economic uncertainty. read more...

 

Competition for Rental Properties

Would-be tenants in many parts of the UK are facing a shortage of rental properties and are sometimes having to enter a bidding war against other people wanting to let the same property.  The mortgage drought has led to an increase in demand with Landlords and letting agencies increasingly asking potential tenants to compete by ‘sealed bids’. read more...

 

Asking Prices Plunge

Research by property website giant Rightmove has shown that sellers have been forced to knock an average of £7,500 off the asking price of their properties.  Property prices have had their most torrid time since December 2007 in the four weeks up to November 6th – a fall of 3.2%.  That was the fourth month out of five that the website’s contributors have reported a fall, indicating that another property slump is well under way. read more...

 

New FSA ‘Affordability’ Rules Could Trap Mortgage Borrowers

Work carried out by the economic and social research consultancy Policis suggests that around 19% of current borrowers would be prevented from remortgaging if the Financial Services Authority (FSA) presses ahead with new affordability measures.  The independent research, commissioned by the Council of Mortgage Lenders (CML) also shows that around a further 30% of borrowers would see a reduction in the amount that they were allowed to borrow. read more...

 

Mortgage Lending Drops by 90%

Figures released in late October by the Bank of England show some worrying signs for the housing market.  These are the bank’s figures for September, which show that mortgage lending totalled just £112m during the month – a massive 90% fall on the £1.62bn that was loaned out in August.  The number of mortgages approved fell for the fifth consecutive month to 47,474, which is the lowest level since February. read more...

 

Household Rents at an All Time High

Recent data from Britain’s biggest letting chain, Your Move, show that rental rates have soared to their highest level ever.  The average tenant now pays £689 per month with that figure rising to an eye-watering £972 in London.  It gets worse; those renting within most Zone 2 areas of the capital would only secure a one-bedroom flat for that amount.  This means that the country’s average earner (£25,000) would see around five months of their take-home pay swallowed up by rent. read more...

 

Property price latest

The credit crunch that followed the property market boom wiped about 20% off the value of our homes.  But from March 2009 to March 2010 the market had a full year of bouncing back.  However, in the early summer of 2010 the market came off the boil once more and by late summer was seemingly in reverse.  The latest data from the Halifax showed a record monthly fall of 3.6% for September, on the back of two consecutive monthly rises. read more...

 

Is Your Council Tax Band Correct?

Many houses are in the wrong council tax band, and have been since 1991.  This is because when the Tory Government brought in the tax in 1991, it was in such a rush to implement it, many houses were incorrectly valued.  In fact, rumour has it that many houses were valued from cars during a ‘drive by’ – something that has since been christened ‘second-gear valuations’, because the valuing officials allegedly put prices on a properties at a glance, without even stopping their cars. read more...

 

Rent to Buy: Can it help you get Your First Home?

An increasing number of companies are tempting first-time buyers by offering rent to buy schemes.  A rent to buy scheme lets a potential buyer rent out a property with the option to purchase at a set price at some point in the future.  On the face of it this sounds like a golden opportunity for struggling first-time buyers to get a toehold in the market, but can it really be the best of both worlds? read more...

Positive Market News from the Halifax

Recent statistics from the Halifax show that house prices have risen for the second month in a row, suggesting that the market is still healthy.  The bank recorded a slight rise of 0.2% in the average property value for August, to go on top of the 0.7%. rise that was cited in July.  However, this was in contradiction to its big rival lender, Nationwide, whose statistics showed a 0.9% fall in property prices during the month. read more...

 

Stuck in Negative Equity Until 2014

If you bought your house at the peak of the housing boom in the middle of 2007, you may be stuck in negative equity until 2014.  This is the opinion of the National Housing Federation which has recently published a report on the subject.  Figures show that 1.3m people bought a house when prices were at an all-time high.   Now their homes are worth less than they paid for them and this will remain the case for the next four years according to the Federation. read more...

 

Is the ‘Golden Age of Home Ownership’ Over?

