People Renting In Wolverhampton Rises

The typical one-bed home in England costs £600 a month to rent, but this is skewed by soaring costs in London and hides a gaping divide across the country.

In parts of Westminster, the average one-bed costs more than £3,500 per month. In Argyll and Bute, that sum could cover your rent for a whole year. Let’s say you lived in a three-person house-share in SW4, Brixton, London, you could expect to pay around £767 per month, along with your two flatmates. With that money, you could comfortably rent a one-bedroom flat in Southend or Milton Keynes – both within commuting distance of the capital – all to yourself. In fact, you’d be able to rent a one-bedroom flat in 79% of British postcodes, including locations such as Bristol.

The average rent in Wolverhampton is £576 this is for a two bedroomed flat. However for the same monthly amount you could buy a two bedroomed property in Wolverhampton, subject to the usual affordability checks of course.

Who is renting In Wolverhampton?

Private renting has more than doubled over the past 20 years, and young people are by far the most likely age group to be renting. During the same period, home ownership among young adults has collapsed. In 1995-96, some 65% of middle-income 25 to 34-year-olds owned a home. Twenty years on just 27% do, with the biggest drop in London and south-east England. This will be no mystery to renters in cities such as London, where for many young people, flat-sharing is the only option. In the capital, the average one-bed costs £1,237, but a third of a three-bed property costs £582 on average, saving you more than £650 each month.

So for some people In Wolverhampton renting is the only option or the preferred choice and I understand that totally But my personal opinion is that if you have to pay a monthly amount each month you might as well buy a property instead?

If you need any advice with regards to obtaining Mortgage Finance give me a call

Paul  at Apple Finance on 01902 213201

The End Of Cheap Mortgages

Despite Brexit no that’s not the case certain lenders have adjusted their rates upwards because no one, including the lenders know exactly how the property market in Wolverhampton or indeed the West Midlands will react, so they are protecting their profit margins. Conversely if you are looking for a five-year fixed-rate deal or a 90% mortgage, these rates remain incredibly competitive at the moment.

Mortgage costs have risen in 2018 In the last 3 months, both fixed and variable rate mortgages have become more expensive. A year ago, fixed-rate deals were just starting to rise from historic lows, and prices have increased steadily over the last 12 months, with two-year deals now 0.2% more expensive. Five-year fixes, however, have risen in cost at a much slower level. In November last year, the Bank of England base rate increased from a historic low of 0.25% to 0.5%, before rising again to 0.75% in August 2018. As you might expect, this means deals that are priced depending on the base rate have gone up in cost, although by significantly less than the 0.5% base rate rise.

Fixed-rate bargains for buyers with small deposits The number of fixed-rate deals available to first-time buyers and home-movers has increased in the last year. There are 20% more mortgage products at a 75% to 95% loan-to-value ratio (LTV) than this time last year, with the number now standing at 2,962. In terms of cost, it’s been a good year for first-time buyers with small deposits, with 90% mortgages now around half a percent cheaper than they were a year ago.

Whether you’re a first-time buyer or home mover, you can get expert help finding the right mortgage by calling Apple Finance, Mortgage Brokers on 01902 213201

 

Wolverhampton Versus London

Property prices in the West Midlands are growing by 6 per cent a year, outstripping all other parts of the country, says the Office for National Statistics. By contrast, prices are tumbling by 0.3 per cent in London. And in the previously booming regions of the South-East and East, they are rising by just 1.7 per cent and 2 per cent respectively.

Seven of the top ten local authority areas in the country for house price rises are now in the Midlands, including East Staffordshire and Newcastle-under-Lyme, also Staffordshire, Cannock, Wolverhampton, Daventry in Northamptonshire and Broxtowe, Nottinghamshire. The prediction is that prices will rise by another 3 per cent in the Midlands next year compared to just 1.5 per cent across the UK. In the summer, Stratford-upon-Avon, Warwickshire, was the country’s top town for house price growth. Other parts of the Midlands which have seen double-digit growth in 2018 include Harborough and Blaby, both in Leicestershire, Rugby in Warwickshire, Wellingborough and Kettering in Northamptonshire and Rushcliffe in Nottinghamshire.

The Midlands’ economy has been boosted by big firms opening warehouses and offices in the region. HSBC bank, for example, moved its UK head office to Birmingham, while food and drink firm Nestlé has announced it will build a new £55 million distribution centre in Leicestershire. HS2, a high-speed railway which will connect London, Birmingham, the East Midlands, Leeds and Manchester, has also boosted prices. It is set to open between 2026 and 2033, but its impact is already being felt in the property market. HS2 will cut the journey time between Birmingham and London to just 45 minutes. This should make it easier for workers to commute to the capital, which, in turn, should encourage more businesses to open new offices in the Midlands.

