Nottingham Letting Agent Property Blog

Some lenders have begun to increase their mortgage rates even though the base rate is still at an all-time low. The Halifax has already announced it will increase its standard variable rate from 3.5% to 3.99% on 1 May, affecting around 850,000 customers. The RBS has also increased its mortgage rate by 0.25% on two mortgage products, affecting around 200,000 customers, and bringing the rate in line with their standard variable rate. Santander is also increasing the interest rate on four of its mortgage products, but the change will only affect new customers. Lenders generally increase their standard variable rates in...

The government originally set up an emergency bank to oversee mortgages from Bradford & Bingley and Northern Rock, but it's being alleged that this bank is treating landlords unfairly. UK Asset Resolution is apparently being somewhat heavy-handed, and this is leading to tenant evictions and the sale of properties at below market value. The bank’s purpose is to wind down £77 billion worth of mortgages which it took on when Northern Rock and Bradford & Bingley failed, with the aim of reclaiming as much of the money used in bailouts as possible. This might seem laudable but there are claims the...

Last week Grant Shapps announced more details about the revitalised right to buy programme. Social tenants will be able to receive discounts of up to £50,000, with more people will being able to access the scheme. For example, a tenant who had lived in social housing for five years would be able to purchase a £160,000 property for a discount of £50,000, whereas before they would have been eligible for a maximum discount of £26,000. It’s hoped this generous discount will breathe life into the housing market.Shapps has also promised that these new proposals will protect the housing stock as every...

The Bank of England is forecasting that many people may not be able to buy their first home until they reach middle age, and it expects home-ownership numbers to drop significantly, with the percentage being forced to rent predicted to carry on rising. This bleak prediction comes as a new report shows repossession levels rising, with fears that they could double over the next two years. Standard & Poor’s report shows around 35,000 families being repossessed each year, but predicts this figure could increase to nearly 70,000 which would be close to the all-time high of 75,500 recorded in 1991. According...

Property prices have been predicted to grow by up to 3% next year, but of course there will be regional variations with the North-South divide expected to widen even further. Major concerns remain over the economy, with worries about unemployment being top of the list. The supply of new property is also expected to remain low, and could force rents to rise by several percent, especially as the mortgage market is likely to face continued constraints in the wake of the Eurozone crisis.Experts are predicting property prices will remain fairly flat, with the exception being London and commuter hotspots in the...

Proposed EU legislation which is intended to regulate the buy to let sector could have several unpleasant and unintended consequences. The new legislation could result in mortgage availability becoming restricted, and some landlords may be forced to sell which could affect house prices and reduce the already overstretched private rental sector.The Treasury already decided two years ago that further intervention in the housing market wasn't necessary, but in spite of this, this new EU directive looks set to take effect in 2012, and seeks to regulate buy to let mortgages in the same way as residential mortgages. The effect of this...

Although rates for buy to let mortgages have fallen during the last 12 months, they are still significantly higher than residential mortgages. Interest rates for all types of buy to let mortgages have fallen significantly over the last 12 months, and average arrangement fees have also tended to fall. In spite of this interest rates and arrangement fees are still much higher than for normal residential mortgages. Data from Defaqto shows the average rate for two, three and five year fixed rate and two-year tracker 75% loan to value mortgages have fallen quite considerably since September last year, and average arrangement...

Parents of young children are probably worried as to what the future holds. Apparently the average age of the first-time buyer has reached 37, and many grown-up children are being forced to live with parents for longer as they pay off high university tuition fees and try to save a deposit. However help is at hand as junior ISA’s has been launched, and parents can save up to £3,600 a year tax-free. Price comparison website Confused.com has estimated that saving £300 a month in a savings plan with an interest rate of 6% would generate more than £116,000 over 18 years,...

A recent survey by the National Landlords Association has found nearly three quarters of landlords who have tenants receiving local housing allowance, are considering reducing their exposure to this market. Around 25% are already taking active steps to reduce the number of tenants receiving housing benefit payments, and another 50% have plans to do so in the future  because of concerns about the LHA cap.These caps will limit the amount of benefit available, and are based on the property size. According to the NLA, the impacts of these cuts will vary, and some households may lose hundreds of pounds. There are...

The Council of Mortgage Lenders recently published new research that found 1.8 million mortgage holders whose fixed-rate deals have ended, and who are currently on their lenders variable rate, are paying an average of £2,600 a year less than on their previous deal. This is no real surprise as the base rate is currently incredibly low, but the report also pointed out that half of those 1.8 million mortgage holders had more than 10% equity, allowing them to remortgage if they wish.At the moment it seems as if most borrowers are content to wait and see what happens with the bank...

Housing Minister, Grant Shapps has called for mortgage lenders to introduce fixed rate mortgages with much longer terms as he believes it will help families on a tight budget and would encourage greater market stability. At the moment there are no mortgage deals available which guarantee the interest rate for the life of the mortgage, and the majority of longer-term deals usually require large deposits.The housing minister was speaking at the Building Societies Associations Annual Mortgage Seminar last week and pointed out that the longest current term for fixed rate mortgage is generally five years. He thinks longer term fixed mortgages...

The percentage of rent arrears is increasing, and more tenants are defending their eviction cases in court, as according to Landlord Action, which is a company specialising in eviction, the percentage of defender cases has increased to 13% from 9% in 2010. Apparently County Court closures are increasing the pressure on nearby courts, which is obviously increasing the length of time it takes to bring a case to court, leaving landlord high and dry with no rental income.The higher number of rent arrears can be attributed to the rising cost of living, and certain landlords who are aware of the competition...

Apparently the debt advice charity helpline, National Debtline has received an 84% increase in the number of people calling for advice about rent arrears since the economic crisis began in 2007. The rental market is going from strength to strength, and due to credit restrictions fewer people are able to leave this sector and purchase their own property. Figures from the English Housing Survey which were released in February showed the number of people choosing to rent property in England have increased by an amazing 40% since 2005. This is leading to a shortage of rental properties in some areas, especially...

The latest Eurozone crisis could push mortgage rate for new borrowers up, as Barclays Wealth has already pushed its lowest tracker rates up by 1.5% for new borrowers, and some brokers think high street banks could cut some of their best tracker and variable-rate deals during the next few weeks. The reason for this is because of changes in the inter-banking lending rate, Libor, which is used by the banks to price their variable rate mortgage deals. Libor is now at its highest level since July 2009, and interbank lending is expected to become more expensive due to the troubles in...

Gazanging is the newest word to enter the property industry, and is used to describe where a property seller changes their mind at the last minute, letting down buyers who have probably spent a considerable amount of money by this stage. A new survey has revealed that 54,000 buyers have been let down in this way during the first six months of this year, a 20% increase compared to the last six months of last year.Apparently buyers are changing their minds at the last moment for a variety of reasons, as they are often uncertain about the market or cannot find...