Fixed Price Mortgages (loans)

The pricing of fixed mortgage quotes relies upon on several up-to-date, but broadly speaking whether or not banks can get their palms on cheap cash updated lend out. They usually get it from savers or by means of borrowing from different banks at the money markets, shopping for cash at a positive fee – the "swap" rate – for a positive period.

Those change rates react up-to-date expectations of future hobby quotes and inflation, which affect the rate of mortgages.

Change prices dropped sharply ultimate January amid worldwide financial turbulence, and once more following the Brexit vote, however rose once more at the up to date of 2016.

Loan prices are expected up-to-date upward push in reaction, despite the fact that the extent of competition between credit and a few market stagnation may postpone reactions.

Movement taken with the aid of the bank of britain could have an impact. The financial institution has made it clean within the beyond that if runaway residence charges are a risk and extremely-low mortgage quotes are a reason, the latter will be policed away – by way of heaping new costs or capital necessities at the banks.

Up-to-date up-to-date then skip at the expanded fee of investment up-to-date mortgage up-to-date by way of increasing their rates.

What's the distinction among constant and variable quotes? In case you take out a set-fee mortgage the hobby price you pay might be constant for an initial duration, regardless of charge changes made by way of the financial institution of Britain or actions within the markets.

Constant charges are typically for two, three, five and now and again 10 years, with longer phrases costing extra. as soon as the fixed length ends, borrowers are pushed directly to the lender's "well known variable fee", which may be plenty better.

Variable loan fees can range at some point of the mortgage time period, that means up-to-date will no longer have the security of knowing how a whole lot their repayments might be each month.

However, if the British economic system dips, hobby charges will likely decrease, making the payments significantly less expensive. additionally, because the mortgage comes with the uncertainty of interest costs either rising or falling within the destiny, the preliminary rate is often lots decrease than with constant mortgages.

The most inexpensive fixed deals it is now not all approximately charge. up to daters like more costs, inclusive of association expenses.

We've calculated the full fee of some of the quality deals, up-to-date on a £350,000 domestic with a loan of 25 years.

Two situations are included: a client with a 40pc deposit (£a hundred and forty,000) and a client with a 10pc deposit (£35,000). the primary is supposed up-to-date someone remortgaging or shifting home, and the second one updated a primary-time up to date.

Levenshulme and West Didsbury Mortgages

Levenshulme and West Didsbury and up and coming areas of Manchester where the demand for property is high and mortgage approvals are at an all time high. Manchester mortgage brokers like Manchester Mortgages are getting mortgage approvals for many types of customer weekly. Levenshulme is set 4 miles south of the metropolis centre on Stockport street, a main route to the south of Manchester.

Residing in Levenshulme Levenshulme is a vibrant vicinity with a good blend of housing and numerous groups.

There is an amazing variety of neighborhood stores, eating places, antiques stores and offerings alongside busy Stockport street, and a huge Asda grocery store in close by Longsight.

Public shipping is superb, with regular buses along Stockport street to the colourful city centre, with its employment, leisure and amusement centers. There are ordinary trains to Manchester and Stockport from Levenshulme station.

Cringle Fields and Crowcroft park at either cease of the place provide inexperienced space and lesiure centers. houses to rent in Levenshulme

There are round 1,100 houses rented out via not-for-profit landlords like housing institutions and housing trusts. Getting a mortgage is easier if you use a broker.

West Didsbury
West Didsbury is ready 4 miles south of the town centre, on the east facet of Princess street, a prime path into the metropolis from the M56 and the toll road network. living in West Didsbury

It's just over a mile to the wide type of shops, banks, post places of work, bars and restaurants in Chorlton or Didsbury.Mortgage arrangers Manchester Mortgages have an office here.

There are extra neighborhood offerings in Northenden a pleasing mile walk away across one of the neighborhood golfing courses.

There are very common buses alongside Barlow Moor road to Didsbury and Chorlton, the town centre and the university, and masses of buses along Princess street to the city centre and to Wythenshawe and the airport. houses to lease in West Didsbury

There are round 180 homes rented out via no longer-for-earnings landlords like housing institutions and housing trusts.

