Tag Archives: Mortgage Advice

wing walkers at wales airshow 2019

August Newsletter

Community:

Wales Air Show 2019

On the weekend of the 6th & 7th July the Dawsons Property team of volunteers headed down to Swansea Bay to work at the Wales Airshow for the 2nd year running.

Dawsons Property Blog August 2019
“Tag your Tots” was the theme, and positioned at the entrance, the staff were on hand to get all of the children wristbands with their parent’s emergency contact details secured on their arms, so that, heaven forbid, they wandered off during the excitement,  their parents or guardians could easily be contacted and traced….. especially with all eyes raised up to the sky for the aerobatic entertainment.

On top of this, there was lots of face painting, aeroplane stencils and glitter at the ready, plus selfie frames for photos and lots of advice about the events happening over the 2 days.

We took so much pride in being a part of the anniversary celebrations for Swansea City’s 50th birthday.

Industry News

Whether you’re over the moon or underwhelmed, Boris Johnson is now Prime Minister of the UK.

boris johnsonHe’s got form in the housing sector including his relatively unsuccessful attempt to introduce a minimum ‘rental standard’ in London when he was mayor, but now takes charge of a government that has several flagship housing market measures underway.

Will Bojo keep his housing team as it is? Will he alter James Brokenshire’s plans to reform Section 21 evictions, reform leasehold ownership, regulate estate agency and set up a publicly-available database of rogue landlords and agents? And will he follow through on his promise to reform Stamp duty? It will be an interesting few weeks. Effectively we here in Swansea have Rent Smart Wales (RSW) which already has in place a number of the suggested processes – in simply terms policing the PRS and looking at continued ways to improve standards across the board without the unexpected and detrimental financial consequences.

(The Negotiator, Nigel Lewis)

August Top Tip:  

CHOOSE THE RIGHT SOLICITOR

Your agent can advise you on the best local solicitors. They speak to them daily and understand which will work the best with you. The last thing you want is a lengthy conveyance.

AUCTION NEWS:

Dawsons Swansea Auction Time

The auction department has grown from strength to strength over the last six months. With the average number of properties going to each auction rising from 19 to 22.

We have found that more and more vendors are preferring the auction method of sale. The transparent, no-nonsense approach is becoming all the more common amongst sellers and purchasers alike.

If you have a surplus property, a property with issues e.g. short lease, knotweed, structural issues, neighbour disputes or need to sell due to legal reasons, an auction can be a great tool. From the beginning of marketing to completion the auction process is roughly 8 weeks.

Please give us a call on 01792 478903.

Dawsons Auction Going Going Gone.

F & C Property Focus:  

Welcome to our newest team member at Fine & Country SwanseaLindsey Harrison, Client Relationship Executive

Lindsey joined our Fine and Country department after working as a visual merchandiser for Debenhams. Graduating with a BA (Hons) in fashion construction and design, Lindsey’s artistic eye and creativeness is the reason why she is a perfect fit for our marketing team and the source of some of the most impactful brochures you will see. She has the ability to highlight features and create a visual lifestyle for prospective buyers to aspire to. In her spare time, Lindsey enjoys spending time with her two horses and competing in local show jumping competitions.

Business Link:

The Optimist Bar and Kitchen, 59 Uplands Crescent SA2 0EZ Swansea

The Optimist Bar in Swansea are on the Dawsons Reward Card

The ever-popular, uplands bar and kitchen The Optimist has been a part of the Dawsons reward card scheme from the very beginning. With quality food and drink, excellent service and upbeat vibes The Optimist has established itself as one of Swansea best venues, whether it’s for mid-week brunch or weekend drinks, The Optimist is the place to be.

RAN:

Summer is upon us and the buyers are out and about, so it seemed a good time to introduce another RAN Focus Day to help not just local buyers with a property to sell but those from out of the area as well.

Dawsons Property Blog August 2019It took place on Wednesday 17th July. All of our sales offices worked frantically, helping clients with their relocation to new areas. We managed to assist 13 different clients to relocate and find their dream homes both in and outside of Swansea.

These focus days are a great opportunity to build relationships between agents and let everyone know how the Network helps customers relocate across the UK, whilst delivering great service.

