As we enter the second half of the year, we have surprisingly seen some product interest rate increases. SWAP rates (the mechanism through which lenders can acquire a fixed price for funding over a specific period of time) have been extremely volatile over the last few weeks and have caused some concern within the mortgage market. Rate increases do not mean a mass panic just yet as it is only a couple of lenders who have increased their rates. However, it is something to be aware of if you are considering reviewing your mortgage options in the not too distant future.
Precise Mortgages have expanded their portfolio offerings to now include both First Time Buyers and New Build Properties. This is a positive move by the lender as they will also allow customers who have had a few credit blips in the past to apply for a mortgage. The maximum borrowing on this type of product and for this customer type is 85% loan to value. So effectively, a first time buyer can now purchase a new build property (including flats), having had minor issues in the past and with only a 15% deposit. As there is currently no other product like it in the market, Precise Mortgages should be credited for their innovation and especially for helping First Time Buyers.
Finally, the positive news continues as the Nationwide House Price Index confirms an increase in the average house price for the South of England of 3%, compared to the same period in 2012. Across the UK, this sits at 1.9% with the average house costing £168,941. The South, especially London, has seen month on month increases and it is reported that London now sits at 5% above pre-recession prices (circa £315k average), despite the UK still around 9% below! With the amount of building works continuing to be approved and huge demand for properties in the local area, this can only be good for consumer confidence and that house prices may continue to rise for some time yet.