There is something very quintessentially British about wanting to own your own home.  In recent decades it has become a National obsession and you can’t move for all the property programmes on the TV, which often seduce you into thinking that property development is a cakewalk and the key to untold riches.   It also seems that we’ve come to expect a massive profit when we sell our home.  However, according to a recent report by the Chartered Institute of Housing, home ownership in this country could be on the decline as mortgages for all could be a dim and distant pipedream. read more... 

 

The Great Fixed-Rate Mortgage Rip-Off

Despite the base rate of interest being at an all time low, a recent report has shown that banks are scooping record profits from keeping their fixed-rate mortgage deals at artificially high levels.  Financial information service, Moneyfacts, say that banks are enjoying their highest profit margins on this type of loan, since 1988.  The average homeowner with a fixed-rate mortgage of £150,000 could be paying up to an extra £150 per month.  That’s works out at around £3,756 over the life of a typical two-year deal. read more...

 

Interest-Only Mortgage Fears

The Financial Services Authority (FSA) is becoming increasingly concerned that more than a million homeowners on interest-only mortgages are facing a repayment time bomb.  They were sold the loans between 2005 and 2009, which means that the mortgage capital will be repayable sometime between 2024 and 2033.  These mortgages were taken out with no loan repayment plan and the FSA believe that many of the customers have not made provision for repaying the loan because they were relying on the house price inflation that was so prolific until 2007. read more...

Cutting the Cost of Moving Home

Moving home is one of the most stressful things that you’ll ever do.  Whilst the stress will always be there to some extent, the cost of moving has dropped by a third over the last decade.  This discount has been attributed to cost-comparison websites and one of the biggest – reallymoving.com has averaged out the cost (including stamp duty and conveyancing) of moving home at around £450.  This is a cost that will seem generously low to most of us who have hired our own transport or instructed a dedicated removals company.
Now it is possible to cut the cost even more by using a delivery auction site.  Here’s how it works; they advertise the details of your move (preferred date, journey length, load size etcetera) and the transport companies on their books bid against each other for your job.  In a normal auction, the price goes up, but in this one, the price goes down as carriers undercut each other.  If you’re suitably flexible on dates, this method could save up to 75% of your removal costs because transport companies will often have a half-full lorry in the right area that can be filled with your possessions at little extra cost. read more...

Healthy Mortgage Lending for June

Having done the sums for the month of June, the Council of Mortgage Lenders (CML) was able to release their healthiest figures of the year.  Gross lending, which includes remortgaging, rose to £15.1bn.  That was 15% more than the previous month and 7% more than 12 months ago.  But the rise was put down to merely a seasonal trend, rather than a general improvement in the market.
Commenting on the latest data, CML economist, Paul Samter, said: “There are signs of house prices stabilising and more properties coming onto the market following the abolition of home information packs.  This may improve liquidity but transaction levels are subdued and likely to remain so while access to credit remains constrained.” read more ...

Houseboat Living

With the average house price standing at anywhere between £167,000 and £207,000 depending on whether you listen to the major mortgage lenders or the Department for Communities and Local Government, it’s no wonder that many of us can’t, or simply don’t want to get on the housing market.  But is living on a residential boat in preference to conventional home ownership, a real option? read more ...

 

House Prices continue to fall

According to Halifax data, house prices have fallen for three consecutive months.  The 0.6% fall in June comes after 0.5% and 0.1% declines in May and April respectively.  House prices are up 7.5% since the market’s recent low of spring 2009, but the average house is worth £3,200 less than in January of this year, according to the building society’s figures.  The general consensus among estate agents indicates that the reason for the recent drops in the market, are down to more houses coming onto the market, tipping the balance between supply and demand. read more ...

 

House Prices Rise 10% in a Year

According to the Department for Communities and Local Government (DCLG), house price inflation is back into double digits.  It recorded a rise in prices of 10.1% between April 2009 and April 2010.  This is the highest rate of inflation since October 2007, when house prices had already hit their peak and were on a downward trend.  Although its statistics are well behind those of other agencies such as building societies like Nationwide and Halifax, the department reported that UK property value rose by 0.4% in April, to make the average house worth £207,516. read more ...

