Overall, market conditions continue to deteriorate and mortgage products are subject to regular review and withdrawal. Between February and March, more than 20% of mortgage products were withdrawn from the market. To put this in context, the number of available mortgage products today are approximately 2,800 compared with 3,500 in February and more than 20,000 this time last year!
Mortgage Brain, one of the mortgage industries largest product sourcing systems recently commented that, for the first time in three months, fixed rate mortgage schemes had suffered the biggest fall (20%) followed closely by variable rate mortgages (18%) and base rate trackers at 15%.
That said, even though product offerings are on the decline, the actual rates available are extremely attractive. There is no surer bet that, despite the Bank of England Base rate being at its lowest ever, rates will increase. As a result, fixed rate mortgages should and will be in great demand.
One lender recently launched a 10 year fixed rate mortgage with an interest rate of just 4.75%. This really is a superb rate and is available to anyone looking to borrow up to 60% of the property value for either a purchase or remortgage.
For those with a smaller deposit, competitive rate examples include:
- Up to 75% LTV, 3.49% fixed for 2 years, subject to terms and conditions
- Up to 90% LTV, 5.50 fixed for 3 years, subject to terms and conditions
There are also many lenders offering attractive remortgage fixed rates to existing clients. These are known as retention rates and a specialist company like AToM can advise you on these as most are not publicly advertised by the lenders!
Please visit www.atomltd.co.uk where you can now view all major rates in the market and apply or enquire online.
Whether you are looking to remortgage or purchase, with rates so low and potentially tenuous, please don’t delay and possibly regret it later….
11 March 2009
The statistics...
I thought this week I would review some ‘interesting’ statistics which have just been released!
Credit Action suggests that today in the UK:
- 323 people will be declared insolvent or bankrupt. One person every 4.5 minutes.
- 2,430 County Court Judgements will be issued
- 144 properties will be repossessed
- 33,600 applications for credit will be declined
- Unemployment will increase by 1,600
- There are more debit/credit/charge cards in circulation than people, with an estimated 73m in use…
Let’s stop there and see if we can put a positive spin on this:
- Average house prices for first time buyers now stand at £140,857
- According to smile.co.uk, the credit crisis has made 64% of Britain’s change their attitudes towards spending. The average Brit saved £1,882 in 2008, but plans to increase this to £2,605 in 2009!
And the reality…
Openness about finances is important to a relationship. A new survey from CreditExpert.co.uk suggests a very different story:
- 1 in 5 adults admit they haven’t told their partners what they owe!
- 10% (3.2m) have set up a secret bank account!
- Women are more suspicious than men (not new news!), with 31% secretly looking at their partner’s paperwork, against 24% of men!
- While 17% of men aren’t telling their partners what they really earn, against 13% of women, 28% of females do not own up to the full amount of their spending on clothes and shoes, against 11% of men….
So where am I leading with this? Undoubtedly, it is time to batten down the hatches, extract heads from the sand and review your finances. A visit to AToM, for impartial, independent advice, could help you see through the next few months more comfortably, especially if you find yourselves in, or approaching any of the above categories.
We are delighted to be exhibiting at Microbiz at the Drill Hall, Denne Road on the 14th March. Do visit us there or pop in to our offices in North Street, Horsham at any time. We will be pleased to assist you.
Credit Action suggests that today in the UK:
- 323 people will be declared insolvent or bankrupt. One person every 4.5 minutes.
- 2,430 County Court Judgements will be issued
- 144 properties will be repossessed
- 33,600 applications for credit will be declined
- Unemployment will increase by 1,600
- There are more debit/credit/charge cards in circulation than people, with an estimated 73m in use…
Let’s stop there and see if we can put a positive spin on this:
- Average house prices for first time buyers now stand at £140,857
- According to smile.co.uk, the credit crisis has made 64% of Britain’s change their attitudes towards spending. The average Brit saved £1,882 in 2008, but plans to increase this to £2,605 in 2009!
And the reality…
Openness about finances is important to a relationship. A new survey from CreditExpert.co.uk suggests a very different story:
- 1 in 5 adults admit they haven’t told their partners what they owe!
