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| Full Name: | Andrew Strode-Gibbons |
|---|---|
| E-mail Address: | Andrew@GoRemortgage.co.uk |
| Registration Date: | 2010-04-19 12:26:31 |
| Biography: |
28-May-2011 | Posted By: Andrew | Comments: (0)
Property prices were up in May according to Nationwide – though not by much.
Statistics from the lender show that average prices rose by 0.3% to leave the typical home worth £167,208. The increase comes after a slight fall in April, and contributes to a rise of 0.6% for the quarter – often taken as a more reliable measure.
23-May-2011 | Posted By: Andrew | Comments: (0)
A leading business organisation has highlighted the difficulty of funding small businesses in today’s financial climate.
The Forum of Private Business was presenting its views on the Business Growth Fund. That’s the new £2.5 billion initiative which is part of the deal struck between the government and the major banks last autumn. The fund is aimed at so-called medium sized businesses, turning over between £10million and £100 million.
09-May-2011 | Posted By: Andrew | Comment: (1)
It looks like there will be more opportunities for borrowers to find cheaper mortgage deals after recent decisions by the Bank of England.
Pressure on the Bank’s Monetary Policy Committee to raise interest rates has abated after inflation dropped back in March, while disappointing economic data from manufacturing and the high street has convinced many that an early rise in rates would put the recovery at risk.
26-Apr-2011 | Posted By: Andrew | Comments: (0)
The UK property market is seeing a surge in demand, according to the National Association of Estate Agents (NAEA). The claim is based on a big rise in the number of potential buyers registering with agencies. But, says the organization, better access to mortgages is needed to sustain the housing market.
31-Aug-2010 | Posted By: Andrew | Comments: (0)
The British Chambers of Commerce (BCC) has added its voice to the chorus urging the Bank of England to keep interest rates down. The call from the business organisation to keep base rate on hold at 0.5% comes in the wake of faster-than-expected economic growth in the second quarter of 2010. The BCC itself has revised its growth forecast to 1.7%, up from 1.3%. In normal times, higher growth would indicate that a rise in rates was on its way, to hold back inflation. But of course these aren’t normal times.
Revised growth figures suggest that Britain’s economy has bounced back more strongly than expected. For mortgage borrowers, not to mention anyone with a job, this has to be good news. Yet BCC’s chief economist David Kern shares the fears of many that the boost may be short lived. The government’s austerity measures are bound to have an impact on future growth and employment. It’s anxiety about the economic road ahead which is making the financial world cautious, not least about lending on property, with analysts unsure about prospects for house prices.
But with interest rates still at record lows, it’s still well worth looking at remortgaging options. Fixed-rate deals in particular have gained in popularity recently as borrowers have sought to lock themselves into an affordable rate. And for those unsure about moving in the current climate, remortgaging can be a cost effective way of improving your home – perhaps with an extension or new kitchen. In terms of value, according to lenders such as the Halifax, a loft conversion is the improvement which can add the most value when you do come to sell.
23-Aug-2010 | Posted By: Andrew | Comments: (0)
First time buyers face challenges in today’s mortgage market. But according to the Halifax, there are plus points as well. In particular, a combination of lower interest rates and falling house prices means that mortgages are far more affordable than they were a few years ago. Many have also been able to take advantage of the exemption from stamp duty.
According to the Halifax, average repayments have nearly halved over the past three years. The typical first time buyer now spends only 28% of their income on monthly mortgage payments – as against 50% at the height of the boom in June 2007.
Of course, that’s not the whole story. The big task facing first time buyers is to save a large enough deposit to satisfy today’s cautious lenders. The Halifax calculates that first time buyers put down more than £30,000 on average (an amount equivalent to some 22% of their home’s value). So it’s hardly surprising that help from parents, the so-called ‘Bank of Mum and Dad’, has been such a talking point recently. However, there are some attractive, higher-loan-to-value deals available.
And although the numbers remain well below those seen before the credit crunch, the first six months of 2010 saw 28% more people gaining a foothold on the housing ladder than in the same period last year.
21-Jul-2010 | Posted By: Andrew | Comments: (0)
Latest figures paint a more positive picture of the mortgage market, with news that lending rose by 15% in June. The Council of Mortgage Lenders (CML), estimates that mortgage lending increased from £11.4 billion in May to £13.1 billion last month. However, the CML also suggests that the figures represent a seasonal boost – the long-term trend looks flat, with lending for the first six months of the year being comparable to that for the first half of 2009 at £65 billion.
CML economist Paul Samter notes that following the abolition of Home Information Packs more properties are coming onto the market. While this is helping to stabilize prices, he argues, access to mortgage funds is also having an impact: “Transactions are subdued and likely to remains so while access to credit remains constrained.”
Mr Samter also echoed the views of leading brokers on latest ideas from the FSA. It’s suggested that restrictions on lending as proposed by the financial watchdog could make it harder for legitimate borrowers to obtain mortgages – at a time when the housing market is being affected by spending cuts and other economic pressures.
