Don't be loyal to your current mortgage provider when rates are so low, think of number one!

It really appears to be a race to the bottom!  In the last few weeks, we’ve seen five year fixed rates available from 1.45% and two year fixed rates starting from just 1.19%.  Obviously, terms and conditions apply based on individual circumstances, but if you’re looking to change your current mortgage, use the uncertainty across the economy (and country!) to your advantage!  Not only are there some great rates to be had, but if it is a re-mortgage, a number of lenders will also cover your legal and valuation costs to transfer you over.

In addition, lending volumes are up!  According to UK Finance, mortgage lending (gross) in July 2019 totalled an estimated £26.1 billion, an increase of 2.9% on July 2018 and the highest since March 2016.

The Financial Conduct Authority reports that 5.5% of mortgage lending in Q2 2019 was for over 90% of the property’s value.  There are now several lenders who will consider 95% loans, so just a 5% deposit, if you know where to look!  

UK Finance also confirmed that 65,350 loans were approved for house purchase for first time buyers and home movers in July 2019.  This was 3.6% higher than the same period last year. The average (mean) loan approved for house purchase was £174,914 for first time buyers (up 2.6% on July 2018) and £231,603 for home movers (up 3.7% on July 2018).

Nationwide estimates that house prices were unchanged in August 2019 but grew by 0.6% against the 12 months before.  Whereas Halifax reports that they grew 1.8% in the year to August 2019 and that the average UK house price in August 2019 was £233,541.

Finally, when asked why people do not switch mortgage providers, the general response is because they think they are too complex to be helped.  In a market with highly competitive rates, many lenders have looked at other ways to assist customers rather than just pay rates.  This can include criteria such as types of property, types of customer, income make up (self employed, etc), guarantors, charges on more than one property and so on.  The likelihood is that you are not alone in your requirements and there will be a lender out there willing to assist and who probably needs you just as much as you need them...

AToM’s chairman Vic Jannels picks up ‘Service to the Industry’ award!

I start this week with some fantastic news in the AToM’s chairman Vic Jannels was awarded his second accolade of the year as he picked up ‘Service to the Industry’ at last week’s Specialist Finance Introducer Awards 2018.   The event, held at Madison in St Pauls, London, was attended by over two hundred of the industry’s finest and hosted by Homes Under the Hammer and I’m a Celebrity’s Martin Roberts.  AToM’s system, OMS (One Mortgage System), also picked up ‘Best use of Technology’ and ‘Product Innovation’.  Awesome news and well done team!

The market is pretty quiet currently, apart from the odd ‘cabinet reshuffle’ here and there and at the time of writing, we’re about to get our 17^th housing minister in 20 years!  Mind blowing.

What we are seeing, despite heavy rumours of a bank of England base rate increase possibly as soon as August, is lenders reducing their current rates.  The holiday period is inevitably quieter, although add this to an already quiet market, and lenders need to attract customers to keep on track to hit their annual targets.

Just in the last week, we’ve seen Halifax, NatWest, Platform and TSB all reduce selected rates and our friends at Secure Trust launch a 90% LTV product that caters for those who have had a credit blip in the past.  There are some great rates and options around currently.

Finally, valuations on properties to be mortgaged come in various guises. Every mortgage lender will require a valuation on the property although, in some cases, they will not actually visit. This is because they can often access detailed information electronically.  Remember that this fairly basic valuation is for the lender, at your cost, and should not be relied upon as a guarantee that the property is sound and fit for purpose.  Seek a more detailed survey if you have any doubts.  Recently, and with a lack of stock readily available, we are seeing valuers ‘down value’ a property.  Just because it’s been sold at £330k, does it mean it’s worth that price or has it been sold to the highest bidder.  Always do your home work before the valuer goes out, as if he says its only worth £300k, then you’ll have to find the difference from your own pocket as the lender will only lend against the lower of the purchase price or valuation. 

Stick with your current lender?

So, your mortgage product is coming to the end of it's term.  You may have fixed for an amount of time, maybe two, three or five years.  And now your rate is due to change to the lenders variable rate, which in the main, is higher than the rate you are currently on, and your monthly payments are about to increase.  But hold on, your current lender has seen the light and decided to offer you some 'fantastic' products to keep you.  Even though you are four months out of your product change, they've given you just fourteen days to decide whether to choose a new product to stay with them.  What do you do?

