As part of efforts to bang the drum for the ‘UK’s new growth capital’ Mayor Andy Street is flagging up £10 billion of projects across the region He has been talking about investment opportunities including the i54 Western Extension, Springfield Campus and Canalside and Interchange in Wolverhampton, in addition to Walsall and Dudley town centres. “Investment-ready schemes worth £5.5bn are available right now, including the extension of i54, the Canalside and Interchange projects in Wolverhampton, Paradise in Birmingham and the two HS2 stations. , the Springfield Campus in Wolverhampton and the Life Sciences Campus in Birmingham. You might well ask what has that got to do with me, if you are looking to purchase now is a good time, “ I was chatting with two clients in my office the other day and they said we are worried about buying now Brexit is damping prices down in Wolverhampton. To which I replied always take the long view in property once Brexit has been sorted and the dust has settled growth will pick up, link this in with the new investment in HS2 and the other billions of pounds of money coming in the region? “They replied oh yes buy now before property prices pick up.” These factors in Wolverhampton will ensure steady growth regardless of whether you are looking to remortgage your Buy to Let property or purchase your first investment property. “Remember buy property and wait don’t wait to buy property”. Speak to Paul for mortgage advice on 01902 213201
Whilst the heatwave of the summer feels like a distant memory now, figures from lenders for August released this morning highlight the UK property market saw the number of first time buyers reached its highest monthly level since June 2017 as the number of landlords purchasing property slumped. The data, released by trade lending body UK Finance which represents over 90 per cent of all mortgage lenders in the country, indicates that there were 35,500 new first-time buyer mortgages completed in August, a two per cent year on year increase. According to UK Finance figures, the average first-time buyer is 30 and has a gross household income of £42,000.
Conversely, there were 6,000 buy to let home purchase mortgages completed in August, a decrease of 13 per cent on the same period last year, and a drop of 20 per cent on lending values year on year. The increase in the number of first time buyers balanced a slight drop in the number of home mover mortgages completed in August, which was 2.3 per cent lower than the same period last year, resulting in the market remaining flat for the month. That said, what today’s data does prove is that whilst this is providing some first time buyers with an opportunity to purchase, given the disparity between the increase in the number of first time buyers and the drop in the number of buy to let purchases to date, there is still some way to go before the books balance. In addition, there is a general consensus within the property industry that a lack of landlords is likely to exert upwards pressure on rents, which could make life harder for tenants who are already stretched in terms of monthly finances.
Buy to Let remortgaging saw relatively strong growth in August, due in part to the number of two-year fixed deals coming to an end. “This suggests that while new purchases in the buy to let market continue to be impacted by recent tax and regulatory changes, many existing landlords remain committed to the market.” An increase of first time buyers is: Positive news for the Wolverhampton property market, as they do underpin the housing ecosystem. Remaining pragmatic in terms of how this or any other changes may assist the plight of first time buyers, Jeremy Leaf, former RICS residential chairman suggests, “It remains to be seen whether the Budget actually encourages more potential first time buyers to take the plunge before rising rents, prompted by shortage of property to let, makes deposit-saving even more difficult.” Contact Apple Finance for Free mortgage advice.01902 213201
A report this morning from the Royal Institution of Chartered Surveyors (RICS) highlights just how much of an influence Carney’s remarks have had on consumers who were actively considering moving home last month, and on overall market expectations in the wake of further economic and political uncertainty. Unlike other house price indices, which generally rely on empirical data, the RICS monthly report is sentiment based, meaning that its member surveyors from across the country provide their views on a series of questions relating to what they have observed over the previous month in their area.
Given that surveyors are a vital part of the property ecosystem – after all, if a property is purchased with any sort of mortgage, a surveyor’s valuation is required by the lender – RICS members are uniquely placed to provide insight into how the housing market is fairing from region to region.