- 10% (3.2m) have set up a secret bank account!
- Women are more suspicious than men (not new news!), with 31% secretly looking at their partner’s paperwork, against 24% of men!
- While 17% of men aren’t telling their partners what they really earn, against 13% of women, 28% of females do not own up to the full amount of their spending on clothes and shoes, against 11% of men….
So where am I leading with this? Undoubtedly, it is time to batten down the hatches, extract heads from the sand and review your finances. A visit to AToM, for impartial, independent advice, could help you see through the next few months more comfortably, especially if you find yourselves in, or approaching any of the above categories.
We are delighted to be exhibiting at Microbiz at the Drill Hall, Denne Road on the 14th March. Do visit us there or pop in to our offices in North Street, Horsham at any time. We will be pleased to assist you.
27 February 2009
The day of the First Time Buyer...
The great ‘new news’ of the week is that Northern Rock have confirmed their intent to lend over the next 2 years and are to increase their product offerings to 90% of the property value. This shows ambition from the lender in dire times, especially for first time buyers. A spokesperson, commenting in trade press added ‘We might do some business at 90%, but we will test this market very carefully.’!
With house prices and interest rates so low, today’s market is veering towards first time buyers. Those with a decent deposit have many many options!
For those with less, or even no deposit, the government has recently launched some ‘initiatives’. But do you even know what’s on offer? It can be confusing……………
- New Build Homebuy – Buy 25% of a newly built property with savings/mortgage (some properties in certain areas) and pay rent on the rest.
- Homebuy Direct – Receive an ‘equity loan’ of 15–30% on the cost of newly built properties (some properties in certain areas). You’ll need to repay the loan when you sell the property. The remainder is obtained via a traditional mortgage.
- Open Market Homebuy – Receive an ‘equity loan’ of up to 50% to buy any property. Remainder covered by a traditional mortgage. Interest charges on the loan apply.
- Rent to Homebuy - There are certain newly built properties that you can rent at an affordable rate – 80% (or less) of the market rent, for up to five years. If you can afford it, at the end of 5 years, you can buy part of the property under the New Build HomeBuy scheme.
You need to be ‘deemed’ eligible and may still need some funds to cover costs such as Stamp Duty, legal fees, etc.
For more information, or advice on all mortgages (including First Time Buyers), speak to AToM or visit our new website at www.atomltd.co.uk
With house prices and interest rates so low, today’s market is veering towards first time buyers. Those with a decent deposit have many many options!
For those with less, or even no deposit, the government has recently launched some ‘initiatives’. But do you even know what’s on offer? It can be confusing……………
- New Build Homebuy – Buy 25% of a newly built property with savings/mortgage (some properties in certain areas) and pay rent on the rest.
- Homebuy Direct – Receive an ‘equity loan’ of 15–30% on the cost of newly built properties (some properties in certain areas). You’ll need to repay the loan when you sell the property. The remainder is obtained via a traditional mortgage.
- Open Market Homebuy – Receive an ‘equity loan’ of up to 50% to buy any property. Remainder covered by a traditional mortgage. Interest charges on the loan apply.
- Rent to Homebuy - There are certain newly built properties that you can rent at an affordable rate – 80% (or less) of the market rent, for up to five years. If you can afford it, at the end of 5 years, you can buy part of the property under the New Build HomeBuy scheme.
You need to be ‘deemed’ eligible and may still need some funds to cover costs such as Stamp Duty, legal fees, etc.
For more information, or advice on all mortgages (including First Time Buyers), speak to AToM or visit our new website at www.atomltd.co.uk
12 February 2009
It looks good news, but is it?
The snow invaded and the UK ground to a halt! Although good fun and great to see, the underlying effect amounted to some £3.5bn in lost revenues to businesses, experts have predicted. Add this to an increase in insurance claims (myself being a snow accident statistic!) and you quickly realise it’s been an expensive week. But at least some are spending; the sale of 4x4 vehicles locally seems to have increased!!