 

Why you need to buy and Invest in Wolverhampton now

Figures show there has already been an exodus of workers from London to the region in search of more affordable housing. Most simply find new jobs when they move. But experts say faster broadband and a rise in flexible working has allowed many to keep their London jobs and work from home. Improved rail and road links mean some workers travel hundreds of miles each day to the capital and back from their Midlands homes. Even without HS2, it already takes only about an hour to get to many Midlands towns from London by train. As you can imagine the knock on effect is medium to long term Wolverhampton property prices will rise as London wages are spent on Wolverhampton homes.

Contact Paul on 01902 213201 for Mortgage advice

 

 

Adverse Mortgages And Finance

There are a number of  adverse credit mortgage lenders currently, which ones you’ll fit with depends on the specific details and other wider circumstances such as deposit sources and income etc. What’s important to remember is that all lenders have varied criteria, and will accept and decline different things – the only way to ensure you are approved is to not only use a whole of market advisor, but an advisor who actually knows the whole market – often brokers will have the scope of every lender but if they don’t arrange adverse credit mortgages often then they seldom know which lenders do what. Approaching certain mortgage lenders with defaults can be an instant decline depending on when they were registered and the amount of deposit/equity you have. If you approach too many of the wrong lenders the credit searches against your name can decrease your score and harm the chances of an approval.

Defaults on a credit file are one of the most common reasons for mortgage declines with many lenders, especially on the high street where generally only clean credit applicants are approved. Because of the frequency of enquiries we receive, we successfully arrange mortgages for people with defaults every day. Thankfully, there are several mortgage lenders who are happy to approve applicants with all sorts of defaulted credit accounts on their file.

It all depends on the lenders criteria at the time of application, but generally there are several specialists who approve mortgages for people who have defaults as part of their core business. The important thing to remember is that every lender is different – some specialise in low rates and lend to the clean credit customers on the high street, some specialise in self-employed lending, some specialise in adverse credit. The market for adverse credit lending has grown massively since the credit crunch, and some lenders continue to relax their requirements as things continue to develop. Adverse mortgage applications  in 2019 are set to increase as many clients suffer job losses due to the Brexit turmoil which is still ongoing no really knows how this will pan out long term . This doesn’t mean it’s easy to get approved – there’s work to do, and typically your mortgage broker needs to know the market inside out to get your application through, so using a specialist is paramount in these uncertain times.

To establish if you can get a mortgage with defaults there are certain considerations and things you and your advisor will need to check. The following process should help point you in the right direction and work out if you are anywhere near being able to borrow or not, and if so how much you could get.

 Find out exactly what’s on your credit file.

If you want a mortgage with defaults on your credit file, this is by far and away the most important part of the process – we can’t stress that enough! Your advisor will only be able to establish which lenders will accept your application by defining your exact situation – mortgages with defaults aren’t often arranged through guesswork, they are complex and your advisor will need to make sure they are doing it right first time.Lenders have strict a policy, and if you have had defaults in the last 2 years, then there’s really no point in approaching one that doesn’t allow this – you need to find the ones that do.

Can I get a mortgage with a satisfied default?

Most people in the industry assume that repaying debts is important when it comes to being approved for new borrowing, but strangely this isn’t always the case in the mortgage world. Yes, it will almost certainly improve your ‘credit score’ if you have satisfied your defaults before you apply for a mortgage, but it is not always essential with the more flexible lenders because often they don’t actually run a credit scoring system anyway.

Mortgages with settled defaults are slightly easier to obtain, and with the adverse lenders who credit score, some will grade your application into a certain ‘tier’ of risk. Which tier you fall into will dictate which rate you’re eligible for with some lenders. Generally, the lenders that accept defaults are really only concerned with when they were registered, not the dates of settlement, so mortgages with unsatisfied defaults are just as easy to be approved for so long as the dates of registration match up.

Mortgages with defaults and other credit issues

Getting a mortgage if you have other credit issues as well defaults can make things even harder, and will impact the lenders that’ll consider you, the rate, fees, and the loan to value. Typically lenders accepting of more severe credit issues will consider the less severe, so if you just have defaults you’ll have more lenders to choose from than if you have defaults and other issues. It is usually looked at in order of risk to the following hierarchy (most severe to least):

    Current IVA

    Discharged Bankruptcy & Repossession

    Satisfied IVA

    Debt Management Plan

    Mortgage arrears

    CCJs

    Defaults

    Unsecured late payments

    General low credit score

How much can I borrow if I have defaults?

