Property industry reacts to UK house price data

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Get in touch with Mortgage Broker UK today to discuss your Residential, First-time Buyer, Contractor and Buy to Let Mortgage requirements. Residential property prices increased by 0.4% in February, marking the fourth monthly increase in a row, according […]

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Get in touch with Mortgage Broker UK today to discuss your ResidentialFirst-time Buyer, Contractor and Buy to Let Mortgage requirements.

Residential property prices increased by 0.4% in February, marking the fourth monthly increase in a row, according to the latest Halifax house price index.

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The data shows that during the month property prices grew 1.7% on an annual basis, against a 2.3% in the prior month.

Read about the UK Housing Market via our Specialist Residential & Buy to Let Division

The figures showed the average cost of a home in the UK is now £1,000 higher than last month.

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Source: Property Industry Eye

House prices remain remarkably stable

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Get in touch with Mortgage Broker UK today to discuss your Residential, First-time Buyer, Contractor and Buy to Let Mortgage requirements. The UK economy has shown unexpected resilience in the face of rising interest rates and inflation. Agreed, […]

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Get in touch with Mortgage Broker UK today to discuss your ResidentialFirst-time Buyer, Contractor and Buy to Let Mortgage requirements.

The UK economy has shown unexpected resilience in the face of rising interest rates and inflation. Agreed, the economy fell into a recession in the second half of last year, but so far, a very mild one.

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The high unemployment, financial stress and big company corporate failures that looked possible a couple of years ago have not materialised.

Read about the UK Housing Market via our Specialist Residential & Buy to Let Division

The housing market has also held up, confounding expectations of sharply lower house prices.

The last time I wrote about house prices was in November 2022, in the aftermath of Kwasi Kwarteng’s ill-fated mini-budget. At that time I forecast a 15 per cent decline in house prices.

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Source: Reaction

Housing market shows signs of picking up

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Get in touch with Mortgage Broker UK today to discuss your Residential, First-time Buyer, Contractor and Buy to Let Mortgage requirements. Signs of life were seen in the UK housing market in the new year with a rise […]

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Get in touch with Mortgage Broker UK today to discuss your ResidentialFirst-time Buyer, Contractor and Buy to Let Mortgage requirements.

Signs of life were seen in the UK housing market in the new year with a rise in the number of mortgages being approved. Activity remains weak overall, with potential buyers still nervous about high interest rates.

But the latest Bank of England data shows approvals for house purchases rose to 55,200 in January from 51,500 in December.

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This was the highest level since October 2022. Borrowing on credit cards also picked up last month. People took on £1.9bn more in credit on cards, car finance and other loans in January than they repaid.

Read about the UK Housing Market via our Specialist Residential & Buy to Let Division

Mortgage lenders have been shifting the interest rates charged on home loans at a rapid rate since the start of the year. This started with some significant cuts to the cost of new fixed-rate deals.

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Why the ‘mood music’ surrounding the housing market outside London has changed

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Get in touch with Mortgage Broker UK today to discuss your Residential, First-time Buyer, Contractor and Buy to Let Mortgage requirements. An influx of new residents into Manchester, Birmingham, Leeds, Bristol, Edinburgh and Glasgow helped the housing market […]

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Get in touch with Mortgage Broker UK today to discuss your ResidentialFirst-time Buyer, Contractor and Buy to Let Mortgage requirements.

An influx of new residents into Manchester, Birmingham, Leeds, Bristol, Edinburgh and Glasgow helped the housing market remain resilient during 2023, according to a new report.

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New research from global property advisor JLL shows there was a surge in demand from renters and buyers for prime residential properties across the UK’s ‘big six’ despite high inflation and interest rates.

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The report, which tracks residential development activity, prices and rents across the six areas, highlighted a desire from city centre residents to live in ‘vibrant, highly-amenitised and well-connected central locations’.

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City A.M.

 

Calls grow louder for urgent stamp duty cut to boost property market

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Get in touch with Mortgage Broker UK today to discuss your Residential, First-time Buyer, Contractor and Buy to Let Mortgage requirements. Propertymark is the latest trade body to call on the Bank of England to cut interest rates […]

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Propertymark is the latest trade body to call on the Bank of England to cut interest rates to boost demand for property.

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It sees lower rates as key to increasing affordability levels and consumer confidence, particularly among first-time buyers, as well as ease the financial strains on homeowners in general.

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The news comes as property website Zoopla found that people who are buying their first home are paying an average of £244,100 – this is £20,300 below the local market average.

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Source: Property Industry Eye

 

House prices fall by -1.4% in December – ONS

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Average house price annual inflation was negative 1.4% in the 12 months to December 2023, compared with negative 2.3% (revised estimate) in the 12 months to November 2023, according to […]

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Average house price annual inflation was negative 1.4% in the 12 months to December 2023, compared with negative 2.3% (revised estimate) in the 12 months to November 2023, according to the latest data from the Office for National Statistics (ONS).

