Our expert views and commentary on what’s happening in the world of mortgages and sometimes beyond, along with our regular summary of what the papers say.
Your mortgage is likely to be your biggest monthly outgoing, so it’s a great place to start if you’re looking to cut costs. Here’s our rundown of some of the mortgage resolutions you might want to consider making. ...
So-called ‘supersized’ mortgages have hit the headlines following the launch of a new mortgage enabling professionals to borrow up to six times their salary. ...
One in five (22%) first-time buyers is hoping their parents will cough up more than half the funds they need to get onto the property ladder, according to recent research. ...
Is moving house one of your New Year’s resolutions? If so, check out our list of do’s and don’ts to get your home ready for viewing and see if you can get the best possible price. ...
One in five mortgage holders, equivalent to three million people, believe they will still be paying off their mortgage beyond the age of 65, according to new L&C research. ...
Nearly two-thirds of people trying to move up the property ladder say they’re finding it harder than it was to buy their first home. ...
Thousands of first-time buyers every year manage to get onto the property ladder with help from their parents, but not everyone is lucky enough to have financial support from family. ...
Fixed rate mortgages have proved hugely popular in recent years, but with increasingly attractive variable rate deals on offer, is it time for borrowers to consider other options? ...
First-time buyers who are currently renting could find it easier to get onto the property ladder now that rental payment information will be included on their credit reports. ...
The Chancellor Philip Hammond will unveil his Autumn Budget on October 29th, with many speculating that he could announce a range of measures affecting the property market. ...
Lenders are urging the government to clarify the future of the Help to Buy scheme, warning that major changes could risk “significant market disruption.” ...
The number of self-employed people in the UK continues to grow, but getting a mortgage if you work for yourself isn’t always straightforward. ...
The challenges of achieving home ownership were highlighted once again this weekend, with the Financial Times reporting on recent figures published by the Office of National Statistics. ...
This year’s Gas Safety Week, which runs from September 17-23, aims to raise awareness of the dangers of poorly maintained gas appliances, which can cause fires, explosions, gas leaks and carbon monoxide poisoning. ...
Longer term 5 and 10-year fixed rate mortgages are becoming increasingly popular, as borrowers seek to protect themselves from further interest rate rises. ...
The Bank of England today voted to keep the base rate unchanged at 0.75%. ...
This weekend’s financial press looked at the future of Help to Buy, with experts sharing their views on whether the Government scheme should be amended, extended or scrapped beyond its current end date of 2021. ...
Gross mortgage lending reached £24.6bn in July, according to latest figures from trade body UK Finance, its highest level since March 2016. ...
UK house prices fell at their sharpest rate for six years in August, according to Nationwide’s latest monthly House Price Index, bringing the average cost of a home to £214,745....
The Financial Times reported this weekend on the increase in the number of Retirement Interest Only (RIO) mortgages coming onto the market, as lender confidence in this type of product grows. ...
Fixed mortgage rates remain at historic lows, with five-year rates available below 2% in May 2018. You don’t have to fix your rate for five years though to benefit from a low rate. Deals usually range from two years up to 10 years or longer, so you can pick a term to suit your needs. ...
Clydesdale Bank has become the latest lender to introduce a new range of mortgages specifically for professionals. ...
The desire for home ownership was a talking point in this weekend’s press, following recent research by Barclays which revealed that more than 60% of First Time Buyers view buying a home as a greater sign of commitment than marriage. ...
Homeowners with only a limited amount of equity now have a greater choice of remortgage options, with lenders including Virgin Money, Tesco and Atom Bank improving their offerings at this end of the market. ...
Whilst first-time buyers often rely on the Bank of Mum and Dad to help with their deposits, those planning their next move also depend on their support, according to the latest ‘Second Steppers’ report from Lloyds Bank. ...
Competition in the mortgage market has been heating up recently, with new figures revealing the ever-shrinking margin between average 2 and 5 year fixed rates. ...
