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

 

House Price Increases In Wolverhampton

The recent house price Index report, which points to house prices in the three months to August having increased by 3.7 per cent against the same period last year, although the monthly change is far more subdued, at an increase of just 0.1 per cent. This means that, according to the report, the average Wolverhampton property is currently valued at £228,000

It seems that the interest rate increase earlier last month has made little change to the cost of borrowing, as many lenders had already priced in an upwards move in the bank rate some months ago. In fact, within the last two weeks or so, there are lenders who have actually reduced their rates, possibly in the hope that they will attract new customers in the lead up to the final quarter of this year.

With borrowing still relatively cheap, and the ongoing shortage of homes for sale in many areas of the Midlands and Staffordshire also underpinning values, it seems that house prices are, in some regions at least, continuing in their ascent.

This has been accompanied by interest rates still remaining at a historically low rate and a stable, yet constrained, supply of new homes onto the market further supporting house prices. The report also highlights that the number of first time buyers has now reached levels which are just 8 per cent lower than at the peak of the last boom in 2006, another factor that many will see as a positive, Since first-time buyers underpin the Wolverhampton housing market, this suggests that the market will continue to perform into 2019, and may even improve further.

 

The Interest Rates are going up!

The Interest rate rise how are you affected

The Bank of England has raised interest rates from 0.5% to 0.75%

Why have they done this well consumers are spending more

The economy is getting stronger

Employment levels in Wolverhampton the midlands and indeed the UK as a whole are fairly strong

There is the potential for wages to rise also all these factors have played a part in the banks decision

The Bank’s main priority is to keep the rising cost of living – inflation – under control.

So it has decided to raise the base rate which is how much the banks pay savers and of course how much they charge borrowers in interest

So a rise in the Bank rate is good for the UK’s 45 million savers but bad for borrowers.

Should be panic, well no no…. rate rises will tend to be gradual and over a long period of time

Yes there are over 3.5 million family’s on a variable rate mortgage

However its not too late to change to a fixed rate product to fix your payments now

Bad news for savers sorry but interest on savings accounts unlikely to be higher than 0.5%

Now could be a good time to fix the rate before you end up paying more than you need to.

 

At the moment we are offering free mortgage advice so if you have any questions or are concerned about the impact of interest rate rise on your mortgage contact us on  01902 213201

Confidence Is Still Building In Wolverhampton Property Market

Confidence is building in the local property market with house prices stable, no significant discounting and average asking price up 3.1%. Smaller homes are the most popular and new instructions are up nearly 7% year on year while the use of online estate agent is rising.

In the second quarter of 2018 interest rates remained on hold, and a strong labour market and wage growth finally picking all contributed to an increasing number of home owners entering the market. A review of 2017 listed prices compared to the price actually achieved shows an average discount of up to 4% for properties sold for less than £1 million, suggesting there is no significant property devaluation occurring.

Online estate agents now represent nearly 8% of all exchanges, an increase of 13% quarter on quarter. Indeed, in the last year, online agents have established a greater footprint across England. The share of the properties they represent has also grown, increasing by more than 30% in most price bands below £1 million.

Smaller homes are the biggest sellers Terraced and semi-detached houses continued to make up the largest proportion of property sales, accounting for over 55% of all exchanges in the second quarter. Both housing types have grown in the last year, driving growth overall. In comparison, flats showed a significant decline in sales volume with the conjecture being that flats now dominate the rental rather than sales market in our major towns and cities.

If you need mortgage or finance advice contact us on

01902 213201

Wolverhampton Mortgage News

Demand for ten-year fixed rate mortgage deals increases

IT’S difficult for many of us to imagine what we’ll be doing this time next year, let alone in 2028. But for an increasing number of forward-thinking borrowers, taking a ten-year fixed rate on their mortgage makes a lot of sense.

The thing is, many consumers don’t actually know that a decade-long fixed rate product is available.

In a recent survey, 60 per cent of homeowners weren’t aware that they could take out such a product, even though they have been well established in the market for quite some time. However, once they knew they were available, more than a third of those polled said that they would consider fixing their mortgage for ten years.

So why are ten year fixed-rate mortgages gaining in popularity all of a sudden? 

Mainly because although the current interest rate is still historically low, due to forward governance from Bank of England Governor Mark Carney, we know that the aim is to increase them – once the economy can withstand such a move – to a more ‘normal’ level.  For those who can remember life BCC (Before Credit Crunch) the average Bank of England Bank base rate between 1998 and 2008 was 5.5 per cent.  

