Your Right Move » Mortgage

REVEALED, what property feeds on our igoogle

Zanet — Fri, 25 May 2012 11:00:20 +0000

Today I reveal some of the best RSS feeds for keeping us up to date on UK property and Mortgage news. There are hundreds of great widgets and apps and feeds on the web today and property news feeds are essential if you want to keep up with current changes in the UK housing market.

So I thought it would be cool to reveal ours.

Telegraph Property News
Property news from the Telegraph, at least a few daily updates – superb resource for property news
http://www.telegraph.co.uk/property/propertynews/

Tepilo – Blog RSS Feed
The Blog from house expert Sarah Beeny, another promiding site to keep an eye on offering everything Rightmove offers but without the costs
http://www.tepilo.com/blog/

The Latest From Aboutproperty.co.uk
A consumer site for everyone interested in homes and property. Dedicated to news for homeowners and people seeking to become homeowners.
http://www.aboutproperty.co.uk/

Screen Grab of Property Feeds

Zoopla.co.uk Blog
Zoopla is the new kid on the block and has had an incredible year. With recent TV advertising, its become obvious Zoopla intends to challenge Right Moves supremacy.
http://blog.zoopla.co.uk/

Mortgages
Our 2nd helping from the Telegraph feed, this time detailed and insightful financial advice, including the latest information about mortgage rates and taking out a mortgage.
http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/

The 4 Homes Blog
Channel 4 is the UK largest television station for Home releated programmes and this feed is a great way to keep alert to the current programmes related to home improvement, grand designs or property ladder and of course Location location.
http://blogs.channel4.com/4homes/

Your Right Move
Our very own rss feed just to make sure its updates are showing (and of course we are slightly biased)
http://www.yourrightmove.co.uk/blog

uk mortgage – Google News
Google newshas various sections including a UK mortgage news area.
http://news.google.com/news?pz=1&ned=uk&hl=en&q=uk+mortgage

Google alerts – “House prices” location: United Kingdom
This is a Google Alert for the keywords “House prices”. I would suggest you also set an alert for your specific interests. It’s a great rescource for finding new sites.

Property feeds are essential for keeping an eye on the property market, hopefully we have introduced you to a few new ones to keep an eye on.

Mortgage rates may rise from eurozone crisis

Zanet — Thu, 10 May 2012 08:15:58 +0000

It seems that the low mortgage rates may change. After 3 years of low mortgage rates, analysts are reporting they may rise due to the so-called eurozone crisis, which has seen protests and unrest in recent months. Yet the Bank of England is planning another reduction!

Bank of England

The changes may occur with Banks offering incredible packages ahead of the crisis. All this despite the Bank of England base rate remaining at its 0.5 per cent record low and considering a reduction to another cut to base rate. The Bank of England is already known to be considering dropping rates to a new record low of 0.25 per cent following the publication of the minutes from its September meeting this week.

This month will see a series of meetings and important data releases which will go a long way to deciding the future of Europe’s troubled currency union and will no doubt impact the UK banks.

It’s presumed that the European discussions could push Britain’s rock-bottom mortgage rates upwards, borrowers are being warned. Private bank Barclays Wealth today became the first lender to make a major move, pushing its best tracker rates up by as much as 1.5 percentage points for new borrowers.

Largest mortgage lender increases mortgages

Zanet — Tue, 06 Mar 2012 08:53:19 +0000

After 3 years of rock bottom mortgage rates, mortgage lenders are adding an increase to their standard variable rates. The bank of England set the base rate 3 years back, but The UK’s largest mortgage lender increases mortgages as money markets rise.

Halifax, part of Lloyds Banking Group and the Royal Bank of Scotland and NatWest customers will notice the changes from May 1st on an increase to their standard variable rates.

The average person will find an increase of £300 to £500 increase a year. Halifax, has written to its customers indicating that it is raising the cap on its SVR to 3.75pc above Bank of England Base Rate or 4.25pc. These customers are the only ones who have this guarantee. However, hundreds of thousands of other customers will also suffer if the bank raises its SVR by quarter of a per cent, as this is the rate most mortgages revert to when they come to the end of their initial period. This rate is currently 3.5pc, equivalent to the current cap of 3pc above Bank Rate.