Remortgages accounted for about 4 in10 of deals taken on in June. Uncertainty about interest rates is making borrowers cautious about a switch, with some waiting for a change in rates – or a clear signal that one is on the way. Yet recent reports have shown that mortgages are at their most affordable in decades, and that many on their lender’s standard variable rate could save money by opting for a new fixed-rate or tracker deal. On that basis, industry insiders say that growing numbers of borrowers would be better off moving their loan now.
18-Jul-2010 | Posted By: Andrew | Comments: (0)
A war of words has erupted between two Bank of England experts responsible for setting interest rates – adding to the uncertainty faced by mortgage borrowers. Andrew Sentance and David Miles are both members of the Bank’s Monetary Policy Committee, but they take different views on where interest rates should be heading in the immediate future.
Their views are important, because Bank of England base rate affects mortgages – both because most tracker deals are tied to the rate, but also more generally.
In comments last week Dr Sentance repeated his view that interest rates need to rise to stem inflation. Meanwhile, Mr Miles argued that with the economic recovery still fragile, to raise interest rates now would be too much of a risk.
It’s weeks since Go Remortgage News pointed out that there was a window of opportunity for mortgage borrowers. That still looks true – regardless of whose view of the economy and interest rates is correct. With some experts arguing for a rise in rates, homeowners seeking security may choose a fixed rate deal over a period of years – two, five or even more.
On the other hand, if property prices fall and credit becomes harder to come by, remortgaging may become trickier for borrowers – the term “mortgage limbo” has been coined to describe the situation of those without the scope to strike a new mortgage deal. So there are plenty of incentives to consider remortgaging options now, particularly for those currently on their lender’s standard variable rate or who are temporarily paying their mortgage on an interest-only basis.
The good news is that average interest rates on mortgage deals have fallen to their lowest level for years, according to recent figures. And with property values having risen steadily for more than a year, many have the equity in their homes to take advantage of the opportunities such low rates present.
15-Jul-2010 | Posted By: Andrew | Comments: (0)
Which way now for the housing market? There have been some healthy signs recently. Barratt is the latest house builder to forecast a hike in profits. According to property website Zoopla, London house prices have made up the ground they lost during the recession, with gains over the past sixteen months amounting to 21.5%. This is good news for those wishing to remortgage or seek additional finance, as the extra equity in their properties means that loans represent a smaller proportion of their value.
Elsewhere, lenders say that price rises are tailing off, or even turning into falls. Government figures show a modest 0.7% rise on completed sales in May. But all this doesn’t mean there’s been a slowdown in sales – on the contrary, many homeowners are now putting property onto the market, after holding off in the uncertain period before the Budget, and spurred on by the demise of Home Information Packs.
A big factor will be the availability of mortgage finance, coupled with the level of interest rates. Mortgages are now at their most affordable in decades, with interest payments taking a smaller slice of our incomes. There’s also been a modest rise in the number of products available to borrowers, with some higher loan-to-value deals now on offer.
But the market is vulnerable to outside pressures. Many fear that mortgage lending (and borrowing) will fall if the economy stalls – and if banking problems in the eurozone spread. For these reasons, industry experts are forecasting flat prices or falls. According to the Royal Institution of Chartered Surveyors, more of its members now expect prices to fall than to rise over the coming months, while accountants PricewaterhouseCoopers think that the market could be subdued for years.
In this climate, say analysts, the FSA’s plans to further restrict mortgage lending look ill timed – lenders don’t need to be told to be cautious. The big unknown remains the timing of interest rate rises, and it’s this which is pushing borrowers who want security in the direction of fixed-rate mortgage and remortgage deals.
13-Jul-2010 | Posted By: Andrew | Comment: (1)
Mortgages are at their most affordable for 35 years, according to recent figures. The Council of Mortgage Lenders (CML) reports that, as a proportion of our incomes, mortgage payments are at their lowest since records were first kept back in 1975. Those moving home spent an average of 9.5% of their income on interest payments in May. Meanwhile, first time buyers spent 13.2% – the lowest amount since 2004.
And with low interest rates continuing to benefit borrowers, lending to house purchasers has increased – along with the number of remortgages.
The number of home loans rose by 2% on the previous month, contributing to a 15% rise over the 12 months since May 2009. There were 6% more remortgages than in April – worth 10% more in money terms. There was also a small rise in the number of loans made to first time buyers, as they benefited from a wider range of products and greater flexibility on the part of some lenders.
The CML has previously forecast that there will be £150 billion of mortgage lending this year. They are now concerned that tough economic conditions will make things trickier for borrowers and make lenders more cautious. In that event, they say, their prediction could turn out to have been too optimistic.
But given current interest rates and the range of products available, borrowers will be looking carefully at the mortgage and remortgage deals on offer.
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