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Chancellor Insists Help-To-Buy scheme Is Part Of A Healthy Property Market

Chancellor Insists Help-To-Buy scheme Is Part Of A Healthy Property Market

Chancellor insists that 95% mortgages underwritten by Government are Part Of A Healthy Property Market

The Chancellor of the Exchequer, George Osborne has hailed the wider recovery of the UK’s economy and taken a swipe at the critics of his housing policies, insisting that large home loans are part of a “healthy market” and “aspirational society”.

Several Government schemes have been announced since the start of the year aimed to get banks and mortgage lenders to increase both the availability and affordability of mortgages in the UK.

The Government’s Help-To-Buy scheme has been the most controversial, because the Government underwrites high loan-to-value (LTV) mortgages, removing some of the risk from mortgage lenders, enabling them to offer cheaper mortgage loans to borrowers who only have small value deposits.

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Best Places For UK Property Investment

Best Places For UK Property Investment

UK Property Investment Hot Spots
Identified By Journalist

The post-recession boom in house prices has prompted Christopher Middleton to write about the best property investment hot spots in the press this week and he put forward some of the best areas of the UK that can provide property investors with decent returns.

According to the Office for National Statistics, UK house prices are officially on the up. Property values rose by 3.1% in the 12 months to June 2013, compared to 2.9% in the year to May 2013.

The Royal Institution of Chartered Surveyors (RICS), say that property prices are rising at their fastest rate since the pre-crash days of 2006.

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Rightmove Doubles UK Property Values Forecast As Property Prices Increase Again

Rightmove Doubles UK Property Values Forecast As Property Prices Increase Again

UK property values increase for seventh month in a row

UK property values have reached a new five year high, according to property portal, Rightmove, who revised their forecast of UK residential property values, and now reckon that residential property prices will increase to double their previous property value forecast for 2013.

As Spotlight reported last week, residential property values have already increased by 0.3% to average £253,658 (GBP), and now Rightmove reckon property values will now climb by up to 4% this year instead of the 2% previously predicted. However, it wasn’t good news for the whole country as residential property prices in London remained unchanged, holding at a record average of £515,379 (GBP).

The economic incentives introduced by the Government and the Bank of England (BoE) to increase overall lending and credit supply has boosted the demand for residential property ownership from first time buyers.

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New EU Rules Will Cause Mortgage Rate Confusion

New EU Rules Will Cause Mortgage Rate Confusion

European Ruling Set To Make Mortgage Rates Harder To Understand

New European rules could make mortgage rates even harder for customers to understand as Euro bureaucrats want to introduce a new way of calculating interest rates on residential property mortgage loans and experts are warning that this could be a recipe for confusion.

Under the new proposed EU directive, mortgage lenders would be expected to tell borrowers the maximum interest rate they have charged over the past 20 years, and display this figure on all of their literature.

However, industry experts say customers are already confused by the rates that lenders are forced to display, and that this will make it even harder for them to understand mortgage rates.

David Hollingworth from mortgage broker, London & Country, said:”I think that there is a chance that borrowers become overloaded with information and APR rates that mean little to them, and so risk them being ignored altogether, the extra information could lead to more customers failing to shop around and remaining on expensive standard variable rates (SVRs).

The EU credit directive concerning the mortgage change is expected to be approved later this year. It will compel lenders to display a new annual percentage rate (APR) on all of their literature. This will be calculated using the highest level that the lender’s SVR has reached in the previous 20 years.

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2nd Consecutive monthly fall in residential property mortgage approvals

2nd Consecutive fall in residential property mortgage approvals

Mortgage approvals for UK residential property

purchases dropped in February

The Bank of England (BoE) has confirmed that residential mortgage lending fell for a second successive month in February 2013 reinforcing previously released data from the Council of Mortgage Lenders (CML) and the British Bankers Association (BBA).

The Bank of England figures show that 51,653 residential property mortgages were approved in February, the lowest number since September 2012.

The overall figure was down on the Bank’s revised figure of 54,187 mortgage approvals expected for January, and the amount of mortgage approvals for the purchase of residential properties were less than was originally predicted for February.