One recent example a customer showed us, had some very attractive rates.  However, when we looked, the same lender was offering better rates through the intermediary sector, with the same fees, etc.  I always say do your homework, and lucky this customer did as it saved them 0.1% on the rate over a three year period.

Even though some lenders put a deadline on any new offerings, remember most are contacting you three or four months before your product changes, so there is plenty of time to review your options and choose the best one for you. 

This is the biggest debt you will ever take on, take your time and ensure you will not regret it further down the line.  Always seek advice! 

With this in mind, we've seen a lot of rate changes and reductions over the last few days.  TSB, Santander, Halifax, Harpenden Building Society, Accord, Platform, Saffron, Kensington, Virgin Money and Precise Mortgages have all made changes, to name but a few.  Key highlights include 5 year fixed rates from 1.75% up to 65% LTV, Buy to Let fixed rates from 2.99%, ExPats in Australia can now be First Time Buyers in the UK, more options for lending in to retirement and many many more positive enhancements.    Lenders want to lend!

Two million sitting on a Lenders Standard Variable Rate!

New lenders will be a key part of the mortgage market in 2016.  A number of lenders have applied for authorisation from the regulator and a number of others have contacted AToM with regards to re-launching in to the market place.  It's a buoyant market and lenders can see growth in 2016, especially whilst rates remain low. 

With this in mind, it still amazes me how many people do not change their mortgage.  HSBC have recently suggested that over two million borrowers in the UK market are sitting on a lenders standard variable rate (SVR) in excess of 3%.  In fact, the average lenders SVR is sitting around 4.82%, whilst the market continues to enjoy record low rates.  Short term fixeds are commonly around the 1.25% mark with five year deals circa 2%.  This makes it worthwhile to review your options and see if you can save money.

Remortgaging away from your current lender should not be looked upon negatively!  Many lenders will cover the cost of surveying your property, as well as covering the legal fees in transferring your mortgage from one lender to another.  But most of all, you should think of number one as this could save you money on your monthly budgets and, subject to terms and conditions, this can only be a good thing. 

In other news, Halifax is changing its income multiple to a flat 4.75 times sole or joint incomes.  For loans over £500k, this remains at 4 times income.  I suspect we will see some other lenders follow suit in to the new year and the lender will still require a full affordability assessment to be carried out.  However, this is pretty generous and many customers still believe they can only get 3-4 times income, so 4.75 times income, especially joint incomes, might be an eye opener for some!

Finally, outside AToM we have a box offering free ‘Property Today’ papers.  This is a good gauge to the local market and how interested people are in properties each week.  Last week, we ran out in a couple of days.  Possible signs of a buoyant local market (despite low stock levels), or just a lot of people keeping an eye on things?  Who knows…

Volumes continue to rise, but so do delays..

The market is creaking as delays strike lenders, valuers, solicitors and ultimately the end consumer.  Volumes continue to rise, rates remain low and attractive, but the new regulations are biting in to the processes and thus these are taking longer than normal.  Some lenders are taking over an hour to answer their phones whilst taking up to ten days to look at mortgage applications.  In addition the already apparent shortfall in surveyor numbers is becoming more apparent as customers seek quick turn-arounds in order to compete deals, but the reality is that although volumes are increasing, staff  number increases across the sector can't keep up.  AToM has had first hand of this as we've been recruiting over the last three months.  But finding the right person with the right experience and/or qualifications has been tough!   Whatever transaction you are looking to do, especially with purchasing, be aware that the market is experiencing these delays and the processes are taking much longer than expected.

However, I won't spend to much time on the lows of the market as the fact we have so many lenders offering so many fantastic products across all areas of the market is superb and more people are buying houses than have been for some time, albeit supply might be faltering a little.   Certainly makes it more enjoyable working in our industry with 11,000 product offerings, than when there were fewer than 2,000 not so long ago!

With this in mind, the average two year fixed rate rose by 9 basis points, from 3.52% on 1 April to 3.61% by the end of the month, according to moneyfacts.co.uk. This was the largest one month increase since February 2012, when two year fixes rose 0.13%.  Not time to hit the panic buttons yet, but be aware that there is rate movement occurring.

