The property market in the UK has had a very interesting last few years. Today brick and mortar is still one of the best investments you can make, especially in areas where prices are rising and demand is high. If you choose to, you could be really successful by investing in a buy to let property. Your Space Mortgages can help, offering advice and finding deals for you. We have a great reputation as the most reliable mortgage advisors Bristol can offer. Continue reading
More and more people are looking to realise their dream of home ownership. However, being on furlough can affect how confident they are of getting a mortgage. As the top provider of independent mortgage advice Bristol has, we would love to offer support. It is still possible to get a mortgage while you are furloughed, but you may need to do a little more work to find a buyer and show that the risk of you defaulting is low. Continue reading
In April the UK Government launched their new scheme to make mortgages more accessible. Their 95% mortgage guarantee means people with just a 5% deposit will be able to get a mortgage on homes with valuations up to £600,000. It will allow more first time buyers to get on the property ladder as well as making it easier for current homeowners to move if they choose to. As the leading mortgage advisors Bristol has, we want to take a closer look at the scheme and how it works. Continue reading
After the success of Your Space Mortgages Bristol we made the exciting decision to expand the business to support residents of Weston-super-Mare and Somerset.
Customers have told us how they love our experience and knowledge in finding the best value but also our outstanding customer service in supporting them in such an important financial journey (as seen in our 5* Google Reviews).
Your Space mortgages has achieved substantial growth since its inception, managing to now open over two regions. This is because of our returning customers and the decisions they make to stay with us and support the business.
We understand the diverse mix of properties within the region from the large new build developments, Victorian housing and also holiday homes meaning we are suited in finding mortgages for first time buyers, home movers, investors and more alongside protection and insurance.”
We have now appointed Stewart Comport as our advisor for this area, he is local to the area and has great knowledge of the property market for personal or investment needs.
Please give him a call on 01179 146596 and arrange an appointment.
A study from Sainsbury’s Bank reveals that renters are significantly less likely to have life insurance or critical illness cover, with just 26% of renters taking out a policy in comparison to 41% of homeowners. In the past 10 years, the number of households renting privately with children has risen by almost 800,000 to nearly 1.6 million. Renters are being urged to consider what their partner or family would do if they unexpectedly needed to cover housing costs such as rent and factoring contributions and other monthly out goings if the unthinkable was to happen.
Based on the average monthly household expenditure in the UK (£572.60) the calculator suggests that the average UK family which rents, should allocate £687,000 worth of life cover (25 years) as a financial safety net. Despite being less likely to have life insurance or critical illness cover, 54% of renters are more concerned than homeowners (48%) about the financial implications should they pass away before old age. Also 21% of renters living in private accommodation worry about this situation on a weekly basis compared to 16% of homeowners.
The survey found the top reason renters do not have life insurance is they believe they don’t have enough equity or money to have a life insurance policy (29%), in comparison to homeowners (11%). Important life events are the top reasons people decide to financially protect themselves. Buying a house is the main reason people chose to purchase life insurance (34%), followed by other memorable life stages, such as having a child (17%) and getting married (12%). Unfortunate experiences, such as becoming ill (9%) also prompt people to take out a policy.
According to the Halifax, average house prices dipped marginally in June, falling by 0.3%, to stand at £237,110. This extends the largely flat trend the lender has been tracking over recent months. However, more generally the housing market is displaying a reasonable degree of resilience in the face of political and economic uncertainty. Recent industry figures show demand looking slightly more stable, with mortgage approvals ticking along just above the long-term average.
One of the major restraining factors on the volume of transactions in the market continues to be the very low level of stock for sale. Halifax highlight that, with the ongoing lack of clarity around Brexit, people will be looking for more certainty in the coming months, both to encourage them to list their property and to create the confidence needed to encourage buyers.
Supporting the analysis is the Bank of England industry-wide figures that show the number of mortgages approved to finance house purchases – a leading indicator of completed house sales – have fallen by 636 from April to 65,409 in May. The May rate is now just below the 5 year average monthly approval rate of 66,138 and 46 above the previous 12 month average of 65,363. (Source: Bank of England, seasonally-adjusted figures) The RICS UK Residential Market Survey saw a slightly more stable picture coming through during May. The sales to stock ratio increased slightly to 31.5%. Agreed sales fell for the tenth successive month, but less so than previously. Near term expectations remain subdued but sentiment on the longer term outlook for sales and prices signals modest recovery further out. (Source: Royal Institution of Chartered Surveyors’ (RICS) monthly report)
According to statistics from UK Finance figures released by UK Finance show that the North of England has a strong and dynamic mortgage market, with lenders helping thousands of first-time buyers onto the housing ladder. This is combined with a steady increase in homemovers, making it easier for buyers to find a property that suits their needs Meanwhile, attractive rental yields in many Northern cities have driven growth in buy-to-let lending, bucking the national trend.