More positive movements over the last week with a noticeable expansion in 'sold' signs around the local area and a further Bank of England Base Rate(BBR) reduction to an all time low of 1%. The latter greeted with both applause and despair! Great news for those on tracker mortgages, but bad for the economy. With lenders Standard Variable Rates decreasing, those coming to the end of their fixed rate periods need not move mortgages or lenders. However, we need this to happen so money moves between lenders to get the economy flowing again. Plus, the banks aren’t always passing on the full base rate cut; one rather large (government owned) institution only reduced their rates recently by 0.19% and not the full 0.50%!
Don't ‘panic buy and move’ your mortgage. You may be on a fixed rate and eyeing up some superb tracker rates on offer, but will it put you in a better position? Your current fixed rate may have a redemption penalty, so will cost you to change. It is also likely that a new tracker rate will have a large arrangement fee and tie you in for a few years. It’s unlikely that BBR will remain low for long as there’s the small matter of £228bn lent to the banks, that needs paying back. Guess who’s going to be hit for that!? Thus, check before you do anything abruptly. For free mortgage advice, speak to AToM…
More positive movements over the last week with a noticeable expansion in 'sold' signs around the local area and a further Bank of England Base Rate(BBR) reduction to an all time low of 1%. The latter greeted with both applause and despair! Great news for those on tracker mortgages, but bad for the economy. With lenders Standard Variable Rates decreasing, those coming to the end of their fixed rate periods need not move mortgages or lenders. However, we need this to happen so money moves between lenders to get the economy flowing again. Plus, the banks aren’t always passing on the full base rate cut; one rather large (government owned) institution only reduced their rates recently by 0.19% and not the full 0.50%!
Don't ‘panic buy and move’ your mortgage. You may be on a fixed rate and eyeing up some superb tracker rates on offer, but will it put you in a better position? Your current fixed rate may have a redemption penalty, so will cost you to change. It is also likely that a new tracker rate will have a large arrangement fee and tie you in for a few years. It’s unlikely that BBR will remain low for long as there’s the small matter of £228bn lent to the banks, that needs paying back. Guess who’s going to be hit for that!? Thus, check before you do anything abruptly. For free mortgage advice, speak to AToM…
07 February 2009
Lloyds Banking Group use power....
The Lloyds Banking Group (HBOS and Lloyds TSB) began to wield their new found power on the mortgage market this week and withdrew all adverse and self certification mortgage products from two of their subsidiaries, BM Solutions and Bank of Scotland.
This will have a major impact on the mortgage market, not only because they had great products and were specialists in these areas, but their removal leaves the remaining providers who still offer such products, out on a limb and right now lenders are not keen to be 'last man standing' in any product areas. Thus, the next few weeks are likely to witness more changes as the need for these products increase, from both those in genuine financial difficulties and others who simply cannot easily prove all their income. This, despite the governments instruction to banks to lend more will, no doubt, see the contraction of both sectors of these markets in coming weeks. If either self certification or adverse credit products suit your personal requirements, come in and see us, sooner rather than later!
Good news this week came from a surprising source, the Woolwich who launched a market leading 2.29% one year fixed rate for borrowers with a 40% deposit. Their rate then follows the bank of England base rate + 2.29% for a further two years and has a 2% arrangement fee which can be added to the loan and no extended redemption penalties.
Our wish is that others follow suit and that we will see some really competitive rates on offer soon. This will help get the market moving again…
This will have a major impact on the mortgage market, not only because they had great products and were specialists in these areas, but their removal leaves the remaining providers who still offer such products, out on a limb and right now lenders are not keen to be 'last man standing' in any product areas. Thus, the next few weeks are likely to witness more changes as the need for these products increase, from both those in genuine financial difficulties and others who simply cannot easily prove all their income. This, despite the governments instruction to banks to lend more will, no doubt, see the contraction of both sectors of these markets in coming weeks. If either self certification or adverse credit products suit your personal requirements, come in and see us, sooner rather than later!
Good news this week came from a surprising source, the Woolwich who launched a market leading 2.29% one year fixed rate for borrowers with a 40% deposit. Their rate then follows the bank of England base rate + 2.29% for a further two years and has a 2% arrangement fee which can be added to the loan and no extended redemption penalties.