Finally, the Halifax House Price index suggests that house prices are up 8.5% over the last year with the average property price standing at £178k.  It is also suggested that while London and the South are fairing well and seeing some increases, the North and Wales are still static.  

Help to Buy New Build extended and FTB mortgages increasing!

Good news for those looking to buy a new build property, Help to Buy phase one is being extended to the end of the decade.  The first phase of Help to Buy allows borrowers with a 5% deposit and  75% mortgage to secure up to a 20% loan from the Government for the remainder. The loan will be interest-free for five years and will be repayable on sale.  To qualify, new build homes must be worth less than £600,000.  The Government say this extension will allow a further 120,000 homes to be built. 

Lending to First Time Buyers reached its highest quarterly total since Q3 2007, according to figures released by the Bank of England.   The value of lending to those taking their first steps on the housing ladder grew 41% from the fourth quarter of 2012 to quarter 4 2013 amounting to £10.6bn.

Virgin Money has increased its borrowing limits from 70% to 75% loan to value on a Buy to Let property.  This is good news and rates start in the mid 3% range, depending on circumstances and their products have £750 cash back to help towards costs.  Lender fees on these products range from £995 right up to 2.5% of the loan amount.

Halifax has revealed that is cheaper to buy than rent.  The average monthly costs associated with owning a three bedroom house stood at £645 in December 2013, 16% lower than the typical monthly rent of £769 on the same property type.  This is a significant shift since 2009 when the average monthly costs for owning were £646 and renting £652.

Finally, 83% of non homeowners aspire to join the property ladder, but despite the return of 95% mortgages under Help to Buy 2 (mortgage guarantee scheme), 62% of these ‘would be first time buyers’ still cannot afford the necessary deposit.   The study, by leading mortgage insurance provider Genworth, also highlighted there is widespread ignorance about Help to Buy 2 with 40% of aspiring homeowners having no knowledge of the scheme or no understanding of how it works!!   This does surprise me and I would always say seek independent advice to find out the best options.   

Is now the right time to Fix?

Activity remains high in the financial sector.   Halifax has reduced some two year deals by up to 0.2%.  Santander have launched two year tracker rates in the region of 1.79% (40% deposit) and Woolwich (Barclays) has launched products on the Governments Help to Buy Mortgage Guarantee scheme, available up to 95% loan to value.  We’ve also heard Richard Sharp, an external member of the Bank of England’s Financial Policy Committee, suggest that now is a good time to fix in to a long term deal.  Is he right?  Who knows!   There’s no denying that five year fixed rates are incredibly attractive and we have seen some rates start to creep up on these longer term deals.  However, it is personal preference.  If you wanted the certainty of knowing your mortgage payments won’t change for the next sixty months, then they are certainly worth a review!

The New Year has seen a large increase in requests for secured loans. A secured loan is a 2nd, or subsequent charge, designed for homeowners and which allows the equity in their property to be used as security.  Loans are usually between £3.5k and now up to £2.5m!  There are also no 'up-front' fees to find although costs are added to the advance.

We tend to find that many customers looking to remortgage to raise additional funds are already on an attractive rate with their lender. To move away could be costly and they could end up on a much higher interest rate.  Depending on the amount already lent as a mortgage, compared to the value of the property, most lenders will allow a secured loan to be added as additional borrowing, right up to 95% of the property value.

The secured loan is usually repaid over a shorter term than a mortgage, circa 3-7 years, but the term can be longer, although this will increase the amount of interest repaid. Rates vary depending on the customer’s circumstances and current level of borrowings.  Always seek advice.

Halifax help First Time Buyers

A helping hand for First Time Buyers this week as Halifax for Intermediaries launched a promotion where they will pay the Stamp Duty for all properties with a value between £125k and £250k.  With products available to customers with a minimum 10% deposit, this is a nice move by the lender, especially as this is not restricted to just ‘new build’ properties.

Nationwide’s House Price Index suggested that the typical value of a house declined by 0.1% between March and April, with the typical UK home now being worth £165,586.  This is still 0.9% higher than April 2012.