Generally the adverse credit mortgage lenders are tighter on their affordability than some of the high street lenders. If you have a clean credit profile you can borrow up to 5x income, sometimes more in certain exceptional circumstances. If you have defaults your max borrowing may be limited as the lenders who take on higher risk for the adverse like to minimise the risk elsewhere, hence why they require higher deposit / equity in the majority of cases.

If the adverse is over 3 years old it may be possible to borrow up to 4.5, maybe 5x income, but usually maximum loans sizes are around 4x income. Generally, the more severe the adverse, the higher the risk, and so the lenders accepting it will limit loan to income to a greater degree. ‘Income’ is also a changing concept. All lenders accept 100% of basic salary but some will only accept 50% of overtime, bonuses and other additional incomes. Some will demand 3 years of self-employment where others are happy to lend to those with 1 years trading. Some demand those in employment to have been in the same role for 12 months, some with the same employer for 12 months etc.

As always if you do have any mortgage issues or require advice make contact I will be happy to help. Paul  01902 213201

Until next time.

Wolverhampton and Brexit

House prices in Wolverhampton and the West Midlands stayed steady over the summer, data just released by the Land Registry, confirming that house prices in some regions crept up slightly in August. Whilst parts of the UK are currently expecting a downturn in the wake of Brexit uncertainty, the Land Registry data, which is based on completed transactions, provides evidence that some parts of the country are still seeing a positive environment for sellers and buyers.

The East Midlands, North East and Yorkshire and the Humber are all seeing prices increase modestly month on month by 1.5, 1.4 and 1.2 per cent respectively. According to the Land Registry data, the average UK property value is now £232,797 with prices seeing an average rise of 3.2 per cent. But is Brexit really having that much of an impact on housing market activity? The answer is that clearly, it depends where you are in the country. In London and the surrounding areas, there is definitely sensitivity due to the ongoing negotiations around the UK’s divorce from the rest of Europe, mainly linked to employment where jobs may be at risk, depending on what deal is agreed. Here, the market is stagnating due to lack of confidence and activity.

However, in areas where jobs are based more on the local economy and therefore not as much impacted by the outcome of Brexit negotiations, prices are increasing and transaction numbers remain solid. It is positive to see that Wolverhampton in the West Midlands once again reporting strong annual house price growth, demonstrating greater levels of confidence in the face of our impending exit from the EU. London experienced a slight dip in prices both on the month and the year, but given we are in the midst of an uncertain and politically challenging time, this is hardly surprising however don’t let short term issues prevent you from making long term mortgage decisions if you need advice contact us on 01902 213201

 

Wolverhampton Property Growth

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

Fall In Wolverhampton Landlords Purchasing

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

 

 

Brexit uncertainty has mixed affect on Wolverhampton housing market

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 rates fall for borrowers in Wolverhampton

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.

   

Will Wolverhampton house prices drop after Brexit?

One benefit, or drawback depending on how you look at it, is the fact that house prices may go down in Wolverhampton after we leave the EU. Will it fix the housing crisis and give young people a chance to get on the ladder? Or will it leave homeowners in the red?

Mark Carney is the Governor of the Bank of England and Chair of the Monetary Policy Committee he  has warned that property prices might drop by up to third after a ‘no deal’ Brexit. He did say, however, that those with existing mortgages should still be able to afford them thanks to checks in place. ‘More than half of mortgages in this country are fixed rate mortgages,’ Carney said. ‘When you take out a mortgage, you have to pass an affordability test, and you have to be able to pay a mortgage at 7%. ‘It’s something we put in place so that if costs were to go up, people would be able to meet those mortgages.’

Particularly in London, there could be a marked difference depending on the outcome of Brexit. A survey of property analysts in the capital found there was a one in three chance of a ‘significant correction’ in the London market. The median chance of a correction (short-term dip) predicted by the analysts was 29%, although some foresaw a huge 75%. Some said prices in the capital may fall during this by 40%, dependent on whether interest rates change. As with most Brexit-related business, it’s hard to tell what will happen since we don’t have the final details of the deal. It doesn’t look too great for sellers at the moment, however.

The Bank of England governer says the financial system and banks will be ready for that ‘undesirable’ scenario, which could include: Commercial and residential property prices going down by more than a third interest rates soaring unemployment increasing to 9% the economy contracting by 4%. However no one really knows there is a chance that in Wolverhampton and the midlands we may no see any change as Brexit progresses. But there is always a but a fixed rate mortgage will always give peace of mind and monthly fixed budget to work with which is what most clients prefer. If you need mortgage advice or have any questions call us on 01902 213201