It may have seemed all doom and gloom for the UK property market in 2007 however not everyone in the UK has been experiencing a slowing of property prices.
Scotland has seen some amazing property price increases over the last 12 months, the Scottish coastal town of Montrose saw average property prices shoot up from £123,494 to £172,156, a 39% increase in what many property experts are calling a housing recession.
The figures taken from a Halifax report attributed the increases to improved transport links, rising immigration and a strong employments market.
Scotland wasn't the only region in the UK to see property price increases, Winchester came out top in England with average prices up 38% putting the prices at just under £400,000.
Stourbridge in the West Midlands was the only town in the top 10 outside Scotland and the South East. Prices there have risen by 31 per cent to an average £264,130.
The Royal Institution of Chartered Surveyors added that upfront costs are now proving particularly problematic for new buyers as banks have begun to tighten their criteria and asking for bigger deposits with 100% mortgages becoming a thing of the past.
2008 should be a testing year for these kinds of returns and although it is unlikely the the market will continue at this rate, there are still areas such as Nelson in Lancashire where price of a property is £108,320.
Unfortunately the report also stated that first time buyers are at the lowest rate since 1980, which may start having a knock on effect this year.
Daniel Morgan
Independent Mortgage Broker
FruitMortgages.com
Showing posts with label 100% mortgages. Show all posts
Showing posts with label 100% mortgages. Show all posts
Wednesday, 2 January 2008
Wednesday, 7 November 2007
End of 100% Mortgages?
I'm finding it ever more difficult to source 100% mortgages in the current market.
Where as 5 years ago most first time buyers had a deposit of 5% or more, in today's sky high property prices clients are struggling to come up with the deposit.
100% mortgages, a relatively new, mortgage product in the UK were aimed at solving this problem. They would often allow first time buyers the ability to purchase a property without the need of saving for a deposit. They are even mortgages offering 125% of the loan amount.
Unfortunately with the current credit crunch effecting the LIBOR mortgage rate and banks fearing mortgage arrears many lenders have either withdrawn from the market or increased the checks made on borrowers. It is a very difficult time for first time buyers and this will undoubtedly have an effect at 2nd and 3rd time sellers.
My advice to first time buyers is to save for 6 months and come up with 5%, if your not in an ability to save a deposit the question will be raised on how you can afford mortgage and insurance payments along with all other associated costs such as furniture, conveyancing, etc.
Where as 5 years ago most first time buyers had a deposit of 5% or more, in today's sky high property prices clients are struggling to come up with the deposit.
100% mortgages, a relatively new, mortgage product in the UK were aimed at solving this problem. They would often allow first time buyers the ability to purchase a property without the need of saving for a deposit. They are even mortgages offering 125% of the loan amount.
Unfortunately with the current credit crunch effecting the LIBOR mortgage rate and banks fearing mortgage arrears many lenders have either withdrawn from the market or increased the checks made on borrowers. It is a very difficult time for first time buyers and this will undoubtedly have an effect at 2nd and 3rd time sellers.
My advice to first time buyers is to save for 6 months and come up with 5%, if your not in an ability to save a deposit the question will be raised on how you can afford mortgage and insurance payments along with all other associated costs such as furniture, conveyancing, etc.
Monday, 22 October 2007
The end of 100% Mortgages?
Rumors have been circulating over the last 48 hours that many of the so called 100% - 125% Mortgages may be withdrawn from the market.
With the current credit crunch effecting many finance companies it seems the risks involved with lending on top of the secured mortgage may outweigh the benefits.
It is already close to impossible for people with adverse credit to obtain 100% mortgages unless they opt for an adverse credit mortgage from Future.
The main players being BM Solutions, Northern Rock & Mortgage Express who all offer over 100% mortgages by securing a 95% mortgage on the property and then offer an unsecured loan up to £30,000.
Interest rates for these specialist products have increase faster than the current base rate in recent years with some being over 2% more than base. 100% mortgages often tend to have higher fees attached such as booking fees, valuation fees and arrangement fees. All of which makes this type of lending the most expensive on the market.
I will update this blog when I receive news on the current situation with Future offering 100% later this week. I hope for the sake of client needing such lending that the mortgages will still be on offer.
Much of the entry level properties in the UK are currently purchased by buyers who obtain 100% mortgages due to having insufficient deposits. If these clients can no longer obtain finance for the property purchase it will be a potentially dangerous situation for the UK housing market.
Search the whole market now for 100%-125% Mortgages Wales.
Mortgage Quote
With the current credit crunch effecting many finance companies it seems the risks involved with lending on top of the secured mortgage may outweigh the benefits.
It is already close to impossible for people with adverse credit to obtain 100% mortgages unless they opt for an adverse credit mortgage from Future.
The main players being BM Solutions, Northern Rock & Mortgage Express who all offer over 100% mortgages by securing a 95% mortgage on the property and then offer an unsecured loan up to £30,000.
Interest rates for these specialist products have increase faster than the current base rate in recent years with some being over 2% more than base. 100% mortgages often tend to have higher fees attached such as booking fees, valuation fees and arrangement fees. All of which makes this type of lending the most expensive on the market.
I will update this blog when I receive news on the current situation with Future offering 100% later this week. I hope for the sake of client needing such lending that the mortgages will still be on offer.
Much of the entry level properties in the UK are currently purchased by buyers who obtain 100% mortgages due to having insufficient deposits. If these clients can no longer obtain finance for the property purchase it will be a potentially dangerous situation for the UK housing market.
Search the whole market now for 100%-125% Mortgages Wales.
Mortgage Quote
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