Categories
Archiwum
Links
Tags
Scottish Widows Bank Hinckley & Rugby BS Re-mortgages Teachers BS Accord mortgages Yorkshire BS Virgin Money N&P BS Santander CEBR Nationwide BS RICS The Mortgage Works Bank of England Buy to Let Saffron BS First Time Buyer Coventry Building Society Nottingham BS NatWest Mortgages Halifax House prices News
TMW launch New 2.49% fixed rate – The lowest Buy to Let rate in the market
TMW launch New 2.49% fixed rate – The lowest Buy to Let rate in the market
Product Highlights for Purchase & Remortgage
2.49%
2 year fixed, 60% LTV
2.50% arrangement fee
3.89%
2 year fixed, 75% LTV
£995 arrangement fee
4.14%
2 year fixed, 80% LTV
2.50% arrangement fee
Buying 13% more cost-effective than renting
The gap in cost effectiveness between buying and renting a property is narrowing as house prices are increasing once again, according to the latest research by property search website Zoopla.co.uk.
However buying a property remains 13% more cost-effective than renting.
12 months ago, renting in the UK was £993 per year on average more expensive than servicing a mortgage, but this gap has now come down by 3.2% to £961 today. As a result, the proportion of towns and cities across the UK where it is cheaper to buy than rent has fallen from 90% to 86% over the past year.
The main cause of the narrowing gap has been that house prices have climbed at a faster pace over the past year than rents with the cost of renting a two-bedroom flat across Britain is now £84 (1.1%) more expensive on average than last year, whereas the cost of servicing an interest-only mortgage on a typical two-bedroom flat has risen £120 (1.7%) on average.
However, the average rental payment on a typical two-bedroom flat is £8,006 per year, compared to £7,045 per year to service an interest-only mortgage at a 5% rate. Using a 90% LTV interest-only mortgage at a typical Best Buy rate of 4.39%, the rental premium is even higher with the average mortgage at £126,817 and interest of £464 per month, saving an owner £2,439 a year (not including cost of deposit).
Weaker house price growth in the north has meant that northern towns dominate the list of places where it is cheaper to buy than rent with York topping the list and where tenants pay a £3,326 (42%) annual premium over owners.
Higher property prices in the south have led to a number of places where it is cheaper to rent instead of buying with Plymouth topping the list and where tenants in the seaside town pay £845 (15%) per year less than owners on average. Despite the high rents in London, property price rises over the past year in the capital have now made renting 6% more cost-effective than buying.
Lawrence Hall of Zoopla.co.uk said: “Buying remains significantly more cost-effective than renting, but the gap is closing. With increased mortgage availability buyer demand is rising, especially amongst first time buyers, whilst rental demand is falling so house prices are generally rising faster than average rents, although it is clear that large regional differences still exist.”
New NatWest deals for first-time buyers
NatWest Intermediary Solutions is tomorrow (12 June) launching a number of new ‘no product fee’ higher LTV deals into its intermediary Core range, exclusively for first-time buyers.
The lender is also reducing rates across a number of other purchase and remortgage deals.
There are four new first-time buyer products: A pair of two-year fixed rate deals – a 3.49% at 80% LTV and a 3.99% at 85% LTV – and two five-year fixed rate deals – a 3.89% at 80% LTV and a 4.49% at 85% LTV. There are no product fees on these deals.
Meanwhile, NatWest is decreasing rates on a number of purchase and remortgage deals including a 20bps reduction on its five-year fixed rate, 80% LTV, product from 4.29% to 4.09%; a 14bps decrease to its two-year fixed rate, 80% LTV, product from 3.89% to 3.75%; and a 14bps reduction on its two-year tracker, 80% LTV, product from 3.89% to 3.75%.
Mark Bullard, head of sales at NatWest Intermediary Solutions, said: “Having recently launched a number of 90% LTV deals and entered the Help to Buy and NewBuy schemes, we have focused our attention next on bringing out some deals for first time buyers that have been able to save up for a good-sized deposit.
“We are very keen to provide support to the first time buyer market so this move gives intermediaries some additional deals to target their clients with.
“We have also sharpened up a number of our purchase and remortgage deals in the mid-LTV ranges enabling us to continue to offer a very attractive and extensive portfolio of mortgage for intermediaries.”
Teachers Building Society launch new market leading deal
New 1.99% 2 year market leading semi-exclusive
1.99% 2 year discounted variable rate
- Max 60% LTV
- £1,799 arrangement fee
- £99 Application fee
- Available for purchase and remortgage
- Free legals & refund of valuation for remortgages
Only available to property in Dorset or to those employed in the teaching profession anywhere in England, Scotland and Wales.
UK house prices see modest rise, says Nationwide BS.
UK house prices recorded a “modest” rise in May, increasing by 0.4%, according to the latest survey from the Nationwide building society.
It said the increase provided further support for “the view that the housing market is gradually gaining momentum”.
The annual rate of price growth rose to 1.1%, the fastest pace since November 2011.