With this in mind, lenders require a valuation to be carried out, by their approved valuers, on every mortgage.  This report is for the lender only and should not be relied upon when purchasing a property, as it does not go far enough.  It only responds to the questions lenders ask relating to the property being suitable security for mortgage purposes and an increasing number of these are now done by a ‘drive by’, so the valuer may not even enter the property!  They have no obligation to tell you what is in the report, or give you a copy!  Therefore you should always consider the benefit of an independent and more in depth survey on the property you are purchasing to ensure all defects are noted before signing contracts.  The extra few hundred pounds cost upfront could save you thousands later on.

Mortgage approvals were up 5 per cent in March, compared to February report the Bank of England.  House purchases rose 3 per cent to £8bn and remortgaging up 9 per cent to £4.1bn.  Positive signs and shows how attractive the current rates are in the market.  We are seeing a huge amount of long term fixed rates being snapped up.  Criteria is also being relaxed slightly as lenders target volume business.  If you don’t think you can get a mortgage, have a chat with a local independent mortgage brokerage as you may just be surprised with how they respond!

The Mortgage event of the Year...

The great and the good of the industry descended upon London’s ExCel last week for the annual Mortgage Business Expo.   Around 70 exhibitors offered their wares to mortgage brokers, intermediaries, financial advisers, solicitors and others who attended the largest trade mortgage event in the calendar. 

The two day extravaganza was well received in its new venue (previously Olympia) and despite the slightly longer journey, attendees enjoyed the fantastic facilities available at the gigantic centre.

Big players such as Nationwide, Virgin Money and Halifax had their latest products and rates on offer which were well received especially as most have recently been reduced.  However, noticeable absentees included Barclays, Natwest and Santander, leaving a rather large gap from the high street contingent.

This left room for the smaller, lesser known lenders to promote their offerings.  They may not be processing the volume of cases like the high street lenders, but they have a huge appetite to lend and offer niche products to cater for a variety of customer profiles.

Thriving areas also included short term funders/lenders specialising in Bridging Finance and a number of Commercial lenders were also in attendance as funding becomes somewhat more available to businesses.

Our trade association AMI (Association of Mortgage Intermediaries) held numerous seminars covering various issues including Mortgage Market updates and it’s estimated that over 1,750 people attended the two days.  Well done to the organisers!

AToM were the only Specialist Mortgage Packager/Distributor onsite who offered all areas of the mortgage finance sector.   If you follow us on twitter, you will see our stand (@atommortgages).

For those who don’t know AToM, we have a shop front in the Carfax, Horsham.  But we also process cases for lenders via exclusive products and to a database of over 8,000 mortgage brokers, intermediaries and IFAs.   In short, we are a one stop shop catering for all types of people whether it be a straight forward and clean credit history application, right through to complex deals needing a manual assessment on a product exclusive only available via AToM.  As the name suggests, All Types of Mortgages!  So why not give us a try!

Much has changed since 2007...

Someone said to me this week its five years since Northern Rock crashed the ‘mortgage boom’ party and to be honest, I did ponder on where those years have gone!  Much has changed since 07 and lenders now appear to be run by their credit risk personnel, who in turn report to the Financial Services Authority, our regulators.   Let’s be honest, most feel that the FSA now run the lenders too!  As a directly authorised mortgage intermediary, we have had our fair share of ‘guidance’ by the regulator and with the fees involved just to trade in the mortgage market, it’s no surprise that so many have jumped ship and started new careers.  However, what this has left is huge gaps and I often wonder where the market will be in two or three years time as many more retire and fresh blood seems to be so scarce on the horizon.  What will be will be!  But in the meantime, there’s no substitute for honest, transparent professional advice and recommendation, based on your exact needs and requirements.   Online computer systems just can’t compete with that!

Halifax has launched a 5.89% (APR 6.1%) seven year fixed rate mortgage up to 90 per cent of the property value, exclusively for first time buyers.  There is no product fee and customers are eligible to receive £500 towards their moving costs.  Might be right for some very cautious people who like to fix payments long term.  However, rates are lower on shorter term fixes and with rates predicted to be static for some time, alternative products at the end of the short term are likely to still be more competitive.  But, the principle of trying to help First Time Buyers is to be applauded.