 

‘Garden-Grabbing’ to be Curbed by New Government

 

The new coalition Government has made a pledge to change the rules on the classification of suburban gardens, giving councils greater power to turn down developers who want to build on them.  Communities minister Greg Clark said that it was “ridiculous” that vital green space was being lost to the practice known as ‘garden-grabbing’. read more ...

 

Japanese Knotweed: A Menace to Homeowners

Japanese knotweed is a highly invasive, bamboo-like plant that currently occupies most regions of the British Isles except Orkney.  It is an extremely hardy plant that can cause damage to walls, foundations, gardens, paths and driveways.  It often prevents homeowners from remortgaging or selling their property and it is extremely difficult to eradicate as the roots go extremely deep and discarded cuttings will re-root themselves. read more ...

 

Home Information Packs (HIPs) Suspended by New Government

Once a flagship of New Labour housing policy; the much maligned Home Information Pack (HIP) has been scrapped by the new Conservative-Liberal Democrat coalition Government.  First introduced in 2007 for properties with four or more bedrooms in England and Wales, and then rolled out to all properties, the HIP was compulsory for all home owners who wished to market their home.  As of 21st May 2010 the HIP is no more, as the coalition Government have taken advantage of a clause in the 2004 Housing Act to suspend the scheme, although the Energy Performance Certificate (EPC) will be retained. read more ...

House Prices Set for Post-Election Boost?

With the new Government finally settled the estate agent members of the Royal Institute of Chartered Surveyors (RICS) believe that house prices are set for a post-election bounce.  The closely-watched RICS report for April showed a general consensus that house prices would continue to rise over the next few months, despite the general belief that more houses seem to be coming up for sale. read more ...

 

Tesco Set to Start Building Homes

As Britain’s biggest supermarket, Tesco already has its tentacles into most of us.  The latest news from the retail giant, which already runs an estate agent service, is that it will strengthen its grip on the property market by building homes.  Four ‘mini-villages’ are planned in the South East and a series of smaller mixed homes, shops and leisure developments in Ipswich and the North East. read more ...

 

Which Party is best for the Housing Market?

The race is on for your vote and all parties will tell you what you want to hear if they think that it will persuade you to put an ‘X’ next to them on the ballot sheet.  Recent polls, if they can be believed, suggest that this is going to be a close one, but how do their manifestos match up to the needs of the various factions in the property market? read more ...

 

Big Deposits Stump First-Time Buyers

 

Despite the recent falls in property prices and the stamp-duty holidays, first-time buyers are finding it increasingly difficult to get onto the property market.  This is because lenders have been demanding hefty deposits to secure the best deals – often in the region of 30-40%.  Statistics say that property is affordable for first-timers in 40% of the UK, but the average deposit paid by them in 2009 was a massive £29,439.  Just imagine how long it would take someone on the country’s average wage (around £25,000) to save that amount of money, whilst simultaneously paying rent, without the help of a relative. read more ...

 

A Short History of Stamp Duty

 

When New Labour swept to a landslide victory in the General Election of 1997, stamp duty was payable at 1% on properties over £60,000.  Immediately, the new Chancellor, Gordon Brown, sensed an opportunity and introduced two new stamp duty bands; 1.5% on properties worth over £250,000 and 2% on those worth over £500,000.  Amid the new Labour media honeymoon and the average home worth just £60,000, the proposals sailed through.  Three years later, Gordon Brown repeated the trick, tweaking the top two bands to 3% and 4% respectively.  It was certainly a smart move as far as the Chancellery was concerned; annual tax take soared from £830m to £6.5bn in the first 10 years of Labour Government. read more ...