Dawsons helped 13 clients relocate both in and out of Swansea, we are extremely pleased with that figure. Remember if you are thinking of relocating please call us.

Mortgage Advice Bureau (MAB) update:

Dawsons Property Blog August 2019

Our Mortgage Advisers all pride themselves on speed and service when it comes to arranging your mortgage. Last week Shaun Sturgess submitted 5 Applications, 7 days later the happy customers now all have full Mortgage Offers and are speeding along the road to owning their dream home! All this after negotiating with local estate agents and achieving the best price for the customer.

To see if Shaun or our other advisers can help you with the same level of service please get in touch.

Careers @ Dawsons:

WE ARE HIRING

Are you considering a career in Estate Agency, Property Management or Surveying? Click HERE.

 

 

 

 

 

 

 

 

Dawsons Property June Newsletter 2019

July’s Newsletter

Community

We sponsored the race shirts for the runners from the Paul Popham Running Club in 2019 Swansea half marathon and not only helped Underhill Park, Mumbles Community Council to get their Aviva grant in order to update their playground, we also got our very own picnic bench in the playground too!

Dawsons Sponsored the Paul Popham Running Club

Industry News

After winning gold in lettings and silver in sales at the 2019 EA Masters, we have now been assured that we are already in the top 3% of England & Wales for the 2020 awards.  We won’t find out if we are medal winners, but our clients can be assured our service is of the highest standard in the industry according to Rightmove & The Property Academy.

EA Masters Dawson win 2019

Formed in 1991, with 5 lettings and 8 sales branches along with our commercial, auction, land and new homes departments, as well as our Mumbles branch housing Fine & Country, we are now experts in all thing’s property. As our branches are based within our local communities throughout Swansea and Llanelli, we are the approved RAN agent for our area, ensuring each branch can offer the best possible customer service.

Financial Advice

If you are looking to buy your first property or your fifth one, there is one thing that you must do. Check your finances. Whether you’re a first-time buyer or a cereal mover you should always you’re your finances in place before you start your search. We here at Dawsons offer a free consultation with financial experts that have access to around 95 different lenders. Considerably more than our competitors. Our advisers can help you increase your budget, have cheaper monthly payments and help you manage investments. Don’t delay speak to one of our offices and get your finances sorted today.

Auction News

At the time of writing, we have a total of 14 properties ready for our next auction on the 14th of August. The properties are diverse and very popular: 4 bedroom detached in Llanelli, 2 bedroom mid terrace in mumbles, 3 bedroom semi in Ystralyfera and a 1 bedroom flat in Sketty. If you are thinking of investing your money, do it, why leave it in the bank at 0.7% interest. Invest in buy to let with a 9% return, buy a property with a view to getting a £20,000 return on investment.

There is money to be made in the auction room strike before the deals are Going Going GONE.

Fine & Country Property Focus

Fine & Country Swansea

The Fort, Port Eynon

Offers Over £650,000

The Fort at Port Eynon on for sale with Fine & Country Swansea

The Fort has been a family home for past 40 years for the current owner, has been a wonderful, joyful home with incredible views and proximity to Port Eynon beach, they will be extremely sad to move on.

This is a once in a lifetime opportunity to acquire a home in a truly incredible private position, nestled in generous immaculate grounds of just over an acre. The Fort sits proudly in an elevated, private position commanding beautiful sea views, ocean sounds and is perfect for those that enjoy the outdoor lifestyle.

Business Link 

Exall & Jones

Exall & Jones are on the Dawsons Reward CardBuilders and timber merchants based in the heart of Swansea City centre and in Killay with easy access to and from all the surrounding districts and the M4 motorway. 25,000 square feet of undercover storage area, a large heavy goods yard and car park.

Dealing with everyone from the occasional DIY’er to professional housing developers & a healthy business relationship with numerous major contractors across South Wales.

If you hold a Dawson’s reward card you automatically get a special price list – please call ☎︎ 01792 473748 for more information.

WE ARE HIRING

Are you considering a career in Estate Agency, Property Management or Surveying?

Current Vacancies

Reward Card

Spotlight on Rees Little Removals

Rees Little Removals Swansea on Dawson's Reward Card

An added bonus of being Dawson’s customer for sales or lettings means that you get to use the Dawson’s Reward Card.