Why would the largest mortgage lender increases mortgages

The banks have increased the mortgage rates because the “cost of borrowing on the money markets has risen” over the last year and “costs need to be passed on to customers”.

What do you think? Do the banks really need to increase mortgage rates as the recession continues to affect the UK?

How do I buy a property?

Zanet — Sat, 18 Feb 2012 10:57:24 +0000

For many visitors to this site this may seem to be a question that you wonder why we ask. How do I buy a property? Is like asking how do I go shopping for some. but consider the millions of UK web users who have never purchased property. This site is for there benefit too.

How do I buy a property? It’s So Confusing!

Firstly you will need to know your spending power. Unless you have been gifted a lump sum then you will need to speak to your bank or building society to arrange a mortgage.

A mortgage is simply a loan which is particularly low interest to enable a way of borrowing money to buy a house. However, unlike other loans a mortgage is secured against your house, which means if you repeatedly miss repayments your provider could seize your property.

There are normally two types of loans, a repayment mortgage or an interest-only mortgage?

A repayment mortgage means your monthly payment will go towards paying both the interest charges on your loan and the loan itself. So by the end of the mortgage term your loan will be paid off in full and you will own your house. With an interest-only mortgage, on the other hand, as the name suggests, you only have to pay the interest charges on your loan each month. This means that your monthly payments will be much cheaper, but when your mortgage term ends you will still be left with the loan to pay off. It’s crucial therefore that you have a well thought through savings or investment plan to do this in place from the start.

Each lender will do its own affordability assessment when you apply for a mortgage based on your income and expenditure. In the past they have loaned beyond a persons affordability. This has been frowned upon in recent times.

Once you have your agreed mortgage in principle, you can then take advantage of your local estate agents and some great online tools. You would of no dowbt discovered Rightmove.co.uk and Zoopla.co.uk. We have reviewed both sites in past articles, so do read up on them.

Once you have seen a few properties and arranged a viewing, shortlist the ones that suit you, maybe take a friend for advice. Make sure you can afford to make an offer that is sensibly close to the asking price.

If you have agreed a price, the Estate agent will ask to see your affordability. Its at this point the agreed mortgage starts to become a reality.

You will need to make an application for your mortgage, arrange a solicitor or conveyancer to handle the legal issues, and take advice from the estate agent as he will be as keen as you for all parties to complete the deal (he doesnt get paid unless it completes)

Then you should consider a survey on your potential property. Many lenders will require this as they are putting there money against the property.

Normally the process from agreeing a price to moving in takes around 2 to 3 months.

Then open the champagne as you probably have plenty of DIY ahead of you, but you made it into your first property!

So feel free if you can add a few tips in helping our new visitors asking How do I buy a property? or any other questions that may be relevent.

House repossession

Zanet — Tue, 14 Feb 2012 11:43:05 +0000

The one thing no one wants to hear is house repossession in there neighborhood. Its bad for so many reasons. How good it is to read that house repossession is at its lowest for 4 years.

The Council of Mortgage Lenders (CML) recently showed the dramatic drop. A recent CML report showed the number of repossessions by mortgage lenders last year amounted to 36,200. This is the lowest annual total since 2007.

We are all well aware that the recent UK recession has made things very difficult for home owners. It’s common to hear of worsening unemployment and other pressures to inflate figures this year. The reality is, if you are behind on your mortgage, the mortgage company can start proceedings for house repossession.

But it seems that unlike previous recessions, this one is heading a different way. If we have rapid inflation then you have the situation we had in the early 1980s where owners paid off a generation’s mortgages.

Those who bought a home in the 1980s to early 1990s, and then held on through double-digit interest rates and the 1990s crash, have emerged with properties that have risen to be worth five to ten times their mortgage.

While falling property prices has brought tough times for those who have seen equity slashed, fallen into negative equity or even had their homes repossessed, there are others who are pleased that prices are falling.

Lower property prices are a boon to first-time buyers and those moving up the property ladder, but only if they can raise the substantial deposit needed to take advantage.

House repossession is back for 2012

Sadly the expectations aren’t good for 2012 when it comes to house repossession. CML anticipates around 45,000 repossessions and around 180,000 mortgages in arrears of 2.5% or more by the end of 2012.