 

Stamp Duty News Greeted with Caution

 

The news from the 2010 budget that first-time buyers would not be charged stamp duty on homes up to the value of £250,000 for the next two years was greeted somewhat lukewarmly by industry bodies.  They argue that the exemption should have applied to all homebuyers as it will be difficult to police.  It is planned to fund this move by increasing stamp duty to 5% for those buying homes costing more than one million pounds. read more ...

 

50 Years of House Prices

 

An Increase in Sellers Cools House Prices

According to the Royal Institute of Chartered Surveyors (RICS) supply is finally starting to outstrip demand in the housing market.  Its figures reveal that the number of people putting their houses up for sale in February was double that of those looking to buy.  This is the second month in a row that the institute has reported the amount of instructions to sell exceeding the number of potential buyers.  The lack of supply of vendors was thought to be the major factor in the recent resurgence of house prices, but this latest data may indicate a new trend that could slow down, or even reverse, recent price rises. read more ...

 

Endowment Mortgage Misery

Millions of homeowners on endowment mortgages are set to realise just how short their policies have fallen in the next five years.  The boom years for sales of endowment mortgages was between 1988 and 1993, when around four in every five homeowners were sold one.  Many borrowers bought into these policies, believing that they could reap a return of around £100,000 with an investment of as little as £50 per month.  read more ...

 

Estate Agents Could Lose Out in OFT Shake Up

 

Are House Prices Rising in Your Area?

 

We’ve heard a lot about house prices recently, but the latest research from Hometrack suggests that house prices are rising in just 7% of postcodes. The table below is a comprehensive list of the postcodes in which prices are rising. read more ...

 

Strong Start to 2010 for House Prices

The Nationwide Building Society have been the first major mortgage lender to throw in its statistics for the New Year, and it continues to be good news for homeowners. Its data shows that prices rose by 1.2% in January and that house prices are up 8.6% year-on-year. The average value of a typical UK property is now £163,481. Unless there is a fall in property values in February, we could be looking at a double-digit value in house inflation for the first time since May 2007. However, the three month on three month rate of change (seen as a more reliable indicator) was down slightly at 2.1% from the 2.3% cited in December. read more ...

 

Lenders Compete for Custom by Cutting Mortgage Rates

Mortgage lending is still far from the free-for-all experienced in the property boom-time of the early noughties, but the first few weeks of 2010 have seen lenders getting a bit more interested in vying for custom.  Fixed rate deals have seen the biggest cuts with Yorkshire Building Society being top of the list with a 0.6% cut on its two-year fixed rate mortgage.  Nationwide, Woolwich, Halifax, HSBC, Santander, and ING Direct have also lowered their rates. read more ...

 

Can the ‘Irrational Rally’ of House PricesContinue in 2010?

Dubbed the ‘irrational rally’ by economists, everyone is wondering if the rise in house prices can continue this year.  2009 was very much a year of two halves for the property market: at the beginning of the year house prices were in free fall. read more...

 

House Prices up 0.9% in November

The latest Government figures from the Land Registry show a rise in house prices for the sixth consecutive month.  The rise of 0.9% was higher than the 0.6% cited for the previous two months and it puts the average house value in England and Wales at £161,554.  Although other agencies, such as major mortgage lenders, have been reporting rising housing prices for longer, the Land Registry statistics are always seen as being more accurate because they are based on sale completions.  Averaged across the country, house prices are now just 0.3% lower than one year ago. read more...

House Prices Remain Buoyant

The housing market remains strong as house prices continued to rise in November, according to the latest research from the Royal Institute of Chartered Surveyors (RICS).   It said that 35% more of its members reported a rise during the month than those that reported a fall – the highest level since November 2006. read more...

 

Top Incentives for Homebuyers

This is the Christmas of big discounts in the shops, but it could also be a festive period of great deals for homebuyers. Big-name house builders are slashing their prices by up to 50% for those savvy enough to haggle.  Bulk buyers who are purchasing more than one property on a development are getting the best deals but those buying a single property are still being offered some impressive incentives.  These are some of the deals currently on offer: read more...