Finally, the 2^nd Charge Secured Loan market showed huge growth in July.  Second charge mortgage lending shot up by 11% according to the latest figures from the Finance & Leasing Association.   Many who require a loan to carry out home improvements or for other luxury items, but are currently sitting on very low lenders variable rates are opting to add on a second charge to their current property (sits behind the first charge mortgage).  Again, right for certain people but rates start from 6.9%, so will need to ensure its beneficial in the short to medium term compared with a complete remortgage to another lender/rate.

House prices increase as Remo market 'well and truly open'!

According to a recent poll by Safestore Moving and Improving Index, a massive 50% of tenants believe they won’t own a property at any stage in their lifetime.  Its recent poll, which quizzed 2,058 adults, found that 42% of people wanting to get on the property ladder think that their best hope of being able to afford a home is to inherit money or a house itself.   Lack of deposit and the inability to get a mortgage are cited as the main reasons stopping those that don’t currently own a home getting on the property ladder, according to 29% and 17% of respondents respectively

House prices increased in May.  Halifax House Price Index suggest they increased by 0.5% and Nationwide suggest a raise of 0.3%.  This was the second successive increase in these measures.  The price of a typical home is now £166,022.

I was surprised to see the news that price comparison site MoneySupermarket.com is set to acquire MoneySavingExpert for £87m.  A £35m upfront cash payment will be made as part of the deal alongside approximately 22.1m MoneySupermarket.com shares. There is also a deferred consideration of up to £27m subject to performance.  Credit to Martin Lewis, the personal finance journalist who set up MSE in 2003, and who will become an employee of Moneysupermarket.com.  However, it will be interesting to see if MSE can remain a truly independent and unbiased advice service moving forward.  There’s a big price tag to repay.

Finally, the remortgage market is well and truly open – some lenders are actively looking for business. Now is a superb time to review your current mortgage and possibly obtain a great rate with minimal (if any) costs to change your mortgage. Whether you want to fix your monthly payments for a period of time, or you fancy a low rate tracker mortgage, or maybe both - a tracker rate with the option to fix later on, there are plenty of great products currently available.  If you are in any doubt, speak to a mortgage adviser, get a free mortgage review and you may not miss out on some great offers before they are gone.  It’s good to talk!

House prices up 2.2%! Positive news!

The Halifax House Price Index suggests that house prices increased 2.2% in March. They report
that the average house price now sits at £163,803. A spokesperson commented that the end of the Stamp Duty holiday period for First Time Buyers at the end of March probably helped
to increase sales and support prices.

A mortgage is the biggest debt you’re ever likely to take on, so do your homework and shop around, as you would for you weekly shopping! We are always surprised that someone will announce to the world that they saved £30 off the price of, say, a fridge or cooker, yet fail to apply the same research into their mortgage! If you have plans to apply for a mortgage in the
not too distant future, then keep an eye on your credit. Don’t miss or make late payments to any
provider. All financial institutions will base their decision initially on your credit history. If you have missed or late payments, or numerous credit searches (from multiple finance/mobile/car/home insurance applications), this could be detrimental to your ability to obtain finance at competitive rates. Even whilst shopping around for a new mortgage, be wary that many ‘institutions’ are likely to carry out a credit search on you. Make sure you stipulate at the outset of any mortgage conversation that you do not authorise any credit searches, until you agree you are happy to proceed with a specific product or lender. If you have not reviewed your credit search before, get it for free (30day trial period) from Credit Expert (see www.atomltd.co.uk for a link). It’s well worth a review and a good insight on how attractive you may, or may not, look to a lender.

Finally, we’ve been bombarded with visitors over the last few days as hoards of children embark on the Great Easter Bunny Hunt, organised by the Rotary Club of Horsham. It’s wonderful to see so many people taking part and obviously its superb fun for the children as they are spoilt with
chocolate, if they find the bunny’s name and carrot! We’ve also enjoyed some great enquiries from those parents who have been dragged, I mean accompanied, the children on their tour of the 24 participating shops! This event has certainly been worthwhile for all involved and created a great community spirit (ends Sunday 15th April).

Lenders are increasing SVRs now too!