The increases mean that the average house now costs £167,912,
Regional house price differences:
London: up 6.2%
South West of England: up 0.3%
East of England: 0.7%
North West of England: down 3.7%
South East of England: up 1.4%
Yorkshire and Humber: down 1.2%
West Midlands: up 0.5%
Wales: down 2%
East Midlands: down 1.2%
North East of England: down 5.7%
Source: Land Registry. Annual change to end of April
MI launches 95% fixed with The Cambridge
Mortgage Intelligence has launched a 5.99% 3 year fixed mortgage, available up to 95% LTV with The Cambridge Building Society.
(THIS PRODUCT IS AVAILABLE THROUGH US !!)
The 95% product is available for purchases, has a £300 completion fee of which £199 is payable upfront and a free standard valuation. It is open to all ARs and DAs of Mortgage Intelligence with cases in the East of England.
Sally Laker, managing director, Mortgage Intelligence Holdings, said: “We are delighted to be able to offer this competitive 95% LTV product with The Cambridge.
“The availability of higher LTV products is now an increasing trend which can only assist the recovery of the first-time buyer purchase market.”
Andy Lucas, commercial director at The Cambridge, added: “We remain committed to supporting first-time buyers in the East of England and on top of that, this product is also open to second steppers who may require a higher LTV product to help them move into a larger property.”
New lower LTV deal from the Nottingham BS
The Nottingham Building Society is launching a new residential product with effect from today (20 May).
The new mortgage is a two-year 2.29% fixed rate product.
Is is available up to 65% LTV and comes with a £199 booking fee and £800 arrangement fee.
The deal comes with a free valuation for both purchase and re-mortgages, while free legals apply to re-mortgages only.
New record for asking prices
Property coming to market this month has set a new record national average asking price, according to the latest Rightmove House Price Index.
This month’s 2.1% (+£5,135) rise has left the national average just shy of a quarter of a million pounds at £249,841, surpassing the previous high by £3,606. London, the South East and East Anglia have also hit all-time highs, with buyers in the capital facing new sellers’ average asking prices in excess of £500,000 for the first time.
Rightmove said: “The tumbling of records is being driven by the equity-rich generation with a definite southern bias, though agents in most parts of the country are reporting strong demand for well-priced and decent-quality stock. Despite a new national record, it’s not ‘green-shoots of recovery’ across the board, especially for the deposit-strapped mass-market. They must wait patiently until January when the Help to Buy scheme extends to the resale market, unless new homes developers can increase building dramatically this year.”
The average price of property coming to market has risen by 9.1% (+£20,852) so far in 2013, the strongest start to a year since the 10.5% recorded in 2004. This is the fifth monthly rise in a row, with all regions in positive territory this month. However, sellers in two northern regions, Yorkshire & Humberside and the East Midlands, are still unable to come to market at higher prices than this time last year.
With London sprinting past the £500,000 milestone for the first time with a 3.1% monthly rise to £509,870, a typical home in the capital is more than twice as expensive as the national average. Outside London and some southern hotspots agents report that the market remains sensitive to price and quality, with buyers willing to take their time to find their ideal home.
Rightmove said: “The recession appears to have precipitated a change in buyer behaviour which has left them more choosy and less willing to settle for second-best. Not only are they looking for value and wary of paying over the odds, prospective buyers are also giving thought to ease of resale, a sign that the pain of this financial crisis has left them more mindful of the liquidity of their assets.”
Lenders are ‘cherry-picking’ in efforts to improve the quality of their future mortgage book by offering some tantalisingly cheap mortgage rates to those with decent deposits, courtesy of the Funding for Lending Scheme. There are fixed rates from 2.34% with a minimum 25% deposit, and even interest only options at 2.19% for those with a 50% deposit of at least £300,000 to put down.
The availability of cheap money is key to driving positive sentiment and, with 84% of respondents to Rightmove’s latest Consumer Confidence Survey stating that they felt prices would be the same or higher in 12 months’ time, this seems to be feeding through to home-movers. However, the pent-up demand is still being frustrated by the restricted supply of fresh property.
Remortgagers take advantage of falling rates
Remortgagers take advantage of falling rates
Two thirds (66%) of homeowners remortgaging an existing property in April did so to take advantage of lower mortgage rates, according to a new survey
Those surveyed in April said they opt to remortgage and found that almost half (42%) did so to lower their monthly payment, some reducing them by as much as £500 (3%).
More than one in five (21%) increased the size of their loan – 14% did so by as much as £10,000. Releasing equity in their home meant that 16% were able to fund a home improvement, whilst 9% said they would use the extra capital to consolidate their existing debts.
NatWest to accept Help to Buy and NewBuy mortgage applications.
NatWest Intermediary Solutions has confirmed it will start accepting mortgage applications from mortgage broker’s clients using the Help to Buy shared equity and NewBuy schemes.
The Help to Buy scheme is available through selected mortgage brokers only.
NatWest has two shared equity mortgage deals available for applicants – a 2-year fixed rate at 3.15% and a 5-year fixed rate at 3.59%, both with no product fees.
The NewBuy scheme is available to those intermediaries that are on the selected panels of participating builders and developers.
NatWest is also launching two specific mortgages to support the scheme – a 2-year fixed rate at 4.49% and a 5-year fixed rate at 4.79%, both with no product fees.
The bank will begin accepting applications from 15th May.