Mortgage lenders helped 84,900 first-time buyers in the North of England onto the housing ladder in 2018, up three per cent compared to the previous year and the highest level since 2006. Overall, the North of England saw greater growth in first-time buyers than anywhere else in England outside the Midlands. This reflects better affordability in regions of the North, with average deposits and income multiples lower than elsewhere in England, particularly London and other English cities.
The figures also show there were 80,400 homemovers in the North of England in 2018, an increase of 1.1 per cent on the previous year and the highest level since 2007. This contrasts with an overall decline in homemovers across the UK in 2018. Meanwhile, the Northern Powerhouse cities of Newcastle, Liverpool and Hull all saw strong growth in buy-to-let lending, bucking the national trend. This has been driven by lower house prices coupled with a healthy labour market and strong rental demand, meaning that landlords can achieve higher yields than the UK average. Hull saw particularly strong growth of 12.8 per cent in buy-to-let lending, along with a steady increase in first-time buyers and homemovers.
People often worry about how hard it is to get a mortgage as a first time buyer. While it can be a difficult area, you should remember that everyone has to start somewhere. Property prices may not be as out of reach as you think when you get a great rate. So long as you choose the best mortgage brokers for first time buyers in Bristol, you will get an amazing deal.
Banks are currently making it very easy for people to take that first step onto the property ladder. When searching around, you will find that on offer are the lowest mortgage rates since 1995, the year when records began. From looking at figures provided by the Bank of England you can see that interest rates for two and five-year deals have fallen to the lowest in 23 years.
One example is someone looking to make a 5% deposit on a property and get a loan for the other 95%. You could expect to get a 2 year mortgage with a lower interest rate than you would have previously. In addition, 5 year mortgages will have a lower average rate than last year.
Mortgage rates are even better when you make a bigger deposit. A 2 year mortgage with a 10% deposit would have much lower interest than lending with only 5% of the property’s value. It is likely that this drop is due to lenders looking to increase business and beat the competition. Along with a cut in stamp duty for first time home buyers, it is easier to buy property.
Jump In The Market
Don’t waste your time by searching through the market. Instead, let Your Space Mortgages provide you with the best deal to save you time and money. We are specialists in an array of areas including acting as mortgage brokers for first time buyers in Bristol. To discuss our work further or for a consultation with no strings, contact us today.
Up across the country
The Office for National Statistics has released the latest data on its UK House Price Index (HPI) tracing house price inflation, the rate at which the prices of residential properties purchased in the UK rise and fall. The UK HPI, introduced in June 2016, includes all residential properties purchased for market value in the UK. According to the data, average house prices in the UK have increased by 3.2% in the year to August 2018 (down from 3.4% in July 2018), remaining broadly stable at a national level since April 2018.
Over the past two years, records indicate that there has been a slowdown in UK house price growth, driven mainly by a slowdown in the south and east of England. The lowest annual growth was in London, where prices decreased by 0.2% over the year, down from being unchanged (0.0%) in the year to July 2018. The average UK house price was £233,000 in August 2018. This is £7,000 higher than in August 2017 and £1,000 higher than last month. On a non-seasonally adjusted basis, average house prices in the UK increased by 0.2% between July 2018 and August 2018, compared with an increase of 0.5% in average prices during the same period a year earlier (July 2017 and August 2017). On a seasonally adjusted basis, average house prices in the UK increased by 0.3% between July 2018 and August 2018
House prices in England increased by 2.9% in the year to August 2018, down from 3.3% in the year to July 2018, with the average price in England now £250,000. House prices in Wales increased by 6.2% over the last 12 months to reach £162,000. In Scotland, the average price increased by 4.1% over the year to stand at £153,000. The average price in Northern Ireland currently stands at £133,000, an increase of 4.4% over the year to Quarter 2 (Apr to June) 2018.
Happy to be Scottish
Edinburgh cityHappiness levels in Scotland have risen for a third consecutive year, according to the latest Bank of Scotland Happiness Index. The annual nationwide survey asks Scots how happy or unhappy they are in their local communities, to create an official cheeriness barometer ranging between -100 (very unhappy) to +100 (very happy). Overall, Scots are slightly chirpier than last year as the Index recorded a score of 44.9 (an increase of 1.2 points compared to 2017) and 5.9 points happier than they were three years ago.
Anyone looking for their next home might want to consider Central Scotland, with its leafy suburbs and The Helix – home of The Kelpies – as it’s been crowned the happiest place to live. The Highlands & Islands is the second happiest – perhaps partly because of its stark beauty and outdoors community – followed by the Lothians. Clouds may be gathering over West of Scotland though, as it fell to the bottom of the table this year. Getting older doesn’t necessarily mean becoming grumpier as the Index reveals that over 65s remain the happiest age group. They’ve consistently been table-toppers for the past three years. But at the other end of the age scale, 18 to 24 year olds’ happiness levels have grown by the highest number of points in the last year, and over the last three years. Those aged 35 to 44 are at the bottom of the table for the second consecutive year, and 24 points below the over 65s.