Many existing customers with the Halifax will shortly receive a letter confirming that their Standard Variable Rate will increase from 3.50% to 3.99% on 1st May. Not a nice letter to receive, but it is within the lenders power and will affect between a reported 600,000 – 850,000 customers. A spokesman for the lender says the change acknowledges that the cost of funding a mortgage in today's market remains significantly higher than the longer term average. The increase to the rate reflects the fact that raising money through savings and wholesale markets is currently very expensive. It is not expected that many others will follow suit (RBS also had previously increased rates for some 200,000!). Some lenders have written in guarantees to their mortgage offers terms and conditions, so don’t panic just yet as many track Bank Base Rate. It
does mean that you should review your mortgage offer, especially the small print. If your lender can increase the SVR rate whenever they feel necessary, maybe it’s a good time to review your
options. You don’t have to be loyal to the lender…they may not be thinking especially about you!

The deadline for the end of the stamp duty holiday is looming. The first time buyer's £250,000 completion threshold applies up to 24 March 2012 inclusive. During this time, all First Time Buyers can claim relief on Stamp Duty. Not long now, so get pushing for completion!

The latest figures from creditaction report
- The average amount owed per UK adult (including mortgages) was £29,634 in January. This was around 122% of average earnings.

- 318 people are declared insolvent or bankrupt every day (based on Q4 2011 trends). This is equivalent to 1 person every 62 seconds during each working day
- 1,473 Consumer County Court Judgements (CCJ's) are issued every day (based on Q4 2011 trends). The average value of a Consumer CCJ in Q4 2011 was £2,949.
- Citizens Advice Bureaux in England and Wales dealt with 8,652 new debt problems every working day during the year ending September 2011.
- 93 properties are repossessed every day (based on Q4 2011 trends).
- In Q4 2011, Banks & Building Societies wrote-off £1.48 billion (of which £907 million was credit card debt) amounting to a daily write-off of £16.23m!!

Although these are some horrific and eye opening figures, I do think it’s worth stating these
every now and again. It highlights the state of our economy and makes you stop and think about finances and whether there’s something you could be doing better or with another provider. It is always good to talk!

A lot of Mortgage activity in the run up to Christmas

There has been substantial mortgage activity happening across the country as we roll
towards the Christmas break and festivities. This is slightly unusual for this time of year, but then nothing surprises us any more in the current climate! I certainly shall not complain at being very busy!

As mentioned last week, Abbey for Intermediaries (part of Santander) has launched
into the buy-to-let market with a range of products for non-professional
landlords. The products are available exclusively through mortgage brokers/intermediaries and require a minimum purchase price of £100,000. The launch products are by no means market leading, but appear to be more of a ‘dipping toes in the water’ exercise and getting systems set up. I suspect Abbey for Intermediaries will be a major player in the Buy to Let sector in the coming months and, from a market perspective, having another lending giant in this arena is great news.

Halifax have forecast that House Prices will remain stable next year. Despite many others suggesting a large property price decrease, the lender’s housing market outlook for 2012 predicts little change in property values over the next 12 months, with price movements of
between -2% and +2% expected.

The low interest rate environment has made monthly mortgage payments for first-time
buyers the most affordable for nearly eight years, according to figures
released from the Council of Mortgage Lenders (CML). Although first-time buyers’ deposit
requirements have remained stable in recent months at an average of 20%, their
monthly interest payments have continued to fall and now typically consume
12.3% of income, the lowest level since January 2004. Don’t forget that the stamp duty exemption for First Time Buyers up to £250,000 ends on 24 March 2012.

Finally, the CML have also estimated that there are some £8bn worth of mortgages due for
renewal in January 2012. Many reverting from long term fixed rates, or discounted products. If you’re one of those whose product period is ending, it’s definitely worth a review over the festive period and even a conversation to see what other options are available to you. It could be very beneficial!

A positive for First Time Buyers!

I start this week’s column with superb news for First Time Buyers who have a 5% deposit! Two lenders have launched 95% mortgages over the last few days. It’s been some time since we’ve seen a true 5% deposit product with an affordable rate of interest (sub 6%) and low arrangement fees. Although the lenders are not actively promoting these products, they are available through certain mortgage intermediaries and will undoubtedly have limited funding availability. So be quick!