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The average UK house price was recorded at £285,000, which is £4,000 lower than 12 months ago.

Average house prices in the 12 months to December 2023 decreased in England to £302,000 (negative 2.1%), decreased in Wales to £214,000 (negative 2.5%) and increased in Scotland to £190,000 (3.3%).

The average house price increased in the year to Q4 (October to December) 2023 to £178,000 in Northern Ireland (1.4%).

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On a non-seasonally adjusted basis, average UK house prices increased by 0.1% between November 2023 and December 2023, compared with a decrease of 0.8% during the same period 12 months ago.

Of English regions, annual house price inflation was highest in the North West, where prices increased by 1.2%.

London was the English region with the lowest annual inflation, where prices decreased by 4.8% in the 12 months to December 2023.

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Source: The Intermediary

UK house prices rise at fastest rate since January 2023

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Get in touch with Mortgage Broker UK today to discuss your Residential, First-time Buyer, Contractor and Buy to Let Mortgage requirements. UK house prices rose 2.5% in the year to January, recording the biggest increase since January last […]

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UK house prices rose 2.5% in the year to January, recording the biggest increase since January last year, as lower mortgage rates and fading inflationary pressures led to increased buyer and seller confidence, Halifax has said.

Kim Kinnaird, the director at Halifax Mortgages, said: “The recent reduction of mortgage rates from lenders as competition picks up, alongside fading inflationary pressures and a still-resilient labour market has contributed to increased confidence among buyers and sellers.

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Source: The Guardian

 

Navigating the UK Mortgage Market in 2024: What You Need to Know

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Buying a home in the UK remains a dream for many, but navigating the current mortgage market can feel like sailing through turbulent waters. Interest rate hikes, a cooling market […]

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Buying a home in the UK remains a dream for many, but navigating the current mortgage market can feel like sailing through turbulent waters. Interest rate hikes, a cooling market and economic uncertainty have many asking: is now the right time to buy a UK property in 2024? While there are undeniable challenges, opportunities still exist for savvy borrowers. In this post, we’ll explore the current state of the UK mortgage market, offering insights and guidance for potential buyers, existing homeowners and those considering remortgaging.

Market Overview: Shifting Tides

The past year saw major shifts in the UK mortgage market. Following a period of historically low interest rates, the Bank of England began raising rates in December 2021 to combat inflation. This resulted in:

  1. Higher mortgage rates
    The average two-year fixed rate currently stands at 5.58%, while five-year deals average 5.22%. While these represent a slight decrease from peaks earlier in 2024, they remain considerably higher than pre-2022 levels.
  2. Mortgage lending decrease
    UK Finance predicts a fall in mortgage lending in 2024, with remortgaging activity anticipated to decline after a peak in maturing fixed-rate deals.
    Increased pressure on homeowners: Rising living costs combined with higher mortgage payments could strain finances for some homeowners.
  3. Challenges and Opportunities for BorrowersThis evolving landscape presents both challenges and opportunities for different borrower segments:
  • First-time buyers: Higher entry barriers due to stricter affordability checks and larger deposits required. However, a cooling housing market might present lower property prices, offering some balance.
  • Existing homeowners: Remortgaging to secure a better deal can be beneficial, especially for those currently on expiring low-interest fixed rates. However, careful budgeting is crucial due to higher monthly payments.
  • Buy-to-let investors: Stricter lending criteria and lower rental yields make buy-to-let less attractive. Alternative investment options should be explored.

Get in touch with Mortgage Broker UK today to discuss your Residential, First-time Buyer, Contractor and Buy to Let Mortgage requirements.

Key Considerations for Navigating the Market

  • Affordability: Conduct thorough budgeting to ensure you can comfortably afford monthly repayments with higher interest rates.
  • Deposit size: Aim for a larger deposit to reduce borrowing and secure better mortgage rates.
  • Fixed vs. variable rates: Weigh the stability of fixed rates against the potential flexibility of variable rates, considering your risk tolerance and financial goals.
  • Seek professional advice: A mortgage advisor can guide you through the complexities of the market, matching your needs with the most suitable products and lenders.

Beyond the Headlines: Hope on the Horizon

While the UK mortgage market faces challenges, positive developments offer hope for potential buyers and homeowners. Consider the following key points:

  • Mortgage rate stabilisation
    While interest rates remain higher than in recent years, they appear to be stabilising after initial hikes and it is highly predicated that the Bank of England base rate has now peaked after multiple months of no additional increases.
  • Government support schemes
    Initiatives like the Mortgage Guarantee Scheme can aid first-time buyers with smaller deposits.
  • A cooling housing market
    Potential house price softening in some areas of the UK could make property more affordable.

