News & Insight

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 number of first time buyers over the past year has overtaken the number of home movers for the first time in more than a decade. ...

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...

There was a degree of scepticism in this weekend’s Financial Times over the predicted ‘Buy-to-Let Bonanza’ that could follow the recent pension reforms. Research suggests that only the top 7% could afford an outright purchase of an average property costing £180,000, and concerns over taxation are likely to prevent a rush to invest in property.While some older borrowers might be considering entering the Buy-to-Let market, the Telegraph revealed th...

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 reported this weekend on Government plans to launch a ‘Starter Homes Initiative’ – aimed at helping First Time Buyers aged under 40 onto the property ladder, by allowing them to purchase a New Build property at a 20% discount and with a 5% deposit. Experts in the Times expressed concern however that there will not be enough high Loan-to-Value mortgages available to support the initiative , particularly as most are currently pr...

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...

The recent measures announced by the Financial Policy Committee featured in this weekend’s financial press, with the Financial Times and Mail on Sunday reporting on the potential impact on borrowers. Experts suggested that a cap on the number of loans over 4.5 times income should prevent out of control lending but shouldn’t necessarily affect the willingness to lend, as affordability is now the key to anyone securing a mortgage, rather than incom...

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...

The Government this week released its first official figures on the new Help to Buy mortgage guarantee scheme which it launched at the beginning of October, saying that it is "already delivering".In the 4 weeks since it was launched, a total of 2,384 homebuyers have put in offers under the scheme with 10 having already completed.The new mortgage guarantee scheme is available across the UK and can help people buy a new home with a deposit of as li...

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...

Mortgage related news focused primarily on the second phase of the Government Help to Buy initiative this weekend, following the surprise announcement that the launch of the scheme was to be brought forward from January 2014 to this week. The Guardian reported that the Lloyds Banking Group, and RBS together with NatWest will be the first lenders to offer Help to Buy schemes, although rates and scheme details have yet to be confirmed. The scheme i...

In March this year the Government announced its new Help to Buy scheme – aimed at helping people to get on or move up the housing ladder with a focus on improving the access to and affordability of mortgages.Help to Buy comes in two parts – the first, launched on 1st April, is an equity loan scheme which sees the Government lend up to 20% of the value of a new build home.  The buyer puts down a deposit of at least 5% and must then find a mortgage...

A little time has passed since Bank of England Governor Mark Carney announced the new policy of forward guidance for the Bank’s interest rate setting committee, the MPC. So how have the markets reacted in the early days?Here’s a quick recap of the new stance. The MPC will not even think about raising interest rates (or indeed selling any of its purchased assets, what you might call Quantitative Difficulting!) until the unemployment rate drops bel...

Last week’s announcement by Mark Carney, the new Governor of the Bank of England, featured heavily in the weekend’s financial press. His intention to keep base rate at 0.50% until the unemployment rate falls to 7% will spell bad news for savers, but the Times and Sunday Times reported that mortgage rates are likely to remain low in the short term. Brokers suggested that borrowers should take the opportunity to lock into a long term fixed rate, pa...

Minutes of the July Monetary Policy Committee meeting were released this morning and make (moderately) intriguing reading. The headline is that for the first time in ages the Committee was unanimous in voting not to increase the Asset Purchase Programme (aka QE, aka printing money), after 5 months on the bounce of seeing three of the nine members voting for more QE. To be fair one of those three was former Governor King who’s no longer there, bu...

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...

Recent CML research shows the percentage of the adult population aspiring to own a home is nearing its lowest level in the last 30 years. Despite this, at 79%, it remains the aspiration of the vast majority. 18 – 25 year olds have shown the largest change in sentiment, with a reduction of 10% aspiring to home ownership since 2007 and 3% in the last year. This is a concern for the housing market, as it is first time buyers who provide the stimulus...

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...

The Royal Institution of Chartered Surveyors (RICS) recently published its housing market forecast for the coming year.  They are not the only one and there are plenty of house price forecasts around at this time of year with many predicting a fairly flat market.RICS is a little more positive in suggesting that there could be an increase of 2% in house prices over the year.  It also anticipates that the number of housing transactions will rise mo...

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...

2013 is forecast to be a more “stable and positive year” for both the housing and mortgage markets according to the Council of Mortgage Lenders (CML).  In its latest market update it said that lending to first time buyers and homemovers increased in October and it expects the recent improvements to continue into next year.The CMLs figures show a total of 49,500 house purchase loans being advanced in October, up from 43,500 loans in September and ...

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...

Three months after the launch of the funding for lending scheme, what impact has it had? Government figures showed that at the end of October, 30 lenders had signed up to the scheme – up from 13 at the end of September – which is a decent proportion of the market and in lending terms should cover the vast majority (the notable exception being HSBC who’ve declared they want nothing to do with the scheme). The main consequence so far (as we forecas...

The plight of the first time buyer in the current market is one that is well known but it’s often forgotten that they are not the only sector of the market struggling with the current climate.  Just as first time buyers have to deal with the need for big deposits to access the best rates, so too are some second time buyers.As we hit the 5 year anniversary of the credit crisis, the first time buyers of 2007 may be struggling to make their next mov...

