The housing market is being held back due to lenders’ reliance on automated systems, Aldermore research shows.

In a survey of 200 mortgage brokers were asked what percentage of mortgage enquiries had been declined over the past six months because their clients did not achieve a sufficiently high credit score.

A massive 88% of brokers confirmed clients were regularly declined by lenders’ automated credit scoring systems.

Six out of 10 say up to 20% of clients are turned down because of credit scoring and a further 29% report more than 20% of clients had been told ‘no’ because of credit scoring.

Council of Mortgage Lenders’ data shows that during the first six months of this year mortgage brokers were responsible for 61% of all new mortgage business, worth £33.9bn and involving 247,000 transactions.

Colin Snowdon, chief executive of Aldermore’s specialist mortgage lending business, says: “Many people will be shocked by these figures, which reveal the extent to which lenders, most of whom let skilled staff go during the recession, are now overly-reliant on technology to make important lending decisions. They now have no other way of sorting the wheat from the chaff.

“The evidence we see at Aldermore suggests that banks and building societies have significantly heightened the bar which borrowers now have to clear in order to qualify for a mortgage, meaning that perfectly creditworthy borrowers are being told ‘no’ on a regular basis.”

Aldermore does not use credit scoring, preferring instead to let experienced underwriting staff apply sensible rules and criteria.

Snowdon adds: “Many banks and building societies have lost their appetite to lend and are using credit scoring as a blunt tool to identify only those borrowers who conform to their standardised credit profile.

“According to data published by the FSA, nearly two-thirds of all borrowers have a variable rate mortgage and are enjoying the benefits of low interest rates. However, when interest rates go up, as they will do eventually, thousands of borrowers will suffer ‘payment shock’ and will find it impossible to remortgage on to alternative deals, because they do not fit the credit profile demanded by lenders’ credit scoring systems.

“Lenders should take into consideration all the facts presented to them by an applicant and not use a minor blemish, such as a missed credit card payment several years ago, as a reason for rejecting perfectly creditworthy applicants.”

Prices are falling, there’s a chronic lack of mortgages and the housing crisis is worse than ever.

By Graham Norwood

I was trawling around the internet for interesting articles, and I found this great piece from “The Independent” newspaper that I though you would enjoy. If you’ve got a few minutes, why not give this a read, and it would be great if you could leave me your comments after. All the best, Les.

Most of us are still shaking the summer sand from our shoes but estate agents are already in autumn mode, with one question dominating all others: will house prices defy the wider economic malaise of 25 per cent spending cuts and imminent tax rises?

The prospects do not look good. The Rightmove, Nationwide and Hometrack price indices all show small falls over late summer, and the Royal Institution of Chartered Surveyors’ latest measure of sentiment in the industry suggests most estate agents believe prices are now falling.

London’s prices remain relatively strong, but falls are being recorded in almost every other part of England. A survey out this week shows a 3 per cent drop in prices in Scotland over the past three months.

The key forecasters, Savills and Knight Frank estate agents, predict prices will dip further by Christmas, and the house builder Bovis is warning of a “fragile” housing market with confidence sapped by a spectre of unemployment, spending cuts and tax hikes.

The worst problem remains a chronic shortage of mortgages. Santander, one of the biggest lenders, says 1.1m home owners tried but failed to sell in the past 12 months; most were frustrated by prospective buyers who were unable to secure a mortgage.

As a result of all this, many estate agents want sellers to cut their asking prices. Most autumn house sales are in September and October, after which vendors and buyers put plans on hold until the new year. That means there are just eight weeks to do the deal – exactly what Tracy and David Bliss want to do with their Somerset home.

They have cut the price tag of their four-bedroom converted barn at Holton from £895,000 to £800,000. They transformed the wreck into a home 10 years ago and at the height of the market hoped it would eventually sell at £1.2m – but not now.

“We put it on sale at £895,000 at the time of the general election but we’re anxious to sell rapidly and our agent (Palmer Snell, 01935 814531) has advised a price change. We hope people can see through the economic gloom,” Tracy says.

“We’ve painted the interior in neutral colours and we’re part of an open-house weekend in September when people can see the place for themselves,” she says. The couple, both recently retired, had many visitors before the summer but no offers as buyers were either unable to secure a mortgage or have been ultra-picky.

And with a glut of homes on sale – an estate agent typically has 55 properties on the market now, compared with 43 a month ago – buyers can afford to pick and choose.

“There are just over 900,000 homes for sale at present. New stock is being added at the rate of 4,500 a day,” says Henry Pryor of Housingexpert.net. “June’s and July’s sales were up by roughly 10,000 a month on 2009 but were still half what they were in 2006 and 2007.” He says the imbalance of stock on sale over the number of buyers registered with estate agents means there is only an 8 per cent chance of a vendor successfully selling their property in the next month.

Estate agents are particularly worried that buyers will be deterred by wider economic uncertainties and cuts in public spending. There are no official numbers stating how many homes are bought by public-sector staff but Savills says the figure is at least 15 per cent. Some areas are more vulnerable than others: in the North of England the figure is 24 per cent and in the South-west it is 23 per cent.