At a headline level, RICS suggests that new buyers are holding back on their purchases, due to Brexit uncertainties, leading to their indication that the number of properties sold over the next twelve months is likely to dip from the volume of transactions we’ve seen this year. However, fewer vendors listing their properties for sale in some regions has counter-balanced any drop off in buyer activity, meaning that prices in Wolverhampton remained flat last month, although there is significant variation across the UK, as has been the case for much of this year.
But despite the report’s rather negative overtones, it’s perhaps not all doom and gloom. “There is a continued disparity across the UK which has been at play for most of 2018, where consumer confidence in bricks and mortar would appear to still be prevalent in many areas including the Midlands and of course Wolverhampton. “Whilst Mr Carney’s remarks last month were perhaps somewhat taken out of context – he was of course, asked to provide his views on a range of potential scenarios, not just ‘worst”case.
“However, other regions, such as Northern Ireland and Wales, have seen a buoyant market continue in September in terms of volumes, with values increasing, albeit modestly of course, in the West Midlands and Scotland. “Indeed, today’s report also suggests surveyor expectations are that, despite last month’s headlines, prices in most parts of the country will either remain at current levels or edge up slightly over the next year.”
Contact Apple Finance if you need quality mortgage advice 01902 213201
Mortgage Sale as lenders slash rates and fees
August’s base rate rise, Bank of England governor Mark Carney’s warnings of a potential property price plunge and general anxiety still lingering around Brexit, you could be forgiven for feeling negative about the current state of the property market.
But a quick look at the numbers will show there’s hardly ever been a better time to be hunting for a mortgage – whether you’re a first-time buyer, remortgaging, or looking to get into buy-to-let – rates have scarcely ever been lower. Not only are rates dropping, lenders are also expanding their product ranges into areas that they previously might not have considered.
Mortgage rates fall across the board for both first-time buyers and remortgagors in Wolverhampton
Bluestone, a specialist lender available through mortgage brokers, has also just introduced a Help to Buy product range for first-time buyers looking to get on the ladder, with rates starting at 3.79 per cent with £1,000 cash back. Help to Buy launched in April 2013 offering borrowers an equity loan equal to up to 20 per cent of the value of the property interest-free for five years.
Mortgage rates for those with just 5 per cent equity or deposit are at their lowest level since records began. The average two-year fixed rate has actually fallen from 3.95 per cent last year to stand at around 3.73 per cent today, according to Moneyfacts.
First-time buyers can now find small deposit mortgages at incredibly competitive rates It’s not just first-time buyers feeling the benefits of a competitive market. Elsewhere, mortgage rates are continuing to fall despite August’s base rate rise.
Remortgage rates are also cheap
Research from Moneyfacts suggests that average two-year fixed rates have now dipped below 2.5 per cent, with deals available for as little as 1.39 per cent – only 0.64 per cent over the base rate, which is more competitive than most tracker and variable mortgages. Two months on from the rate hike in August, the average two-year fixed rate has actually fallen from 2.52 per cent to stand at 2.49 per cent today. Five-year fixed rates have also fallen by 0.02 per cent over the same period. Data from Moneyfacts also shows the average two-year fixed mortgage rate has risen by just 0.28 per cent from their all-time low last year, in contrast to the full 0.50 per cent base rate increase since October 2017.
The past year has been a challenging time for providers as they have had to wrestle with two base rate rises for the first time in years, while at the same time needing to remain competitive to protect their mortgage book. ‘This conflict of interest has meant average fixed mortgage rates haven’t followed the Bank of England’s rate rises entirely.’
Kensington Mortgages, another broker-only lender, this week launched a 10-year residential fixed rate at both 60 and 75 per cent LTV, with rates starting from 4.34 per cent. The average two-year fixed rate has fallen from 2.52 per cent in August to 2.49 per cent today
The average two-year fixed rate has fallen from 2.52 per cent in August to 2.49 per cent today
Buy-to-let is cheaper than ever as landlords exit the market
Bank of England rates data shows the average buy-to-let mortgage rate at 75 per cent loan-to-value has also plummeted to just 2.27 per cent – the lowest since records began in 2012.