Paul Smee, director general at the CML says, ”Low interest rates and good arrears management by lenders are helping the vast majority of those borrowers who face difficulties to keep their homes and get back on track”

Sadly house prices remain at a stable rate. This means those on the verge of house repossession are not going to be in a position to increase to a point where they can sell any time soon. For others their repayment will continue to cover only the interest on their mortgage. While interest rates remain low, they will be merely propping up the lender’s balance sheet. When interest rates rise, they will be in difficulty as house prices will be forced down by forced sales further reducing any equity that they have gained.

Chelsea building society fixed rate savings

Zanet — Mon, 06 Feb 2012 13:50:56 +0000

Chelsea Building Society fixed rate savings could spark another price war for mortgage offers.

Chelsea Building Society is offering a five-year, fix-rate deal at an all-time low rate of 3.19 per cent.

The offer, which massively undercuts competitors in the five-year market, is available to borrowers below 70 per cent loan-to-value (LTV) with the arrangement fee of £1,495.

“The fee aside, Chelsea Building Society fixed rate savings is the lowest-priced, five-year, fix-rate mortgage deal we have ever seen. It signifies a fresh battle in the mortgage marketplace,” said Andrew Hagger from Moneynet.

Chelsea Building Society has launched the lowest ever five year fixed rate deal. But its worth noting that although Chelsea’s offer is cheaply priced, it doesn’t mean a 5 year fix is the right product for everyone.

Chelsea building society fixed rate savings may not be the best product for you

As the Bank of England base rate iscurrently 0.5 per cent, It is likely to stay very low for the forseeable future. So it may be wise to look at the range of base-rate trackers out there at the moment.

Borrowers wanting a mortgage of up to 70 per cent LTV can benefit from a rate of 3.19 per cent, or 3.39 per cent for the offset option. Both mortgages have a hefty arrangement fee of £1,495.

“This is the lowest five year fixed rate mortgage ever to come to the market, which is great for customers wanting longer term security in fixing what is likely to be their biggest monthly outgoing,” said Chelsea Building Society product manager

Chelsea Building Society was the fourth largest Building Society in the United Kingdom with total assets in excess of £13 billion at 31 December 2007. It is a member of the Building Societies Association. Operating mainly in South East England with its network of 35 branches, its head office is based in Cheltenham employing over a 800 staff. The society was established in 1875 as the London & Camberwell Building Society.

Affordable Mortgages

Zanet — Mon, 16 Jan 2012 13:38:51 +0000

Affordable mortgages aren’t a thing of the past. According to the Telegraph today, Mortgages are at their most affordable for 14 years.

The claim is based on the average mortgage payments for new borrowers, first-time buyers and home movers. The Telegraph speak of only 27% of disposable earnings needed for mortgages in the fourth quarter of 2011. Mortgage payments for a new borrower are now at their lowest in proportion to earnings since 1997.

A 14 year high for Affordable Mortgages in UK

Affordable Mortgages for new borrowers have reached their most inexpensive levels for 14 years! Typical payments in some areas of Scotland and northern England are taking up less than a fifth of disposable incomes.
The details were released from Halifax this week. So although most families are feeling the pinch,the figures are implying a different situation. Halifax claim it marks the lowest proportion since spring 1997 when a 26% proportion was recorded. This stands well below the 37% average over the past 27 years.

Once again the study highlighted a North, South divide. The least affordable areas located in London and the South East.
Kensington and Chelsea in London were named as the least affordable local authority district. Here mortgage payments are taking up 78% of disposable income.

Martin Ellis, housing economist at Halifax, said:

“The cuts in mortgage rates in the last few years have resulted in a significant improvement in housing affordability for those able to raise the necessary deposit to enter the market.. The marked improvement in affordability was a key factor supporting housing demand in 2011. The prospect of an exceptionally low Bank of England base rate over the foreseeable future should maintain affordability at favourable levels in 2012. This should support the market over the coming 12 months, helping to offset the impact of the downward pressures on demand from the ongoing difficulties faced by households regarding their finances and uncertainty about economic prospects.”

