Only 43,870 new mortgages worth £7bn were approved in February of this year, 33% fewer than February of 2007. This is down on the 6 month average of 47,402 (worth 7.4bn), according to the latest report from the British Bankers Association.
And following on from the removal of mortgage deals, 139 further mortgage deals were removed in just a 24 hour period.
Friday 28 March 2008
Nationwide Increases Mortgage Costs
Although the base rate was not changed this month, the Nationwide Building Society has put up it's lending charges. Rates for two-year trackers have increased by 0.57% and average fixed rate mortgages have gone up by 0.2%.
Matthew Carter, Nationwide's director of mortgages, said: 'Nationwide sympathises with anyone who is concerned about the availability of affordable mortgages. We continue to offer our customers a wide range of fixed and variable rate mortgages up to 95% loan to value with, as always, a focus on prudent and responsible lending rather than volume.'
Matthew Carter, Nationwide's director of mortgages, said: 'Nationwide sympathises with anyone who is concerned about the availability of affordable mortgages. We continue to offer our customers a wide range of fixed and variable rate mortgages up to 95% loan to value with, as always, a focus on prudent and responsible lending rather than volume.'
Sell High, Buy Low
Around 18% of homeowners ready to sell houses are considering moving into rented accommodation. These owners are willing to gamble that the market will tumble over the next 12 to 18 months and are hoping to sell whilst property prices are high and then buy again after a hoped for property crash.
A further 14% are considering moving to rented accommodation to free up capital to ease the burden of debts, according to a survey of 1,100 people moving house by iammoving.com.
But it is a risky choice to rent in the hope of a property crash. An average property has to fall by 7% in value before you recover purchase & sales costs and stamp duty.
A further 14% are considering moving to rented accommodation to free up capital to ease the burden of debts, according to a survey of 1,100 people moving house by iammoving.com.
But it is a risky choice to rent in the hope of a property crash. An average property has to fall by 7% in value before you recover purchase & sales costs and stamp duty.
Wednesday 26 March 2008
Mortgage Deals Crash
Research has revealed that the number of mortgage deals on offer to customers has dropped from 15,599 last July to 5,785, according to Moneyfacts.
Lenders are removing deals and changing conditions daily. Conditions can change to raise minimum deposits or pay higher rates. This will have a huge impact on the hosuing market, with only 1 in 3 houses expected to sell, according to Henry Pryor, property expert from website Primemove.com.
He said that many will find their dream home, but will not be able to raise a mortgage for it and that sellers must be realistic with prices and expect to raise 10% - 15% less than last summer.
This drop is not just in the troubled sub-prime market. The 'prime' market has also dropped from 3,803 deals to 2,540 in the same time period.
Deals that have done include the 100% and 125% mortgages. Only Abbey now offers a 100% mortgage to the main market, with other lenders offering 100% deals that require further securities, e.g. parental involvement.
Lenders are removing deals and changing conditions daily. Conditions can change to raise minimum deposits or pay higher rates. This will have a huge impact on the hosuing market, with only 1 in 3 houses expected to sell, according to Henry Pryor, property expert from website Primemove.com.
He said that many will find their dream home, but will not be able to raise a mortgage for it and that sellers must be realistic with prices and expect to raise 10% - 15% less than last summer.
This drop is not just in the troubled sub-prime market. The 'prime' market has also dropped from 3,803 deals to 2,540 in the same time period.
Deals that have done include the 100% and 125% mortgages. Only Abbey now offers a 100% mortgage to the main market, with other lenders offering 100% deals that require further securities, e.g. parental involvement.
Tuesday 25 March 2008
Housing Market Slumps
Estate agents are reporting the lowest number of potential purchasers for 20 years. The National Association of Estate Agents (NAEA) reported the number of house buyers down from an average of 276 per agent in January to 243 in February 2008 – the lowest figure since 1989/1990.