'Buy for Uni' mortgage

Many students come to the end of their degrees wondering when they are going to be able to afford a deposit on a property in light of the student debt they will have accumulated. But some students leave university already a home owner/ landlord. Sounds improbable? Two lenders (The Loughborough Building Society and Bath Building Society) are offering a 'buy for uni' mortgage - the catch being that close relatives provide security.

Under the terms of the deal, students who are over 18 and are in higher education in England and Wales can get a loan for up to £300,000. The property must be within 10 miles of where they study and must be guaranteed by parents, step-parents or grandparents.

Lenders argue that this product enables young people to get a foothold on the property ladder, allowing the student to become a landlord by renting out rooms to fellow students. The rental income needs ideally to cover more than the repayments, to account for rises in interest rates or periods of low occupancy. Alternatively the guarantor is obliged to cover any periods of suboptimal renting.

Although this is a new product from the Loughborough Building Society, the deal has been available in Bath since 2008, on the basis of a loan to value ratio of 75% or less. The students' relatives are required to provide at least a 25% charge on the property. But does it work in practice? According to Bath Building Society's chief executive, the rental income derived from fellow students usually pays the majority of the mortgage repayments; however, the model works better in some towns than in others.

Some student representatives are advising a cautious approach for students considering this option. Signing up for a mortgage at the age of 18 may place a lot of responsibility on young shoulders, and hidden costs such as surveyors and legal costs may potentially catch people unawares.

These deals are not for everyone, and lenders argue that they carefully assess the circumstances of the student and the guarantors before entering into a contract. Interest rates are typically higher than equivalent conventional mortgages and it is important for potential borrowers to be aware of the risks. And parents too need to be aware of risks to their own property. For instance, if there is a rental shortfall the bank of mum and dad is going to have to pay the difference, and if the property were to end up being repossessed, the lender could claim any shortfall from the parents' equity. In addition, borrowing against their own home in future could be affected. On the plus side, however, the property is in the child's name, and so there would be no additional property stamp duty surcharge, presuming parents own their own home.

 

Housing in the Fallowfield district of Manchester now almost all occupied by students

 


London's Housing Crisis Continues...

You'd have to live under a rock not to know that house prices in London are incredibly expensive... and, for most people, a rock might be all they could afford in the capital.

A recent study by the National Housing Federation has found that a 20% deposit on an average London property has increased to £113,000, putting stepping on the property ladder in the capital out of reach for many. And renting isn't cheap either, with an average monthly rent over 60% of a typical salary. Factor in living expenses and there is little left over to start saving towards a deposit. It's no wonder perhaps, that fewer people than before expect to own their own home in the future.

Of course, some areas in London are more affordable than others - the average price in Barking & Dagenham, for instance, is around ten times the average wage, whereas properties in Kensington & Chelsea top the list of the least affordable, with prices being nearly 35 times the average local wage. Other expensive areas are Westminster, Camden, Hammersmith and Fulham and the City of London, and cheaper areas are Bexley, Havering, Newham and Croydon.

So how are people managing? More and more people in London are turning to the welfare system to make ends meet, with around one third of all housing benefit claimants being working people. This proportion is higher than any other area in England, which highlights the difficulties in the capital.

The housing crisis is experienced more acutely in London than any other area, and action is needed to address the issue of affordable housing.  Housing associations have been the recipients of more funding and flexibility from the Government, and the National Housing Federation is keen to work closely with the mayor to deliver affordable homes in the capital.

 


Report indicates falling numbers of house movers

Numbers of home movers have fallen for the first time since 2011, according to a report by Lloyds Bank. The figures suggest that around 13,000 fewer people moved home in 2016 than the previous year. So what factors are causing the numbers to drop?