Rees Little Removals a professional business helping the people of Swansea & the surrounding areas to move home and with your Dawson’s Reward Card you get a whopping 20% discount!

Rees Little Removals work on the basis of giving their customers exactly what they want in a removal firm:

  • Offering 100% confidence that the removal men turn up on time, on the right day!
  • Competitive quotations
  • Smart & well presentable young & fit team where uniform is compulsory
  • A happy can-do attitude
  • An upbeat positive workforce of “yes” men
  • Fully insured
  • Treat your items with the utmost care
  • Packing service
  • Catering for anything, they are just a question away.

Rees Little Removals Swansea on Dawson's Reward Card

Dawsons Property have an exclusive reward card for their clients in Swansea

Ask a member of our team for information on how to get one of our exclusive Reward cards providing you with discounts and offers in many local companies throughout Swansea & Llanelli

Relocation Agent Network

10,000 items of food campaign

2661 items for Dawsons Food Drive

Last month all of the Dawsons offices became collection points for a special estate agency incentive across the UK, headed by our agency charity Agents Giving and the national Relocation Agent Network. The goal was to collect 10,000 items of food across the UK. The target was reached with the final total being 10,600 items with Dawsons collecting a HUGE 2,661 items! Over a quarter of all items raised came from us.

This annual event is incredibly important because Foodbanks across the UK are being used more than ever before.  During the week, at Dawson’s, we collected for Trussell Trust foodbanks in Swansea and Llanelli.

Dawsons Mortgage Advice Bureau

Dawsons Mortgage Advice Bureau

Mortgage Success story 

Mr W. and Miss S. offered on a property with our Gorseinon branch however, after visiting their bank, they were not able to borrow the amount they needed and therefore their offer was unsuccessful.

Then after accepting advice from Dawsons Gorseinon Matthew Jones, the clients agreed to meet and speak with Dawsons financial advisors – Mortgage Advice Bureau. Upon delving deeper into their financial situation, the advisor was able to identify a lender from an extensive panel which would allow them to borrow in excess of £200,000…..some £100,000 more than their Bank would allow! Our clients then went on to purchase a home via a new build developer, at a much higher price than they ever thought possible… What could we be doing for you?

Dawsons Property Auctions Swansea

Top tips on what to do before bidding at Auction

It is so important to do your due diligence before you take the plunge and bid at an auction, so here are some top tips from our Auction Company EIG:

When considering purchasing a particular property at auction it is essential that you prepare by doing your due diligence research in advance. It is your responsibility to be completely satisfied with the property before the auction so you can make an educated decision whether to bid for the property or not and what your maximum bid would be.

Doing your due diligence includes:

  • Viewing the property
  • Ascertaining the likely sale price
  • Reading the legal pack

Then, if it is a property you wish to pursue it is prudent to:

  • Instruct a property survey
  • Ask your solicitor to review the legal pack
  • Viewing a property

It is important to view every property you are interested in prior to the auction.  Contact the auctioneer to arrange the viewing which may be arranged as fixed time slots for group viewings (open house viewings) or individually arranged.

It may be useful at this point to bring an experienced builder or knowledgeable friend with you to the property who can spot any potential problems that would need to be included in your financial calculations or may mean the property is no longer of interest to you.

When looking at buying any property it is advisable to view it at least twice, during the daytime and at night which may be just a ‘drive by’ viewing.  The plans and photographs published in the catalogue are there to aid identification of the property only, the plans may not be to scale so you need to verify them.

What to take to a property viewing:

  • Camera
  • Tape measure (preferably a laser as much quicker especially if viewing is busy)
  • Notepad or iPad
  • Torch
  • Binoculars (to check roof, gutter and chimney)
  • Portable ladder (to access loft space)
  • Suitable footwear (you may need to climb!)
  • Contact details of the auctioneer and research notes for further investigation in the area e.g. an unidentified building(Important #: Don’t forget to follow up and ask questions that arise from the viewing)

Points to evaluate:

  • Leasehold or freehold property, any additional ground rent or service charges?
  • Parking, garden, access and property boundaries?
  • Neighbours, traffic and noise?
  • Nearest shops and public transport?
  • Heating, insulation, plumbing, electrics?
  • Council tax band, energy efficiency rating?
  • Any structural issues or recent extensions?
  • Vacant or tenanted and history of the property?

