Archives 2020

Could Corona virus effect house prices.

Could Corona virus effect house prices.

Can the housing market be made to unstable with the recent Corona Virus outbreak?

Splattered across every piece of news media is some story of the how the Corona Virus has spread further in the UK, or that huge swathes of Italy is being isolated, or panic buying of loo roll at your local spar. And it’s a scary thought, a new illness spreading through your community, and anything of the unknown is a frightening thought. So what repercussions could this be having on the housing market.

The housing market is always closely tied with two elements, the financial sector and peoples ability to spend, or what’s sometimes called consumer confidence. If people who want to buy things, they need to be confident that they can afford it. Factors that can effect consumer confidence are job security, the economy in general, average pay, elections, and general news. And of course consumer confidence is very closely linked to the financial industry.

So when the Guardian reported a story about the sale of a house not going through because of the corona virus. It was alarming that something involving our health could give people cold feet when buying a house. The issue in the story was that the individual worked for an events company, and because of the virus, events are getting cancelled left, right and centre and his confidence in spending was reduced. This was an isolated case. But it’s cant be the only one.

See full story here

(you are now departing from the regulatory website, Coleshill Mortgage Services or Quilter Group are not responsible for the accuracy for the linked site)

Will this effect house prices?

If it blows over, then I feel it will be no harm done. So far this year has been good, gradually growth throughout, we wrote a blog about how the housing market has grown here.

But if it continues, more and more industries in the UK and across the world will be more effected. For instance, if more imports are delayed from China, this could hugely effect manufacturing, people in those industries may lose confidence in their job security and ultimately in their ability to spend.

It’s not just going to be the events industry, if other industries are struggling it will have a knock on effect on other industries. With all this, if people are not looking at buying houses, then the housing market will slow and this could have an adverse effect on house prices.  It’s not amazing news, but it could be something you look at if your are thinking of selling.

As always speak to someone you trust and make sure you make the right decision for you and your family.

Buy now and really pay later….. Managing your credit score

Buy now and really pay later….. Managing your credit score

Managing your credit score needs to be something you do on a day to day basis. And it is about performing lots of little things right. Doing those little things will help make sure your score is maintained.

There are many ways to improve your credit score – but the best thing to do is to sign up to the many credit score companies that will look at what you are doing well and what you are not doing well and how to improve them.

This blog is about a particular trap that can occur when shopping for your most needed goods. Well maybe not your most needed goods but possibly something you fancy. But there are schemes that a lot of online retailers offer and it may not necessarily be clear what effect it will have on your credit score.

One of these schemes is a buy now, pay later offer. Bear in mind in financial terms, this offer is a loan. You are effectively taking an item for free and the retailer is loaning you the money for the item. And you pay for the item later, effectively paying off the loan. Now please bear in mind this may not be the case for every pay now, buy later scheme.

So how does this effect your credit score. Well in multiple ways.

Credit Checks

Every time you take out a credit agreement, or a loan you will most likely have a credit check. This is where the company looks at your credit report and makes a decision on whether they feel you can take out the loan. Now a credit check on its own is not necessarily a disastrous thing. But if you have a lot of checks over a short period of time, even if they are successful, it doesn’t look good to other potential lenders who may look closer at your report. When looking at serious borrowing, like a mortgage, the lender will really scrutinise your report and if they see a lot of credit checks, they will see this as irresponsible lending or applications to lend and deny you that mortgage you truly need.

 

Missed Payments

Your credit report stores all sorts of information, one of those is every time you miss a payment, that could be for your mobile phone, loans, mortgages, rentals etc. So if you get a buy now and pay later and miss payments this could be something that damages your credit score. Buy now and Pay later schemes, are just that, they are schemes to make you buy. You still need to consider, whether you can afford it.

So our advice, is not to necessarily not go for these, but truly look into the affordability of it for your self. Get an understanding of how the scheme works, are they doing a credit check. How do the payments work, is it something you pay over time? If unsure, speak to their customer service, or ring an independent body.

 

Housing Market in 2020 continues to grow.

Housing Market in 2020 continues to grow.

I mentioned two weeks ago that with the recent general election and seemingly political calm in the UK, that no matter which way you voted or how pleased/disappointed you were, it would probably mean a positive upward climb for the economy in 2020. And with an nice uplift of the economy, that means a good growth of the housing market. We did talk about our predictions in the first blog here.

We are at past the end of January 2020, so has my precarious prediction bore fruit and do we have a healthier housing market?  Well according to the Independent we do.

On the first of February, The Independent reported on a growth in mortgage sales and lending across the UK:

“The number of mortgages approved for house purchase rose to 67,241 – the highest since July 2017 – from 65,514 in November. The value of mortgage lending rose by £4.55bn, compared with an average of £4.2bn over the previous six months.”

Source

(you are now departing from the regulatory website, Coleshill Mortgage Services or Quilter Group are not responsible for the accuracy for the linked site)

That means it has been two and half years since we have had this number of house purchases. If people are buying houses this usually means that house prices will rise too. The article did report that house prices in January had increased to 1.9%, this is a modest increase from December, which was 1.5%. But still it is in the right direction.

So if you are selling your house or thinking of selling, then this is wonderful news, it means that you hopefully will get a good price. If people are buying and mortgages are being approved, you will not only be able to sell your house reasonably quickly but also be able to buy something too.

At Coleshill Mortgage Services we will continue to report on how this year fairs in house prices, and the market in general.

As always speak to someone your trust when looking at buying a house and getting a mortgage.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Will 2020 mean a rise in house prices?

Will 2020 mean a rise in house prices?

Politically, 2019 was a tumultuous year, and to top it all off there was a general election in December. With a landslide victory for Boris Johnson’s conservatives it could mean an answer for Brexit and a little bit of calm. Political calm, can mean economic calm, economic calm can mean growth. And please pay attention to the word “can”. It is never a foregone conclusion.

But lets look at 2019 and the price rises that we have seen. Looking at the UK house price index on the governments website. There was generally a drop from August 2019 across all regions apart for the South East, though some stayed stable.

This is the statistics of the percentage change from August 2019 to the middles of November.

East Midlands – -1.2%

East of England – -0.4%

London – -0.1%

North East – 0.0

North West – -0.3

South East – 1.0

South West – 0.0

West Midlands – -0.4

Yorkshire and Humber – -0.1

See the government website here.

(you are now departing from the regulatory website, Coleshill Mortgage Services or Quilter Group are not responsible for the accuracy for the linked site)

Though these statistics are only from August to November. From January 2019 to October 2019 has seen a gradual rise with a little bit of a dip towards the end of this year as shown above.

January 2019 – Average house price was £228,393.

October 2019 – Average house price was £232,944.

See all statistics here

(you are now departing from the regulatory website, Coleshill Mortgage Services or Quilter Group are not responsible for the accuracy for the linked site)

So really was a very small increase up to October with only a small decrease up to November. 2019 though not a huge year for house prices they generall didnt

And the issue is, until the government release of their housing index, it will be hard to understand the full picture of the year.

So will the political calm, stop the little decreases that often come with a general election, which will not happen this year (we hope). With 2019 being stable for house prices does that mean 2020 will bring a good housing price growth, it is still hard to tell but the future is looking brighter. The Express mentioned that since the emphatic win for the conservatives that the housing market will take a little boost in 2020, but with no real firm statistics it is a little hearsay. But political certainty does usually mean positive economic behaviours.