Currently viewing the tag: "Funding for Lending Scheme"
Buy-To-Let Remortgaging Eclipses Property Purchase Borrowing

Buy-To-Let Remortgaging Eclipses Property Purchase Borrowing

Buy-To-Let Remortgage Surge

Buy-to-let remortgages have witnessed a huge surge in demand during the second quarter of 2013, as existing landlords refinance to raise capital for further rental property purchases.

Remortgaging activity has eclipsed all other types of mortgage transactions covering multiple property types, other than granting new mortgages for buy-to-let property purchases.

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Top Economist Warns Of Fresh House Price Crash

Top Economist Warns Of Fresh House Price Crash

Disastrous House Price Crash Could Be Caused By
Government’s Funding for Lending Scheme

One of the UK’s leading economists has warned of a potentially disastrous house price crash and points the finger at the Government home buying scheme for being the cause of another unsustainable property bubble.

Chief Economist at the Institute of Directors (IoD), Graeme Leach, said the introduction of the new Help-To-Buy scheme, under which UK taxpayers are underwriting thousands of new mortgages for property purchases, means the world must have gone mad.

Mr Leach said “The Funding for Lending scheme is very dangerous because it will drive up property prices at a time when it seems likely that (property) prices are already over-valued.”

The scheme is one of Chancellor George Osborne’s financial initiatives where the Government will underwrite mortgage loans allowing new and first time borrowers up to 20% of a property’s value as part of their deposit, effectively giving the Government a proportionate stake in the value of the mortgaged property.

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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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Residential Property Sales Hit Three-Year High

Residential Property Sales Hit Three-Year High

Residential property transactions in the UK reached their highest level in three years, as would be buyers begin to take advantage of the continuing record low interest rates and the increased availability of residential mortgage loans, according to a survey of estate agents.

The monthly market survey from the Royal Institute of Chartered Surveyors (RICS) found that the increased availability of cheaper residential property mortgages and home loans has been boosted by the Bank of England’s (BoE) Funding for Lending Scheme (FLS) and this in turn has led to a pickup in residential property transactions.

Surveyors reported that many agents have sold an average of 17.4 residential properties to new first time buyers in February – up from the previous average of just 16.8 in February 2013, but property transactions remain significantly below the unprecedented levels reached in the early-mid 2000s, at the height of the last UK property boom.

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UK property shortage becoming criticalWith an ever increasing population and open immigration policy, the UK currently needs around 3 times more houses than are currently being built, and the situation is set to get even worse when the EU restrictions on immigrants from Eastern Europe are lifted on 1st January 2014, according to a recent report by the Future Homes Commission (FHC), a body instigated by the Royal Institute of British Architects (RIBA).

The FHC have called for 300,000 extra residential properties to be built every year on brownfield land and sections of green belt land close to virtually every city, town and village in a much needed UK housing revolution.

There are currently a number of government backed schemes to try and kick start some life in the UK property market, including the Funding For Lending Scheme, New Buy and NewBuild incentives, all designed to encourage growth and movement in the market.

However, it will as always be down to the skills and expertise of entrepreneurial property developers negotiating skills enabling them to continue buying land at the right prices, or completing previously part built developments and most importantly selling the finished properties onto willing buyers including first time and next time buyers and even property investors at the right prices.

Having high street banks and mortgage lenders being encouraged to extend more lending to property purchasers including First Time Buyers (FTB’s) is vitally important and a must to assist buy to let investors to expand their property portfolios and allow them to fill the gap in the market created by the unprecedented tenant demand.

The massive demand for affordable residential rental property in almost every part of the UK and private sector rents are still increasing due to this demand, as landlords attempt to cash in.

Get your numbers right, and buy property now to enjoy some huge rental yields.

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Funding For Lending Scheme Targeted

Funding For Lending Scheme Targeted

Some of the Con-Dem Government flagship schemes to get the UK housing market moving again such as Funding for Lending (FLS), NewBuy and FirstBuy have been targeted by a succession of property professionals at a buy-to-let event in Westminster, last week.

John Heron, managing director of specialist mortgage lender Paragon said: “Politicians are tinkering around at the edges and seeking headlines. They are being schizophrenic. On the one hand, they are doing everything they can to drive lenders away from high-risk lending, On the other hand, they are coming up with initiatives encouraging 95% mortgages on new-builds to first-time buyers.”

At the inaugural “Great Buy to Let Debate”, organised by the Wriglesworth consultancy, both he and other speakers called for a root and branch review of all government policies.

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A CHEAP mortgage bonanza could revive the housing market as lenders roll out exceptional deals.

Cheaper Mortgages On Way For UK

Cheaper Mortgages On Way For UK

The number of record-low mortgages have boomed since Christmas 2012, with several major  lenders launching fixed-rate products with an interest rate below two per cent.

Aaron Strutt, mortgage broker at Trinity Financial, said: “It’s been a great start to 2013 with lenders launching fantastically cheap rates. Many are once-in-a-lifetime deals.”

HSBC is the latest major lender to launch a fixed-rate deal below two per cent.

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Landlords Forced Into Remortgaging

Landlords Forced Into Remortgaging

More landlords are remortgaging compared to 12 months ago, with a number being forced by their existing lenders to find alternative funding from elsewhere, although some are also remortgaging voluntarily in order to expand their portfolios.

According to research from specialist buy-to-let broker Mortgages for Business, an increasing number of landlords are remortgaging more complex buy-to-let property.

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The latest data published by the Association of Residential Letting Agents (ARLA) has revealed another upward trend in landlord investment and property portfolio building, despite the poor availability of adequate Buy-To-Let mortgages.

The number of UK PRS rental properties owned by landlords increased from seven at the beginning of 2012 to 8 in the final quarter of 2012, with on average, at least 1 of these properties being a HMO.

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Council of Mortgage Lenders Give Reasons For Optimism In 2013

CML Give Reasons To Stay Positive About UK Property Market In 2013

CML Give Reasons To Stay Positive About UK Property Market In 2013

The UK Council of Mortgage Lenders (CML) are more positive about the UK housing market and the wider economy than they were a year ago, despite economic headwinds and downside risks.

A key reason is that mortgage lenders currently face few funding pressures, in part reflecting the governments funding for lending scheme.

Property purchasing activity was more robust than expected in the last quarter of 2012, on the back of better mortgage availability and more realistic property pricing, and the CML expect this to continue over the coming months.

2013 started on a more positive note than a year ago, even though the UK economy has barely grown.

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