How You Pay Extra to Live Near a Good School

The latest research by the Nationwide suggests that you could pay a premium of up to £8,000 to buy a house in the catchment area of a good primary school.  The building society looked at the impact on house prices of the local primary school having 10% more 11 year-olds, who achieved a level four or above, in their key stage 2 Standard Assessment Tests (SATs), than surrounding schools.  Its findings suggested that you will pay between 2.6% and 4.6% if the property is close to such a school, depending on where you are in the country. read more...

 

Mortgage Lending Picks Up

Figures released by the Council of Mortgage Lenders (CML) show that lending picked up in the month of October after the summer lull.  A total of £13.5bn was advanced during the month, compared with £12.9bn in September.  However, this figure is 27% less than for October 2008.  The group said that the 5% increase was in line with normal seasonal trends seen in the last decade and that the market traditionally picks up in September and October after a drop in the holiday month of August. read more...

 

Repossessions Loophole Exposed

The Government is apparently working hard to close off a repossession loophole that has recently been exposed, which allows lenders to force people out of their homes without having to go to court.  This practice came to light last year when a mortgage provider (GMAC) sold a property to another company called Horsham after the owner got into mortgage payment arrears.  When the couple who lived in the property failed to leave, Horsham issued trespassing proceedings against them.  The judge found in the company’s favour and the couple were forced to leave. read more...

 

Lenders Ease up on Mortgage Conditions

The strict conditions imposed on mortgage borrowers when the credit crunch hit are starting to be eased by lenders. This is according to information provided by the financial information service Moneyfacts, who say that the number of mortgages available that require a 15% deposit has gone up from 189 to 226 in the past month. This is in comparison to available mortgages that require a 20% deposit, which has gone down from 136 to 117. However, Moneyfacts admit that 66% of all mortgages still require at least a 25% deposit. read more...

 

Another Rise in house Prices Reported by Nationwide

House prices are higher than they were one year ago says the Nationwide.  That’s no mean feat when you rewind to the start of this year when property value was in freefall in many areas of the country.  The building society say that house prices went up by 0.4% in October and are 2% higher than at the corresponding time in 2008 (the first annual rise cited in 19 months).  This is the sixth consecutive monthly rise reported by Nationwide and brings the average house price up to £162,038. read more...

 

Positive News from RICS for the Housing Market

According to the Royal Institute of Chartered Surveyors (RICS), more estate agents are reporting rising house prices than at any time since the credit crunch took hold.  In fact, with 22% more agents reporting rises than falls, the proportion is at its most positive since May 2007 – the peak of the housing boom.  This RICS statistic from the month of September has more than doubled from the previous month, up from 10% in August. read more...

 

Latest House Price Statistics

The latest house price statistics show that prices are still generally rising, but this does vary quite significantly, depending on where you live.  The last word from the big two lenders was positive; Nationwide said that prices rose by 0.9% in September with the average house now being worth £161,816.  Halifax has yet to release its figures for last month, but the August press release showed an average rise of 0.8%. read more...

 

Property Market still Tough for First-Time Buyers

Despite the base rate of interest being at an all time low and most areas in the UK having experienced around a 20% fall in property prices, first-buyers are still finding it incredibly difficult to get on the property ladder.  This is because they are effectively being ‘penalised’ by lenders because they are unable to put down big deposits.  Since the credit crunch began lenders have reserved their best rates for borrowers who could put down a whopping 25% to 40% deposit.  For most first-time buyers, this figure is a pipe dream, and even if they can scrape together a 10% deposit – the best they can realistically hope for is an interest rate of around 6%, fixed for two years. read more...

 

Warning on House Prices form Research Council

Latest research from the Government-funded Economic and Social Research Council (ESRC), warns that house prices could continue to go down for a further three years.  In addition to it stating that unemployment and the number of divorces were likely to rise, it said that the numbers of buyers and sellers would drop out of the property market, causing prices to drop. read more...

 

Can You Afford Your Place in the Sun?