Our wish is that others follow suit and that we will see some really competitive rates on offer soon. This will help get the market moving again…
27 January 2009
Mortgage Rationing?
So, it’s official! The UK is in a recession for the first time since 1991, although the reality is that most of us have known the downturn has been gathering pace since early 2008. However, that didn’t stop a Government owned bank, Northern Rock, paying staff a reported £9m in bonuses last week! Enough said!
Following the recent £50bn government rescue plan attracting less than welcoming consequences in the stock market, shares fell. RBS required further investment from HMG (who now own circa 70%) and shares in Lloyds Banking Group (the new name for HBOS and Lloyds TSB) also plummeted.
A week for bad news continued with the FSA reporting that possession orders agreed by the courts were up 92% in the last quarter of 2008 and those who were up to 3 months behind on their mortgage payments increased by 24%, compared to the same periods in 2007.
Those who have been in the mortgage industry for some time are starting to compare the current situation to the 80s when customers had to ‘queue’ to be approved for a mortgage and even then you would only get a mortgage if you had a superb relationship with your bank/building society manager along with savings accounts already with them! This was sometimes known as rationing and some pundits are questioning if that is where we are heading in 2009? The signs would appear to be pointing us that way. If you had a 5% deposit in Feb 2008, there were some 1,100 mortgage products available to you. Today, there are less than 5, with numerous conditions attached! A 10% deposit attracted 1,200 products early 2008 yet today there are less than 20! Conversely however, if you have a 30% to 40% deposit available then the product offerings are fantastic!
The stark reality is that, if you can, there’s probably no better time to purchase a property with house prices and interest rates as low as they are. But be advised, in order to avoid having to ‘queue’ to obtain a mortgage, it might be sensible to talk to a professional advisor who can review the whole market for you and seek out a product best suited to your specific needs and requirements, be it a new purchase, re-mortgage or for investment purposes.
Following the recent £50bn government rescue plan attracting less than welcoming consequences in the stock market, shares fell. RBS required further investment from HMG (who now own circa 70%) and shares in Lloyds Banking Group (the new name for HBOS and Lloyds TSB) also plummeted.
A week for bad news continued with the FSA reporting that possession orders agreed by the courts were up 92% in the last quarter of 2008 and those who were up to 3 months behind on their mortgage payments increased by 24%, compared to the same periods in 2007.
Those who have been in the mortgage industry for some time are starting to compare the current situation to the 80s when customers had to ‘queue’ to be approved for a mortgage and even then you would only get a mortgage if you had a superb relationship with your bank/building society manager along with savings accounts already with them! This was sometimes known as rationing and some pundits are questioning if that is where we are heading in 2009? The signs would appear to be pointing us that way. If you had a 5% deposit in Feb 2008, there were some 1,100 mortgage products available to you. Today, there are less than 5, with numerous conditions attached! A 10% deposit attracted 1,200 products early 2008 yet today there are less than 20! Conversely however, if you have a 30% to 40% deposit available then the product offerings are fantastic!
The stark reality is that, if you can, there’s probably no better time to purchase a property with house prices and interest rates as low as they are. But be advised, in order to avoid having to ‘queue’ to obtain a mortgage, it might be sensible to talk to a professional advisor who can review the whole market for you and seek out a product best suited to your specific needs and requirements, be it a new purchase, re-mortgage or for investment purposes.
23 January 2009
Time to hit the button?
Mortgage interest rates may have hit an all time low although share prices have plummeted and credit card companies are tightening their purse strings. Now is not the time to bury your head in the sand! Every day we are seeing customers wake up to the reality that their finances are causing them issues which cannot be avoided. More recently credit card companies are reducing their liabilities by removing any surplus between the outstanding balance and the customers credit limit. This is causing immense issues as this surplus was being relied upon to carry people through the upcoming months, especially for those recently made redundant and whilst they seek further employment. Last year, most had nearly unlimited credit. Today, there is a ‘ceiling’ to credit available and now is the time to seek advice and find a quick resolution...
Subscribe to:
Posts (Atom)