Viewing in an unfamiliar area?

If an area is new to you, speak to the auctioneer and ask as many questions as you can.  It is also advisable to look online at crime sites, google the address and street, using some of the best online platforms, for example:

  • www.checkmystreet.co.uk – average rentals
  • www.streetcheck.co.uk – nearest schools
  • www.checkmyarea.com – area profile
  • www.police.uk – crime rate
  • www.rightmove.co.uk – for rental and sales prices
  • www.gov.uk/find-government-property – find government owned property
  • www.gov.uk/private-renting – private renting

Still interested?

If you decide that you are still interested in the property after viewing it, then now is the time to contact your solicitor and arrange a property survey in advance of the auction.

Dawsons Auctions powered by the Essential Information Group

Article Written By Beth Fox

 

 

See what is coming up for sale in this week’s Swansea Auction by clicking here

https://www.dawsonsproperty.co.uk/auctions.php

The Marriott Hotel, Swansea Marina
Wednesday 27th February 2019
Start time – 3pm

Oliver Adair MAB

Mortgage prices are at record lows – is now the time to take one out?

Analysts have announced that there may never be a better time to take out a mortgage, with figures showing that rates have nearly halved over the past 12 months.

With lenders in an ongoing mortgage price war as they try and persuade people to choose their mortgage deals over their competitors’, the UK’s leading independent mortgage broker, Mortgage Advice Bureau, looks at how potential borrowers could use the next six months to their advantage when buying a property.

“Swap rates can directly influence the interest rate that you pay on your mortgage, and last year the general consensus was that the Bank of England was going to increase the Bank Rate from its record low of 0.5%, which caused swap rates to increase in preparation. However, this increase never happened which has caused swap rates to tumble back down, thus providing lower interest rates for mortgage deals,” said Oliver Adair from Mortgage Advice Bureau.

“With the market finally beginning to catch-up on the slowed activity from last year and house prices continuing to increase, there is an air of confidence around lenders, hence the raft of cuts.”

Banks and building societies are also finding that they have surplus money due to the Funding for Lending Scheme. Launched in 2012, the Funding for Lending Scheme originally allowed banks and building societies to borrow cheaply from the Bank of England on the condition that they then use some of the money to offer mortgages to homebuyers, though it is now focused on funding lending to small and medium-sized enterprises (SMEs).

“With the current low level of inflation and the Bank of England concerned that lifting the Bank Rate would destabilise Britain’s ongoing recovery, it is looking increasingly more likely that interest rates will not increase until sometime in 2016,” explains Oliver. “This leaves lenders to fight amongst themselves in a thriving market full of previously struggling homebuyers hoping to take advantage of the low rates.”

The war will continue and fixed-rate deals may well stay at their record low rates for the coming months, alongside typical variable rates that have halved over the past 12 months, and five-year fixes that could go below 2%.

Oliver added, “The rate war is showing no sign of dwindling any time soon and with various new lenders entering the market, competition is heating up. Over the next few weeks, rates could reach levels that may not be seen again for an extremely long time. But the question is – what’s next for interest rates?”

We currently sit at 0% inflation – teetering on the edge of deflation. Bank of England Governor, Mark Carney, announced at a conference in Frankfurt last week that the next move for interest rates will be up, but chief UK economist at IHS Global Insight added that a likely rate increase won’t occur before the early months of 2016.

“Whilst it is looking like low rates may be around for the next few months at least, they could vanish as quickly as they appeared so it is important that you seek the advice of a professional mortgage adviser who can give you advice specific to your circumstances,” concluded Oliver.

Treherne

What does a Conservative government mean for housing?

So, the Conservatives have won the majority vote in Parliament and David Cameron is set to return to Downing Street as Prime Minister once again. But after this

somewhat surprising victory, how will homeowners, prospective buyers and landlords stand to benefit from the refreshed government?

Amid all of the parties’ manifestos, first-time buyers found themselves at the helm of attention. Labour pledged to give first-time buyers priority on new homes built for a period of two months and the Liberal Democrats proposed a ‘Rent to Own’ scheme where first-time buyers built up shares in their homes through renting.

