Search Results for: Mortgages
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Housing Market
Housing market picking up despite political uncertainty
The residential property market is showing signs of improving as “data points to a stronger pre-election housing market than we had anticipated,” according to a leading analyst. Concerns regarding a pre-election hit to the UK housing market appear to have been overemphasised, according to the investment bank, Jefferies, which has upgraded the residential property sector ahead of next month’s General Election following indications that the housing market is improving in spite of political uncertainty. The UK broking arm of the US bank estimated that residential property prices in London and the South East could fall sharply on the back of lower transaction levels. But despite a slowdown in the market, Jeffries has now changed its view on the sector, which includes listed estate agents and house builders. The reverse in views is largely thanks to a greater supply of mortgages, the Help to Buy scheme which has helped the new-build sector “punch above its weight”, and a strong lettings market which has offset the fact that fewer homes are changing hands on the sales market, helping to support estate agents in the process. Anthony Codling, property analyst at Jefferies, told the press, “The latest data points to a stronger pre-election…
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Latest property news
Average 2-year fixed rate falls below 3% for the first time
Mortgage borrowing rates are continuing to plunge with the average cost of a two-year fixed rate deal dropping below 3 per cent, new figures show. Fierce competition between mortgage lenders is increasing the options for borrowers, as well as pushing interest rates down to record lows, with five lenders now offering fixed rate mortgages of less than 1.3 per cent, according to financial information group Moneyfacts. The average cost of a two-year fixed rate mortgage has fallen by eight basis points during March to stand at 2.98 per cent – the first time it has ever dropped below 3 per cent. Average 2-year fixed mortgage rate by max loan-to-value Date Max 60% LTV – Ave Rate Max 70% LTV – Ave Rate Max 75% LTV – Ave Rate Max 85% LTV – Ave Rate Max 95% LTV – Ave Rate Overall 2 -Yr Fixed 01-Mar-15 1.93 2.67 2.81 3.06 4.9 3.06 29-Mar-15 1.92 2.65 2.72 2.89 4.81 2.98 Change -0.01 -0.01 -0.09 -0.17 -0.09 -0.08 Source: Moneyfacts.co.uk The drop in rates is due to increased competition and falling…
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Housing Market
Pensioner property wealth hits record high
Retired homeowners in the UK now collectively own property worth £861 billion with their total property wealth increasing by more than £33 billion in the past six months, the equivalent of around £1,200 a month each. New research from over 55s financial specialist Key Retirement Solutions says that their total property wealth is now at its highest level since the firm started monitoring the housing wealth of the over 65s five years ago, with pensioners who own their homes outright having earned an average of £7,117 each from their homes in the past six months. Since Key started monitoring the housing wealth of the over-65s, in January 2010, total pensioner property wealth has increased by £81.27 billion – the equivalent of £17,323 each. Its Pensioner Property Equity Index shows over-65 homeowners now own property wealth of £861.188 billion outright as a result of higher property prices across most parts of the UK. Retired homeowners in London saw the biggest gains, at an average of over £20,675 each in the past six months, while homeowners in the South East are more than £14,123 better off and pensioners in East Anglia are £13,105 better off. Only retired homeowners in the North East…
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Supplier advice
Turn over a new (green) leaf
John Davidson says that agents have a great opportunity to help landlords and buyers benefit from the Great British Green Deal.
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Features
Developing portfolios
Pitiful savers rates, rising rents and low cost mortgages are fuelling demand for buy-to-let investments, presenting agents with revenue making opportunities, as Marc Da Silva reports.
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Guest Blogs
General election
Brandon Lewis, The Minister of State for Housing and Planning, reflects on what the Coalition Government has achieved on the housing front and gives us an insight into the Conservative Party’s strategy if elected in May.
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Housing Market
General Election
With the clock ticking towards the 7th May, this is a good time to reflect on what we’ve achieved in this parliament. In 2010 we inherited a broken housing market: builders couldn’t build, lenders wouldn’t lend and buyers couldn’t buy. Housebuilding starts were at their lowest for any peacetime year since the 1920s and a generation of hardworking young people – who could have rightly expected to take their first step on the property ladder – were locked out of homeownership. Great progress has been made but the challenge remains considerable.” Fast forward to today and the landscape is very different. The numbers of first-time buyers has hit a seven-year high; planning permission has been granted on 240,000 new homes in the year to October, and housebuilding starts are at their highest since 2007. LONG-TERM STRATEGY And this turnaround didn’t happen by accident – it required a longterm economic plan to restore confidence to the market and get the country building again. Above all that meant security. Firm action to tackle the deficit – keeping interest rates at their record low, ensuring mortgages remained affordable and encouraging business investment. We’ve supported the aspirations of hard-working people. Help to Buy is…
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Latest property news
Sharp rise in 10-year fixed rate mortgage deals
The number of 10-year fixed rate mortgage deals on the market is continuing on a sharp upward trajectory to meet rising demand for longer-term home loans, a new study shows. Research from Moneyfacts reveals that the number of 10-year fixed rate mortgage deals on the market is increasing rapidly Shorter term fixed rate mortgages have been the favoured option for borrowers for many years, but the historic low rates on offer in today’s market means that fixing for longer periods is definitely an attractive offer, hence the rise of the decade-long fixed rate. In January 2014, there were just eight 10-year deals to choose from, but by October that number had risen to 22, and just three months later, the figure today is 77. Along with an increase in choice, the interest rates being offered are also falling. The average rate fell from 4.23 per cent in January 2014 to the lowest average 10-year fixed rate deal ever, at just 4.17 per cent. Number of 10-year fixed rate deals Jan-13: 15 Jan-14: 8 Oct-14: 22 Today: 77 Average 10-year fixed rate mortgage Jan-13: 4.58% Jan-14: 4.23% Oct-14: 4.98% Today: 4.17% www.moneyfacts.co.uk “The 10-year fixed rate bandwagon is…
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Housing Market
Property shares nosedive
Share values across the property sector have dropped in recent days amid growing signs that the residential property market is slowing, especially in previously buoyant London and the South East. Countrywide, the country’s largest estate agent, saw its shares drop by 2.9 per cent late last week, while Rightmove and Zoopla’s share prices fell by 3.7 per cent and 2.5 per cent respectively. House builders also failed to escape unscathed from a raft of recent property reports and house price indices that suggest that it is fast becoming a buyer’s market as the market cools. Developers listed on the FTSE 100, such as Taylor Wimpey, Persimmon and Barratt, all saw their share prices depreciate by more than 4 per cent at the end of last week, with further falls anticipated by some market analysts. Stockbroker Jefferies, for instance, last week downgraded the entire residential property sector, projecting that London and the South East may see property price falls in the months ahead. A research note from Anthony Codling, Jefferies’ property analyst, which was made public last week, suggested “share price weakness in the UK residential sector” in the first quarter, on the back of “negative newsflow on UK mortgage approvals,…
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Features
Mortgage market review: Draconian measures and £3billion lost
Nigel Lewis asks, was the Mortgage Market Review a step too far?
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