Mortgage approvals were at an all time low last month, another indication of the current dip in the housing market.The Bank of England reported yet another downward turn for the housing market after mortgage approvals fell to 36,000 last month, compared to May’s 41,000 approved mortgages. This has been put down to tightening in lending as a direct result of the credit crunch that we are feeling.Mortgage approvals are predicted to fall further too, which is said to be consistent with house prices falling and the credit crunch tightening for all banks and lenders.After several years of double digit growth, house prices have started to fall rapidly, which has forced banks to rethinking their lending and ask for larger deposits before agreeing to new loans.According to analysists, house prices have fallen 8% from when they peaked last Summer and they are forecasting another 30% drop, which we should see by the end of 2009. This is more than likely as the Bank of England are unlikely to cut rates any time soon and inflation is so high.People are predicting worse things to come, before they get better, but are saying that if you are in a position to buy, then now is the time. It is a buyers market and although you are going to need a deposit of around 10% or more, you could really get yourself a bargain.For many first time buyers, the fact that house prices are falling coupled with the new Open Market HomeBuy schemes, mean that they are finally being cut some slack and are going to be able to get onto the property ladder.If you are interested in finding out more about Open Market HomeBuy schemes, then get in touch with us at Click n go Mortgages and see how we can help you to get a foothold on the elusive ladder.
For the 10th time in a month during July alone, housing prices have dropped again, this time claims have been made that the housing market is about to bounce back and be stronger than ever.
In the past 4 weeks homes in England and Wales have lost value of up to 1.2% on the property, with the slump in the last year averaged at 4.4%. This has been sighted as the fastest decline in housing prices ever recorded, with the average home now costing $168,500, which is the same as October of 2006.
However, the National Housing Association have predicted that over the next 5 years prices will rise again by 25%.
The number of people registering with estate agents according to Hometrack has fallen by 6.4%, which has followed a drop in June of 5.7% and one in May of 6.7%. At the same time as the fall in people looking to buy, properties on the market rose by 1.1%, while the average time that it takes to sell increased, again, to a further 11 weeks and those selling are looking at getting an average of 90.9% of the asking.
Research by the National Housing Federation has claimed that the current market downturn will be over by 2010 and that by 2013 the average cost of a home in England will cost £274,700.
In the meantime the NHF have predicted more decreases in housing prices by a further 2.1% in 2009 and then 2010 will see the turn around.
The demand for housing has not changed, but the supply has and so with this in mind it is worth pursuing all of the options. Click n go Mortgages offer a range of products including shared ownership mortgages and self cert mortgages, so whatever your situation we can find the right mortgage for you.
It may seem like the worst year for the mortgage market in well over a decade, but in the scheme of things, it’s not been that bad and with mortgage rates slowly going back down, could we have seen the worst of it?Santander seem to think so, which is why they have made a bid for Alliance and Leicester – admittedly at quite a reduced rate – but over the last two weeks we have the big boys in the mortgage market cut their rates.It is not quite the time to get the party poppers out and start buying like it were a game of Monopoly, as rates are still much higher than they were last year and fees have increased by 20% in the last 12 months. In fact some fixed rate mortgages have risen by 60% from an average of £590 to £938.The lenders that we have had our eyes on are the Woolwich, who have cut their rates twice this month, the Halifax who again have made two price cuts, Nationwide, Abbey and C&G.The average fixed rates have now started to drop from their peak of two weeks ago. On July 11th many 2 year fixed rates were 7.08% and as of the 21st were down to 6.96%, and the same is true of 3 year fixed rates, which have also dropped by around 0.32%.But why have they all started to drop their rates? It comes down to the ‘swap rate’. The swap rate is the cost to a bank of building society of buying fixed rate money, which they in turn lend to you.The swap rates peaked in mid-June and have been slowly coming down ever since. However, this momentum has been even slower is coming to us, which is why, a month later, we have just started to see the affects in fixed rate mortgages.So let the good times roll!!? Not quite. We still have a long way to go and most of the best rates are only available to those with large deposits i.e.: 25% of the total value of the property.Also, it is worth noting that the swap rate has started to increase again – proving that nothing about the mortgage market is predictable.Inflation is also at 3.8% so it is going to be difficult to predict the next move of the Bank of England.We aren’t out of the woods just yet, so hold on.So what do we do now, we asked?! Well, if you are about to renew a mortgage or indeed buy your first property, then if you are waiting for rates to drop further, you could be waiting a long time. In addition, they could go up, which isn’t going to help.The key for the mortgage market at the moment is that if you find a suitable deal, then don’t hang around. We have no real way of predicting what is going to happen next.First time buyers are in a better position with shared ownership mortgages and the endless options that fall into that bracket. If shared ownership is not something that you have considered and you would like to know more, then get in touch and pick our brains. We are here to help.
Over 25% of people from the South West that were surveyed at the Glastonbury Festival last month, have stated that there isn’t enough housing in the South West and that 28% of them were still living at home and unable to move out.1,100 festival goers were questioned on their hopes for home ownership and their opinions and thoughts will form the basis for a debate organised by Michael Eavis. The debate will focus on the obstacles facing building more affordable housing in the South West.Of the people who were interviewed two thirds were under 35 and only just over a fifth had raised a mortgage. The rest were either renting or living with parents.The survey outlined the worries, fears and obstacles that young people are facing when trying to get onto the property ladder.Many have said that the reasons that a move into home ownership would not be likely for them was sighted as a lack of availability of the housing that they needed, that their income was not permanent or regular enough or that raising a deposit or a mortgage would not be possible.The survey also revealed that there was little take up in shared ownership schemes or shared equity mortgages; schemes which will enable first time buyers to get onto the property ladder.The debate will seek to highlight the need for affordable housing in rural areas and the need to publicise shared ownership schemes, which have been brought in by the Government as an affordable, and some would say, sensible alternative to standard 100% mortgages.
Shared Ownership Mortgages could spell the end for Big Brother style bust-ups as the Government champion the scheme to help first time buyers onto the property ladder.Previous house buying meant first time buyers who couldn’t afford to buy on their own, so bought with friends which, in some cases, lead to Big Brother style bust-ups and crying, which until that time only seen in the diary room.In line with the new scheme, the Cheshire Building Society is now offering a shared mortgage ownership, which it hopes will bring hope to many first time buyers looking to get onto the property ladder.Although buying and living with friends can seem like the perfect solution to getting onto the property ladder, the ‘reality’ can be a lot worse, as Big Brother demonstrates.The shared ownership scheme is there is help first time buyers to get onto the property ladder gradually as well as reap the benefits as the value of a house increases.The Cheshire Building Society fixed rate shared ownership mortgage is going to give first time buyers the help that they need to get onto the property ladder. The rate starts at 6.8% for the first three years and then increases to a standard variable rate. In addition, they have waved the arrangement fee and the standard valuation fee. The Cheshire shared ownership mortgage also allows payment holidays and the ability to overpay during the course of the loan.The loans are available up to 100% of a share in the property and 75% of the value of a property. If you are interested in a shared ownership mortgage, then contact us and we can walk you through everything that you need to know.