Recent figures have suggested that mortgage payments as a proportion of disposable earnings are at a 15 year low for new borrowers.  The calculations from Halifax looked at the typical mortgage payments for someone purchasing a new home and found that, in the second quarter of 2012, they represented just 26% of disposable earnings.That figure has been steadily falling and have nearly halved since the peak of the third quarter of 2007, when paymen...

A recent survey by Nationwide BS has shown that just under half of homeowners are planning to make home improvements compared to only 8% that are planning to move.  The majority of those planning to make improvements had an update of their decor in mind to modernise the home but almost 1 in 10 cited increasing living space as the reason.These figures are unlikely to come as a surprise to homeowners that have considered moving recently.  The marke...

We couldn’t break for the weekend without mentioning the Jubilee!  Never ones to miss the chance to produce a stat, mortgage lenders have been looking at house price data over the last 60 years and although it will come as no surprise that they have increased, the scale of the rise is eye-popping.Nationwide’s house price index was first produced in 1952 and indicates that the average house price has risen from £1,891 to £166,022 in the last 60 ye...

The Financial Times and Independent on Sunday reported this weekend on further restrictions to lending criteria. Nationwide and Coventry Building Societies have become the latest lenders to restrict interest-only borrowing to 50% of the property value, and experts suggested that it will be increasingly hard for other mortgage providers to keep their current policies.  Borrowers who don’t meet the equity requirement could consider withdrawing cash...

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...

Figures just released by HMRC have confirmed an increase in property transactions in January 2012, up 23% compared to January 2011. This is undoubtedly being fuelled by first time buyers keen to get onto the property ladder before the 24 March stamp duty exemption deadline.The data shows there were 64,000 buyers overall in January, up 12,000 from the same month last year, and the highest January level since 2008.We have seen a similar trend at L&...

We’re almost through the second month of 2012, and what is abundantly clear is that lenders are really keen to develop their buy to let mortgage business this year. This isn’t of course too surprising as there were a number of signs at the end of 2011 that this would be the case.Data from the Council of Mortgage Lenders (CML) confirmed there were 84,000 more properties bought with a buy to let mortgage in 2011 than in 2010, and buy to let mortgag...

The last few years have been a difficult time for the mortgage market and the industry and borrowers alike have become used to the fact that there have been fewer mortgage options available as a result.However there have been some positive moves in the market in 2012 and some mortgage lenders are even showing a degree of innovation.  Just recently Norwich & Peterborough launched a new ten year fixed rate mortgage that it claims to be the lowe...

Despite an uncertain outlook for the mortgage market and a recent increase in rates by lenders including ING, experts in this weekend’s financial press suggested that there are still competitively priced deals to be found. The Times warned however that borrowers should watch out for extra costs attached to ‘best-buy’ rates, as many lenders have increased arrangement fees in order to spread the cost of the deal.  The Sunday Times reported on pred...

It will come as no surprise to many that first time buyers have been having a hard time of things recently and figures from The Council of Mortgage Lenders do little to change that view.It has published research of the first time buyer market that helps shed light on just how big an impact the changing mortgage market has had on first time buyers’ ability to get on the ladder.  The tightening in the mortgage market since 2007 has seen lenders req...

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...

This week's Autumn Statement from the Chancellor was not expected to bring much news for the housing market, but it did confirm that the relief on stamp duty for first time buyers would come to an end in March next year.Stamp duty is normally paid on any property purchase above £125,000 but in 2010, a relief was granted to first time buyers purchasing a property up to £250,000.  The aim was to provide help to first time buyers who have continued ...

Times are still tough for first time buyers and getting a mortgage is often the hardest part of getting on the property ladder.There’s been some good news recently with big lenders like Woolwich and Nationwide relaunching 90% LTV (Loan To Value) mortgage deals for new customers, but a 10% deposit still requires a big chunk of money when you think that the average house price is now around £160,000.If you’re in the process of buying your first hom...

The Bank of England announced no change to either base rate or the asset purchase scheme at their November meeting, to nobody’s surprise.Having just announced an unexpectedly large round of quantitative easing last month (which will take four months to carry out ), it’s unlikely we’ll see any further move before February 2012 – which, coincidently, will coincide with a quarterly Inflation Report. They do like to align changes with reports because...

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...

After the release today of the Bank of England’s latest Monetary Policy Committee (MPC) minutes, you’ll probably see many scary headlines saying the Bank of England considered even more Quantative Easing (QE, aka printing money) than the £75 billion voted for. £100 billion in fact. Let’s balance that by pointing out that they also considered half that (the minutes cite “a range of asset purchases of between £50 billion and £100 billion”) and, in ...

The Building Societies Association (BSA) has reported encouraging lending figures for August. Mortgage approvals lifted by 10% on July this year and were up 17% compared with August 2010.  Gross mortgage lending reached an 11 month high in August lifting to £2.1bn and marked an increase of 8% on the figures for August 2010. These figures are indicative of the improved mortgage rates on offer and an increased level of competition between lend...