Currently viewing the tag: "CML"

Single-Let And Small Scale Landlords Account For Up To

 80% of All New UK Mortgage Applications.

There has been a large rise in the number of ‘Single-Let Landlords’ (landlords with just one buy-to-let property), and small scale landlords (those typically with less than four properties), over recent months up to November 2012.

Rise In Single Let Landlords Accounts For 80% Of All New Mortgage Applications

Rise In Single Let Landlords Accounts For 80% Of All New Mortgage Applications

This is the result of many new investors being drawn in to the buy to let markets by high rents and increasing yields. Average private residential property rents have risen month on month over the last nine months and it is now estimated that Single Let and small scale Landlordsnow account for approximately 80 % of all new buy to let mortgage applications.

Continue reading »

UK housing market more stable

says Council of Mortgage Lenders

Council of Mortgage Lenders Expect 2013 to be Positive for UK Property Market

Council of Mortgage Lenders Expect 2013 to be Positive for UK Property Market

C2013 is expected to be a more stable and positive year for the UK housing and mortgage markets, the Council of Mortgage Lenders (CML) has said.

The CML have said a steady increase in lending for house purchases has signalled more activity in the UK property market.

However, first-time buyers are still required to provide a substantial deposit averaging 20% of the property value, in order to get a foot on the property ladder.

Continue reading »

What’s in store for the UK residential property market in 2013?

What's In Store For The UK Property Market In 2013?

What’s In Store For The UK Property Market In 2013?

Many of the predictions made by property analysts have so far been reasonably positive in that the state of the UK property market can’t really get much worse.

2012 was a rollercoaster kind of year with the Queen’s Diamond Jubilee and the Olympic and Paralympic Games having an effect on the market.

But overall UK residential property prices and property sales have been fairly stable, probably ending the year just higher than where they started, although by how much depends on whose figures you look at.

Continue reading »

Residential Property Values Fall Again

UK Property Market Still Recovering From 2007 Financial Meltdown

UK Property Market Still Recovering From 2007 Financial Meltdown

UK property values fell faster than expected in November 2012, attracting many more first time and new buyers according to the Royal Institute of Chartered Surveyors (RICS).

In its latest analysis of the UK residential property market, RICS reportedthat 9% more surveyors reported property price falls rather than rises, as enquiries from potential buyers has picked up steadily across the country since the end of the summer.

Meanwhile the number of mortgages taken out by first time buyers increased by 14% in October, following a quiet September, according to figures from the Council of Mortgage Lenders (CML).

Continue reading »

UK Mortgage Approvals Exceed Expectations In October

UK Mortgage Approvals Increase in October

UK Mortgage Approvals Increase in October

UK Mortgage lending reached an 11-month high in October, providing evidence that the housing market may finally be picking up, after a lull in recent months, according to the Council of Mortgage Lenders (CML).

 Gross mortgage lending rose to £12.9 Billion (GBP) and was 4% higher than in the same month in 2011, indicating that the government’s Funding for Lending scheme, designed to boost lending to households and businesses, is having some effect.

Continue reading »

Mortgage Figures Show UK Rental Market Stronger Than Ever

Buy To Let mortgages account for 12.7% of the overall UK mortgage market, the highest ever recorded figure since records began, according to new figures released by the Council of Mortgage Lenders (CML),

UK Buy-To-Let Mortgages AT All Time High

UK Buy-To-Let Mortgages AT All Time High

The total number of active mortgages in the UK stands at 11.3 Million, and buy to let mortgages total 1.44 Million of these equivalent to 1 in 8 mortgages.

Continue reading »

The Council of Mortgage Lenders (CML) have stated that UK mortgage lending hit a two-year high in August 2012.

Mortgage availability has been increasing since an £80 Billion (GBP) funding for lending scheme was launched at the start of August 2012, although much of this has only been made available to residential property buyers with deposits of at least 20%.

Mortgage lenders toughened borrowing criteria following the credit crunch and many estate agents are still reporting that residential and Buy to let mortgages are no easier to obtain, with lenders picking through every detail of all applications.

Miles Shipside, director of Rightmove, said increase in asking prices “is most likely attributable to the continued shortage of new property supply. Sellers need to be mindful that the window of opportunity to sell before the traditional winter slowdown is a narrow one, and they risk being left out in the cold for months until the spring market thaw. In addition, estate agents are reporting that mortgages are still no easier to obtain, with risk-averse lenders nit-picking every detail of the mortgage application paperwork, even from buyers who seem squeaky clean.”

Rightmove said its own research has found that fewer than 40% of would-be buyers would arrange to visit a property they believe to be over-priced, even if it matches their criteria.

Renting Costs Outstrip Buying

Renting Costs Outstrip Buying

Another new study by mainstream mortgage lender the Halifax has revealed that renting a property now costs over £130 per month more than the monthly cost of buying a home.

