Archives January 2019

Mortgage and property news… in one place for you.

Mortgage and property news… in one place for you.

As part of a new idea from our wonderful marketing team, ahem. We want to collect together the most interesting news relating around mortgages, property and little bit of the financial market. It’s to keep you up to date, maybe give you an insight you may not have had before. Its a quick fix for those on a busy schedule.

The Independent:

Private landlords given incentive to sell homes to tenants in new proposal.

A report from the Independent about the governments possible new proposal to remove capital gains tax for landlords who sell their house to long term tenants

Read full article here

(You are now departing from the regulatory website, neither Coleshill Mortgage Services or Quilter Group are responsible for the accuracy for the linked site).

 

The Guardian:

The Guardian looks at how Brexit has moved lenders to be more competitive to encourage borrowers. Responding to the RICs report on their sales predictions. Something we talk a little about in our own blog here

Read full article here

(You are now departing from the regulatory website, neither Coleshill Mortgage Services or Quilter Group are responsible for the accuracy for the linked site).

 

The Mirror:

London’s cheapest house! A lighter report, though still a little rubbish. The Mirror reports on London’s cheapest, which is the size of a bouncing castle, and still costing £100,000. You must see the pictures

Read full article here

(You are now departing from the regulatory website, neither Coleshill Mortgage Services or Quilter Group are responsible for the accuracy for the linked site).

 

We will do this every month just to give you an a view of what is going on. We will try and pick the most interesting, has the most impact on our customers and hopefully a lighter news in the UK. 

 

 

 

 

Is overpaying on your mortgage worth it!

Is overpaying on your mortgage worth it!

It has been a tough time for people to try and get the mortgage and property that they want/need. But once you get a mortgage it means getting the house you need but you do not officially or fully own it until the mortgage payment term is finished, and you have paid all of your repayments of course.

When paying for a mortgage you are given set payments that you have to give to your mortgage lender. You have taken a loan therefore you have to pay it back, in instalments, and of course interest. Mortgage lenders don’t just give out money for free they are a business after all.

Most mortgages are a loan with a fixed period. Usually 20-30 years. Which is quite a chunk of time if you think an average person lives to around 70-80. So speeding up the paying back of a loan could be pretty useful, don’t you think.

To shorten a mortgage you can in theory pay more than what you have to. This is called over payments. Not all mortgages allow this but if it is something you can do, then you are able to pay more than your set mortgage payments. This means that you are paying more of your loan back, quicker than planned. which means that not only do you pay off your mortgage quicker but also you will be able to save money in interest payments over time.

The Mirror reported that 46% of people over paid on their mortgage, and not only that but 18 – 24 year olds are really steaming ahead with overpayments, with 70% of them paying more than they were asked in their mortgage agreement.

Please see the full article here

(you are now departing from the regulatory website, Coleshill Mortgage Services or Quilter Group are responsible for the accuracy for the linked site).

The interest rates which can be a really small amount each month really add up, so shortening the time you have to pay, can mean real savings over a long time. With interest rates changing over time, especially if it’s variable rates it could be in the thousands you end up saving. Could be!

It does sound wonderful – but please ensure you speak to your lenders, everyone’s mortgage is different and lenders have different rules to how you can pay it back.

If this is something that you could afford, and please make sure that you can afford to pay more, work your budgets out people. Then speak to your lender and organise what you can.

And it could save you a lot of money in the future.

So….How is the housing market in 2019 looking.

So….How is the housing market in 2019 looking.

We take a look at what the powers that be are saying about the housing market, mortgages and the market in 2019.

 

What grand expectations, coming to this blog, you would have. We are not fortune tellers and we don’t really know what will happen in the future. But we did read a report that is making some well informed predictions…

Firstly let Coleshill Mortgage Services say a Happy New Year and we all sincerely hope that you have had a cracking Christmas, or festive period. Ok, that’s the pleasantries out the way, it is unfortunately, time to get down to business. That business is the housing market and the current predictions from online news sources.

So is it it good news. Well unfortunately not.

RICS – which is the Royal Institute of Chartered Surveyors, released a report in December regarding what they feel number of sales will be in 2019 and how sales will change within different locations. Firstly the biggest point is the number sales of houses across the UK. Now obviously these are all predictions and told in a lot more detail in the report (link to it at the bottom of the blog). RICS reported that in 2019 they felt that the number of sales will fall by 3% to 1.19 million, thats from 1.22 million in 2018. And a much bigger fall from the 1.7 million in 2006.

This can have a lot of affects over the market. We have mentioned quite a few times how sales is really what drives, well any market but particularly the housing market. When it comes down to it there is only a limited amount of houses (though we will talk about that later), so if houses are not being sold, then people are not moving into houses and property is either not exchanging, or in the case of new builds going into peoples hands.

So what affect will a drop in sales have? Remember these are all predictions. Not set in stone.

Find the full report here

((You are now departing from the regulatory website, neither Coleshill Mortgage Services or Quilter Group are responsible for the accuracy for the linked site).

Prices

What is the first thing that happens if sales slow down. What happens is prices go down. It’s simple supply and demand. If the supply is higher than the demand then prices always remain low. This is not always a bad thing. In previous blogs we have spoke about the affordability of housing for young couples. So prices of houses becoming more affordable maybe what the market needs. Though the RICS report thinks not.

New Builds.

Last year the government removed the cap for local authorities in their ability to lend for the building of new houses. New houses in the market gives young couples and first time buyers the opportunity to have options to buy houses. There is also the “help to buy” scheme which will also assist people in the purchase of new builds.

Rents

With more demand on rents (as there are less sales) and therefore less availability, there will most likely be a little nudge on rents throughout the country.

So nothing positive?

Well we have tried to place a positive spin on things but with a market that often the sellers of a product are also its consumers it is always hard to please everyone. With wages, though getting better but not keeping with inflation, it means no matter what happens, someone loses out. If house prices go down, first time buyers and younger couples and families will be able to afford those houses. But it means that people who own the houses main lose equity in the house and not be able to move on in the market.

It really is a tough one. But the future is not written and things may change. We have Brexit to weather yet!