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

Contact Apple Finance

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.

August interest rate rise gets closer

Its time to fix those mortgage rates, come August there could be some people in Wolverhampton who have a shock to their monthly finances. August interest rate rise moves step closer the Bank of England has held interest rates but signalled an August rate rise is more likely than previously thought. In a decisive move, Andrew Haldane, the Bank’s chief economist, joined two other Monetary Policy Committee members in voting to raise rates to 0.75%. The nine-member MPC was split 6-3, with Bank governor Mark Carney leading the group who voted to hold rates at 0.5%. The last time three people “dissented” from the overall view, in June 2017, rates rose the following November. But economists believe that if the economy does show signs of picking up, an August rise is in play. Government borrowing figures published on Thursday boosted hopes among some economists that the economy may be gaining momentum. The pound jumped by about a cent against the dollar following the Bank’s decision, climbing back above the $1.32 level, as the possibility of an August rate rise appeared to increase. https://www.applefinance.co.uk

Mortgage lenders return to interest only

Mortgage companies are warming up to interest-only loans as several lenders have re-entered the market in the last year.

Data published by Moneyfacts, the financial analysts, showed the number of lenders offering interest-only loans increased to 33 in the last year. This charge has largely been driven by the mutual sector with Accord (part of the Yorkshire Building Society) and the Hanley Economic, Hinckley & Rugby and Leek United building societies entering the market. “I have clients in Wolverhampton who have used  these particular building society’s and been very happy with the product and the recommendations regarding the mortgage”.

 Interest-only mortgages are loans where the borrower is not required to pay down the overall debt each month, instead they merely pay the interest accrued on the loan. While this makes the monthly payments much cheaper, it means the customer has to pay off the entire cost of the property at the end of the term. However, things have changed and lenders are looking to satisfy the needs of borrowers the City watchdog, the Financial Conduct Authority, had recently loosened the rules on retirement interest-only mortgages, which would also boost the sector. “At Apple Finance we’ve seen an increase in the demand for interest-only mortgages, in the Wolverhampton area, due to lifestyle changes, equity releases and niche customer situations.

“More lenders are coming back into this area to offer interest-only mortgages. Seeing mainstream lenders in this space means that the criteria has expanded, so interest-only mortgages are no longer restricted to high income earners or those with lots of equity.” Of the big banks, Barclays, NatWest, Royal Bank of Scotland and Santander all offer interest-only loans, but only to wealthy borrowers with a large amount of equity in their properties or sizeable deposits.

If you do have a mortgage enquiry for a no obligation chat contact Apple Finance on 01902 213201

 www.applefinance.co.uk/mortgageadvice