High stamp duty and a shortage of supply have been blamed for the fall in numbers. Fewer second-time buyers find themselves able to afford a larger home, while fewer older people seem to be downsizing. Stamp duty increases for the more expensive homes may be causing sluggishness in the lower end of the market as wealthy homeowners are not moving and freeing up properties for those climbing the property ladder.

Leading politicians have called for a review of stamp duty in March's budget, but given that over £2.5 billion was generated by the purchase of expensive properties, Chancellor Philip Hammond may be reluctant to reverse the increase in the tax brought in by Chancellor George Osbourne in 2014.

Stamp duty is not just an expense for the wealthy, however. As house prices rise, stamp duty has become increasingly expensive for all buyers, who now have to factor in an average cost of £11,000 to cover stamp duty, estate agents' fees and legal fees.

Even though affordability for first-time buyers is in a slump, Lloyd's figures suggest that first time buyer numbers have increased. The slowing down in the market then is more as a result of homeowners not moving up the ladder to the more expensive properties due to cost, and, as the bank suggest, a lack of suitable properties to purchase combined with concerns about the impact of Brexit on the housing market.

More stringent affordability rules is also constraining the market as some homeowners may be unable to move their loan to a new property.


Is the North-South divide narrowing? House price trends in the UK

According to a recent report by Hometrack, growth in house prices in our regional cities is continuing to outstrip that of London, with Bristol and Manchester seeing the largest increases.

Manchester is now vying for top spot with a growth of 8.9% compared to Bristol's 9.6%. For Manchester, the rate price inflation is at its highest since July 2005. But why is London falling behind in the rankings?

Hometrack suggests that demand is falling in London because of high levels of unaffordability. With an average house price in excess of £580,000, about 14 times the average salary, many citizens struggle to obtain a mortgage, and house price growth in the capital is projected to slow further over the year. Other cities outranking London in the list of house price growth include Oxford, Portsmouth, Southampton and Birmingham.

However, to suggest that this means the traditional North-South divide is lessening is inaccurate. House prices in Scotland, for instance, showed slower growth than London, which at 7.3%, is still considerably higher than Glasgow (4.9%), Edinburgh (3.7%) and Aberdeen (-3.2%).

So while the divide isn't disappearing, it is true that in Manchester, and to a lesser extent Birmingham (7.5% growth), market conditions are stronger than in the capital. But what does this mean for Mancunians? It's a double-edged sword. The supply of homes is just keeping pace with the demand, which is maintaining the upward pressure on prices. That's good news for homeowners, many of whom will have increasing equity in their homes, but not so good for first time buyers or those wishing to move up the property ladder, who will find their finances squeezed.

The promised Housing White Paper this month will demonstrate whether and how the Government will build on its pledge to provide a stock of affordable homes.

 


What a difference a year makes...

This time last year, buy-to-let landlords were snapping up properties before the April 2016 increase in stamp duty and were proving to be tough competitors in the housing market for first time buyers.

This year, however, according to Rightmove there are more smaller properties available to first-time buyers, because there are fewer landlords seeking properties compared to this time last year. Available housing stock has increased and the increase in supply means that first time buyers have more opportunity to negotiate and get a great deal on their first property.

However, it's not all plain sailing. The average price for first homes has increased by 6.4% in the last year, and with relatively stagnant wages, affordability is becoming more of an issue than ever. According to a recent report in the Telegraph, there has been a recent increase in the number of people relying on the 'Bank of Mum and Dad' with 1 in 12 purchases partly funded by a family member or friend.  

So, this year, for first time buyers, it's a mixed picture. On the one hand, there's less competition from landlords and more choice of properties, but on the other, first time buyers may struggle to pass lender affordability tests and parents may feel under pressure to assist with the costs of house buying. The picture is not the same across the UK however. In certain areas house prices have fallen slightly. Wales and the North East of England, for example, have fallen between 1 and 2%. In the East of England, in contrast, prices have risen around 6%. This increase in prices however, may now be mitigated by the stronger negotiating power of first time buyers who have less competition from landlords. And with low mortgage rates on offer, lenders are trying to attract first time buyers to get onto the property ladder.

