Northern Rock is the latest lender to lower the short term fixed rate mortgages that they offer and their two year fixes are now available from 3.39% – for borrowers with a 30% deposit. Over the last week lenders have made rate changes. The Clydesdale Bank reduced their two year fixes by 0.1%, but increased their five year rates by 0.2%.
Tracker rate mortgages are popular at the moment and it is not hard to see why. Skipton currently offer a two year tracker rate at 2.28% and it is available to borrowers with a 40% deposit. It has a £1190 arrangement fee. For borrowers with a 30% deposit the Nationwide Building Society have a two year tracker at 2.49% and the arrangement fee is £999.
Aaron Strutt, a broker at Trinity Financial, says: “For borrowers not wanting to play a waiting game and take a fix, there are a number of options. Three year fixes are competitive at the moment and they are available well below 4%. The Nationwide offers a market leading five year fix at 4.49% and it has a £999 arrangement fee. These mortgages are all available through Trinity Financial.”
March 28, 2011
The Financial Services Authority have said that it’s abandoned a proposed new rule that would have forced lenders to turn down mortgage applications where borrowers were unable to demonstrate their ability to repay the whole mortgage within 25 years. The rule would have also applied to those planning to take a mortgage on interest-only over 30 years.
A total ban on interest-only has been ruled out as the FSA acknowledge that there is a need for different types of repayment plans in the market and that they recognise they cannot take a “one size fits all” approach.
March 28, 2011
Inflation increased to 4.4% in February, up from 4% in January, the highest figure since 2008, according to figures from the Office of National Statistics.
The latest increase will mean that the Governor of the Bank of England will have to write to the Chancellor once again, explaining why inflation has missed its target of 2%.
Other countries are using different measures to control inflation. Last week The People’s Bank of China said that it would raise the reserve requirement ratio by half a percentage point. This forces most of the large institutions to hold a record 20 per cent of their deposits at the central bank. Experts say that the increase would lock up as much as $56 billion in funds that the banks would have previously been able to lend.
Inflation in China is a key issue and the central bank has now raised the reserve requirements for banks nine times since the start of last year. It has also lifted the benchmark deposit and lending interest rates three times since October.
March 28, 2011
Housing Minister Grant Shapps has announced plans to make squatting a criminal offence next year. The Ministry of Justice and the Department for Communities and Local Government have published new guidance on the right of home owners to protect their property.
According to the guidance, the legal warning which squatters often put on the doors of properties they have occupied is a distortion of the law. Such notices sometimes state that it is a criminal offence to use or threaten violence in order to enter the property, but the Government has said that this does not apply to home owners trying to get back in to their own residential properties.
Mr Shapps is quoted as saying: “There’s never been such a thing as squatters’ rights – they are just a misreading of the laws that are actually designed to protect the homeowner. I want to lock the door on squatters and their so-called rights once and for all.
“I want homeowners to be fully aware of the laws that are already in place to protect them. That’s why today I’m publishing updated and strengthened guidance, so people know the steps they can take to protect properties from being invaded, and if squatters do move in, the legal steps that can be taken to have them removed.
According to the National Landlord Association, home owners should seek to act within 30 days of discovering squatters, by applying for an interim possession order from the local County Court. They will be required to prove their identity, Land Registry and documentation to prove ownership.
The court order must be served on the property to ensue that the squatters are aware of it, after which they will have 24 hours to leave before the police can be called in to compel them to move on. Home owners who are granted an interim possession order must also apply for a final possession order to safe guard the property.
In Scotland squatters can be removed quickly because it is a criminal offence.
More details can be found on the government website: http://www.direct.gov.uk/en/HomeAndCommunity/WhereYouLive/Derelictbuildingsandsquatters/DG_10022452
March 28, 2011
A host of lenders have made changes to their rates this week including: Northern Rock, Abbey and the Nationwide Building Society. Fixes in particular have been lowered and in some cases they have come down by up to 0.4%.
The Nationwide have not featured in the best buy tables for a very long time and they now have the lowest five year fixed rate at 4.59%. They also offer a two year tracker rate at 2.49% and it allows borrowers to switch in to a fixed rate at any time. Both mortgages require a 30% deposit and have a £999 arrangement fee.
Northern Rock lowered some of their mortgages and the lowest two year fix that they offer is 3.47% for borrowers with a 30% deposit, or 3.58% for those with 25% to put down. Despite the threat of a base rate increase tracker rates are still popular and Northern Rock reduced their three year trackers by 0.61%. Two year trackers still offer the cheapest monthly repayments and they are available at 2.48% for house purchase and remortgage customers. A 30% deposit will be required to access this mortgage and the arrangement fee is £999.
March 18, 2011
Lloyds TSB has launched a Local Lend a Hand scheme designed to allow borrowers with a 5% per cent deposit get on the housing ladder, with help from their local authority.
The scheme is an extension to the current Lend a Hand offer allowing first time buyers to get a 95% mortgage, providing that their parents put up to 20% of the property’s value in to a savings account with the bank. The borrower has to make sure that the monthly payments are met for Mum and Dad to get their money back. Local councils are being given the opportunity to step in and offer the 20% deposit for those that cannot rely on the Bank of Mum and Dad.