Crucially, the UK mortgage market is very dynamic and circumstances can change quickly. Staying informed, conducting thorough research and seeking professional advice are crucial for making informed decisions in this evolving landscape.

UK Mortgage Broker offer whole-of-market search with totally FREE mortgage quotes and advice, so Contact Us today.

Read about the UK Housing Market via our Specialist Residential & Buy to Let Division

Rental Market Crisis As Demand Continues To Outweigh Supply

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Letting agents have highlighted a persistent high demand for rental properties, coupled with a significant decline in available supply. This imbalance is primarily attributed to the dwindling number of new […]

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Letting agents have highlighted a persistent high demand for rental properties, coupled with a significant decline in available supply. This imbalance is primarily attributed to the dwindling number of new landlords entering the market, exacerbated by existing tenants choosing to stay put to circumvent the hike in rental prices.

Get in touch with Mortgage Broker UK today to discuss your residential and Buy to Let Mortgage requirements.

A recent survey conducted by the Royal Institution of Chartered Surveyors (RICS) among its members has unveiled a noticeable uptick in tenant demand throughout the three months leading to January. Despite this, there’s a sense of the market cooling off, possibly mitigating the ongoing reduction in new landlord listings.

Read about the UK Housing Market via our Specialist Residential & Buy to Let Division”

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Source: Landlord Knowledge

A third of UK buy-to-let landlords plan to expand portfolios in 2024

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Investors are spotting opportunities in the current market as more buy-to-let landlords make plans to snap up further properties in the year ahead. Market sentiment in the buy-to-let sector has […]

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Investors are spotting opportunities in the current market as more buy-to-let landlords make plans to snap up further properties in the year ahead.

Market sentiment in the buy-to-let sector has been impacted by a number of factors in recent years, from tax changes to the more recent issue of rising mortgage rates. House prices across much of the country have also slowed their pace of growth – which comes as no surprise after the rapid acceleration of 2020-2022.

However, as is often the case in the UK property market, investors continue to find the most promising assets, in terms of both location and property type, to keep activity strong in the sector. While 2023 was a year of uncertainty, investors are finding more to be positive about for 2024.

Inflation has fallen rapidly from its high point last year, despite the most recent announcement that revealed an small, unexpected rise. Interest rates have also been frozen for some time now, yet lenders have been reducing their rates and unveiling a wider array of products and incentives, including for buy-to-let landlords.

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Along with more positive house price news over the past couple of months, these factors have all combined to influence plans for landlords in the coming 12 months, and the latest research from Together Money has found that more than a third – 34% – of buy-to-let landlords will expand their portfolios this year.

More optimism for landlords

The survey by Together also found that 68% of landlords currently feel optimistic about their business outlook for 2024, despite 10% of respondents saying they they have “reservations”. A quarter of those surveyed also said they were planning to refinance their properties to “support business objectives” this year.

Since the start of 2024, some of the UK’s major banks and building societies have brought fresh, cheaper deals to the table since the start of 2024, including Co-operative Bank, First Direct, HSBC, NatWest, Halifax, Clydesdale Bank and Leeds Building Society, with a number of these lenders also offering buy-to-let mortgage deals.

There is now a growing number of sub-4% mortgage products available for landlords, which is a vast improvement on the peaks of almost 7% last summer. Borrowers are still urged to thoroughly check the details of each product though, as deals with the lowest rate aren’t always the best value for money for every customer.

Of course, some landlords with less borrowing power or those who are simply ready to cash in on their property assets are leaving the market at the moment, but this is also presenting opportunities for portfolio landlords to take on existing buy-to-let properties.

Read about the UK Housing Market via our Specialist Residential & Buy to Let Division”

Should you use a specialist lender?

The research from Together found that 42% of its landlord respondents said they would prioritise using a specialist lender rather than a mainstream one over the next 12 months (although this was specifically related to taking out additional financing for commercial property).

The reasons given were that specialist lenders are often prepared to take on greater risk and offer larger loans, while supporting entrepreneurial plans; an answer which was selected by 39% of respondents. 29% said they’d opt for a specialist lender because they are quicker, while 29% also said they provide the best service.

Where the purchase isn’t straightforward, such as when investing in a house in multiple occupation (HMO), or investing via a limited company, the vast majority of people will need to use a specialist lender. However, for a standard buy-to-let purchase, it is worth including mainstream lenders in your mortgage search.

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According to MFS: “Specialist lenders deliver greater flexibility and speed than high street comparatives. Unlike high-street banks, they underwrite their loans manually. This allows them to approach each application on a case-by-case basis.”

The sector is reacclimatising

Chris Baguley, Group Channel Development Director at Together, said: “The short, sharp shock in interest rates since the Covid years triggered some cautiousness in the commercial market while investors were trying to predict where the peak would be. With rates settling, while there is still an overall flattening; activity is returning as the sector reacclimatises to the new environment.