Reading through the news this morning all I could find was doom and gloom in regards to the housing market - housing market remaining slow, pessimism affecting housing market and highly uncertain, being the main headlines online today.
But click on to them and read through and there is a glimmer of hope! So I have "swiped" the positive comments out for everyone to see below:
"“However, there is a very clear regional pattern emerging, with London seeing a greater level of price resilience, while in much of the North and Midlands the market remains under greater pressure.” http://www.estateagenttoday.co.uk/news_features/Housing-market-gets-off-to-a-bad-start-says-RICS
"Atlantic Canadians may feel they can afford to scrimp and save to pay off debt built up during a holiday buying spree, as the bank suggests, but those same people may feel that purchasing a new home is just too far out of their reach for now. But there is a touch of irony that a simple decision by individuals to hold off on making major purchases, such as a new home, ultimately affects the broader economy"
http://thechronicleherald.ca/Business/1226718.html
It seems that the Canadians are experiencing what we in the UK are. There is little confidence in the market and therefore people aren't buying - but if there was the confidence then we would see higher prices, more properties on the market and more work and better for the economy. Unfortunately (yes, I am on that "soapbox" again) until the Government puts pressure on the banks to make it easier to get a mortgage again we aren't going to see the influx of first time buyers on the market that we need.
Showing posts with label lending. Show all posts
Showing posts with label lending. Show all posts
Wednesday, 9 February 2011
Wednesday, 19 January 2011
More products?
Its a bitterly cold wednesday. Ice on the cars and on the roads. But I am in a happy place right now - I managed to get all 3 kids fed, washed and dressed before 8am without having to shout once! Normally I have turned into the fishwife from hell by 8am on a school day shouting at one or the other to hurry up, we will be late, get moving etc so to have not had to do that feels so good - don't want to jinx myself but maybe the kids are getting into the routine finally?
Work this week is quiet so I am concentrating on researching other products I can offer to my clients and (hopefully) potential clients. I already do EPCs, commercial EPCs, floorplans and inventories so other than check ins of tenants am not sure what else I can offer (any ideas let me know!). Have thought about videos of properties, a walk through of a property for sale - it would save time as potential buyers would be able to get a wonderful feel for the property but am not 100% on that at the moment. It would be similar to the 360 tours that were in fashion some time ago but it would incorportate all of the property so that idea needs some looking into.
The current situation with mortgages is worrying me at the moment, unless the Government does something then the market is going to continue on its current path. We need to see the lending "freeing" up so that more people can get on the market! If the Government wants more people in work it would certainly help alot of builders get back to work if the housing market started moving again and it would, with stamp duty etc, give more revenue for the Government and help the UK get out of debt.
Work this week is quiet so I am concentrating on researching other products I can offer to my clients and (hopefully) potential clients. I already do EPCs, commercial EPCs, floorplans and inventories so other than check ins of tenants am not sure what else I can offer (any ideas let me know!). Have thought about videos of properties, a walk through of a property for sale - it would save time as potential buyers would be able to get a wonderful feel for the property but am not 100% on that at the moment. It would be similar to the 360 tours that were in fashion some time ago but it would incorportate all of the property so that idea needs some looking into.
The current situation with mortgages is worrying me at the moment, unless the Government does something then the market is going to continue on its current path. We need to see the lending "freeing" up so that more people can get on the market! If the Government wants more people in work it would certainly help alot of builders get back to work if the housing market started moving again and it would, with stamp duty etc, give more revenue for the Government and help the UK get out of debt.
Wednesday, 10 November 2010
Mortgages - some good news?
Michelle Slade, spokeswoman for financial information group Moneyfacts.co.uk, said: We are seeing a bit more competition back in the market as lenders want to do more lending.
They are trying to kick-start the remortgage market. Many people are on low SVRs and have no reason to move.
But despite the recent decline in mortgage rates, the cost of home loans still remains high compared with the Bank of England Base rate and swap rates.
Melanie Bien, of mortgage brokers Private Finance, said: Lenders are keen to entice borrowers off their cheap standard variable rates by offering increasingly competitive mortgage rates, which make them better profits. Yet while these mortgage rates are attractive, the best deals are still only available for those with significant equity in their homes, of 40 or even 50 per cent. The vast majority of those remortgaging will have much less equity, and therefore find it more difficult, to access a market-leading rate.
The latest mortgage index from John Charcol reveals that borrowers making enquiries about remortgaging spiked by 42% in October.