Almost half a million Britons own a holiday home overseas.  British buyers had helped to fuel a global property boom, but even in the most popular hotspots of southern France and central Italy it has come to a stuttering halt.  For some it’s still an affordable luxury but for others it has turned into a financial drain due to the falling price of property around the world and the falling value of the pound.  However, with sterling rallying slightly and many holiday home owners looking to sell – maybe this could be your time. read more...

 

House Prices up Four Months in a Row

According to the latest press release from Nationwide, house prices went up by a further 1.6% in August.  This is the fourth consecutive monthly rise cited by the building society, which now puts the average house price at £160,224 – around £10,000 pounds more than in January’s report.  The 3 month on 3 month rate of change, which is generally a better indicator of the current trend, rose from 2.7% in July to 3.3% in August – this is the highest level cited by the Nationwide since February 2007.  The average house price, however, is still slightly lower than 12 months ago. read more...

 

The Interest-Only Mortgage Gamble

Millions of home owners have been caught out by gambling on an interest-only mortgage.  Many saw this type of loan as a way into a more desirable property or, in the case of many first-time buyers, as a way onto the market.  At the peak of the last property boom, more than 30,000 families per month were taking out interest-only mortgages, many having no investment vehicle to pay off the capital, gambling on the fact that property prices would continue to rise and that the growing equity would help them pay off their loans. read more...

 

Rabbit Hutch Britain

 

House Prices Predicted to Rise Next Year

According to the Centre for Economics and Business Research (CEBR) the property market is about to bottom out at 25% less than its 2007 peak and we will see ‘modest’ price increases next year.  It says that prices could fall by a further 3% to 5% but a ‘chronic undersupply’ of housing and a predicted pick up of mortgage lending in 2010 will stop the market falling any further.  Following on from this the Centre predict that prices will rise by 2% next year and by a further 3.5% in 2011. read more...

 

OFT Target Sale and Rent Back Companies

A recent crack down by the Office of Fair Trading (OFT) has put a number of sale and rent back firms on the back foot.  Twelve such companies have had to change the wording of their advertisements or have removed their websites from the internet.  These companies typically offer a swift purchase from struggling home owners and then allow them to rent the property.  The catch being that the homeowner is given only around 70-80% of the market rate in exchange for the quick sale and being allowed to stay in their home. read more...

 

Mortgage Lending up by 17% in June

Slow start for HomeBuy Direct

Return of the 125% Mortgage

Nationwide are now offering a 125% mortgage to selected customers in negative equity.  The fixed rate deal allows borrowers stuck in negative equity a lifeline by allowing them to take out a loan of up to 95% of the value of a new home whilst simultaneously bundling in up to 30% of the loss of value of their old home.  Britain’s biggest building society stress that this is ‘for people in a very specific circumstance’ and borrowers will undergo strict affordability tests to ensure that they can meet the repayments. read more...

Neighbough Disputes - Know Your Rights

Excessive noise from a neighbour can be very stressful and can quickly grind you down.  The first step that you must take is to approach the neighbour directly, explaining politely what the issue is and generally letting them know that they are causing you a problem.  If this does not work, then the next step should be to write to them, giving specific examples of noise activity and how it affected you.  These steps may not always be possible if the neighbour in question will not listen or is abusive but you have to prove that all avenues have been exhausted before you can take the matter further with the Local Authority. read more...

 

Brown The Builder

Gordon Brown has made it very clear that building ‘affordable’ housing is his top policy to try and win the next election – even if it means controversial cuts in other areas such as roads, education and health.  The policy document called ‘Building Britain’s Future’ promises that investment in housing will be trebled to 2.1bn, funding 110,000 new affordable homes over two years, creating 45,000 jobs in construction. read more...

 

Is your home at risk from flooding?