The party that matters though is the Conservatives. David Treharne of Mortgage Advice Bureau looks at what the Tories plan on bringing to the table.

What have they proposed?

Their flagship policy, albeit a controversial one in the industry, is the expansion of the Right to Buy scheme which will see tenants of housing association properties receive huge discounts, allowing them to consider purchasing their homes.

1.3 million tenants could qualify for discounts of 35 per cent up to a maximum of 70 per cent up to a maximum of £102,700 in London and £77,000 across the rest of the country.

Help to Buy ISA

Announced in the Budget in March, come the autumn, hopeful and prospective homeowners will receive a Help to Buy “savings account” that will see the government top up £50 for every £200 saved towards a deposit, up to a maximum of £3,000.

Aspiring homeowners under a Conservative government would have access to a Help to Buy Isa, which would top up £50 for every £200 saved towards a deposit, up to a maximum top-up of £3,000. This was announced in the March Budget.

Only available for the next four years and being introduced in the autumn, the new savings account will only be available to consumers who are yet to buy their first home and will have no limit to how long people can use the accounts for.

First-time buyers based in London will be able to use the savings to buy properties worth up to £450,000, whilst the rest of the UK will see a ceiling of £250,000.

Discount homes for first-time buyers

David Cameron has pledged to offer up to 100,000 new homes to first-time buyers under the age of 40 at a discount of 20 per cent.

The ‘starter homes’ initiative has been created to encourage home ownership among young buyers and to boost construction of new homes by building on brownfield land – land previously used for commercial uses or industrial purposes.

While this means that, if you qualify, you will be able to afford a property that you would have previously struggled to, it should be noted that you will not be able to sell the home at full market price for five years after you purchase it.

A London Land Commission will also help release brownfield land owned by the public sector in the capital for building by promising a £1bn brownfield regeneration fund to unlock sites for around 400,000 homes.

With the general election now over and done with, new policies from the Conservatives will be coming through thick and fast which is why it is important to speak to a professional mortgage adviser who will have the latest information to help you through the mortgage process.

Treherne

First-time buyers to receive help with deposit for first home

In light of the 2015 Budget, David Treharne of Mortgage Advice Bureau discusses the new Help to Buy savings accounts announced by Chancellor George Osborne.

First-time buyers will get £50 for every £200 they save towards a deposit for their first home.

Announced in the budget, first-time buyers are to receive a new ‘Help to Buy ISA’, which will see the government add £50 to every £200 buyers manage to save towards a deposit.

Only available for the next four years and being introduced in the autumn, the new savings account will only be available to consumers who are yet to buy their first home and will have no limit to how long people can use the accounts for.

The account will also be available per person rather than per home, which means that couples looking to buy their first home will receive double the amount.

The accounts will come with no minimum monthly payment, though it should be noted that a maximum of £200 can only be saved in a month. The government has also capped the bonus they will pay in at £3,000.

First-time buyers based in London will be able to use the savings to buy properties worth up £450,000, whilst the rest of the UK will see a ceiling of £250,000.

An example of how the scheme could work was given by the chancellor George Osborne delivering his Budget: “A 10 per cent deposit on the average first home costs £15,000, so if you put in up to £12,000 – we’ll put in up to £3,000 more.

“A 25 per cent top-up is equivalent to saving for a deposit from your pre-tax income – it’s effectively a tax cut for first time buyers. We’ll work with industry so it’s ready for this autumn and we’ll make sure you can start saving for it right now.”

Head of lending at Mortgage Advice Bureau, Brian Murphy, believes that the Help to Buy ISA is a: “crowd-pleasing move and another sign of greater commitment to improving accessibility in the housing market.

“First time buyers will welcome the measure. But in many cases, their next step will be to ask which of the many schemes and incentives on offer is the best suited to their needs?

“Offering the savings bonus on purchases worth up to £250,000 outside London or £450,000 in the capital looks far more sensible than the maximum £600,000 limit that currently applies to house purchases through the Help to Buy equity loan or mortgage guarantee.