The key to kick-starting the market this autumn is to get more first-time buyers; this is particularly hard, with most lenders requiring deposits of £40,000 or more. Until far more first-timers enter the market to purchase the smaller homes of existing owners wanting to move, the lowest rungs of the property ladder will remain missing.

The Home Builders Federation (HBF) says first-time-buyer numbers in England and Wales are at a 35-year low. Those who succeed often have financial help from their parents but the HBF says the average age of an “unassisted” first-time buyer is now 37.

University lecturer Elisabetta Barone recently bought her first apartment at a scheme in Wembley, north-west London, built by the developer Quintain. Barone has lived in London for many years but can only now, at 39, afford to buy. She paid £211,000 for the property but even with that budget, she had to compromise on location.

“I’d been house-sitting for a friend in the Docklands but wanted to find somewhere for myself that was new and affordable. Despite falling prices in Canary Wharf, it was still too expensive for me,” she says.

But while estate agents are pessimistic about the short-term prospects, most of the property industry thinks the basic shortage of supply compared with demand will, in the much longer term, see prices go up.

Savills says that by next summer, the growth of the past 18 months will have reversed, leaving house prices at the same levels as in late 2008, some 15 per cent off peak values. But then prices will rise over a sustained period from late 2012 with 3 per cent annual growth. So by summer 2014, they will be back to the pre-recession highs.

The firm believes the only way that forecast will not come true will be if there is a sudden surge in new homes built to meet latent demand – and that is highly unlikely.

The Government’s new planning system – which has involved abolishing plans known as “regional spatial strategies” (RSS), scrapping housing targets and giving local communities a veto over new schemes – is already accused of worsening the housing shortage.

One prominent builder, Cala Homes, is asking the High Court to review the Government’s actions because they leave what the firm calls a “policy vacuum”. A 2,000-home Cala scheme in Winchester was recently turned down for planning permission, after years of preparation, because the strategic local plan had been scrapped days earlier.

This may be just the tip of the iceberg; the National Housing Federation claims plans for 85,000 homes in England have been dropped since the Government came to office.

“The uncertainty created by abolishing RSSs cannot be overstated. It’s going to take nine months before they’re replaced, if they are, and in the interim, almost nothing will happen. Even if new plans come into place, the delay will have set building rates back years,” says Andrew Thomson of BNP Paribas, which funds new housing.

So in the long term, we return to the old story – a growing population outstripping house-building levels. In the immediate future, however, the autumn skies are darkening. House prices, like leaves, are expected to fall in the coming months.

Property experts Angela Farrell and Les Sheppard have set themselves a BIG challenge… to get 10 first time buyers into a new home of their own before Christmas.

They’ve distributed hundreds of leaflets and postcards to houses throughout the area, asking people if they want to sell, and their phones are ringing hot with calls from sellers who are desperate to move, but can’t because of market conditions.

“We’re speaking to people who are relocating, downsizing for retirement, upsizing with a baby on the way, moving into care or sheltered housing or, most commonly, are facing repossession or even thought they couldn’t sell because of negative equity” said Angela. “All they wanted was to be able to sell the property and to get on with their lives.”

Les added “We were shocked at the number of people calling, up to 40 a day at times, all frustrated at the barriers they were facing in trying to get a sale, and looking to us for some help.”

“The key to property is all to do with people” says Angela. “We’re not property investors, we invest our time in people with property problems and find them a solution… and we understand that every situation is different. We take the time to get to know people, and work with them to find a solution that fits.”

Part of that solution can be to make the property easier to buy, helping those who want to get a foot on the property ladder by hugely reducing their start up costs. A recent survey showed that first time buyers are currently having to put down more than 100% of a full years salary to get a Bank Mortgage on affordable terms.

“It’s a win-win situation” says Les. “They’ve been using the transaction methods we use for years in America and Australia, as well as in commercial property transactions in the UK. We show our sellers that they can achieve what they want, including full market price, if they’re flexible on the terms… and that opens up the opportunity of home ownership to more people than ever before.”

Working throughout the Bournemouth, Poole and Christchurch area, the pair have set themselves a heavyweight task over the next few weeks, but are currently meeting with up to 10 house sellers a week as they search for suitable homes. Les and Angela can be contacted on 01202 375734.

Avoid the pitfalls of the property market, and reap the rewards from your bricks and mortar. Here’s some advice to help you climb the property ladder.

SNAKE Hidden Costs

You may get lucky and bag a bargain, but make sure you read the small print. “There are very few hidden costs. Always check the special conditions of sale in the legal pack. Any requirement to pay any costs i.e. seller’s fees etc, will be stated in the special conditions of sale. Most auctioneers charge a small buyers premium circa £300-£500 + VAT if you are successful in purchasing. On the day of auction you are required to pay a 10% deposit and then complete usually in 20 business days. If you fail to complete in time you are liable for penalty interest and may lose you deposit and be sued for costs, if the contract is rescinded. Again, we advise you do your homework and make sure your funding is 100% guaranteed before you bid,” advises Russell Hartnell- Parker, Auction Partner at Fox & Sons.

