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

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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.

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

Bad Credit Mortgage

Bad Credit Mortgage- Everything You Need to Know 

Are you looking for a mortgage and yet you have bad credit  We specialise in helping those with  credit issues get mortgages. We know that there are certain  lenders that can help you. Now With regards to a bad credit mortgage, banks and building societies can behave cautiously towards the person they will lend. Those specific moneylenders only want to deal with individuals who have flawless financial records, culminate work records and large deposits. Anyhow, at apple finance we live in reality. We understand that money-related challenges can influence almost everybody whenever and often with very little warning but the financial consequences can be addressed and there are financial solutions.

Country Court Judgment’s

Having Defaults, County Court Judgment’s (CCJ’s), a home repossessed or a previous Bankruptcy can make it hard to find a mortgage product.

Sometimes individuals get into the debt because of the financial decisions that they have made, others ended up in debt despite their best attempts to remain financially stable. Regardless of whether they have been at fault, it’s the only right that they need to get back on the property ladder.

They might be looking for new remortgage deal which may save them money or could possibly reduce their monthly outgoings regardless of whether they do have a low credit rating or adverse credit.

Apple Finance

Fortunately, at Apple finance this is what we specialise in finding the correct lender for your circumstances. In spite of the fact that the lion’s share of High St banks and building society’s need you to have an immaculate record of loan repayment, it’s invigorating to realise that there is an increasing number of banks and building society’s returning into the market who will give adverse credit mortgages and finance again. Interest costs and mortgage rates are probably not going to match exactly with the high street lenders they will charge more however it is a route back into mainstream mortgage finance

Interest Rate Cost

The banks and building society’s will always keep a level of partition between their standard mortgage products and their adverse financial loans and mortgages. There are mortgages which in effect are credit improvement loans, if you keep up with the correct payments on time the lender will consider lowering the interest rate closer to a high street bank mortgage rate. Over a period of time, subject to your credit rating it may be possible to switch to standard mortgage product if you meet the lenders criteria. Of course it is the lender who decides the level of risk and they will set the interest rate and the mortgage product accordingly. They will of course assess your situation and check your credit file and make a decision not everyone is successful and obtains a mortgage. What we will do is keep you up to date with the mortgage case and let you know what is happening. So you will know where you stand and the steps that need to be taken to obtain a mortgage or improve your current situation and apply in two months time when your credit score has improved.

Complete the enquiry form and a local mortgage advisor will contact you to discuss your circumstances at a convenient time for you. Or speak direct to one of our mortgage advisors on 01902 213201

8am-8pm Monday to Friday.

Landlords in Wolverhampton should tread carefully when diversifying

There’s little question the shape of the landlord market is changing. Regulation and taxation changes have seen it move away from the dinner party landlords with one or two properties to those with much more comprehensive investment portfolios.

With that change has come a change in attitude, viewing property in more classical investment terms, and that means looking at ways to diversify. When it comes to investing, no matter whether you are putting your money into stocks and shares or bricks and mortar, diversification is a fundamental strategy. Spreading the risk across different investment properties is a smart move. Even if you encounter issues with one property, the performance of the other properties can help limit the effects, and leave you in a stronger position than putting all of your eggs into just one or two baskets.

From the professional landlords we deal with, we have seen these diversification strategies take a couple of different forms. The first is simply a geographical one; landlords are well aware there are significantly higher yields in certain areas outside of London and the South East. As the latest LendInvest Buy-to-Let Index shows, cities like Wolverhampton, Birmingham and Manchester are all delivering terrific returns to wily landlords. The other tactic has been to look to other asset classes within property, for example by investing in Houses in Multiple Occupation (HMOs) and semi-commercial properties.

With semi-commercial buildings investors have been particularly attracted by the fact that they can avoid the additional 3% stamp duty surcharge normally levied on investment properties. Meanwhile, HMOs have won favour because of the higher rental yields often available. Looking beyond traditional residential properties is a good idea for many investors. Permitted development rights have made it more straightforward to turn disused commercial properties into residential ones, homes that are badly needed to meet demand, while the economics of HMOs will always catch the eye. However, diversification is not as simple as merely buying a property in Wolverhampton or snapping up a nice-looking HMO that happens to be available.

With geographical diversification, landlords need to think long and hard about the logistics. Who is going to handle the management of that property? It’s one thing to take a hands-on role if you have a cluster of local properties, but once you become a cross-country landlord you then need to place your faith in others to maintain the standards you have set. Similarly, finding the right property will take detailed research. Yes,  Wolverhampton may be performing well on the whole, but there’s more to it than that. Which particular areas in the city are delivering the strongest and most reliable returns, and why?

HMOs for example are a much different proposition to a vanilla rental property, even though you are still only looking for typical residential tenants. Landlords need to organise a licence for example, while the fact that different regions have their own rules covering the expectations that a landlord must live up to means investors will need to put time aside to discuss those rules with the local authority’s HMO officer. Similarly, while investing in a semi-commercial property may have certain tax benefits compared to a traditional rental home, it isn’t short of additional logistical hurdles, not least how to go about finding an appropriate commercial tenant. Diversification will remain a crucial strategy for landlords and moving beyond purely vanilla residential investment properties can be a sound and lucrative method for doing so. But it remains vital that investors and their advisers look beyond the talk of large yields and tax benefits to truly get to grips with what they are investing in from the outset, if you need help or advice contact Apple Finance on 01902 213201

 

 

 

Is it really harder for young people in Wolverhampton to buy a home

The Resolution Foundation has called for 25-year-olds to be paid £10,000 to help them afford homes, saying the ‘generational contract’ between young and old has broken down. But is it really harder for young people to buy a home now than it was 30 years ago? House prices were booming in the first half of 1988, when a typical first-time buyer home could cost £50,000. That same property now, according to the Halifax UK House Price Index, would cost £234,850. Since 1988, the Retail Prices Index has increased 2.7 times, according to the ONS, so, in real terms, £50,000 in 1988 is now worth £135,000 – making it harder to afford a deposit.

As regards mortgage repayments, a typical rate in 1988 was ten per cent (two per cent above the Bank of England base rate). Fixed rate mortgages were not generally available. So, the annual repayments on a £50,000 mortgage would have cost £5,000 – or £13,500 in today’s money. Today, it is possible to obtain a two year fixed-rate mortgage at 1.5 per cent, reverting to a variable rate of four per cent after two years. Annual repayments on a £234,850 mortgage are, respectively, £3522 and £9394.

In other words, it is harder for 25 year olds to save up a deposit and persuade a bank to advance them a mortgage, but if they can get over that hurdle they will find the mortgage repayments much cheaper than their parents did.

If you need help or advice call Apple Finance on  01902 213201