This does show a positive attitude from the lenders and an apparent appetite to lend. Although these products may only be ‘testing the water’ and will be extremely difficult to get through, I hope this is the start of the return of some normality to an under funded first time buyer market.

The Halifax House Price index has suggested that house prices dropped by 1.4% in April, compared to March. This is following Nationwide’s suggestion earlier in the month that prices for April had decreased by 0.2%. Despite the two indexes differing in amounts, they do come to the same conclusion that prices had dropped. This puts pressure on the Bank of England to keep the base rate on hold, which, in turn, is good news for those on tracker rate mortgages.

The number of mortgage products available in the market rose by 13% in April up to 11,748 according to an analysis by Mortgage Brain. This is nearly 7,000 more products than at the same time last year. Fixed rate product offerings rose by 16%, cementing their position as the most popular product type.

Whatever your particular need, do talk to an independent mortgage advisor who has access to all lenders in the marketplace rather than a limited panel or single provider.

Finally, AToM has been heavily involved in a local initiative called Set4Success which is due to launch shortly. Working in partnership with Horsham District Council, Horsham Rotary Club, Horsham Schools and local businesses, Set4Success will assist Horsham District’s young sportspeople with funding for training and competing. To find out more or to see how you can get involved, visit www.set4success.org

Properties selling over the asking price!?

09/10/09 - Confidence in the market continues with the Abbey, Alliance & Leicester and Northern Rock reducing the interest rates on some fixed rate and tracker mortgages. Some of the tracker rates are sub 3% and well worth a look if you believe rates will not increased rapidly over the next couple of years. Other fixed rates, sub 4%, will suit those who require the comfort of knowing that their monthly mortgage costs are fixed for the period of the product. Whatever your requirement, it’s worth reviewing your circumstances and seeing what’s available in the market.

Lenders seem to be the focus of my articles more recently and in more of a positive stance! As we move in to the final quarter of 2009, and having had lengthy talks with many lenders over the last few weeks, I believe we will see more aggressive products during this period as lenders aim to finish the year on a high and with volume business. Watch this space!

As people remain content to stay on Lenders low standard variable rates, having finished fixed, discounted or tracker rates, it comes as no surprise that recent reports are suggesting mortgages for purchases are outstripping remortgage applications by 9-1! This shows that despite the current market climates, people are still moving properties and first time buyers, as I’ve mentioned before, are getting on to the property ladder.

In fact, more recently I’ve been informed of properties in the local surroundings not only having many more viewings than expected, but selling for way over the asking price! Superb news for sellers. However, although demand for properties is high, supply is still somewhat less and as a result, more people are bidding for the same property.

This is also confirmed by the recent Halifax house price index for September. The report suggests that the increased demand and lack of supply of properties had pushed up house prices by 1.6% for the month. The third consecutive monthly increase and fifth this year.

Going up or coming down? Anyone know about House Prices?

Nationwide launched a 125% mortgage this week! Sadly, most reports failed to spot that this scheme is for existing borrowers, in negative equity, looking to move house! Positive news, but the hype will have teased first time buyers who will have to wait a while longer yet! In the middle of 2007, there were some 28,000 first time buyer products. Today, there are roughly 1,200.
Are you confused about house prices? I am. Nationwide recently reported that house prices increased in June by 0.9%. Halifax refuted this stating a decrease of 0.5% in the same period! If they cannot agree what chance do we have? Your guess is as good as mine. Let’s wait for the Land Registry report, although they are usually three months behind the pace due to reporting timings!
The Bank of England retained base rate at 0.5% last week. Good news for those on tracker rates. Not such good news for the market generally. Customers who have recently finished a fixed rate period with a lender will revert to the lenders currently low standard variable rate (SVR) and remain there quite happily. Lenders SVR’s tend not to change unless bank base rate does. However, it is borrowers moving from lender to lender which helps to stimulate money movement in the financial markets. Borrowers leaving a lender release funds for someone else, and so on. With minimal movements, the lenders enjoy continued excuses to restrict lending! Or, is it me…!
Finally, re-mortgage applications have increased recently. Borrowers looking to secure long term fixed rates are applying at the right time. Some, who are in increasing financial difficulties, are looking for sensible ways to remortgage (not always our recommendation). Others are releasing equity to acquire Buy to Let properties in the current cheaper climate. Whatever your requirements, speak soon to an independent mortgage advisor. You know who to call…

The Highs and Lender Lows...