The number of houses for sale and the number of first time buyers is also down, as the difference between advertised prices and house selling prices widened.
The number of houses for sale and the number of first time buyers is also down, as the difference between advertised prices and house selling prices widened.
Tuesday 11 March 2008
House Prices Continue To Fall
A report from the Royal Institution of Chartered Surveyors is the latest verdict that the decade long housing boom is over. It shows that across England and Wales house prices are falling in every region, with record levels of decline being reported in East Anglia, the South West, Yorkshire, Humberside and the East Midlands.
The average estate agent now has 92 properties for sale on it's books - the highest for a decade, with the average number of unsold properties increasin to 49% in the past 12 months.
Overall, the RICS report found the 'balance' of estate agents reporting a fall in house prices is at its highest level since 1990 - the time of the last property crash when prices started falling and did not recover for 6 years.
The average estate agent now has 92 properties for sale on it's books - the highest for a decade, with the average number of unsold properties increasin to 49% in the past 12 months.
Overall, the RICS report found the 'balance' of estate agents reporting a fall in house prices is at its highest level since 1990 - the time of the last property crash when prices started falling and did not recover for 6 years.
Monday 10 March 2008
First Time Buyers' Stamp Duty Doubles
Stamp duty for first time buyers' purchases has almost doubled to £1,751 over the last 5 years. Worst hit is London, where the average first time buyers' bill is a staggering £8,675.
20% of southern first time buyers are paying at the 3% rate (property price above £250,000) - adding £7,500 to their outlay. Five years ago only 2% bought properties costing more than £250,000.
20% of southern first time buyers are paying at the 3% rate (property price above £250,000) - adding £7,500 to their outlay. Five years ago only 2% bought properties costing more than £250,000.
Thursday 6 March 2008
No Rate Cut
The Bank of England has announced that rates will remain steady this month. Whilst good news for savers, holding mortgage rates at the current position will continue to be painful for mortgage borrowers and others with outstanding debts.
On the back of this news, the pound rose against the dollar, breaking the $2 mark for the first time in 2008.
On the back of this news, the pound rose against the dollar, breaking the $2 mark for the first time in 2008.
House Prices Drop Further
The Halifax monthly house price report has shown a further drop in February. The Halifx reported a drop of 0.3%, taking the total house price increase ove the previous 12 months to 4.2%.
Whereas the average house cost £197,244 in January, that figure has now fallen to £196,649. Economists are forecasting a 5% drop in house prices over the coming year.
You can check house selling prices in your area totally free, here.
Whereas the average house cost £197,244 in January, that figure has now fallen to £196,649. Economists are forecasting a 5% drop in house prices over the coming year.
You can check house selling prices in your area totally free, here.
Tuesday 4 March 2008
FSA Mortgage Shock Warning
The Financial Services Authority has reported concerns that as many as 20% of mortgage payers could be struggling with payments over the next 12 months, yet many have no plans for how to cope. The concerns centre around mortgage payers who may recieve a 'rate shock' when existing fixed deals come to an end.
It has launched a £2m advertising campaign to help raise awareness about shopping around before deals come to an end. It has published a checklist of steps on it's website for homeowners, as it is feared that 1.4million mortgage payers could be hit by by monthly rises in mortgage repayments of up to 25%.
Impartial mortgage rate tables are available on many websites, whether you want to view possible changes or plan a new mortgage. There are still many good fixed rate mortgage deals to be had, as well as trackers, discounted and all of the usual variations.
It has launched a £2m advertising campaign to help raise awareness about shopping around before deals come to an end. It has published a checklist of steps on it's website for homeowners, as it is feared that 1.4million mortgage payers could be hit by by monthly rises in mortgage repayments of up to 25%.
Impartial mortgage rate tables are available on many websites, whether you want to view possible changes or plan a new mortgage. There are still many good fixed rate mortgage deals to be had, as well as trackers, discounted and all of the usual variations.
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