- Fantastic news this week in that the Skipton Building Society have come back to the mortgage market with a new range of products. They are offering a range of 2 and 3 year fixed and tracker deals with competitive fees for both purchase and remortgage. They are also offering a couple of exclusive products at 90% loan to value which will bring some much needed competition to this end of the market.
- The FSA has announced today in a consultation paper that they are going to stop lenders from offering ‘Self-Certification’ and ‘Fast Track’ mortgages to both employed and self-employed mortgage applicants. What does this mean, that going forward everyone will have to provide evidence of income from employer, bank, accountant or HMRC. As usual this is the FSA with their finger on the pulse of the mortgage industry. As any Mortgage Broker will tell you ‘Self Certification’ mortgages have not been available for the last 12 months, a classic example of the mortgage market regulating itself in spite of the regulator.
- With the end of ‘Self Certification’ mortgages the question is now open to Accountants what stance will you take for clients? Help them pay as little tax as possible so lowering their Net Profit or pay more tax have a higher Net Profit and be able to afford that next house purchase or remortgage?
Market Watch
Cambridge house price surge
Andrew FowlerJuly 7th, 2010
Filed under: Buy-to-let, First Time Buyers, Market Watch, Mortgages, Next Time Buyers, Remortgaging
The Cambridge Evening News has today confirmed what we have being seeing first hand over the last 12 months, that house prices in Cambridge have jumped up well above the National trends. We believe that this increase is having an effect not only on Central Cambridge but also on all surrounding villages and Towns.
As a result of these increases in house prices, it is now more important than ever to get fully independent advice with regards to your mortgage and to get an early understanding as to your full borrowing potential. Please do not hesitate to contact us if you have any questions as to how differing lenders assess individuals and decide how much mortgage they can raise.
The full article from the Cambridge Evening News website can be found at http://www.cambridge-news.co.uk/Home/City-house-prices-soar-60000-in-just-a-year.htm
No Comments »
Weekly Mortgage Market Update
Andrew FowlerMay 24th, 2010
Filed under: Buy-to-let, First Time Buyers, Market Watch, Mortgages, Next Time Buyers, Remortgaging
Cheltenham & Gloucester has launched a two-year tracker at 0.01% below the Bank of England base rate, available at 85% and 90% LTV which results in an incredible initial rate of just 0.49%. However, this rate only lasts until December 31 2010, at which point it jumps to base rate plus 5.49% until July 31 2012 (an increased rate of 5.99% currently). This kind of product may be of assistance to help First Time Buyers in getting onto the property ladder but they do need to budget for the uplift.
From tomorrow, Nationwide will reduce selected rates on its five-year fixed rate mortgages. The reductions range between 0.10% and 0.31%, with the average cut being 0.23%. For those remortgaging rates are reducing across all tiers up to 75% LTV. Five-year fixed rate are being reduced by 0.26% available from 4.88% (up to 70% LTV), new customers can borrow up to 85% LTV.
Two lenders have come to market for buy-to-let offerings, Aldermore and Precise mortgages, who are offering mortgages only via the broker market. So another good reason to talk to us if you are considering re-financing your investment portfolio.
No Comments »
The new coalition government have announced today that Home Information Packs (HIPs) will be scrapped from the 21st May 2010. This is great news for people wishing to sell their house asit will save them the expense (typically £350) and also the time lag that HIPs introduced to the residential property market.
HIPs were introduced to speed up the sales process and ironically the exact same reason is being given for their demise. Shame more consultation was not made by the former government as over a billions pounds and innumerable trees have been sacrificed to this bureaucratic pipedream.
Energy Performance Certificates (EPCs) will still be required as these are part of an EU directive, however, early signs are that the EPC will not now be required prior to first day marketing.
No Comments »Coventry Building Society launched new 3.50% fixed rate at 65% LTV on 4th March, £800.00 arrangement fee added on completion £199.00 booking fee paid on application free remortgage valuation and free legal’s.
Woolwich have withdrawn their 70% loan to value range of products due to high demand. Their funds booking system is starting creek under the strain of high demand so this action is start to slow down interest in their products.
Bank of England held base rate at 0.5% for the 12 month in a row. This is despite the increase in inflation over recent months, it is expected that inflation will soften latter in 2010, however it is expected that the Bank of England base rate will increase in 2010.
1 Comment »