First-time buyers who manage to get onto the property ladder could save an average of more than £2,200 a year compared to renting, with buying now cheaper than renting in all areas of the UK. ...
More than 40,000 homeowners remortgaged in April, according to latest figures from trade body UK Finance, up 36% compared to the same month last year. ...
According to new L&C research, if house prices continue to rise at the rate they have in recent years, the proportion of properties which qualify for this exemption will fall dramatically by 2028....
Saving for a deposit is often the biggest challenge first-time buyers face but increasing numbers of lenders are introducing new mortgage deals which only require a 5% deposit. ...
The Sunday Telegraph reported this weekend on the narrowing gap between 2 and 10 year fixed rates, as lenders compete to attract borrowers looking for longer term peace of mind. ...
House prices fell by 0.2% in May, according to latest figures from Nationwide, with ongoing pressure on household budgets helping push down prices. ...
More than half of millennials – those aged between 18 and 35 - are considering buying a home with friends or family to achieve their aim of getting on the property ladder. ...
Both ends of the lending spectrum were covered in this weekend’s financial press, and in particular the criteria that is enabling different generations to either get onto the property ladder, or stay on it. ...
Four in 10 millennials are living in rented private accommodation at the age of the 30, according to a recent report by think tank the Resolution Foundation....
The Post Office has introduced a new ‘Family Link’ mortgage aimed at first-time buyers that can afford monthly mortgage payments but who don’t have a deposit to put down. ...
After several years of steady increases, the number of people working on zero hours contracts has plateaued. ...
Buyers, including many first timers, who signed up for the government’s Help to Buy equity loan scheme in its early stages will soon start being charged interest on their loans. ...
M&S Bank has launched its first mortgage range, which includes fixed and tracker deals for those moving home or remortgaging, as well as for first-time buyers. ...
House prices slowed in the year to the end of November, according to Halifax’s latest house price index, rising by 3.9%, down from 4.5% in October. ...
Tomorrow’s Autumn Budget sees growing speculation that the Chancellor could announce measures to help first-time buyers, as well as plans to build more houses. ...
You’ve found the property you want to buy, but now you need to get it for the right price. We understand that haggling on the property price can be tricky... So here are our top tips to help you buy a property at the best possible price. ...
Moving home is supposedly one of life’s most stressful events, but a bit of careful planning can help ease the strain. Here are some of the things you need to think about when making your move....
Increasing numbers of homeowners are opting to stay put rather than move up the property ladder, according to research by the Council of Mortgage Lenders (CML). ...
Leaseholds on new build-houses could soon be banned under new proposals being considered by the government. The government said that it will consult on whether to prohibit the sale of new build leasehold houses and limit the amount of ground rent that can be charged. ...
Saving a deposit can take years, but there are schemes and mortgages that can help. Here are three ways to get on the property ladder with a smaller deposit....
The Bank of England left the base rate unchanged at 0.25% in it’s May meeting, but warned that rising living costs and falling wages will mean “challenging” times for many households this year. ...
If you receive a large proportion of your income from bonuses, getting a mortgage isn’t always straightforward. ...
Let to buy can be an option for those who want to purchase a new home whilst keeping hold of their current property and letting it out. As someone looking to buy a new property, it can allow you to release some equity from your current home and put it down as a deposit on your new one.It’s a popular choice for couples who move in together later in life, perhaps once they both already have their own properties. In this case, you’d both move into o...
Applying for a mortgage can be tricky, but if you’re a self-employed worker, freelancer or contractor, you could face extra challenges. Here's what you'll need to get a mortgage as a self-employed person... ...
Buying a property is likely to be the biggest purchase you’ll ever make, so it’s vital you choose carefully. Here are five things you should ask when viewing a property....
Let’s face it, if you’re buying a home or remortgaging, the huge choice of mortgages available can seem bewildering. Should you go for a fixed rate deal, a variable rate deal, or an offset mortgage? And how much will you be able to afford?...