Policy initiatives may also help first time buyers.  For example, the government is investing £1.2 billion in the Starter Homes Land Fund, and the much-anticipated Housing White Paper, due this month, is predicted to detail radical changes to improve the supply of housing.  

 


First time buyers in Didsbury

Amid reports today that the number of first-time buyers has risen sharply for the first time since the financial crisis, observers have noted that the size of deposits has also risen rapidly, doubling from £15,000 in 2007 to over £30,000 now. So if you're thinking of climbing onto the property ladder in Didsbury, what are the things you need to consider?

There's no doubt that South Manchester is an attractive area to live both for young people and families - there are quality schools, restaurants and nightlife and all within a few miles of Manchester City Centre. The house prices reflect this, with the average house price being £290, 000. Out of reach for a first time buyer?

With constant changes to the housing market, and the prospect of first time buyers taking on 30-35 year mortgages it is easy to feel confused about what options are available to first time buyers in a sought-after area of Manchester like Didsbury. Help to Buy schemes may be available, or shared ownership may also be an option. Since many would be first time buyers are in their 30s, a longer term mortgage would mean paying mortgage payments into your 60s and possibly 70s, but it does mean that the amount to be repaid each month is lower.

Asking your mortgage broker to look for deals with lenders that would suit your needs when buying a house or flat in Didsbury. They may be able to acquire a mortgage deal for you that might be longer term but may also allow for overpayments should your financial situation improve in the future. Regular or occasional overpayments should allow you to reduce the term of your mortgage.

There's no doubt that Didsbury is a desirable area to live, and if you're thinking about buying in this area, check out the options available to you. The average property price in the area has been steadily rising in recent years so  buying here could be a good future investment.





Struggling to get a mortgage?

If you are finding it difficult to get a mortgage, you can either struggle a lot or a little. Most of us would prefer the least amount of effort and tips available on http://www.moneysavingexpert.com/mortgages/boost-mortgage-chances provide some good advice on active steps you can take if you are finding it difficult to get a mortgage.

But, and there is a big but, there are other avenues open to you that sites like Money Saving Expert would prefer not to tell you about. These sites are mortgage brokers and advisors who are independent or 'whole of market' as the latest ludicrous phrase from the FCA comes into use.

Using this blog post as a case study, it can be easily demonstrated that independent mortgage brokers are far better placed to find suitable and competitive mortgages for all types of home buyer. Wythenshawe - part of Greater Manchester that includes the airport is an area of huge economic growth and has a very active housing market. If you were to approach a bank or building society to lend you the money to buy a property you would be letting yourself in for paying higher rates and getting a much worse deal than you would if you were to use one of the independent brokers.

Best Mortgage Deals (Manchester)

So what are the best mortgage deals currently available in the UK? Many people use the advice on Money Saving Expert and their advice can be found at https://www.moneysavingexpert.com/mortgages/best-buys/, but this is a countrywide assessment. Area specific deals exist, often supplied by micro lenders who have an in depth knowledge about certain geographical locations, one such area is Wythenshawe, but Greater Manchester is a property hotspot and local experts and brokers Manchester Mortgages (go to http://manchestermortgages.co.uk/ are able to provide excellent mortgage advice that will beat any offer from a large lender such as the Halifax or Virgin Money.

So whilst Money Saving Expert will provide decent UK wide advice, my recommendation is to also use a local mortgage provider / broker if you know the specific area you wish to live in. Using Manchester as an example (as it's where I live) I know that there are parts of Manchester where a lot of houses are being sold - such areas are Wythenshawe, Bury and the Wigan area. Now, the big UK web sites will give you a best rate of 2.39% fixed for the first 5 years of a 25 year term, but a Manchester mortgage broker was able to find me 2.19% fixed for 3 years with only a 12.5% deposit required. If I had a mortgage deal already, this deposit fell to 10%.

It's worth doing the extra maths and using a local or whole of market mortgage broker, especially in Manchester as the savings can be huge.