“The £600,000 cap has proved unnecessary for the vast majority of homebuyers using either scheme to secure a mortgage. The new ISA is a welcome innovation – but the fact that different rules and timescales exist for the various elements of Help to Buy has the potential to cause confusion, and first-time buyers will want to understand how they work in tandem.

“We are sure to see more pre-election policy ideas to support first time buyers, and politicians must work closely with industry to ensure new measures are as clear and accessible to first time buyers as possible.

“Anyone confronting the array of choices is likely to find that expert advice is essential to make headway and ease their path towards homeownership.”

David Treharne is from Mortgage Advice Bureau – for further information call: 07501 720320 E mail: davidtr@mab.org.uk or visit: www.dawsonsproperty.co.uk

David Treharne

As the government introduces 100,000 new homes, could the Starter Home initiative be your ticket to an affordable first time buy?

Since the credit crunch of 2008, housebuilding has notoriously wilted. It is no secret that, whilst the number of new homes in construction has slowly improved since then, the market is still some way off where it really needs to be.

Here the UK’s leading independent mortgage broker, Mortgage Advice Bureau, explores how the new government scheme will help first-time buyers in the New Year.

“Although there are no quick fixes, increasing the supply of homes on the market needs to be a focus in 2015 if conditions are to improve, specifically for first-time buyers. This is why the new Starter Home initiative announced by the Prime Minister on the 15th December should be welcomed with open arms,” said David Treharne from Mortgage Advice Bureau.

As part of the push to help people onto the property ladder, the Starter Home scheme will offer new homes with 20% discounts to 100,000 first-time buyers. New home builders currently face an average bill of £15,000 in Section 106 affordable housing contributions and tariffs when building properties, often adding tens of thousands to the final cost of a property.

However, under the scheme, which starts early this year, the properties will be built on under-used land, which will allow developers to build the homes free from any planning costs or levies thus lowering the price.

David added, “The homes will not be able to be resold at full market value for a fixed period of time which means that the savings should then be passed onto the next home buyers. The scheme is exclusive to first-time buyers who are under the age of 40. Prospective homeowners who are interested in the initiative will be asked to register from the beginning of this month – six months earlier than originally planned.”

Increasing the supply of housing is not a simple process, but by bringing forward more available land whilst assisting first-time buyers at the same time, the scheme is certainly another positive move by the government in an attempt to combat the shortage.

Saying this, the initiative will not solve the housing crisis on its own. The initiative should be viewed as another short-term solution that has been brought in to bring brownfield land back into use in a way that will provide an almost instant relief to the market by increasing the number of available homes, something that is so desperately needed.

“What the next government plan to do to attempt to end the crisis is yet to be seen, but in the current climate this scheme should be seen as a helping hand in what is currently a severe problem throughout the UK market,” concluded David.

To find out more information about the Starter Home initiative is it advised that you seek independent mortgage advice from a professional financial adviser.

For further information please contact David on 07501 720320 or email davidtr@mab.org.uk. Alternatively, please visit www.dawsonsproperty.co.uk

David Treharne

As record low interest rates continue, should you get onto the property ladder sooner rather than later?

We are now familiar with the headline ‘Bank of England keeps interest rates at record low of 0.5%’, in fact it’s been the same story since March 2009, some 68 months ago. But with this news comes a greater responsibility for the buyer.

Here the UK’s leading independent mortgage broker, Mortgage Advice Bureau, explores how the prolonged interest rates could mean that sooner could be a better time to buy than later.

In a survey by the Money Advice Service, 69% of people said that they did not have a plan for when interest rates do eventually rise despite 84% thinking that an increase would have an impact on their finances. But right now, homeowners and prospective buyers have other things on their minds as they have been presented with an opportunity to obtain some extremely cheap mortgages as a result of the Bank of England’s decision to delay the rate rise.

“The new lower rates come as a result of the UK’s low inflation levels, the stagnation of the Eurozone and the slowing of the national housing market. The aftermath of the introduction of the Mortgage Market Review (MMR) also seems to have calmed as lenders begin to try and meet their yearly targets – hence the wave of lower rates – with some deals falling as low as 1.49%,” said David Treharne from Mortgage Advice Bureau.