Gloomy news from the Environmental Agency suggests that one in six homes in the UK is in danger of flooding.  It says that 500,000 properties face ‘significant’ chance of flooding from sea, river or surface water in any year and that the figure could rise to 830,000 by 2035 if investment in flood defences continue at current levels.  Coinciding with the two-year anniversary of the 2007 floods which hit cities and towns such as Sheffield, Doncaster, Kingston-up-on-Hull and Tewkesbury, the Agency has published its long-term investment strategy.  The document sets out the scale of investment needed to combat climate change over the next 25 years. read more ...

How to Reduce the Tax Bill on Your Home

With the MPs’ expenses still very much in the news you may well have heard the term ‘flipping’, in relation to second homes.  It is a technique used to avoid paying Capital Gains Tax (CGT) by using ‘time to sell’ rules and the nomination of a property as a main residence.  Well you may be pleased to learn that this practice is not just reserved for those in positions of power – the great unwashed can do it too. read more...

 

House Prices: The North/South Gap Widens

Historically, you have always had to pay more for a house in the South of England.  In 1995 the average house price in London was £92,212, £72,018 in the South East and only £55,057 in the North East.  Go forward to the present and those figures come in at £302,411 for London, £187,124 for the South East and £106,769 for the North East.  Using these figures we can see that the cost of property in London has more than tripled, in the South East it has increased by more than two and a half times, whilst in the North East they have not quite doubled. read more...

 

House Prices on the Up say Nationwide

The Nationwide’s house price index could be a ray of hope for homeowners – it showed a rise of 1.2% for the month of May.  This is the second rise that the bank has cited in the last three months.  The average price of a home now stands at £154,016, which is a similar value to that of March 2005.  Other statistics that the Nationwide produce are the annual rate of fall, which has recovered from 15% to 11.3%, and the quarter on quarter indicator, which also eased from -3.0% to -0.5%. read more...

 

England’s Social Housing Time Bomb

Research carried out by the National Housing Federation for ITV has shown that 1 in 10 people could be on the social housing waiting list by 2020.  Significantly, this is the deadline by which Gordon Brown promised to deliver three million new homes.  In a country currently gripped by a financial crisis, 4.5 million people are currently on social housing waiting lists.  However, according to this latest research, the situation is set to markedly deteriorate over the next decade due to factors such as repossession, immigration and an often inaccessible mortgage market. read more...

Repossessions Continue to Rise

Figures from the Council of Mortgage Lenders (CML) show that 140 homes are being seized each day, a rise of 50% year-on-year between the first quarters of 2008 to 2009.  There were 12,800 properties repossessed in the first three months of this year – a rise of 23% on the last quarter of 2008.  In the first three months of 2008, there were only 8,500 repossessions. read more...

 

Think Tank Calls for Mortgage Limits

A study by the Institute for Public Policy Research (IPPR) has recommended that strict limits be put on residential mortgage lending to avoid the boom and bust scenario that the country’s property market is currently experiencing.  The paper is titled ‘The Madness of Mortgage Lenders: Housing Finance and the Financial Crisis’, and was written by Chris Hamnett, a professor at Kings College London.  In it he argues that the current slump is being magnified by the massive growth that the mortgage market experienced before it, recommending that, in future, buyers should stump up at least a 5% deposit (25% for buy-to-let mortgages) whilst simultaneously being restricted to a multiple of 3.5 times their joint incomes.  By doing this, banks would be able to place a ceiling on how potential borrowing can push up property prices. read more...

 

House Prices: A British Obsession

A recent survey has shown that Brits are still obsessed with property prices, despite the current financial recession.  The sheer accessibility of data on the internet is the main driver for this obsession with those aged between 24 and 35 being the most obsessed age group.  The poll also found that around 70% of the people polled still looked at property online even when they had no intention of moving. read more...

 

Dirty Tricks of the Estate Agent

Estate agents have never been the most popular people in the world, but recent investigations by undercover investigators and the Consumers’ Association have shown that some agents are acting unlawfully and using blatant lies in their efforts to sell properties. Complaints to the Ombudsman rose by 16% in 2008, to 6,462, but it is believed that this may just be the tip of the iceberg. read more...