Two’s company when it comes to a happy home as for the third year in a row those households with two residents say they’re the happiest. Families of four have slumped four places to the bottom of the table, replacing those living alone, who move up just one position to fifth place. They say money can’t buy happiness but according to the latest Index, the more Scots earn, the happier they are. This year, Scots with a personal income of more than £60,000 are happiest, but last year, the magic number was between £40,000 and £59,999 – it’s moved to second place.
Lost in pension
Elderly Couple_300x200pxThe scale of the UK’s lost Pensions Mountain is exposed last week by research carried out on behalf of the ABI. In the largest study yet on the subject, the Pensions Policy Institute (PPI) surveyed firms representing about 50% of the private defined contribution pensions market. From this PPI found 800,000 lost pensions worth an estimated £9.7 billion. It estimates that, if scaled up to the whole market, there are collectively around 1.6 million pots worth £19.4 billion unclaimed – the equivalent of nearly £13,000 per pot. This figure is likely to be even higher as the research did not look into lost pensions held in the public sector, or with trust-based schemes typically run by employers.
Insurance providers make considerable efforts and spend millions every year trying to reunite people with lost or forgotten pensions. In 2017 more than 375,000 attempts were made to contact customers, leading to £1 billion in assets being reunited with them. However, firms are unable to keep pace with a mobile workforce that moves jobs and homes more often than ever before, so a digital solution through the Pensions Dashboard is now more important than ever. This would enable anyone to see all their pension savings, including the State Pension, together in a single online place.
Nearly two-thirds of UK savers have more than one pension, and changing work patterns means that the number of people with multiple pensions will increase. People typically lose track of their pensions when changing jobs or moving home. The average person will have around 11 different jobs over their lifetime, and move home 8 times. The Government predict that there could be as many as 50 million dormant and lost pensions by 2050.
Pound Coins Following HM Treasury’s announcement last week, the Bank of England confirmed that it plans to issue a new £50 note. This will be the final note in the latest series, all of which will be printed on polymer. The Bank will announce a character selection process for the new £50 note in due course, which will seek nominations from the public for potential characters to appear on the new note. Having successfully moved to polymer with the £5 and £10 note, the Turner £20 note will be issued on polymer in 2020 and the new £50 note will follow this.
The Bank of England is very excited to be starting the process of introducing a new £50 note highlighting the need to provide the public with high quality notes that they can use with confidence. Moving the £50 note onto polymer is an important next step to ensure that the Bank can continue to improve the notes in circulation, they are cleaner, safer and stronger and harder to counterfeit. And, because they last around 2.5 times longer than paper notes, they are also more environmentally friendly.
The most important thing with a mortgage, regardless of the type, is that you can afford the repayments. You need to be as confident as possible that you won’t encounter any financial difficulties that could result in repossession of the property. To begin with you should look at how much you can afford, both in terms of the upfront costs and the ongoing monthly fees. As a leading team for home purchases Bristol residents can rely on, the Your Space Mortgage team is here to help with this.
Look closely at your finances
Firstly it is important to get a clear idea of your finances. Look at how much you earn, especially your monthly income. Then consider your outgoings and what you have left at the end of the month. In addition, think about your savings and what you can afford as a deposit.
You will need the details above if you apply for a mortgage. This is because lenders want to be confident that you can make the repayments. They have quite strict obligations to meet in determining affordability as well as whether it is safe to lend you funds.
How much can you spend on a property?
Setting your budget for the property itself is very important. For starters you need to ensure you can afford the deposit. Keep in mind that the more money you can put down the cheaper your monthly mortgage bill will be. In addition, remember you shouldn’t put everything you have into the deposit. After-all there are various fees you need to cover and you also may need funds for renovations.
Think about all of the upfront costs
There will be a myriad of different costs as part of the purchase. They can include:
- Survey fees
- Valuation fees
- Local authority searches
- Land registry fee
- Mortgage broker fee
- Solicitor’s fee
- Stamp Duty (in England and Northern Ireland)
- Land Transaction Tax (only in Wales)
The total for all of these could amount to thousands of pounds. Therefore it is important to ensure you have the funds available.
If you are struggling to decide how much you can afford for a home purchase we would be happy to help. Your Space Mortgages is an independent broker that always works with the best needs of our clients in mind. We can look at affordability with you.
When they consider home purchases Bristol residents should rely on us to help them. We are just a call away and always offer clear, honest advice.