Existing homeowners who do decide to take advantage of the current low rates need to consider the penalties that come with exiting their current deal. Many lenders will enforce fees and charges. Under the newer mortgage rules, application timescales are also longer than before, so homeowners will need to ensure that they are financially prepared for a lengthier process.

“Deciding when to take out a mortgage is always going to be a risk. The low rates that are with us at the moment may stay with us for a while, but there is a greater chance of them disappearing as quickly as they appeared. With the rise of interest rates being a popular topic for debate and opinions frequently changing, it is important to get advice from a professional mortgage adviser when discussing your next steps,” concluded David.

For further information please contact David on 07501 720320 or email davidtr@mab.org.uk. Alternatively, please visit www.dawsonsproperty.co.uk

 

We are now familiar with the headline ‘Bank of England keeps interest rates at record low of 0.5%’, in fact it’s been the same story since March 2009, some 68 months ago. But with this news comes a greater responsibility for the buyer.

Here the UK’s leading independent mortgage broker, Mortgage Advice Bureau, explores how the prolonged interest rates could mean that sooner could be a better time to buy than later.

In a survey by the Money Advice Service, 69% of people said that they did not have a plan for when interest rates do eventually rise despite 84% thinking that an increase would have an impact on their finances. But right now, homeowners and prospective buyers have other things on their minds as they have been presented with an opportunity to obtain some extremely cheap mortgages as a result of the Bank of England’s decision to delay the rate rise.

“The new lower rates come as a result of the UK’s low inflation levels, the stagnation of the Eurozone and the slowing of the national housing market. The aftermath of the introduction of the Mortgage Market Review (MMR) also seems to have calmed as lenders begin to try and meet their yearly targets – hence the wave of lower rates – with some deals falling as low as 1.49%,” said David Treharne from Mortgage Advice Bureau.

Existing homeowners who do decide to take advantage of the current low rates need to consider the penalties that come with exiting their current deal. Many lenders will enforce fees and charges. Under the newer mortgage rules, application timescales are also longer than before, so homeowners will need to ensure that they are financially prepared for a lengthier process.

“Deciding when to take out a mortgage is always going to be a risk. The low rates that are with us at the moment may stay with us for a while, but there is a greater chance of them disappearing as quickly as they appeared. With the rise of interest rates being a popular topic for debate and opinions frequently changing, it is important to get advice from a professional mortgage adviser when discussing your next steps,” concluded David.

For further information please contact David on 07501 720320 or email davidtr@mab.org.uk. Alternatively, please visit www.dawsonsproperty.co.uk

 

Oliver Adair MAB

How will the new loan-to-income cap affect first time buyers?

Increasing house prices, restrictive lending and rising deposits have all been problems faced by first-time buyers in recent years. So, with the new loan-to-income cap now in place, how are newcomers to the market going to be affected?

Here the UK’s leading independent mortgage broker, Mortgage Advice Bureau, reveals how the cap will impact on the currently thriving first time buyer market.

“Recent figures released by the Council of Mortgage Lenders (CML) showed that first-time buyer numbers were at a six-year high, showing that a once impossible market has rebuilt itself to become a competitive arena once again,” said Oliver Adair from Mortgage Advice Bureau.

“Now, thanks to the Mortgage Market Review (MMR), responsible lending is at the forefront of the industry and each lender has been monitoring their affordability limits closely in light of the recovery of the sector.”

Enforced at the beginning of October, the loan-to-income (LTI) cap began when the Bank of England stated that loans over 4.5 times the income of the buyer must account for no more than 15% of a lender’s new lending total.

“Affordability remains the most important factor when assessing a potential borrower and every lender will have its own procedures to carry out to determine how the caps are implemented,” added Oliver.

Despite the added regulatory changes, the number of first time buyers rose by 27% in the first half of this year, and with the Help to Buy scheme, increasing employment levels and growth in higher loan-to-value lending, the confidence in the market may potentially overpower any effects the LTI cap will have in the coming months.

“The effect of the cap on the market and on the first-time buyer arena in particular will continue to be a topic of discussion until the cap has settled and we can see what difference, if any, it will have made,” concluded Oliver.

For further information please contact Oliver on 07917 146 430 or email olivera@mab.org.uk. Alternatively, please visit www.dawsonsproperty.co.uk