 

The Chancellor’s £1bn Budget Plan to Rescue the Housing Market

Alistair Darling has unveiled a £1bn emergency boost to the housing market in the 2009 budget.  The money will be earmarked for building more council homes, extending the stamp duty holiday until the end of the year and to kick-start building projects that have been mothballed.  The chancellor has made the housing market a priority despite the poor state of the government’s finances.  The lion’s share of this cash (£600m) will go towards stimulating housing development.  Stalled developments and affordable housing (including HomeBuy Direct) will get £400m of this figure with £100m earmarked for local authorities to deliver new social housing. read more...

 

HSBC to Start a Mortgage Price War?

HSBC have laid down the gauntlet for its rivals by lowering its rates for home buyers with small deposits.  The bank has pledged to lend £1bn to borrowers with deposits of just 10%.  The move is expected to breathe new life into a stagnant housing market by throwing first-time buyers a lifeline.  During the recession banks have been much more nervous about whom they lend to and have been freezing out all but borrowers with large deposits by charging sky-high interest rates or arrangement fees to those who haven’t.  Even some of those borrowers prepared to pay inflated rates are being turned down for not having spotless credit histories.
The products on offer for 10% deposit holders consists of a tracker mortgage at 4.59% (with no exit fee or tie-in) and a two-year fixed-rate deal at 4.99%.  The bad news is that there is a £1,499 arrangement fee, but it still significantly undercuts the opposition.  Financial analysts believe that other lenders will soon be following suit with Lloyds TSB rumoured to be already planning a response.  David Hollingworth from mortgage brokers London & Country said: “If HSBC’s rivals start to lose business because of these low rates then they will soon look to counter.  If it does spark competition then all the better for homebuyers.” read more...

 

How the Cost of Buying a House has Soared

According to an investigation by the Mail newspaper, the cost of buying a home has risen by almost £2,000 in the past five years.  These increased costs include higher mortgage arrangement fees, deeds release fees, stamp duty and valuation fees.  However, perhaps the biggest gripe is the £200+ pounds that a seller has to pay for a Home Information Pack (HIP) – a measure recently brought in by the government to help guard against practices such as ‘gazumping’.  General opinion would indicate that these packs are almost universally regarded as a complete and utter waste of time and money. read more...

 

How Accurate are House Price Statistics? 

Today’s house market seems to be a barrage of never-ending statistics. So many agencies are busy supplying us with monthly, quarterly and yearly figures – but which ones should we pay attention to and which ones can we happily ignore? Here is a summary of the ones to watch: read more...

 

Mixed News for the Housing Market

The latest data on the housing market suggests that although prices are still falling, mortgage approvals and sales are on the up. The country’s biggest mortgage lenders, Halifax and Nationwide stated that house prices had fallen in February by 2.3% and 1.8% respectively with Halifax citing the value of an average house at £160,327 and Nationwide’s figure coming in at a much more pessimistic £147,746. This is a fall of 17.7% for Halifax and a nearly identical 17.6% for Nationwide. read more...

 

Selling Your Home in a Buyers’ Market

You may be excused for thinking that this is probably the worst time to try and sell your house. Statistics tell us that, depending on where you live, house prices have fallen around 20% from their 2007 peak. Couple this with the fact that a lot of potential buyers are struggling to raise the finance and you are faced with something of a challenge. However, if you get certain things right, there is no reason why you can’t get a satisfactory result. read more...

 

House Prices continue to fall

According to the Halifax, house prices slumped by a further 2.3% in February with the average house now being worth £160,327.  This means that despite the bank showing a surprise 1.9% rise in January, house prices are now down 17.7% on the same time last year.  The current average house price has now slipped back to August 2004 levels with £34,600 wiped of its value in twelve months.  The bank’s chief economist Martin Ellis said: “Continuing pressures on incomes, rising unemployment and the negative impact of the dislocation of the financial markets on the availability of mortgage finance are, however, likely to mean that 2009 will be another difficult year for the housing market.” read more...

 

FSA want Higher Deposits from Homebuyers