We've seen a large increase in
enquiries for customers looking at Shared Ownership schemes. Shared Ownership schemes are provided in
conjunction with housing associations. You buy a share of your home, between
25% and 75% of the property value, and pay rent on the remaining share to the
housing association. You usually have the opportunity to purchase a bigger
share of the property later on (known as ‘staircasing’). Local housing associations must confirm your
eligibility in order to join these types of schemes. There are many schemes available and a good
supply of properties, so do review all the options available. By
buying a smaller share, it does give an opportunity to obtain a property for
many who may struggle otherwise with normal lending criteria.
Delays are still wide spread
across the market. An existing customer
phoned their lenders mortgage sales team and was advised that they could not
have a discussion about a new mortgage for over two weeks! Another customer requested a homebuyers valuation
on their property (more investigative than a standard mortgage valuation) and
although the surveyor could carry out the normal mortgage valuation within
days, the enhanced homebuyers report could not be carried out for a month!! You need to be aware of these delays as many
property sales are sold subject to contract and this normally carries a 28 day
exchange period.
Finally, we have seen some surprising
product interest rate decreases over the last few days. SWAP rates
(the mechanism through which lenders can acquire a fixed price for funding over
a specific period of time) have reduced over the last week or so, and as such
some lenders have passed on the reduction through their interest rate
offerings. This is great going in
to the holiday period and should encourage anyone considering reviewing mortgage
options in the not too distant future, to maybe consider it sooner as these may
not remain low for too long. Always seek
advice!
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