Tag Archives: industry
UK govt and mortgage industry to work to make home lending process more transparent
The UK government and the country’s mortgage industry have pledged to work together to make sure home lending is available for every stage of life from first time buyers to retirees. Following a meeting between the Economic Secretary to the Treasury, other government ministers and mortgage industry representatives, work is to be done to make lending more transparent. The meeting also discussed the measures that have already been taken to boost help for first time buyers such as Help to Buy and ISAs and how they can be taken forward. It comes at a time when advice given by lenders to borrowers has been found to be mixed in the aftermath of changes brought in last year. In particular there has been criticism of the new questionnaire that all applicants have to fill in so that lenders can ascertain that they can afford repayments with instances of people not revealing all their spending plans for fear of being rejected. A lot of older people and self-employed have also found it harder to get a mortgage. The Economic Secretary to the Treasury, Harriett Baldwin, revealed that since 2010 some 2.8 million mortgages have been advanced, worth a total of £444.5 billion, and by backing the government’s flagship Help to Buy schemes, the industry has helped nearly 100,000 people get onto or move up the housing ladder. ‘The government’s Help to Buy ISA which is due to launch later in the year will get young people on to the housing ladder, while our work on supporting lending to older people will make sure the mortgage market delivers for those who have worked hard all their life,’ she said. We are pleased that the real effect which the mortgage market can have on people’s lives is recognised within government. We take the industry’s responsibilities to borrowers very seriously,’ said Paul Smee, director general of the CML. ‘We hope the improvements we are making to the transparency of fees and charges will help make it easier for people to understand mortgage costs more easily, and will support the many benefits that a wide choice of mortgages brings to consumers,’ he added. Meanwhile, the CML is working with its members, who make up over 90% of lending business for homes in the UK, to improve the advice given to mortgage clients after a review by the financial watchdog, the Financial Conduct Authority (FCA) said that there is room for improvement. Smee pointed out that lenders have had a huge workload implementing comprehensive rule changes in April last year as a result of the mortgage market review (MMR). ‘Those changes have been introduced with little disruption for consumers or to the market more generally. But there was more to be done to refine the ways in which firms operate,’ he said. The FCA found that the quality of advice in the mortgage market was mixed. Some firms were engaging customers in focused and relevant discussions, leading to suitable recommendations based on… Continue reading
Optimism and confidence returns to prime central London property sector
Optimism and confidence are returning to the prime central London property market after a long period of hesitancy amongst both purchasers and potential vendors in the run up to the general election, the latest research suggests. Viewings, offers, and sales have increased since 08 May across all sectors of the market and enquiries from both international and domestic purchasers have increased, particularly from the Middle East, according to W.A. Ellis, part of the JLL Group. The firm reports that in broad terms, capital values within the prime central London market fell during the first quarter of the year as the prospect of a Labour Government slowed the sales market and the level of transactions declined by as much as 30% in some sectors, with the number of house sales declining most significantly. ‘With the election over and a Conservative Government now in place, we believe that the market will revert to its pre-election state. We expect the price falls of recent months to reverse, with some price rises materialising and with five year predicted growth estimated to be in excess of 20%,’ said director Richard Barber. ‘However, we still expect price growth to be quite modest this year, particularly as the market has not yet had time to adapt to the stamp duty reforms of late 2014. This still hangs over the upper end of the market and still restricts transaction levels and potential capital growth,’ he explained. ‘Whether the decision to raise SDLT to 12% on the proportion of a purchase over £1.5 million will be regarded as a masterstroke in defeating mansion tax and cooling central London prices or, as I believe is more likely, an overzealous measure which will reduce HMRC's revenues, is yet to be decided,’ he pointed out. He now hopes that the ‘politicising’ of the market will cease and the Government can address genuine issues. ‘What is most apparent, however, is that mortgage rates will undoubtedly begin to rise as long term swap rates begin to creep upwards and affordability, particularly for first young time buyers, will be strongly affected. My view, and it is one shared with many within the industry, is that a mortgage rate fixed for five years at circa 2%, is as good as it will get, and one should act swiftly to obtain these short term offers,’ said Barber. He also mentioned the shortage of suitable housing for older people that is keeping home owners stuck in properties worth £820 billion and leaving £7.7 million spare bedrooms empty. Recent research suggests that almost a third of home owners over the age of 55 have considered downsizing over the past five years, yet only 7% have actually done so. ‘It would seem obvious that older people are remaining in their homes due to a fear of their children not being able to afford homes of their own, the transactional costs involved in downsizing, including prohibitive stamp… Continue reading
Spanish property prices up 2.65% in first quarter of 2015
There is more good news for the Spanish property market with the latest data from the Property Registrar’s Association showing that prices increased by 2.65% in the first quarter of 2015. The PRA data also shows that residential home sales increased 9.05% to 90,534 transactions compared to the same period in 2014. The rise in sales was largely due to robust growth in the resale market, with 67,864 transactions. Quarter on quarter the price for resale sale properties increased by 1.88% but since the peak of the market property prices are still down 31%, according to the registrars’ data. ‘The quarterly figures are the highest in the last eight quarters, showing a clear change of tendency in the market that began in previous quarters,’ the PRA report said. It also pointed out that it is the second highest quarter for sales in the three years and the third highest in the last four years. It is also proving to be a popular time for buying in Spain and the weak euro is encouraging British buyers back into the market. According to estate agency HomeEspana there has been a rise in interest from British people looking to retire to the Costa Blanca. The favourable exchange rate means that in middle of May 2015 a €100,000 property in the Costa Blanca costs a UK buyer approximately £10,000 less than it did the same time in 2014. For expats receiving an income or pension from the UK, a stronger Pound increases their spending power in euros. ‘Since the start of the year, we've seen a definite uplift in British buyers, in particular those moving out here, compared to 2014, and many decide to buy during their first visit here,’ said Kieran Byrne, managing director of HomeEspaña. ‘The exchange rate is helping, but there is also a feeling that house prices have bottomed out, as revealed by recent statistics from both TINSA and Spain's Registrars that show prices have risen in coastal areas and larger cities since the start of the year,’ he explained. One couple who found their retirement home with the help of HomeEspaña during their first trip to the Costa Blanca are Stuart and Jennifer Flairclough from Kent who completed on a three bedroom townhouse at the end of March 2015. The couple plan to make the €143,315 property which overlooks the fairways at Villamartin Golf and also has views of the Mediterranean. ‘It will be our permanent home and because of its size, we'll be able to accommodate our family and friends when they come over to visit,’ said Jennifer Fairclough. ‘We'd been researching the possibility of buying a retirement home in Spain for 12 or so months. Although we've travelled extensively in Spain, we only knew the Costa Blanca area from internet research,’ she explained. The Faircloughs didn't need much convincing the Costa Blanca was the place for them and they found and secured their townhouse during their first trip there. ‘We viewed the property… Continue reading