Let’s start this week with some really good news! Halifax have announced that they are going to refund stamp duty for first time buyers who purchase properties up to £250,000. They will rebate the 1% stamp duty figure which takes effect above £175,000 after completion. This is available to first time buyers only and is seen as a positive move towards kick-starting this sector of the mortgage marketplace. Let’s hope other lenders now follow the HBoS giant and find other ways to stimulate new growth.
Contrastingly, the UK's biggest building society, Nationwide, has changed its reversion rates for new clients at the end of their fixed rate period. Whilst existing customers are guaranteed to pay no more than 2% over the Bank of England base rate when their current product term ends, new customers, who take a mortgage after April 30, will instead revert to the society’s new 3.99% variable rate (which will not track BBR).
Other news this week, the Leeds Building Society announced the launch of two new fixed rate mortgages for 5 and 10 years. With a loan to value available up to 85 per cent on the 5 year fixed rate deal (5.69%, 5.9%APR) and up to 75 per cent on the 10 year fixed rate loan(5.49%, 5.9% APR), borrowers who want to lock into the certainty of a long term fixed rate mortgage could be interested in these products.
The Budget was something of a mixed bag and certainly not a welcome one for those in receipt of high incomes. It does seem that we are entering into a phase where the tax payer is going to carry the can for many years to come as a result of the current government’s volume borrowing.
That said, another long weekend ahead provides ample time to review financial paperwork and here comes a plug! AToM has diversified into a number of new areas to ensure that we provide a one stop financial ‘shop’ for you. Historically, we are one of the longest established mortgage brokers in West Sussex and more recently have expanded our offerings which now include All Types of Mortgages, secured loans, wills, life/car/house/travel/pet insurances, equity release, bridging/commercial loans, debt management plans, IVAs, Utility Switching and other products such as Sky TV, Vodafone and 3 mobiles! AToM has them all. As always, no appointment is required, so please visit our offices in North Street, Horsham, or visit our website for more information.

Buy now, Fix now!

Not only is it a great time to buy, but remortgaging is becoming attractive too. There are some very competitive 3-10 year fixed rates available and the continued uncertainty in the financial markets is causing borrowers to review and stabilise outgoings longer term.

A few weeks back, I mentioned that fixed rates were set to increase and they are showing signs of doing so! Woolwich have increased their 3, 4 and 5 year fixed rates by up to 0.40% yet, at the same time, have reduced 2 year fixed and tracker rates by some 0.30%. Interesting, as general costs to lenders acquiring fixed rate monies (swap rates) had decreased! Yorkshire Building Society also increased fixed rates by 0.40% for loans exceeding 75% of property value. If this is the sign of things to come, then a trip to AToM in the very near future could be a financial masterstroke!

The Council of Mortgage Lenders estimates that 900,000 homes are in negative equity (house value lower than mortgage balance) and that prices have fallen around 16pc during the past year, although this figure might be open to question! Notwithstanding this, some lenders are showing a willingness to assist. Halifax and Bank of Scotland (members of Lloyds Banking Group) are offering 95% loans to selected remortgage customers and up to 120% of the property value in certain cases. You won’t find these schemes advertised as they are discreet offerings to existing customers. However, anything which helps stimulate the market is encouraging.

Halifax have also launched a scheme where they will pay 50% of your first years council tax bill (to £1,000) to attract first time buyers (available until 23/5/09 - conditions apply).

Continuing the “good news”, mortgage products now available increased to 3,700 in March, a 25% increase on February. And there’s more! Lombard Street Research declared that housing is now affordable and the slump will be over by Christmas!

And finally…The Confederation of British Industry (CBI) says. "The UK recession was more extreme than expected during the first three months of 2009, but the worst is now behind us. The recession is expected to last until the end of 2009 with sluggish growth resuming in Q2 2010. The Bank of England is expected to start raising the UK Bank Base Rate from its current 0.5% level in spring 2010.”

As I started, so will I finish…Buy now…Fix now!