First time buyers increase hit all time high BUT landlord purchase hits a all time low

First-time buyer activity rose to from 28% to 36% of market activity in February, as buy-to-let purchases fell below 10% for the first time in five years, per data from Connells Survey & Valuation. First-time buyers now account for a third of activity in the property market – the highest proportion since July 2011. In contrast to the resurgent market for first-time buyers, the buy-to-let purchase market fell to a new low in February. Continuing the decline seen in recent months, buy-to-let purchases almost halved in read more

Look what happens to a industry when you raise taxes on it.

The amount borrowed by prospective landlords fell 16 per cent in the year to January, as strict new rules on buy-to-let homes took their toll. Figures by the Council of Mortgage Lenders (CML) showed would-be landlords borrowed £800m to buy new homes in January, down from £1.4bn the year before, and £900m in December. The number of people taking out mortgages on buy-to-let properties fell to 5,900, from 9,700 the year before, and a peak of 29,100 in March last year. The news came after figures published yesterday read more

FTB’s have more of a selection to buy

This increase in search activity is notable given that a year ago, market activity was buoyed by the November announcement that second-home stamp duty would apply from April 2016. With markedly fewer buy-to-let purchasers than this time a year ago, there is a new year opportunity for first-time buyers to fill the void left by buy-to-let purchasers. The availability of typical first-time-buyer houses with two bedrooms and fewer are is 1.9% compared to last year, offering more choice for first-time buyers. This read more

FCA look at relationship between Estate agents and Brokers

The FCA will consider links between estate agents and mortgage brokers as part of a review of the mortgage market. Some agents earn money from referring customers to brokers. In a report updating a review of the mortgage market which was first announced in May, the regulator said that it would consider relationships between brokers, lenders and estate agents. It said it was concerned that these relationships were creating conflicts of interest as consumers were spending more than necessary if pressured to use read more

Fixed rates drop since January

Rates on fixed interest mortgages plummeting since January Average rates across all fixed mortgage terms have fallen since the start of the year. According to research from data provider, the average two-year fixed rate has reduced the most, falling by 0.24% since January this year to 2.52%. Five-year fixed rates have dropped from 3.29% in January, to the current 3.10% and the 10-year rate has fallen to 3.43% from January’s 3.63%. Charlotte Nelson, finance expert at said: “With read more

Mortgage market concerns about ‘Brexit effect’ are justified OR are they????

The government has been heavily criticized for recent calculations on the cost of a UK exit from the EU, but their focus on how this could impact mortgage availability is wholly justified, writes Pad Bamford. The UK isn’t exactly ‘on hold’ until June 23, when the result of the EU Referendum will be known, but it certainly feels like all roads lead back to the vote. As I write, sterling has taken a tumble on the back of opinion polls showing the ‘Leave’ campaign out in front by three points (now seven points) and I read more

In or out??? You questions on Britexit

Prices, property, pensions: 30 EU referendum questions answered Will the nation’s decision on 23 June make you richer or poorer? We address the key consumer concerns PRICES Will food prices go up or down if we vote to leave the EU? David Cameron says families would face increased food bills of more than £220 a year if Britain left because so much of our food is imported from the single market. His claims are based on a belief that the pound would fall in value by 12%, making imports more expensive. But critics read more

Lending falls in April because of Government screw up

Mortgage lending increased by £0.3 billion in April - a sharp drop from the £7.4 billion increase seen in March and the lowest figure seen since August 2012. The latest Bank of England Money and Credit report shows that gross lending secured on dwellings fell from £27.4 billion in March to £19.2 billion. Total lending to individuals increased by £1.6 billion in April, compared to £9.3 billion in March and a six-month average of £5.7 billion. This is the lowest figure seen since May 2013. However, mortgage approvals read more

The Good, The bad and the Ugly of buy to let mortgages

THE GOOD Interest rates on buy-to-let mortgages continue to fall, while the variety of deals on offer rises. Skipton Building Society is the latest to cut its rates, shaving up to 0.18 percentage points off its two-year fixed rate deals. They now start from 2.19 per cent while its five-year deals now start from just 3.69 per cent. 'I’ve been investing for years - there are ups and downs' Long-term landlord and buy-to-let commentator Sanjay Arora sees clouds on the horizon for some buy-to-let investors – but believes read more