Lloyds TSB is working with Sector Treasury Services to pilot the scheme with local authorities including Blackpool, Warrington, Newcastle under Lyme and East Lothian. Another 10 councils are waiting to join.
It is thought that up to 300 first-time buyers could get a property using the council funds and the loans will be available between £25,000 and £350,000. If others were to join in then thousands could potentially benefit.
The Housing Minister Grant Shapps, told the BBC: “I am delighted to see that those on the front line of building homes and providing mortgages are stepping up their efforts to help aspiring first-time buyers get a foot on the ladder.”
It will be interesting to see how many council’s have the funds to put in to property at a time when they are expected to make huge spending cuts.
March 18, 2011
Gross mortgage lending in February was an estimated £9.5 billion, just slightly higher than January’s gross lending figure of £9.475 billion, data from the Council of Mortgage Lenders shows.
March 18, 2011
Cheltenham & Gloucester, part of Lloyds Banking Group, is to no longer accept applications from mortgage brokers with effect from March 31, 2011. The lender also announced that they are to cut 570 jobs across the group, some of which will come from the C&G sales team.
There has been a long history of mortgage brokers and financial advisors using C&G but it will stop at the end of this month. The bank has not offered particularly competitive mortgages since the credit crunch started, however it is a shame that such a big lender will be reducing lending by such a huge amount. Halifax will be expected to pick up C&G’s future mortgage business and they have been making preparations by installing new, faster computer systems and making improvements to the services that they offer.
Aaron Strutt, a broker at Trinity Financial, says: “The Lloyds strategy is completely different from banks such as Santander. Last year around 80% of Stantanders new mortgage business was submitted through the intermediary market and they show no signs of slowing their demand. As a company Trinity Financial did very little with C&G over the last few years and we now expect Halifax to move lending forward. Even so, it is a sad day for C&G and the staff they are making redundant.”
March 18, 2011
Some mortgage lenders are more generous than others and providing that you have a good income and at least a 10% deposit, you may be able to borrow up to five times your salary.
Mortgage lenders expect borrowers to have a good income and a clean credit history.
Aaron Strutt, a broker at Trinity Financial, says: “There are some fantastically competitive mortgage rates available at the moment and we are helping more of our clients to secure best buy rates.”
To see what Trinity can do to help you, call us on 020 7016 0790.
January 22, 2013
The Bank of England Monetary Policy Committee has decided to keep base rate on hold for another month, making it two full years that the rate has stayed at 0.5%. Base rate first dropped to the record low in March 2009.
The markets predicted that there was a 10% chance that base rate would increase this month and it will be very interesting to see the minutes from the meeting, which will be released in two weeks. Money markets now predict that there is a 75% chance of a quarter percentage point rise by the end of May, this year. However, the Bank Governor Meryvn King insists that the forecasts are not a done deal.
Awareness of interest rates and their impact on the cost of an average mortgage is low in the UK, as a survey revealed 25% of homeowners have no idea that interest rates are at a record low.
Of this group, 9% of mortgage holders think rates are higher than they have been for a while, according to research by the housing charity Shelter.
Shelter warned that the equivalent of 2.8m homeowners may be completely unprepared for the costs of rising interest rates based on their lack of awareness.
March 11, 2011
Ben Broadbent has been appointed to succeed Andrew Sentance as external member on the Monetary Policy Committee (MPC) from June 1, 2011.
Mr Broadbent has been the senior European economist at Goldman Sachs since 2000 and managing director since 2006.
Mr Sentance has been voting for a rise in interest rates since June last year.
Chancellor George Osborne, is quoted as saying: “I am delighted that Ben Broadbent has agreed to join the MPC. His broad professional experience in the financial sector and academia, as well as his detailed knowledge of the UK economy will be extremely valuable for the Committee.
The Chancellor also thanked Andrew Sentance for his four and a half years service.
March 11, 2011
Banks and building societies are now offering lower buy to let mortgage rates and there are options for investors with a 15% deposit.
The level of competition between buy to let mortgage lenders has increased over the last few months and there are more options for borrowers with a range of deposits. Arrangement fees have also been reduced.
The Kensington Mortgage Company continue to be one of the lenders actively looking to lend buy to let mortgages and they have competitive rates available to investors with a 15% deposit. They are happy to lend to first-time and professional landlords.
Two-year fixed rates are available at 5.99% if you have a 15% deposit and the arrangement fee is 2.5% of the loan amount. Kensington allow up to six properties to be mortgaged when them and the maximum loan they offer is £350,000 per property.
If you have a larger deposit then there are cheaper buy to let mortgages available and they have lower arrangement fees. Godiva Mortgages offer a two year fixed rate for those with a 40% deposit at 4.49% and they provide a free property valuation. The arrangement fee is £999 and the APR is 4.9%.
Trinity Financial have helped more clients to buy investment properties and we expect demand to get stronger as the banks appetite to lend increases. There has also been the re-emergence of specialist buy-to-let lenders and we can help our clients secure mortgages to limited companies, HMO’s (houses of multiple-occupancy) and houses split into self contained flats.
March 11, 2011