Over recent years the housing boom has made the buy to let market an attractive proposition for investors in the UK and a rising number of people have decided to enter the buy to let market in order to invest in their future. However, last summer brought with it the global credit crunch, which has become a household term and has wreaked havoc in the financial markets for many months causing all sorts of problems. (more…)
Archive for September, 2008
Rising number of landlords in serious mortgage arrears
Tuesday, September 30th, 2008
MPC member calls for major rate cuts
Monday, September 29th, 2008One member of the Monetary Policy Committee, which is involves in cutting rates, has recently called for major cuts to the UK’s base rate in order to avoid an economic slump that could last for a long period of time. The warning comes from MPC member David Blanchflower, who has been consistently voting for a rate cut over recent months at the monthly MPC meetings. However, having been outvoted rates have remained at 5% for the past five months. (more…)
How are buy to let investors being affected by the global credit crunch and falling house prices?
Monday, September 29th, 2008Both consumers and lenders have been adversely affected by the global credit crunch since it swept across the nation last summer. Lenders have found it increasingly difficult and expensive to secure finance on the wholesale money markets to fund their mortgage lending activities, and as such have had to slash the number of mortgage products available by two thirds in the space of a year, increase interest rates on mortgages, hike up arrangement fees on mortgages, raise deposit levels on mortgage loans, and restrict access to many mortgage products. (more…)
July saw slight improvement in mortgage lending
Friday, September 26th, 2008A recent report has shown that there was a slight upturn in mortgage lending for the month of July, with mortgage lending levels said to have risen by 5%. Mortgage lending levels have been in decline for some months as a result of the global credit crunch which has seen a reduction in mortgage products on the market, as well as resulting in lenders putting far tighter lending criteria into place. In addition to this falling house prices and the threat of negative equity coupled with lack of affordability has resulted in fewer people making mortgage applications. (more…)
Wealthy buyers take advantage of difficult conditions in housing market
Thursday, September 25th, 2008Most people are aware that conditions in the housing market have become increasingly difficult over recent months, and with the mortgage sector still suffering the effects of the global credit crunch and with house prices falling, many homeowners have found that it is difficult or impossible to sell their homes. Estate agents have reported the poorest performance figures in years and there are even fears that many could lose their jobs due to lack of property sales. (more…)
Is the UK heading for recession?
Wednesday, September 24th, 2008The word recession is one that strikes fear into the hearts of many, particularly those that remember the dark days of the late 1980s and early 1990s. However, over recent months the nation has seen financial markets dry up, house prices plunge, credit conditions become increasingly tight, inflation levels soar, and consumer confidence dwindle. It is therefore little wonder that so many people are convinced that the country is on the brink of recession. With households facing their toughest time in years when it comes to finances many people are unable to spend freely, which is affecting the economy. (more…)
Sellers knocking a fortune off asking prices
Tuesday, September 23rd, 2008According to a recent report homeowners that are trying to sell their homes are knocking a fortune off the asking price in order to secure a sale in what have become very difficult conditions in the housing market. House prices have been falling month on month for some time now, but despite this many sellers have found that they are still having to slice some extra off the asking price in order to increase the chances of selling their home before property prices fall even further. (more…)
Will the stamp duty suspension benefit you?
Monday, September 22nd, 2008Although house prices have been falling for almost a year in the UK many consumers are still unable to afford to purchase a home due to a variety of factors. Mortgages are in short supply at present, which is creating a problem. And whilst lenders have been cutting their interest rates recently the costs associated with mortgages, such as arrangement fees and deposit levels, are still very high, which is affecting affordability for many. On top of this lenders still have very tight lending criteria in place as a result of the effects of the global credit crunch, which has made it difficult for many to get their hands on an affordable mortgage. (more…)
May mortgage approval levels plummet
Monday, September 22nd, 2008A recent report showed how mortgage approval levels for new home buyers in the UK plummeted in May, further reflecting the ongoing housing and mortgage slump that has come about as a result of the global credit crunch. House prices have been falling for some months now, and mortgage availability has been getting tighter Officials have said that these figures indicate that things will get worse before they start to get better.
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House prices continue to fall
Sunday, September 21st, 2008According to recent reports house prices in the UK have continued their downward spiral for the month of June, with a number of leading mortgage lenders and banks publishing figures that make for gloomy reading. One of the latest lenders to release house prices figures for June was the Halifax, which confirmed that house prices had fallen for yet another month in June, although the drop in values was not as large as the 2.5% that was seen in May. (more…)
House builders have to slash jobs
Saturday, September 20th, 2008A couple of high profile, well known house builders have recently had to slash their workforce by around 40% as a result of the housing market, which has all but ground to a halt due to lack of property sales and plummeting house prices. Property sales have now plummeted because many people are unable to get a mortgage in the current financial climate, with lenders tightening up on their lending criteria, and many others do not want to buy property in case the value continues to fall. (more…)
Next two years could see house prices nosedive
Tuesday, September 16th, 2008A recent report has suggested that house prices in the UK could fall by around one third by 2010, which would mean that within a couple of years many homeowners could see thousands of pounds wiped off the value of their homes. Officials from Deloitte recently released the report indicating that house prices could nosedive in the UK, and an official from the group said: ‘We now expect UK house prices to fall by about a third by the end of 2010 with severe adverse effects on household spending and investment.’ (more…)
Could try and buy housing work?