Do you feel these figures are truly representative of things changing? Will affordable mortgages remain or are these clever figures from Halifax?

Phil and Kirsty – Location

Zanet — Sun, 01 Jan 2012 14:32:43 +0000

Don’t you just love Phil and Kirsty, and there back again for another new series.
Catch the new series of Location, Location, Location on Wednesdays at 8pm on Channel 4.

Phil and Kirsty, like a favourite Aunty and Uncle they almost row in front of the nation on the great show
Property experts Phil Spencer and Kirsty Allsop were asked for advice on beating the house price slump. They are famous for their down to earth approach and no nonsense understanding of the UK house market. Below are there Top 10 Tips for beating the house Price Crash.

Phil and Kirsty Top Location Location location Tips

Phil and Kirsty from Relocation Relocation

1. Take Your Time

The advice we’d give in this market is largely the same as we’d give in any market. If you’re selling your house, don’t rush into buying. Take your time, even rent for a few months while you look to make sure. Any purchase in this OR ANY market should be for the long term, so it’s important to get it right.

2. Sit Tight

Here is some good advice in a recession from Kirsty Allsop.
Don’t engage with the market if you don’t have to. Unless you HAVE to move house, sit tight and wait it out.

3. Get A Good Deal

Phil from Relocation Relocation suggest you haggle hard when buying – bear in mind the house may soon be worth less than you paid for it – the market always has troughs and peaks.

4. Make Money from a Room

Rent out a room in your house. If you are struggling to make repayments on your mortgage, consider taking in a lodger to lighten the load.

5. Get a Kerb Appeal

The biggest challenge as a seller is getting people through the door – pay close attention to the exterior of your property.

6. Be Realistic

Phil and Kirsty often speak of being realistic. It’s all relative – remember, when house prices fall, you may take a hit on your own sale, but you can make this up when buying as the drop hits the whole market.

7. Sort Your Mortgage –its Costing You

For most people, their mortgage is their biggest debt – and in a credit crunch you want to limit your debt as much as possible. If you’re on an interest only mortgage, lessen your chances of negative equity by changing to a repayment. Before you do anything, though, seek professional advice from an independent financial advisor.

8. Take Advantage Of Rate Cuts

If you are already on a repayment, consider if you can take advantage of recent interest rate cuts to pay a little bit more of the capital each month. The more you pay, the faster you run from negative equity – and the quicker you’ll own your home outright.

9. Look After Your Property

Even if it’s not with a new bathroom or kitchen – keeping paintwork fresh, boilers regularly serviced and gardens well maintained can work wonders. And it’s cheaper to fix little problems rather than wait until they’re big ones.

10. Look For Innovative Ways To Get A Good Deal

Kirsty Allsop suggests house swaps are a good way to beat the stale market conditions. And for many types of people, like first time buyers, key workers or those in social housing, there are government and commercial schemes to help you get on the property ladder.

UPDATE: It seems Phil and Kirsty are really on form in the latest series on Channel 4

End stamp duty holiday looms

Zanet — Tue, 18 Oct 2011 09:12:18 +0000

It’s noteworthy that the end of the stamp duty holiday looms for first-time buyers with just 5 months to go, sellers with homes worth £250,000 or less should acknowledge call to action

First-time buyers should be aware that the 25th October marks just five months to go until the stamp duty holiday ends. Under current arrangements, first-time buyers purchasing a property under £250,000 don’t have to pay any stamp duty. After 25th March 2012, all properties between £125,000 and £250,000 will incur a stamp duty levy of 1% of the purchase price, reports a spokesman from The Robinson Jackson Group

Stamp Duty Exemption Set to Continue

Stamp duty holiday?- £250,000 buys you a lot of property!

Estate agent Robinson Jackson says the deadline is particularly important to buyers in South East London, North Kent and the Medway as there are plenty of starter homes in this catchment: “We’re incredibly lucky that almost 900 of the properties we have for sale at the moment are priced at less than £250,000. In many instances, a budget of just £100,000 to £150,000 can buy you a good sized flat or small house. Not many London and Home Counties estate agents can say that so we’re telling first-time buyers to pick up the phone to us now as we want to help them make the most of their budget,” says Peter Jackson, co-founder of the estate agents that has 30 branches and departments in London and Kent.

