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The housing market is still thriving however the rate of applications for mortgage has been up and down recently. According to the latest figures, the rate of mortgage approvals has shown that April was a strong month and is up in terms of year-on-year figures. Although the rate approval rate was up, this was mainly down to re-mortgages rather than first-time buyers however, the overall approval rate was up by 30% on the previous year. It was good news for the mortgage market as the previous month of March has shown that the amount of mortgage approvals ...
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It is a question often asked, ‘why are mortgage rates rising?’ and the answer is really a simple one. The economy has almost fully recovered since the recession almost 10 years ago, unemployment which once stood at 10 million is now under 4 million and house prices are also rising. Looking after the country’s economy is a skilled process and therefore, once an economic recovery is evidenced, the Bank of England will assess just by how much and how quickly rates can rise again. It was once thought that rates being lower than 5% wouldn’t be seen but ...
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The country has been enjoying the effects of low cost borrowing on a mortgage for some years now. However, all good things have to come to an end and mortgage costs as we now see borrowing hitting a 2-year high. With lenders expecting a Bank of England Base Rate rise next month, the rates on offer are at their highest for two years. The average mortgage rate has seen a 0.25% increase since last month which is a key indicator that banks and mortgage lenders are expecting an announcement from the Monetary Policy Committee. In November last year, ...
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For all those parents looking for a way to assist their children in getting on the property ladder but don’t want to part with a cash lump sum, the Post Office may have the answer. The Post Office have introduced a mortgage that will allow First Time Buyers to be able to secure a loan up to the value of 10% against their parents’ property. The loan will then be required to be paid over 5 years. The 90 percent loan to value (LTV) mortgage, known as a ‘Family Link’ mortgage will be available with the 10 percent ...
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With inflation remaining at 3% in January, and a slight dip in February, economists are predicting a further rise in interest rates in May this year. Although they don’t believe it will be a large jump, a 0.25% increase on a mortgage can still make a significant difference when it comes to meeting your monthly repayments. According to a recent Reuters Poll, it is thought that 32 out of 578 economists have tipped an interest rate rise in May. This comes alongside comments made by Gertjan Vlieghe, who is a member of the Monetary Policy Committee, those responsible ...
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It’s really easy to just assume that when you want to apply for a mortgage that you’ll just find the right house, fill in the relevant forms and hey presto, you’re on the mortgage ladder, right? No. There are a lot of boxes to tick when it comes to a lender granting you the mortgage that you require to purchase that dream home. The answer isn’t ‘well I’ll just keep applying until I get accepted’ as the more credit checks you have in a short period, the higher the chance this will get you refused credit anyway. The ...
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Whether you’re new to the mortgage market or you’ve had a mortgage for more years that you continue to remember then we thought we’d put together a quick guide to the most popular mortgage types. Fixed Rate: A Fixed Rate mortgage means mortgagee will see neither no increase or no decrease in the monthly mortgage cost throughout the term of the fixed deal. If the Bank of England Base Rate should change, the fixed term monthly cost will remain fixed. This is a great type of mortgage for those who like to budget each month and know exactly ...
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With the recent hike in the Bank of England’s Base Rate many people are seeking a better mortgage deal be in to release some equity from their home, move house or just save money each month. We cannot stress enough the importance of seeking professional financial advice before making any decision about your mortgage as what is right for one homeowner isn’t necessarily right for another. For those who aren’t familiar with re-mortgaging, a re-mortgage involves swapping from your current mortgage deal to a new one, either with the same provider or a different one, with the intention ...
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It’s been a runaway five years in regards to house prices, with a 28% increase in the cost of the average house in the UK. However, the forecast for house prices over the next five years indicate that the market will slow in terms of growth but that it won’t necessary go into decline. A popular estate agent has predicted that the housing market growth will half from 28% to 14% over the next five years which will be welcome news to those yet to get a foot on the property ladder. The slowdown is thought to ...
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If you’re not aware that there has been a rise in the Bank of England Base Rate, then where have you been? As many had already predicted, there was an increase in the Bank of England’s Base Rate back in November this year which many lenders immediately passed on to their customers who held mortgages. The interest rates had been at a record low and many mortgage holders throughout the UK had taken advantage of such great rates. As 2017 draws to a close there is already talk about further interest rate hikes being likely throughout 2018. ...
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