Halifax’s latest research has shown that owning property was more affordable than renting in the UK Private Rental Sector (PRS) in all 12 of the UK regions.

On average, people buying property pay 18%, (£132, per month) less on average than those renting, due to rental prices increasing and the perceived fall in property prices and the rates of UK mortgage approvals having fallen.

However the revelations seem to be falling on deaf ears as demand for rental property in the PRS is at an all time high with up to 10 tenants competing for a single tenancy.

So why the demand?

Obtaining a mortgage can be difficult for many people and with lenders tightening both financial and personal criteria for lending, leaving the majority of renters unable to apply or afford a mortgage.

The average monthly costs for buyers of a typical three-bedroom house, including maintenance and repair as well as the mortgage, was £600 (GBP) in June 2012 compared with £732 (GBP) in rent payments on the same type of house.

The Halifax said “Rent payments have risen steadily over the last few years, increasing by 5% in the last 12 months, as buying costs fell by 3%. Four years ago the average cost of buying and owning was 45% – £324 – more than the average monthly rent paid”.

However, there has been a 33% drop in new buyers in four years as lenders push for ever higher deposits with £40,526 (GBP) being the average loan-to-value at roughly a quarter of the property price.

UK Mortgage Lending Up 5% in July

The UK property market is still alive and kicking despite the doom and gloom reported in the press, as the Council of Mortgage Lenders (CML) report that the number of mortgages approved by banks increased by 5% in July, marking another upturn in the improving UK mortgage market.

Property investors are welcoming the news as they attempt to cash in on the current strong demand for rental property.

49,500 mortgage loans worth £7.6 Billion (GBP) were advanced for property purchases in July.

The latest figures from the Council for Mortgage Lenders (CML) also showed remortgage loan approvals increased by 3% to 24,100.

However, it isn’t all good news for property investors as First Time Buyer (FTB) activity also remained strong with 19,000 loans worth £2.5 Billion (GBP) were advanced to first-time buyers.

The FTB approval figures are down 1% on the year ,following the flurry of activity in March as buyers tried to beat the end of the stamp duty concession, but still stronger than at the same time in 2011.

Paul Smee, CML Director General, said “Initiatives such as the Government’s Funding for Lending and NewBuy schemes have the potential to help lending. July’s figures show a gradual improvement in the market with lending approaching the sort of levels we saw at the end of the stamp duty concession.”

UK mortgage lending saw an increase in activity during July 2012.

UK Mortgage Lending Increases in July

UK Mortgage Lending Increases in July

The Council of Mortgage Lenders (CML) have stated that gross mortgage lending in July increased by 8% to £12.7 Billion (GBP), from £11.7 Billion (GBP) in June 2012 and is 2% higher than the total of £12.5 Billion (GBP) in July 2011. The figures include private residential property purchases and Buy-To-Let mortgages for rental property.

Caroline Purdey, CML market and data analyst, commented: “Gross mortgage lending showed an 8% increase from last month, continuing the see-saw pattern seen throughout this year, albeit against a broadly flat market. Interpretation of recent trends continues to be challenged by one-off effects. We look forward to the September figures when the distorting effects of the Diamond Jubilee and the Olympics should largely have worked their way through.”

Mortgage lending levels appear to be slowly recovering, and there are a multitude of products on offer to borrowers, albeit with lower Loan To Value (LTV) rates and higher deposits required, however any real recovery in lending is still a long way off.

MyPropertyPowerTeam.co.uk offer property investors and landlords useful information for choosing the right mortgage broker for you. Please see below for an excerpt and follow the link at the bottom of the post to read more

 

Which Type Of BROKER Is Right For You?
Mortgage
BROKERS help you through the minefield of mortgages whether you need a buy to let product, have bad credit, need a self certification mortgage, are a first time buyer or simply need mortgage advice. Their job is to basically find the best mortgage deal and mortgage rate for their clients needs, complete all paperwork and manage the application through to completion of the deal.

 

The mortgage maze can be a difficult one to navigate and seeking unbiased mortgage advice is often the easiest way to understand the options available.

There is more than one way of classifying BROKERS. The Financial Services Authority (FSA) list various classes of BROKER dependant upon independence and fee structure. These definitions are currently under review as part of the FSA’s Retail Distribution Review (RDR) and will be updated if there are any changes.

  • Mortgage IFAs (independent financial advisers) who have access to the whole of mortgages on the market (as well as other areas of financial advice) and give you the choice of paying by fee if you prefer
  • Independent Mortgage Advisers who offer products from the whole of the market as well as giving you the choice of paying by fee
  • Mortgage Brokers who offer products from the whole mortgage market but are paid via a commission

It is probably more important from an Investors point of view to choose their BROKER based on the amount of suitable products offered.

Read more information

Directory Listings for Mortgage Service Providers

There Will Never Be A Better Time To Invest In Property

MyPropertyPowerTeam.co.uk helps property investors and landlords build their own property power team to enable them to profit from property - Visit our main site now!