Monday, September 15th, 2008As a nation we Brits love to try things before we invest our hard earned cash in a purchase. When we purchase a new car we take it for a test drive to see whether it is suitable for our needs, when we buy new equipment such as a computer we ask for a demo so that we can see if it meets our requirements, and we even like to sample food and drink before we are prepared to take the plunge. Why is it then that with the largest investment of all – purchasing a property – all we manage to get is a quick look around the property before we have to decide whether or not we want to invest tens or even hundreds of thousands of pounds? (more…)
Negative equity threatens 1.7 million
Monday, September 15th, 2008According to a recent report around 1.7 million people are facing the threat of negative equity if house prices continue falling at the same rate as they have been for the past few months. Officials from Standard and Poor have predicted that over the next year house prices could fall by a further 17%, and if this happens around 1.7 million homeowners could be left facing negative equity. Negative equity is where the homeowner owes more on the property by way of mortgage than the property is worth. (more…)
Some Londoners could find it more difficult to sell their homes
Sunday, September 14th, 2008Many Londoners could find it increasingly difficult to sell their homes if they live near to the Thames, if new plans that have been proposed come into force. The new plans will require homeowners who are selling their properties to inform potential buyers of any flood risk. This has been proposed by Sir Michael Pitt, the head of a government enquiry into flooding. (more…)
Further rate cuts may be put on hold for this year
Saturday, September 13th, 2008In a recent speech the governor of the Bank of England, Mervyn King, said that there was a good chance that any further interest rate cuts for the remainder of this year would be put on hold, with the central bank now concerned that the soaring rate of inflation is getting more and more out of control. Despite the state of the economy, with many concerned that the nation is on the brink of recession, the governor has indicated that there could be no further interest rate cuts this year. (more…)
Fall in number of mortgage approvals for homebuyers
Saturday, September 13th, 2008According to recent figures there has been a significant fall in the number of mortgage approvals for homebuyers. Recent figures have shown that mortgage approval levels for homebuyers have fallen by around 64% over the past year. According to officials from the Bank of England approval levels for homebuyers have dropped to levels last seen in the 1990s. For May there were just 42,000 new mortgage approvals for homebuyers, which was the lowest on record since 1993. (more…)
Just how bad is the UK economy?
Tuesday, September 9th, 2008There have been a number of different opinions and predictions from industry officials in relation to the UK’s economy of late. Most have been relatively gloomy and some have been downright worrying, with many officials expressing concern over how close the nation is of sliding into recession. According to a recent report the UK’s largest employer’s association, the CBI, has stated that the state of the economy is actually worse than most thought. (more…)
Buy to let mortgage demand is falling
Tuesday, September 9th, 2008According to a recent report the demand for buy to let mortgage loans has been falling, even though the demand for rental properties is still high. Officials have found that there has recently been a surge in the number of rental properties coming onto the market, but this is largely due to the high number of homeowners that are unable to sell their homes in the current financial climate, and have instead decided to rent them out until the market picks up. (more…)
House prices continue to plummet
Monday, September 8th, 2008Any homeowner in England and Wales is probably keeping a close eye on what is happening with property prices, as according to industry officials house prices have been tumbling now for around ten consecutive months. According to a recent report released by the Nationwide Building Society house prices fell a further 1.9% in July compared to August, and officials state that this has brought the annual fall into double digits for the first time since 1990. (more…)
BoE states buyers hoping to get 20% off price of a home
Monday, September 8th, 2008Since the housing slump began some months ago in the UK there have been many problems for homeowners that are trying to sell their properties. Property sales in England and Wales have gone through the floor for a number of reasons. Falling house prices have put some people off buying for fear of falling into negative equity. Tighter credit conditions have made it impossible for some to get a mortgage and buy a home. In fact, a number of factors have affected buyers’ ability or willingness to make a purchase. (more…)
London estate agent closes its doors on sales
Sunday, September 7th, 2008The poor activity in the housing market in terms of sales has affected many different industries, such as property removal industry, property lawyers, furniture retailers, and estate agents. Over recent months there have been many concerns raised about the number of estate agencies that could end up closing down as a result of poor property sales, and recently a London estate agency announced that after seventeen years it was finally closing the doors on property sales. (more…)
Best buy mortgages still demand higher deposits
Sunday, September 7th, 2008Since the onset of the global credit crunch borrowing costs for those looking for a mortgage have increased dramatically in terms of interest rates, arrangement fees, and deposit levels. Those looking to take out a mortgage spend time shopping around for the most competitive rate, and there are some competitive deals still available. However, industry officials have said that the deposit level that is now required in order to secure one of the best buy mortgages has rocketed. (more…)
