Currently viewing the tag: "mortgage products"

Pension Freedom Fuels Increase In UK Property InvestmentPension Freedom Fuels Increase
In UK Property Investment

Since UK pensioners were granted full control of their retirement savings in April 2015, an estimated 60,000 (70%) pensioners have taken advantage of their ability to take some or all of their accumulated pension in a lump sum, with many opting to put their cash into property instead as an alternative to annuities, shares and bonds.

According to the latest Global Real Estate Outlook report published by property investment company IP Global, property remains a far more predictable and stable longer term option compared to alternative investments in the stock market.

In the UK, property prices in London and Manchester are leading the way, with prices in Greater London increasing by 12% in the last year alone.

New properties in Manchester may appear to be valued at less than half the average of London properties, however, residential property prices are expected to continue rising to close this gap, with new projections putting Manchester’s property price growth at a staggering 26.4% by 2019.

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Surge In New Buy-To-Let Mortgage Products Confirms Rental Property Revolution

Surge In New Buy-To-Let Mortgage Products Confirms Rental Property Revolution

Surge In New Buy-To-Let Mortgage Products Confirms
Rental Property Revolution

A number of market leading lenders have introduced improved Buy-To-Let mortgage products to meet the growing demand for portfolio expansion by UK landlords.

The surge in the number of new mortgage products coming to market confirms that the UK buy-to-let industry is growing across the whole of the UK and there are even more BTL products still awaiting launch dates from lenders.

Paragon Mortgages has introduced a new Buy-To-Let mortgage product for single unit properties, Houses of Multiple Occupation (HMO’s) and multi-unit blocks; the rate is fixed at an initial 5.49% for a maximum Loan-To-Value (LTV) of 75% with a 2% product fee.

The Post Office, (and its financial services partner the Bank of Ireland) have also entered the Buy-To-Let mortgage market, launching a range of buy-to-let mortgages at 60% and 75% LTV – some of their BTL mortgage products don’t even have an arrangement fee and include free valuation.  

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Post Office Offering Lowest Ever Fixed Rate Mortgage Deal

Post Office Offering Lowest Ever Fixed Rate Mortgage Deal

Post Office Top Mortgage Charts

The Post Office has cut the rates on a variety of its mortgage products and are now offering their lowest ever fixed rate mortgage deals, taking some of their mortgage products to the top of the best-buy mortgages tables.

The Post Office says it will now be offering their best ever mortgage range, slashing rates among its mortgage products.

Three of its fixed rate mortgage products are now the best mortgage deals available in the UK mortgage market.

Topping the list are the 2 year fixed rate mortgage deals that have no arrangement fee.

The market-leading products are:

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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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Is Funding For Lending Working For First Time Buyers?

Is Funding For Lending Working For First Time Buyers?

FIRST-TIME buyer numbers are up by almost a quarter year-on-year, lenders said yesterday, amid signs that government efforts to encourage mortgage lending are finally percolating down to people with smaller deposits.

A total of 21,700 loans worth £2.7 Billion (GBP) were made available to first-time buyers in November 2012, one of the highest monthly totals in the last three years, the Council of Mortgage Lenders (CML) said.

These figures mean that first-time buyer numbers were up by 24% compared with a year earlier, and increased by 8% month on month.

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Interest-Only Mortgages Are Becoming Too Niche For More Mainstream Lenders

Mortgage Lenders Think Interest Only Mortgages Are Too Risky

More Mortgage Lenders Think Interest Only Mortgages Are Too Risky

Mainstream mortgage lender, Nationwide has announced it will soon stop offering interest-only mortgages to borrowers because that part of the market is a “niche area”.

The high street bank will stop offering interest only mortgages from 18th October, although customers who are currently on an interest-only deal with Nationwide will remain unaffected, at least until the end of their fixed rate term.

Other UK lenders have also tightened up their lending criteria on similar mortgage types amid concerns about financial stability and people not being able to pay the money back, meaning borrowers could also struggle to find similar mortgage deals elsewhere.

Interest-only mortgages allow people to only pay off the capital when the mortgage term ends, enabling them to maximise their initial borrowing capacity. Mortgage brokers have greater access to available products and can advise individual investors further.

Like many other lenders, Nationwide had already limited its interest-only mortgage lending to up to 50% of the property’s value, and it now joins the list of those to pull out of the interest-only market.

In May this year, the Co-operative Bank withdrew its entire range of products, stating house price weakness and uncertainty about the economic climate had resulted in the rapid decline in demand for interest-only loans.

The Prime Minister David Cameron insists that the coalition Government’s plans to take a more pro-active role in the UK housing market is “absolutely right” in order to help struggling potential buyers to raise large deposits.

Speaking at a residential property construction site in Lewisham, Mr Cameron attempted to reassure people seeking mortgage advice, stating that the NewBuy Guarantee initiative will help “unblock” the housing market by providing 95% Loan-To-Value mortgages underwritten by homebuilders and the UK Government.

Three major mortgage providers have so far committed to the Government-backed NewBuy scheme.

Barclays, Nationwide Building Society and NatWest Home Loans intend to back the NewBuy scheme by offering products which will tie in with it. Santander and Halifax are also expected to begin offering similar mortgage products along the same lines at a later date.

The mortgage indemnity initiative will aim to help people invest in property even if they only have a deposit of 5% or 10%.

As well as helping people who are finding it tough to save towards 20% deposits, the project is designed to boost the construction sector by spurring demand for new-build properties.

First Time Buyers (FTB) looking to purchase homes in England worth up to £500,000 could be eligible for the scheme in the months to come. The Government will cover 5.5% of the value of each mortgage provided, while 3.5% will be covered by house builders.

Forecasts suggest that as many as 100,000 UK new build home buyers could gain mortgage funding through the scheme.

Mr Cameron said: “The problem today is we have lenders who are not lending so builders cannot build so the buyers cannot buy and it needs the government to step in and help unblock the market. The new scheme was absolutely right in attempting to lower the requirements to more affordable levels of between “£10,000 to £15,000” with the taxpayer and the construction industry underwriting the high loan-to-value (LTV) mortgages”.

However, as reported on “Spotlight” earlier this week, the scheme has already prompted heavy criticism from opposition parties.Read the full article here 

Labour’s shadow housing minister Jack Dromey was among the first to be openly critical of the mortgage indemnity scheme proposal, publicly stating that the Government needed to invest directly in the building of more new homes.

Some property industry pundits have labelled the scheme as a “gimmick” to boost the ailing UK construction sector.

Even some lenders remain fairly wary of the Government’s plans and are yet to sign up to the initiative, with only three major lenders signed up to take part so far.

Nonetheless, the Council of Mortgage Lenders has backed the scheme as “good news for home-buyers”.

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