When buying a property in England or Wales, two of the most important terms to get to grips with are ‘exchange’ and ‘completion’. Only once you’ve done both of these will you be able to get your hands on the keys to your new home. Here’s what you need to know....
If you’re looking to bump up the value of your property, perhaps with a view to selling it, then the good news is that lots of improvements can be made without breaking the bank. Here are our top tips on how to add value to your home....
First-time buyers struggling to get onto the property ladder often find that they can only afford to buy if they club together with friends....
You’ve found a property you want to buy and got your mortgage application ready to go, so now you need to hire a solicitor and make sense of their quotes...
A mortgage is one of the most expensive commitments many of us will ever take out, but even some of the savviest households fail to consider cutting the costs of their mortgage. ...
Predictions for the housing market continued in this weekend’s financial press....
The Times, Independent and Sunday Times reported this weekend on the latest launch of headline grabbing rates, following the release by a high street lender of a 2 year tracker below 1%. Experts agreed that it was sure to attract attention, but before applying borrowers must consider other factors including set up fees and minimum payable rates (collars).The Independent on Sunday looked at the issues can arise when purchasing an ex-local authorit...
***THIS COMPETITION IS NOW CLOSED*** Thanks to everyone that entered the competition! The winner of the competition is Iain Maciver, who voted for Riverrun as his favourite Game of Thrones castle and will be receiving a canvas print of the castle very soon. Keep checking back to the London & Country blog for more competitions and updates! Here at London and Country Mortgages, we decided to value seven castles from the hit TV show Game of...
Stamp Duty Land Tax is a controversial issue for some. Originally introduced as a historic tax in 1694, it is something that is unavoidable if you are buying a house.You must pay this tax by the official moving-in date (or possession date) of your new home.The stamp duty that we recognize today was first introduced in 2003, and has just undergone the biggest change since it was introduced. How does stamp duty work? If involved in the purchase p...
The financial press took a look at different aspects of the Buy-to-Let market this weekend. The Times reported on recent research which revealed that around 16% of those who will be cashing in their retirement pots following April’s ‘pension freedom’ reforms plan to invest in Buy-to-Let property. While this may be a way to generate income into retirement, experts warned that potential investors need to understand the implications regarding income...
One of the biggest mistakes I’ve seen buyers make over the years is not working out how much their mortgage repayments will be before they go looking at properties.One of the most common things that a lot of first time buyers do is fall head-over-heels in love with a property without considering all the factors involved; like interest rates, charges, legal fees or their monthly outgoings.Buying a house is probably going to be the biggest purchase...
Being a first time house buyer is a daunting prospect. There’s a mine of information to get your head around, lots of financial terminology, and most crucially - a lot of saving to do. As it’s your first time, it’s all new to you, of course. But everyone has to start somewhere, right? And hopefully, it’ll lead to the home of your dreams, so it’s well worth the budgeting and planning. How much am I likely to need? One thing that’s for certain is...
There have been so many changes to the property market within the last few years, that for first time buyers coming into the market right now, it’s like a whirlwind. Knowing the right places to look; the appropriate checks to ensure you do; and the changes in mortgage rates and house prices; it’s almost like you need a degree to understand everything involved in the process of buying a house.So here’s a quick guide to the most important things yo...
With the Council of Mortgage Lenders reporting that around 67% of mortgage are currently on lender Standard Variable Rates, and Bank of England Governor Mark Carney’s recent comments regarding the potential for rates to increase earlier than expected, brokers are anticipating a busy period for remortgaging. Experts in the Sunday Times predicted a spike in fixed rates and urged borrowers to act now to protect themselves, perhaps by considering a l...
The Observer reported this weekend that a tightening up of rules regarding affordability and the withdrawal of cheap lending will mean mortgages are harder to secure this year. The Mortgage Market Review comes into force in April, and brings with it stricter rules from the Financial Conduct Authority, meaning lenders will be forced to look at borrowers’ finances in greater detail. Homeowners will also be stress tested to see if they can afford th...
