Mortgage News

Almost one third of homeowners on SVR
19 August 2009

27% of homeowners are now sitting on their lenders standard variable rate (SVR), which is an increase from 23% earlier this year.

The current low levels of many lenders' SVR is proving temping for many homeowners who are choosing to stick with the variable rate and enjoy the lower payments while they're here.

From an adviser's perspective, we urge any homeowners currently enjoying these reduced payments to focus on reducing any other more expensive debt while you can, and if you are fortunate enough to not have any other debt, then concentrate on taking advantage of the lower interest rate by overpaying into your mortgage.

While it is difficult to predict how interest rates will move, eventually rates will rise again, so any households who can't afford to ride out any rate increases should seriously consider looking at a fixed rate for the security and piece of mind that comes with it.

For impartial advice, contact an independent mortgage broker and discuss your options. It's worth knowing what alternatives are available to you so you can make an informed decision and be aware of the potential cost to you of a rate increase.

Source: www.bestadvice.net

Repossessions figures down
14 August 2009

The second quarter of 2009 has seen repossessions fall by 10% from the previous quarter. However the figures are still up on the same quarter of the previous year.

This coincides with the Council of Mortgage Lenders reducing its prediction for repossession levels for 2009.

The number of households in arrears with their mortgage has also fallen, among signs that the housing and mortgage market are beginning to recover.

Source: BBC News

Many homeowners taking in lodgers
14 August 2009

The number of homeowners taking in a lodger to help pay the bills has increased considerably since the credit crunch began.

In the last 12 months, the number of homeowners renting out a room has tripled.

Under the governments "rent a room scheme", either a homeowner or tenant (check with your landlord first) is allowed to rent out a furnished room and receive up to £4,250 a year in rent tax free.

This is a great incentive for anyone who is struggling with mortgage payments and who also has a spare room available in their home. Abbey's research also estimated that there are potentially 16 million unused rooms in British households.

Source: Abbey Mortgages

Latest CML data shows market stabilisation
13 August 2009

The latest data from the Council of Mortgage Lenders (CML) shows signs of further stabilisation within the mortgage market, although transaction levels are still historically weak.

June saw 45,000 loans for house purchases with a value of £5.9m, which is over a 20% increase on Mays figures.

Of the 45,000 house purchase loans, 17,200 were for first time buyers, another increase since May.

The report also looks at affordability measures, and shows that the tightening of criteria seen at the beginning of the credit crunch slowly lifting, with the average income multiple for a home mover up from May to 2.76, and for first time buyers up to 3.08.

Source: Council of Mortgage Lenders

Interest rates held
6 August 2009

The Bank of England Monetary Policy Committee held its monthly meeting this morning and again decided to keep interest rates on hold at the historic low of 0.5%.

In an unexpected announcement, it has also been decided to inject a further £50bn into the economy via quantitative easing, on top of the £125bn already spent. Some experts have predicted that interest rates will also remain at current levels for another year whilst the impact of quantitative easing makes its way through.

Source: BBC News

RICS reverses house price forecast
6 August 2009

The Royal Institute of Chartered Surveyors (RICS) has reversed it house price prediction for 2009. Originally RICS predicted a fall of around 10-15% this year, but it now predicts that prices could actually be higher by the end 2009 than they were at the end of 2008.

Brigid O'Leary, senior economist for RICS, states

"There has been a clear change in the housing market over the past few months and, as a result, it is unlikely that we will now see the kind of house price falls widely predicted at the start of the year. Instead, the return of buyer demand and the limited availability of housing on the market could be enough to support prices so it wouldn’t be surprising to actually see prices increase further from here in the short term."

This news coincides with recent reports from both the Nationwide & Halifax house price index, both of which show increases in house prices over the last 3 months.

Worldwide financial planning predicted this first along with the house market crash and if you want to keep up to date with such predictions visit the section on the website that allows you to receive them for free. Here is the most recent article

The bottom for the UK housing market?

Source: BBC News

The new house price divide
3 August 2009

In the past, it has often been commented that there was a clear divide in house prices between the north and south.

Recent data appears to show a new divide emerging, that between the southeast and the northwest.

Recent figures from the Land Registry show an interesting divide in changing house prices, with a line starting in Bristol and heading northeast towards Newcastle. Those to the south & east of the line (including Devon & Cornwall) are experiencing rising house prices, while those to the north and west are seeing prices fall further.

Overall, property to the north and west of this line fell on average nearly 10% this year, while those to the south and east have risen on average nearly 8% a particularly worrying fact for those with a large mortgage. It is estimated that many purchasers of a property in 2005-8 could be in negative equity for some time, with some reports suggesting as long as 2014.

It may be a little early to be worrying about your post code, but it will be interesting to watch how this phenomenon progresses.

Source: Land Registry

Contradictory news on house prices
3 August 2009

Last week, on the back of price rises over a 3 month period, Nationwide Building Society stated there was a "reasonable chance" that property prices could end the year higher than they began in January.

This is a stark contrast to the opinion of the National Housing Federation (NHF), who estimate further drops in property prices over the next two years, forecasting a 12.2% drop in 2009 and a further 4.6% fall in 2010, before a slow increase in 2011.

The NHF further states that it believes many who bought at the peak of the market could be facing negative equity until 2014, by which time they expect house prices to have risen by 20% from their current value.

All this contradictory news makes it difficult for any buyers out there to make a decision on when exactly is the right time to buy. Ensure you think about the future in any decision you make and contact an independent mortgage broker to ensure you have the best possible mortgage to suit your needs, as depending on whose opinion you believe, a short term deal could leave you in a sticky or stronger position, so getting the right mortgage for you is more important than ever.

Source: BBC News