Economists had forecast a fall in mortgage approvals, down to 53,700, according to a panel of estimates by Bloomberg. However, the Bank of England have said that remortgage lending in February had increased by 3.8% to 26,771.

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The Bank of England reported on Wednesday that mortgage lending to home buyers in December was at its highest for nearly a year, although approvals remain low compared to the long term norm.

UK Mortgage Lending Increases

UK Mortgage Lending Increases

The number of residential property mortgage approvals in December was 55,785, with economists estimating that a level of 70,000 to 80,000 being consistent with stable prices.

Figures from the Bank of England (BoE), that were published last Friday, showed that the bank’s Funding for Lending Scheme, which went into operation in August 2012, may finally be starting to increase the amount of money being lent by banks and other mortgage lenders to residential property buyers.

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Property Values To Remain Flat In 2013

Residential property values increased by an average of 1.3% in December 2012 but according to the latest figures released by the Halifax, property values are likely to end 2013 at levels close to where they began.

UK Residential Property Values Not Expected To Change In 2013

UK Residential Property Values Not Expected To Change In 2013

The Halifax House Price Index revealed an average residential property price of £163,845 (GBP), up from £161,795 (GBP) in November 2012.

Over the course of the year, residential property values have remained little changed with six monthly rises and six decreases month-on-month.

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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.

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UK Residential Property Prices Fall At Fastest Rate For Three Years

UK Residential Property Prices Fall At Fastest Rate For Three Years

UK residential property prices have dropped at the fastest rate for three years and now UK economists are warning that the double-dip recession will push them down further.

Nationwide published figures last week showing the average value of a residential property has dropped by 2.6% since July 2011.

The news is the biggest annual fall in UK property prices since August 2009 and follows a drop in property values almost every month since December.

In July 2012 the average UK residential property lost 0.7% of its reported value.

The figures from Nationwide also reveal a slump in average property prices since the peak of the UK property market in October 2007 when average residential property values stood at £186,044 (GBP).

Today the average property value is worth £164,389 (GBP), a fall of £21,655 (GBP) which is almost the equivalent of an average UK annual wage.

Robert Gardner, chief economist at the Nationwide said “The drop is unsurprising given the disappointing performance of the wider economy”.

Official figures showed that last month the UK was still struggling with the longest economic downturn in history.

National residential property prices mirror the economic struggle in the UK with only the shortage of habitable residential properties available preventing larger price falls in many parts of the country.

Mortgage lending figures are still poor, and lenders’ reluctance to lend is being felt most keenly by first-time buyers and landlords who want to expand their property portfolios.

Nationwide refuses to predict if house prices will continue to fall, but economists have already made their own bleak forecasts, stating that UK house prices are likely to remain under pressure for the rest of the year.

UK property repossessions increase

UK Property Repossessions are forecast to increase 22% in 2012

UK Property Repossessions are forecast to increase 22% in 2012

Economists expect the recession and rising unemployment to squeeze the already stretched household finances of thousands of struggling families this year and are warning UK homeowners and landlords of a sharp rise in residential property repossessions.

Record low Bank of England (BoE) interest rates and lower than expected unemployment figures kept property repossessions to relatively small numbers through the worst days of the first half of the recession and they eased again as the country struggled into a tepid recovery.

However, with a double dip recession inevitably looming, workers incomes failing to cover spiralling household costs, the Government’s economic cutbacks and welfare reforms starting to bite whilst the beleaguered private sector fails to replace jobs lost in the public sector, economists are fearing the worst.

The Council of Mortgage Lenders (CML) had already forecast a 22% rise in UK property repossessions for 2012 increasing the annual property repossession figures to around 45,000.

The property repossession figures include private residential properties where mortgage payments have lapsed and Buy-To-Let properties where landlords did not have <a title=”Landlord Insurance” href=”http://www.legal4landlords.com/rent-guarantee/” target=”_blank”>Rent Guarantee Insurance</a> and have been unable to keep up with their buy-to-let mortgage repayments due to their tenants not paying the rent.

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