Lender criteria was the focus of mortgage news in the financial press this weekend, with the Telegraph revealing that lenders are cracking down on borrowers who fail to notify them that they are renting out their properties. Many accidental landlords are trying to avoid being transferred to higher Buy-to-Let rates, so lenders are checking electoral roll registers, social media websites and online letting agencies. The Sunday Times looked at crit...
Figures released by the Halifax today suggest that new build properties have increased in price by 12% in the last five years, now costing on average almost £234,000.In contrast Halifax’s house price index suggests the average overall price in January ’08 was £191,000 compared to £162,000 at the end of 2012 – a drop of around 15%. So it would appear new builds have been significantly outperforming the general market. This may not be a huge surpri...
Mates Mortgages has become a commonly used phrase particularly when the previous Housing Minister referred to them as a possible solution to some of the woes of aspiring first time buyers. The term sprang from the growing trend of borrowers clubbing together to pool their resources, both in terms of pulling together a larger deposit and generating more borrowing power with two (or more) incomes.There’s nothing difficult about having more borrower...
The big news for prospective homebuyers in this week’s budget was the launch of the new help to buy scheme. It is aimed at helping people buying their first home or move up the housing ladder – specifically those who are struggling to find a big enough deposit.There are two parts to the scheme an “equity loan” and a “mortgage guarantee” and both aim to improve the access to and affordability of mortgages. Both are also open to a wider audience ...
Barclays is the latest lender to look at providing an innovative solution to the single biggest problem facing many first time buyers, a big deposit. As the mortgage market has tightened, lenders have pulled away from offering mortgages to those with small deposits and only a handful offer mortgages to those with just 5% to put down. As a result first time buyers need to typically amass at least 10% of the purchase price. In addition they can e...
Life insurance is regularly purchased on the basis of which insurer can offer the cheapest rate for the cover required; after all, there is only one circumstance when the policy will pay out, which is the death of the policy holder. However, there are some extra features that can add real value to a life policy which it would be sensible to consider at the point of purchase. Flexibility Flexibility is a key component of any policy. Most people w...
Hardly a day goes by without a mortgage lender announcing an improvement to its mortgage rates. This increased level of competition has on occasion seen some 2 year fixed deals drop just below 2% and 5 year deals below 3%.This improvement in lender appetite has certainly been assisted by the Funding for Lending Scheme (FLS). The FLS was announced by the Bank of England in July and launched in August to provide a source of cheap funding for lend...
I had planned to talk about the budget today but for one thing everyone’s at it and for another, aside from the 15% rate on those attempting to dodge stamp duty by buying through a company plus retrospective hits for anyone weaselling out of that (got my inner leftie popping the cork on a bottle of People’s Sparkling Turnip Wine, I can tell you), there was little of interest from a mortgage point of view. I suspect the 7% rate will be largely gre...
Bank of England data released today shows that home owners are continuing to favour paying down their mortgages rather than borrowing more against the value of their homes. Housing Equity Withdrawal (HEW) for quarter two of this year was again a negative figure of more than £9.1bn. This compared to -£8.9bn in Q1 – another sign of the difficult conditions for the housing market.There is undoubtedly a reticence among borrowers to increase the siz...
With poor rates available for savers both the Daily Mail and Daily Express encourage borrowers to explore whether their savings will give a better return if they are used to offset their mortgage debt. They highlight how an offset mortgage works and how rates on offset mortgages, that used to charge a premium for this feature, have fallen and now compare favourably with standard mortgages. The Daily Mail covers the improved options now available...
CML (Council of Mortgage Lenders) data released yesterday showed overall lending for house purchase in July increased both in volume and value versus June, and was at its highest level since August 2010. There were a total of 48,800 home purchase loans with a value of £7.3billion.In addition lending to first-time buyers was at its highest level in a year at 18,200 loans with a value of £2.3billion and remortgages too showed a marked improvement, ...
