Your Right Move » Recession

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.

How to fight housing and homelessness

Zanet — Wed, 08 Feb 2012 16:00:25 +0000

Zoopla decides to show how to fight housing and homelessness. Teaming up with Shelter, Zoopla commits £25,000.

The economic situation over the past few years in the UK means many families are struggling to keep a roof over their heads. As a result, property website Zoopla.co.uk has today announced a fundraising partnership with national housing and homelessness charity, Shelter, with Zoopla committing to raise at least £25,000 for this cause in 2012.

As part of their commitment to make a difference and raise awareness of the issues surrounding bad housing and homelessness, Zoopla will work closely with Shelter to help support their charitable efforts and will participate, donate directly and identify new opportunities to raise funds in 2012.

Zoopla employees also lead the way on how to fight housing and homelessness

Zoopla employees have wasted no time in showing their commitment to the partnership by donating over £7,500 themselves already via payroll giving alone and committing to numerous events throughout the year, including Shelter’s annual Vertical Rush in early March, which involves scaling the 920 steps of Tower 42 in the City. Zoopla also plans to make fundraising for Shelter an integral part of the numerous trade events and awards it sponsors throughout the year including Lettings Live, the ESTAs and the Estate Agency of the Year Awards.

Alex Chesterman, Founder & CEO of Zoopla said: “Shelter does an outstanding job trying to help those have fallen on hard times. We recognise that charities like Shelter rely heavily on donations from businesses like ours and we are keen to do what we can. Our team are motivated and to meet or exceed the fundraising targets we have set for this year and to make a difference in the lives of those less fortunate.”

Tracy Griffin, fundraising director at Shelter, said, “We’re delighted to be working so closely with Zoopla and are very grateful for their support. The money raised through the partnership will support Shelter’s vital work to help families across the country find and keep a decent home. We are looking forward to developing a strong ongoing partnership.”

Shelter’s housing advice helpline 0808 800 4444 is open 8am-8pm Monday to Friday, 8am-5pm Saturday and Sunday.

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?

UK house prices

Zanet — Tue, 03 Jan 2012 10:53:09 +0000

Will Uk house prices fall or rise in the coming year ? What will the 2012 house market bring ?
We take a look at what the experts are saying and look to see whether the housing gloom is about to lift.

While the average house prices in the UK will have actually risen by 1.3pc by the end of 2011, with inflation currently at 5pc, property values are falling in real terms.

Rightmove expect UK House Prices to drop

Predictions for 2012 UK house prices

The Telegraph predicts 2012 will not see a revivial. They report “Inflation and the eurozone debt crisis will have a negative effect on house prices next year.”

This is Money’s property expert Simon Lambert speaks of Estate agents claiming of a stand-off between sellers and buyers. The sellers reluctant to cut prices and the buyers unwilling to pay over the odds. Home sellers must either have a desirable property to sell in an in-demand area or be willing to lower their expectations, if they want to get a sold sign up outside their house.

Rightmove report UK House prices will show uncertainty. 2012 will be just as challenging as they’ve been in 2011. Asking prices are expected to rise by a mere 2%. Inflation-adjusted house prices will continue to fall in 2012, or at best stand still.

Your Mortgage Decisions predict great variances in house price movement across the UK. With the south and in particular London and the home counties faring considerably better than northern England, Wales and Scotland. It would not surprise me to see some gains as significant as 5% to 10% within a commutable distance to London, as has been the case this year for pockets of desirable housing served well by schools, transport links and good community facilities such as leisure and retail. Other areas are likely to see a more benign outlook with a neutral to 5 to 10% decline in the areas of highest unemployment.

Capital Economics expect prices to decline by 5% in both 2012 and 2013.
UK House prices often follow the USA trend the following year. so while the UK doesnt have any exciting changes, The United States are predicting a better change. Newspapers in New York predict a positive outlook. Wall Street expect the U.S. economy to keep growing, albeit at a sluggish 2% annual rate but fast enough to avoid a recession. In the CFA’s survey, only 12% of respondents said they expect the U.S. economy to contract in 2012.

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

Rightmove report 4 year drop

Zanet — Mon, 21 Nov 2011 11:56:08 +0000

The largest drop for 4 years has been reported this week. The asking price of homes being put up for sale has fallen by 3.1% in the past month, according to the property website Rightmove.

As a result of the economic uncertainty and concerns about the state of the eurozone, asking prices are reflecting a dramatic fall. The worst fall since December 2007. It could be due to would- be sellers postponing their marketing until the new year. The weekly supply of homes put on the market is now at the lowest since the aftermath of the collapse of Lehman Brothers Holdings Inc. in 2008.

All 10 regions in England and Wales tracked by Rightmove showed falling asking prices in November, the first time in more than three years they have all declined together. Shipside said that it’s “no great surprise” that property owners looking for a sale “have had to accept a substantial haircut on their asking prices.” Nationally, values were up 1.2 percent from a year earlier in November.

It does provide a positive spin for those looking to pickup a property bargain.

Home Ownership down – Cost of Buying Up

Zanet — Tue, 30 Aug 2011 13:45:12 +0000

The big news after the Bank Holiday weekend is based on the recent report from the National Housing Federation regarding Home Ownership going down, while the cost of renting and Buying continues to spiral out of control.

They predict the number of home owners will drop to just 64% as house prices soar, compared to 73% in 2001.

David Orr, Chief Executive, National Housing Federation told reporters, “Home ownership is increasingly becoming the preserve of the wealthy”.