Experts comment on inflation and interest rates
Friday, September 5th, 2008Over recent months we have heard a lot about both soaring inflation levels and falling interest rates. Between August 2006 and July 2007 the nation saw interest rates rise five times, each time by 0.25%, taking the base rate up to 5.75%. However, between December of last year and April of this year the base rate was cut three times, again by 0.25% each time. This resulted in the base rate falling to 5% by April. However, since that time the base rate has remained at 5%, and growing concerns over the soaring level of inflation means that further base rate cuts could be off the card for the foreseeable future. (more…)
House prices now more than 10% lower than last year
Friday, September 5th, 2008Following a ten year house price boom, which lasted until last October, homeowners in the UK have seen the value of their homes fall month on month, with property prices having dropped for the last consecutive ten months according to industry officials. This has raised concerns for many over falling into negative equity. One recent report has shown that annual house price falls have now hit double digits for the first time in eighteen years, with the last double digit fall seen in 1990. (more…)
First direct launches offset mortgage for those looking to remortgage
Friday, September 5th, 2008The Internet bank first direct, which is part of the High Street banks, HSBC, has recently launched a new mortgage product that may prove of interest to some people that are looking to remortgage. The new offset loan has been described as a market leading fee free loan. This is a base rate tracker offset mortgage, and the interest rate is set at 0.99% above the base interest rate for the life of the loan. Consumers can also benefit from the offset feature, which could help them to save money on interest on the loan. (more…)
Freeze on Mortgages Expected to Continue Until 2010
Thursday, September 4th, 2008Those looking to take out a mortgage in the UK are currently facing difficulties because of the freeze on approving mortgage that many of the lenders have in place. According to the Crosby Report, this freeze is expected to last for another two years. Sir James Crosby, the former chairman of HBOS, has informed government that new homeowners and those looking to refinance will still find it difficult to obtain mortgages as long as the credit crunch continues to plague the UK. The credit crunch has led to falling house prices and only those with excellent credit and income will qualify for new loans. (more…)
Interest rates for August remain on hold
Thursday, September 4th, 2008The Bank of England has announced that the base rate for August is to be held at 5% following the Monetary Policy Committee meeting, which was held last week to determine any movement in the base interest rate. It is a move that has come as no big surprise to most, with soaring inflation levels and the slowing economy making it difficult for the members of the MPC to make any changes to the base rate. (more…)
Abbey takes huge slice of mortgage market
Wednesday, September 3rd, 2008The Spanish owned high street lender, Abbey, as recently reported that it has increased its share of the UK mortgage market dramatically over recent months, and this has resulted in the lender becoming the number one mortgage lender in the nation, overtaking the Halifax. Since the onset of the global credit crunch many UK lenders have struggled to raise finances to fund their mortgage lending operations, but because Abbey is Spanish owned it has been able to turn to European sources for funding, increasing its liquidity. (more…)
Drop in mortgage approvals for May
Wednesday, September 3rd, 2008According to a recent report released by the British Banker’s Association, mortgage approval levels for May slumped this year, falling to the lowest level on record. The figures show that the number of mortgage approved in May fell to under 28,000, and this was a drop of 20% compared to April. The May figure was around 56% lower than the same month last year, and is indicative of the huge problems that have hit the mortgage sector following the inset of the global credit crunch. (more…)
OFT will look into payday loans
Monday, September 1st, 2008According to a recent report the Office of Fair Trading is to look more closely at payday loans, and this follows calls from a variety of debt campaigners and charities to launch an investigation into payday loans because of the high rate of interest that is charged on these loans. Payday loans are short term loan for relatively small sums of money, often used by those that need some money to tide them over until payday comes around, and with household finances getting increasingly tighter more and more people may be relying on loans such as these to get by each month. (more…)
House sales slump by 40% according to report
Monday, September 1st, 2008A recent report has shown that house sales in the UK have slumped by 40%, as the nation continues to go through a mortgage and housing market meltdown. Poor property sales have been affecting the market for some months, with a number of factors affecting the falling sales levels in the UK, and estate agents reporting some of the poorest sales figures in decades, with most averaging just five property sales a month. (more…)
20% fall in rents in some areas
Monday, September 1st, 2008Some parts of London have recently seen rents on properties fall by around 20%, after a surge in properties going up for rent resulted in greater supply than demand. It has not been long since reports indicated that rents in the area had actually be rising by up to 8% a year, with landlords making the most of consumer desperation to find a rented home given that many could not get a mortgage in order to purchase their own property. However, this now seems to be turning itself around, with rentals being slashed by hundreds of pounds a month in some cases. (more…)