Earlier this week, Aldermore Bank, the specialist mortgage lender, launched a new 100% mortgage deal which allows first or second time buyers to buy a new home without the need for a deposit.The scheme, called the Family Guarantee Mortgage, offers a mortgage up to 100% of the property value, with any borrowing above 75% Loan to Value (LTV) being secured against the home of a guarantor which can be a parent, step parent or grandparent.If the prope...
A new proposition was unveiled this week by Castle Trust, a firm that hopes to bring a new type of mortgage to the market and investments that are linked to house price movement. The new ‘mortgage’ will be for 20% of the property value and will not charge any interest or require any monthly repayments. Instead the borrower must pay back the loan when the property is sold, along with 40% of any growth in the property value. Take an example of som...
The number of people putting their house up for sale jumped in February, according to new figures from the National Association of Estate Agents (NAEA).Available stock in the UK housing market saw a 25% year-on-year rise last month with an average of 70 properties available for sale per estate agent branch – up from 56 properties per branch in February 2010.Property sales also increased in February – rising to an average of 8 per branch from 6 pe...
Mortgage affordability has hit its best level for 10 years, according to new research from Barclays.Having analysed more than one million customer accounts it found that people are currently paying 15.4% of their take home pay to cover their monthly mortgage payment – the lowest level since Barclays began the regular analysis ten years ago.The improved affordability was attributed largely to the current low interest rate environment – the UK has ...
This weekend’s financial press focused once again on the anticipated rise in interest rates. Mortgage brokers in the Independent, Sunday Express and Sunday Times reported that a lot of borrowers are now looking to secure a fixed rate to limit their exposure to increases, but many warned that they may have already missed the bottom of the market. Fixing is not for everyone of course, and as the gap between fixed and variable rates widens, many may...
Richard Branson’s Virgin Money is set to enter the banking world and purchase Church House Trust for £12.3 million. Virgin, who were rumoured to be in the hunt for Northern Rock, plan to invest a further £37 million in the Somerset based bank and will offer banking, saving and mortgage products.Virgin Money’s Chief Executive Jayne Anne Gadhia, said they aim to provide a different type of banking experience and “make everyone better off by offerin...
The Council of Mortgage Lenders (CML) reported that loans for house purchase reached 55,000 in October, the highest level since December 2007, and a near 100% rise from the trough of January 2009.They also released some interesting figures on the popularity of fixed rates. From a high of 80% of new loans in July, fixed rates were only chosen by 66% of new borrowers in October, a number which I suspect has fallen further since. Tracker deals seem ...
Alternative methods of purchasing a property were the order of the day this weekend, with The Guardian reporting on the return of the 100% mortgage, albeit in the form of a shared ownership scheme. The Mansfield Building Society has teamed up with the South Yorkshire Housing Association to offer the product, allowing buyers to purchase 60% of a property without a deposit, whilst paying rent on the remaining 40%. The Independent looked at lenders ...
Does that sound a bit ominous? It’s not supposed to be, as there’s good news…….at least I think it’s good news. Nationwide released their latest house price index today which showed prices grew on average by 0.9% in June. There, that’s it, good news. But even better, the three month change, which is regarded as a more reliable indicator of what’s really happening, turned positive (went up to you and I), for the first time since December 2007. Br...
From 2010 some of the best known names in UK banking including Abbey and Bradford & Bingley savings will disappear from our high streets. Spanish banking giant Santander announced that both Abbey and B&B will be rebranded early next year, with Alliance & Leicester following in the £12 million move. It expects to save £180 million from the changes, which once completed, will allow customers to use any of the 1,300 rebranded branches to...
Several of the articles in this weekend’s financial press looked at the difficulties faced by both potential and existing borrowers in the current climate. The Guardian reported on the lack of availability of shared ownership mortgages to anyone who doesn’t have a perfect credit score, while the Independent and the Times both discussed the increasing fear of repossession. On a more positive note, the new Lloyds TSB ‘Lend a Hand’ mortgage featured...