Thinking of selling? Act now

And it’s not just first-time buyers who should sit up and take notice of the 25th March deadline. Sellers should also appreciate that now is the time to sell a property that would make a good starter home. Peter goes on to say: “If your home is worth £250,000 or less, now it the time to think about selling. We’re anticipating an influx of buyers looking to squeeze in a purchase before the stamp duty holiday ends but they’re going to be disappointed unless there’s more starter homeson our books. We have a ready-made audience out there looking to complete by March 2012.”

Time is of the essence

Peter Jackson says that the stamp duty holiday could bypass first-time buyers: “We are urging those wishing to take the first step onto the property ladder to start their search now. People have to factor in the time it takes to find, view and complete on a property. Once an offer has been made it’s not usual for completion to take two or three months, especially if there is an associated chain. Now is the ideal time to start looking and making serious offers.”

The stamp duty holiday was introduced to stimulate the property market but it’s not until now that mortgage lending conditions are starting to improve. Peter says that with the right guarantees and flexible approach, first-time buyers can secure a mortgage of up to 95%: “Property prices are stable, we’re still in the stamp duty holiday period and there are some better mortgage products coming to market so it’s a good time to pay us a visit and find out what’s within your budget. However, first-time buyers who fail to make offers in the next two months might find they miss the boat and will end up paying a 1% stamp duty fee. So please act now!”

Peter concludes by saying: “There’s a small window of real opportunity here for first-time buyers and sellers of starter homes worth less than £250,000.

Pick up the phone or visit us in branch to find out how we can help you before the deadline is upon us.”

The stamp duty holiday has certainly helped many – do you think it should extend into next year?

Mortgage for 10 year fixed

Zanet — Mon, 12 Sep 2011 13:21:27 +0000

Is it a good idea to fix your mortgage for 10 years?

The question is currently being asked, as home owners are now being offered this opportunity. I’ve not been aware until now that you could fix your mortgage payments for 10 years, but currently six lenders are offering such. Normally a 5 year fixed is as long as you can commit too, but banks and building societies are now looking to provide home owners more peace of mind with extremely long term commitments.

It said that the offers are in response to home owners asking for long term fixed, and thereby is a response to UK demand. A spokesman from Chelsea Building Society said ”

“This deal won’t be for everyone. Although it is portable, it’s best for those who are sure they want to stay in their home for 10 years, and some may be wary about locking in for a decade,” said Ray Boulger, senior technical manager at mortgage broker John Charcol, “But it will be popular. It’s easily the cheapest 10-year fix on the market, and despite the relatively high fee, for anyone happy to lock in, it offers very good value.”

Current 10 year mortgage deals

The Skipton building society has recently launched a 10 year fixed rate deal at a rate of 5.85% for up to 85% loan to value (LTV) with no fee.
The Yorkshire building society deal is fixed at 5.99% on a 75% loan to value (LTV)
The Britannia deal is fixed at 5.29% on a 75% (LTV)
The Chelsea building society has the lowest rate at 3.99% with a fee of £1,495 but is only available to those with at least a deposit of 30%.
The Co-operative deal is offered at a fixed rate of 5.69% also on a 75% (LTV)
The Leeds building society offer a 10 year deal on a fixed rate of 5.99% but on an 80% loan to value (LTV)

The fors on a 10 year mortgage

You can know what your payments are for the coming 10 years!
The rates aren’t too outrageous when you consider mortgage rates have been as high as 13 per cent in the past
Offers good value for home owners who are looking to change mortgage deals

The againsts – on a 10 year mortgage

You are paying more than the current variable for the priveldge of being fixed
Very long commitment
You may be in a deal where you can’t over pay the mortgage
Requires a loan to value (LTV)
May have a large exit fee
No benefit from Bank of England reductions

Conclusion:

To commit a mortgage deal for 10 years, may be the perfect deal for you under these difficult times, with the chance to budget for a longer period knowing the monthly amount. These deals do mean that with payments fixed till the end of the deal they will not be affected by interest rates going up or down. Personally a 5 year commitment still seems a balanced view, but if 10 years proves popular, then it may well become the choice of home owners in the coming years ahead.