Home Ownership down - Cost of Buying and rental going Up

Due mto rising costs of renting and buying added to the huge deposits and a tightening of lending criteria are causing the property market to head back to the eighties. In addition to the confidence being low, there is also a shortage of properties as lees than predicted number are being built.

Rental market

The report also predicts prices in the rental market will increase sharply as people struggle to own their own home.
The group, which represents housing associations in England, says a shortage of homes in the UK is also to blame.

House Prices set to rise

Across the UK, home ownership is expected is presently 67% of the UK population are owner-occupiers.

Oxford Economics which produced the forecasts for NHF, predicts the average house price in England will rise by over a fifth in the next five years from £214,647 in 2011 to £260,304 in 2016.

Santander Customer Service

Zanet — Sun, 10 Jul 2011 08:21:37 +0000

Does Santander deserve a second chance? Simon Read from the Independent believes so, as his article this week reasons the Spanish-owned company has good reasons why it’s failed and will turn things around in the coming months. A response too late for many customers who have overwhelmingly rated the Spanish giant bottom in a customer service poll on Martin Lewis’ money saving site.

Santander announced this week it was moving from Bangalore to Glasgow creating 500 jobs. Is this a response to the negative press Santander has received, being voted the 3rd worst customer service last year? Some say this move is to avoid rising costs in India as the average wage there is experiencing a 12 per cent rise.

Santander Customer Service - Not Great

Personally, I bank with Santander, actually Abbey, or go back further Abbey National. I have found though, the last few years have been appalling. Just getting my account on-line took the customer service and local branch several months due to the age of my business account and lack of knowledge in the branch. Then the queues always seem longer than any other branch in my local high street, overall if they put a slice of the marketing budget towards service, things would improve.

In the past, I hadn’t take out an Abbey / Santander mortgage, even though it was most appealing . I admire the clever marketing from Santander, especially as a huge F1 fan, but I also understand a mortgage should be judged ons what payments come out my pocket over the term, not how big the cash-back is for taking a mortgage with them. No doubt about it you cant ignore the marketing power and influence Santander has on the high street.

Simon Read brings out all high street lenders need to improve there customer service due to the amount of negativity since the credit crunch. A main part of the reason is the problems arising from merging Abbey, Alliance & Leicester and Bradford & Bingley. So it was good to hear new UK boss Ana Botin say this week that “Improving the service we offer is my top priority.”

Will Santander get customer service right? It will need to, if it wants to survive on the high street. Peoples perception is changing, television programmes like Mary Portas Secret Shopper, her web site claims, “I have been challenged by the Prime Minister and Deputy Prime Minister to undertake an independent review on the Future of the High Street – to help ‘bring back the bustle’ to our town centres”. Customer service is always top on her agenda and it is becoming large on banks too, if they want customers support in the coming months.

UK house prices set to fall

Zanet — Mon, 18 Apr 2011 15:16:47 +0000

Housing recovery doesn’t seem to be on the agenda for the next few years as analyst are predicting a further fall over the coming few years.

House prices are set to plunge by 20% by the end of next year, due to factors such as inflation and reduced mortgage lending. Some would comment this is totally expected due to the overpricing of property for several previous years.

Rightmove expect UK House Prices to drop

CheckRisk, a strategy adviser, predicted with rising interest rates and inflation such issues would effect UK prices. They reported the fall after a detailed analysis of several trends.

Ironically, the communities and local government department reports UK house prices increased by 0.3% in February 2011

In addition the Department for Communities and Local Government showed a 0.7% rise in prices for the year to February and a 0.3% rise during the month itself.

Royal Bank of Santander

Zanet — Thu, 30 Dec 2010 12:15:50 +0000

Royal Bank of Santander – Santander look set to buy Royal Bank of Scotland

It seems Santander the Spanish bank that bought Abbey National are about to purchase 318 branches from Royal Bank of Scotland. Thus our cheeky headline “Royal Bank of Santander”
Santander put a £2bn offer in April and is set to acquire 318 high street branches from the Royal Bank of Scotland as the only bidder left in a sale process that ends this Tuesday.

Santander’s controls 14% of the country’s mortgage market and 10% of retail savings and overall branches. Santander has survived the global financial meltdown after it sold parts of its property portfolio just as the market started to crack in 2007.

The Royal Bank of Scotland is trying to shore up its books as the government prepares a scaled exit from its ownership. The bank recently made its debut in the covered bond market, where banks issue bonds backed up by their loan portfolio. The bank raised €1.25bn, after attracting €1.9bn of orders from investors.

Royal Bank of Santander part of the Santander growth

Santander have already acquired Abbey National, Bradford & Bingley and Alliance & Leicester.It certainly looks set to become a large bank with a large appetite for UK success as it posted annual profits of £1.5bn in 2009, up 30% from 2008.

According to the Chairman of Santander “We expect a double-digit growth in Britain this year, pushed by a recovering economy through opportunities that may arise”

Do you think Santander is gaining to much strength in the UK? Are you a customers of Royal Bank of Scotland and had your accounts moved to Santander as part of the deal? Do you think it’s a fair deal?

Update: This completion date is now thought to be more likely in the early part of 2012 as both banks work through the complicated process of transferring customers between the two operations. Santander is experienced in this area, having taken over Alliance & Leicester and Bradford & Bingley in addition to the Abbey National acquisition that announced the arrival of the Spanish bank on the UK high street.