“For example, at the moment, the difference between a five-year fixed rate and a ten-year fixed rate can be less than a half per cent, which for customers who are comparing their options, does tend a make them a very appealing choice.” 

“What ever your mortgage needs are contact Apple Finance based in Wolverhampton who will be happy to discuss finance needs”.     Apple Finance   01902 213201

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Wolverhampton Property

Buying A Property In Wolverhampton

Property is the dream for many Britons, owning their own home and feeling financially secure. Research has shown that buying with a partner could be the only way to get on the housing ladder.

Getting on the property market can be tough, with mortgages often hard to get and many being priced out of the market all together.

New research has revealed that a shocking third of people who aren’t on the property ladder, don’t believe they will ever get on it without any help.

Many of the 2,000 people surveyed thought that the only way becoming a home owner would be possible is by buying with a partner.

A shocking 31 per cent of people think they will only be able to buy a home in a couple.

While 10 per cent believed they will never be able to buy a property all together.

The research by Skipton Building Society showed that those surveyed believed it would take around five years for them to own a home.

When it finally came down to buying a property, potential homeowners also revealed their property must haves.

Property location came out on top, with living near shops the top scorer.

Also related to location, living near to family or work came in a close second.

The survey also showed potential buyers biggest turn offs when it came to purchasing a property.

On the other end of the scale, the biggest turn off for would-be-home owners would be a property not being clean.

Other concerns included poor internet speed and not having an outdoor space or scenic view.

 

The survey also found that 26 per cent of potential buyers found estate agents showing them unsuitable properties frustrating.

On top of turn ons and turn offs, the study also asked people who have purchased a home about their decision-making process.

A quarter of participants said their decision was based on “gut instinct”.

Around 8 per cent of people also said that they let their partner make the final decision.

Kris Brewster, head of products at Skipton Building Society, said: “A property choice is the biggest financial decision most of us make in a lifetime and, understandably, people want to get it right the first time.”

For those looking to sell instead of buy, there are a few surprising factors that the millennial market look for when buying.

New essentials for those buying properties include a good wifi connection and lots of plug sockets.

It is not surprising that what Britons are looking for in their homes is changing with the times.

For mortgage advice call Apple Finance on     01902 213 201

World Cup Fever Hits Wolverhampton Mortgage broker

Okay so we admit it, Apple Finance is getting worked up now, there could be a chance for us as a football loving nation to dream the seemingly impossible. We understand almost everyone has put plans on hold whilst watching the England games, however if you do need to sort that financial situation out, contact us before the next England game. Don’t let that mortgage slip onto the standard variable rate. Apply for that mortgage now to get the ball rolling. (sorry).

If you do need mortgage or finance advice then please contact us via the website https://www.applefinance.co.uk/contact or ring us on     01902  213201

Wolverhampton House price growth

Property prices across the Black Country and Staffordshire have almost trebled in the past 18 years.

A study has found the average price in Wolverhampton alone have shot up 183 per cent, from £50,814 to £143,980 – a difference of £93,166.

And it’s a similar story across other towns with property price increases since the year 2000 even higher in Dudley, up 189 per cent, Walsall, 198 per cent and in West Bromwich, 204 per cent.

In Stafford, prices have gone up 189 per cent, and in Cannock 193 per cent

Ron Darlington, partner at property auctioneer SDL Bigwood, said: “There is currently huge demand in the Black Country.”

Mr Darlington said property prices had probably gone up quicker in West Bromwich and Walsall due to first-time buyers from Birmingham looking at neighbouring areas.

Wolverhampton was ranked 86th out of 100 towns and cities for property price increases in the study by HouseSimple.com

Wolverhampton council aims to see 2,043 new homes built by 2026.

 

Plans are in the pipeline been approved to convert the former Telecom House and Crown House in the city centre into apartments.

Tim Johnson, deputy leader at Wolverhampton council, said: “We have a target on homes we have to deliver which is why we’re looking at former office blocks.”

Dudley was ranked 79th in the study. Dudley Council set a target in 2014 for 16,127 homes to be built by 2026.

They include 237 properties on industrial land in Shaw Road, Dudley, 250 on land off Darkhouse Lane in Coseley and 124 off Deepdale Lane in Upper Gornal.

If you are looking to buy your first home or are looking to remortgage then contact Apple Finance on 01902 213201 we are available until 9:00pm tonight.