Commenting, Drew Wotherspoon, director of marketing at John Charcol, said: "October's actual mortgage figures showed a broadly even spilt between purchases and remortgaging for new cases.
“However, the real interest lies in the amount of enquiries to John Charcol in October. In September we had 600 new remortgage enquiries, but this figure rose to 855 in October, a significant increase of 42% month on
on month. This tells us that people are finally considering their options and are no longer content to simply sit on their lender's Standard Variable Rate (SVR).
And even more good news -
There has been a 22% increase in the number of products available for first-time buyers since the start of this year, according to moneysupermarket.com.
Clare Francis, site editor of moneysupermarket.com, said: "It's encouraging to see the number of mortgages available for those with reasonably small deposits increasing, but there is still a premium on rates for loans available up to 90% discouraging many first-time buyers. The best rates are still only available to those with large deposits - you need at least 25% and in some cases 40% to qualify and this is pricing many out of the market.
"First-time buyers are integral to keeping the housing market moving - if there aren't enough people jumping on at the bottom the market will eventually grind to a halt. A shortage of first-time buyers is evident around the country with many people struggling to sell their properties. Unless more lenders start offering 90% mortgages at affordable rates, it is difficult to see how this will be resolved. Increased competition would also help to push rates down, bringing the cost of mortgages available at high LTVs closer to the market-leading deals.
"Despite Base Rate having been left on hold at 0.5% again this month, an increasing number of economists believe interest rates will start rising sooner rather than later. Anyone thinking of buying for the first time may therefore be better off acting sooner rather than later as mortgages rates are likely to go up too. The housing market is also fairly subdued at the moment as the build up to Christmas starts, so it could be a good time to buy as sellers may be more than willing to negotiate on price."
Very good news, if the lenders are getting more interested in lending again there is a good possibility we will start to see more people coming onto the market and therefore bringing new life to the housing market within the UK. Plus if the lenders are showing confidence within the market it will hopefully spread.
They are trying to kick-start the remortgage market. Many people are on low SVRs and have no reason to move.
But despite the recent decline in mortgage rates, the cost of home loans still remains high compared with the Bank of England Base rate and swap rates.
Melanie Bien, of mortgage brokers Private Finance, said: Lenders are keen to entice borrowers off their cheap standard variable rates by offering increasingly competitive mortgage rates, which make them better profits. Yet while these mortgage rates are attractive, the best deals are still only available for those with significant equity in their homes, of 40 or even 50 per cent. The vast majority of those remortgaging will have much less equity, and therefore find it more difficult, to access a market-leading rate.
The latest mortgage index from John Charcol reveals that borrowers making enquiries about remortgaging spiked by 42% in October.
Commenting, Drew Wotherspoon, director of marketing at John Charcol, said: "October's actual mortgage figures showed a broadly even spilt between purchases and remortgaging for new cases.
“However, the real interest lies in the amount of enquiries to John Charcol in October. In September we had 600 new remortgage enquiries, but this figure rose to 855 in October, a significant increase of 42% month on
on month. This tells us that people are finally considering their options and are no longer content to simply sit on their lender's Standard Variable Rate (SVR).
And even more good news -
There has been a 22% increase in the number of products available for first-time buyers since the start of this year, according to moneysupermarket.com.
Clare Francis, site editor of moneysupermarket.com, said: "It's encouraging to see the number of mortgages available for those with reasonably small deposits increasing, but there is still a premium on rates for loans available up to 90% discouraging many first-time buyers. The best rates are still only available to those with large deposits - you need at least 25% and in some cases 40% to qualify and this is pricing many out of the market.
"First-time buyers are integral to keeping the housing market moving - if there aren't enough people jumping on at the bottom the market will eventually grind to a halt. A shortage of first-time buyers is evident around the country with many people struggling to sell their properties. Unless more lenders start offering 90% mortgages at affordable rates, it is difficult to see how this will be resolved. Increased competition would also help to push rates down, bringing the cost of mortgages available at high LTVs closer to the market-leading deals.
"Despite Base Rate having been left on hold at 0.5% again this month, an increasing number of economists believe interest rates will start rising sooner rather than later. Anyone thinking of buying for the first time may therefore be better off acting sooner rather than later as mortgages rates are likely to go up too. The housing market is also fairly subdued at the moment as the build up to Christmas starts, so it could be a good time to buy as sellers may be more than willing to negotiate on price."
Very good news, if the lenders are getting more interested in lending again there is a good possibility we will start to see more people coming onto the market and therefore bringing new life to the housing market within the UK. Plus if the lenders are showing confidence within the market it will hopefully spread.
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