Search Results for: Mortgages
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Latest property news
Can equity release loans help agents save the day in a sluggish market?
Nearly half of all estate agent have seen an increase in the number of vendors forced into a sale to pay off interest-only loans over the past two years, an equity release firm has claimed. Based on its analysis of Council of Mortgage Lenders data, equity release firm Key Partnerships says the number of interest-only mortgages has decreased by a third since 2012, a trend created by the number of home owners looking to clear their outstanding mortgage debt via ‘forced sales’. But if agents can’t sell these homes in today’s sluggish sales market, Key Partnerships says agents should consider offering them finance packages that enable them to stay put rather than lose the sale to another agent. Forced sales These ‘forced sale’ vendors are the borrowers who took out interest-only loans 20-plus years ago but whose investment strategies have failed them or who never bothered to set up funds to pay off the mortgage debt when they stopped working. Key Partnerships says another 10,000 such sales are due to take place over the next three years and that most will be by older customers as they try to pay off their outstanding interest-only mortgages. Three quarters of those downsizing…
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Latest property news
Landlord confidence shrinks as government squeeze continues
The damage inflicted on the buy-to-let market by the government’s squeeze on landlord finances is laid bare by an in-depth report into the sector published today. Lender Kent Reliance says landlord confidence has shrunk alarmingly. Only 41% of those it canvassed say they have a positive outlook for their portfolios, down from 67% three years ago. The Buy To Let Britain report also says a quarter of landlords are finding it harder to get buy-to-let mortgages following the tighter lending rules introduced by the Prudential Regulation Authority. And faced with higher personal tax bills following the recent tax changes which restrict the amount of mortgage interest landlords can claim relief on, many are now moving their properties to limited company structures, the report says. Kent Reliance says 44% of all buy-to-let loan applications it received in the first three months of this year were from limited companies. And a quarter of landlords are considering moving their properties to the ownership of spouses in a bid to mitigate their tax liabilities. “A perfect storm of weakening house prices, higher taxes and lending restrictions have knocked investors’ confidence,” says Andy Golding, Chief Executive of Kent Reliance’s parent company OneSavings Bank (pictured, left).…
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Features
Coalface reports: Torquay, Norwich & Sawbridgeworth
This month we meet members of The Guild of Property Professionals in Torquay, Norwich and Sawbridgeworth.
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Latest property news
ZPG reveals record growth, 750 returning agents plus lettings and mortgage launches
ZPG has reported record results in its half year results for the six months ended 31st March. This includes revenues up by 22% to £117.9 million, and profits that have increased by £25 million. The company also says it has seen “accelerated win backs” from OnTheMarket.com and that over the past two years the number of agents returning to the fold now totals totals 750. Over the past six months ZPG has also grown its branches list by 6% to 14,271 and its inventory by 9% to 928,000 listings. This caps a busy year for the company which has been expanding its vertical integration through the industry with the acquisition of data firm Hometrack, which ZPG say now services 17 out of the top 20 banks, and agent software outfit ExpertAgent. But these acquisitions have cost it dearly – debt at ZPG is now £209.3 million, borrowing which has also reduced its profits for the six month period. Mortgages ZPG has also revealed that it now has a mortgages team, part of a plan to expand its presence in the home financial services market. Traffic to its website and apps grew by 5% to 314 million visits and the company also…
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Resources
Rent inflation dilemma for landlords
Rents are rising at a slower pace than general inflation, the new HomeLet Rental Index reveals, leaving landlords who are facing higher costs with a dilemma.
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Latest property news
Merge! Close! Sell!
It’s been Spring Cleaning time in the property agency market as the larger groups take action to maintain profits.
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Features
Finding the funding
The housing market is steady, if not flying, but funding is challenging for many buyers, delaying sales, says Sheila Manchester.
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Latest property news
Number of landlords setting up limited companies rises nearly four-fold
The number of landlords setting up limited companies to run their businesses through has increased dramatically as the April 6th tax relief deadline looms, it has been claimed. Lender Mortgages for Business says the number of landlords applying for loans through limited companies has increased from 21% of all applications in 2015 to 77% of today, an almost four-fold increase. Purchases and transfers Mortgage for Business says the increase is made up of both landlords purchasing properties through newly set-up limited companies, and those transferring existing personally-owned properties to limited companies. The government is gradually reducing the finance cost relief that landlords personally receive on their mortgage interest payments each year between now and 2021, when the relief will end. Limited company mortgages are also quickly starting to eat up more of the overall buy-to-let market, increasing from 18% two years ago to 47% today, and the number of buy to let mortgages available has increased too, by more than a third. “With the changing face of the buy to let mortgage market, it is no surprise that lenders are keen to appeal to limited company borrowers,” says David Whittaker, CEO of Mortgages for Business (pictured, left). “We have been…
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Latest property news
First-time buyer frenzy
First-time buyer activity rose to 36 per cent of market activity in February...
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Latest property news
2016 Countrywide results reveal £15.8m spent on branch closures, and profits down by 59%
Countrywide PLC has this morning revealed its results for 2016 following what Chairman Peter Long describes as a “difficult year” for the company. Highlights of the Countrywide results include revenue that edged up half a percent to £737m, profit before taxation that nosedived by 59% to £19.5%, a £32.8 million windfall from the sale of ZPG shares and a strong performance by its mortgages, surveying and lettings businesses. Chief Executive Alison Platt (pictured, below) reveals that the company focussed on cost cutting last year to the tune of £10m, although its restructuring costs included spending £8.1 million on redundancies and £15.8 million on branch closures. This has included a ‘management delayering’ that has saved £5 million and headcount ‘rationalisation’ in marketing, finance and new homes that has saved £1.5 million. Countrywide also says it saved £3.5 million by consolidating branches in 180 locations and involving 214 branches. Alison Platt blames the poor performances of Countrywide’s sales businesses on uncertainty caused by the EU Referendum result as well as the recent Stamp Duty changes, which she says have both led to falling volumes of properties for sale. The number of homes sold via its brands dropped by 1% outside London to…
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