The debate continues over whether we are genuinely seeing some green shoots of recovery in the housing market. The latest house price figures from Halifax reported a fall of 1.7% in April, but the Royal Institute of Chartered Surveyors (RICS) has this month reported that enquiries and sales are continuing to pick up.It found that enquiries increased for the sixth month in a row in April and sales also edged up, albeit from historically low level...
The Daily Mail this week revealed that thousands of First Time Buyers who applied for help through the MyChoice Homebuy scheme have been told that there is no more money available. The scheme allowed housing associations to supply a low cost loan with the buyer funding the rest with a deposit and mortgage. The Government allocation for the 2008-09 tax year was quickly used up however, and many housing associations made promises to applicants base...
As we have come to expect, both Nationwide and Halifax reported house prices falling further in April, but by differing amounts.Nationwide reported a drop of 0.4% to an average price of £151,861, and Halifax a much larger drop of 1.7% to £154,716, giving annual reductions of 15% and 17.7% respectively.Nationwide welcomed the extension to the stamp duty holiday announced in the budget. Before the initial stamp duty announcement last September, onl...
Both the Daily Mail and Express today looked at Nationwide’s decision to replace its current Base Mortgage Rate with a higher Standard Mortgage Rate, and suggested that other lenders, with the exception perhaps of government-backed institutions, may soon follow....
There is news today that Nationwide has removed their promise to peg it’s variable rate mortgages to the bank rate.Instead of offering customers their current follow on rate (BMR), new customers will revert to their Standard Mortgage Rate (SMR) at the end of any fixed rate mortgages taken out after 30th April.Whilst this is an interesting insight in to the difficulties many lenders are facing, it also serves as a striking example of an industry o...
Here are the main points of the budget delivered yesterday by Alistair DarlingHousing & MortgagesThe temporary increase in the nil rate stamp duty threshold to £175,000 will be extended to the end of the year. This means around 60% of all house purchases will be exempt.£500 million will be provided to enable stalled housing developments to be completed£100 million will be given to local government to build energy efficient housing.£50 million...
BorrowingThe Bank of England (BoE) has reported that mortgage approvals for house purchase in February reached their highest point since May last year. At just under 38,000 approvals for £4.5 billion the transaction numbers were up 19% from January in another good indicator for the housing market. The Bank of England data for February showed an increase in net lending of £1.3bn, higher than the January increase but below the six month average. T...
In its latest housing market survey, the Royal Institute of Chartered Surveyors (RICS) has noted that "Buyer interest is starting to gain real momentum”, although it admits that the market is “still in a fragile state”. Its figures for March showed that new enquiries increased for the fifth consecutive month and the key sales to stocks ratio rose for the third consecutive month.Meanwhile, Nationwide’s latest House Price Index reported a surprise ...
The Government has announced a second round of packages aimed at stabilising UK banks and encouraging lending. The measures will see billions of pounds of taxpayer’s money pumped into the effort to free up funds, which it is hoped with be lent to both homeowners and businesses. In the original round of measures last October, the Government committed £37 billion, but this round could go much further.The package of measures includes an Asset Protec...
The British Bankers Association monthly statistics for November revealed a 60% drop in the number of mortgages approved for house purchases. There was also a sharp monthly drop in remortgage approvals. The figures confirm that the property market is extremely slow and looks set to remain so, with the Royal Institute of Chartered Surveyors stating their expectation of further house price falls in 2009. They voiced concern over the continued lack...
The Government has announced changes to Home Information Packs, to take effect from 6th April next year. The new measures are designed to ensure consumers receive more helpful information at an earlier stage in the home buying and selling process.A new Property Information Questionnaire (PIQ) will be included in the pack, which will provide a summary of information about the property in one place. The summary, to include flood risk information, g...