LADDER Auction Bargains

You can save around 30% on market value when buying a house at auction. Russell Hartnell- Parker, Auction Partner at Fox & Sons says, “tips for becoming a successful auction buyer are simple. Establish your reasons for purchasing, are you looking to sell on a property once modernised for profit, or purchase to let out and receive an income? In both cases, do your homework before the auction, establish realistic sale values once renovated and the rental income that can be achieved. Be prepared, visit the property, look at the sales in an area and make sure you have checked out all the legal documents before you bid. Auctions are very much held on a “buyer beware basis – caveat emptor” so it’s up to the buyer to make sure they are happy. Finally, make sure you have access to the money/funding you need to purchase, especially in present lending markets.” Go to propertyearth.net for re-possessed homes in your chosen area, you can find auctions at www.foxandsonsauctions.co.uk.

LADDER Rising Prices

Predicting the future is never a risk free enterprise, but many experts suggest market conditions present real home-buying opportunity. Nationwide figures show that house prices are on the steady increase. Martin Gahbauer, Nationwide’s chief economist said, “the price of a typical UK property rose by a seasonally adjusted 0.5% month-on-month in May, following a 1.1% increase in April. The annual rate of house price inflation dropped from 10.5% to 9.8%, which reflects the weaker pace of increase in May 2010 relative to May 2009. Since reaching a trough in February 2009, house prices have risen by 12.2% and are now just 9.5% below the October 2007 peak. House prices also edged up in May as a result of the abolition of Home Information Packs (HIPs). Figures from the Council of Mortgage Lenders show that 22% more chartered surveyors reported a rise than a fall in house prices, up from 19% in April.

LADDER Home Improvements

If you’re not in a position to move up the ladder, then renovate and add value to your property. Knocking down walls to create open-plan living is a growing trend. A new kitchen or extension can also be wise investments. “In terms of what adds value depends on the particular property and the area in which it is located. However, most properties benefit from reasonably generous permitted development rights which allow additions and alterations without the need for applying for planning permission. This is a very complicated area of law in terms of interpretation of what is permitted, however, a planning consultant can assist,” says Ken Parke, Director of Ken Parke Planning Consultants (01202 496571).

SNAKE Planning Restrictions

Check with your council’s planning office to see what changes can be made. The building could be in a conservation area or the overall volume may have already been increased by the maximum 10%. Uncertified changes are often picked up on when you come to sell your property. Ken Parke, Director of Ken Park Planning Consultants says, “obtaining planning permission is a complicated process, however, if the site has got potential then provided any proposals are realistic your planning consultant should be able to achieve the desired outcomes. It is important that you use a chartered town planner and take up recommendations. We have an in depth knowledge of the local area, of the policies in place and how they are applied by the various different elements of the council. We are also aware of all recent approvals and appeal decisions. We tend to offer initial appraisals at no cost.”

SNAKE Local Ignorance

If you’re not local to the area do some research. Get the local statistics on burglary, theft and robbery, and a full ‘neighbourhood profile’ covering everything from average incomes to what paper your potential neighbours read at upmystreet.com. For the low-down on localschools, go to dcsf.gov.uk/perfomancetables. Even if you don’t have young children, houses that are in the catchment area of quality schools will better retain their value in market dips. Location is key and can help the re-sale value.

SNAKE Rising Interest Rates

New figures from the Bank of England reveal fixed rate mortgages are at their lowest level since 1995, offering those with some equity in their homes a great opportunity to remortgage onto better, more attractive, repayment rates. Since March 2009 the base rate as remained at a record low of 0.5%, putting increasing pressure on lenders to cut their rates. This has led to interest rates charged on a two-year fixed-rate deal with a 25% deposit to drop to 3.8% in May. “May’s record-low fixed-rate mortgage deals are a positive thing for the housing industry as a whole, but are unlikely to benefit first time buyers. Fixed rate mortgages are an attractive option for borrowers who want to be certain of their payments, or who fear interest rates may start to rise,” says Alison Beech, business relationship director at Spicerhaart. Confusion may reign among financial experts about whether interest rates will rise or remain at their record low for the remainder of 2010, however, there are many deals to be had but these low rates could quickly disappear, especially at the first rate rise.

LADDER Rising Rents

Jim Doerr, Director at Goadsby Residential, comments, “the sales market continues to improve. Many ‘reluctant’ landlords who decided to rent out their surplus properties over the past 18 months due to a depressed market are now deciding to sell rather than extend existing tenancies. Whilst this provides an excellent opportunity for new ‘buy to let’ landlords to enter the market, finance or rather lack of, is preventing this from happening. The lack of finance also causes a further issue in so much as would be first time buyers can not afford to buy and are therefore continuing or starting to look for rental accommodation adding to the demand in an already very competitive market.” “We therefore find ourselves with a rental market that is extremely buoyant, with record levels of top quality tenants waiting to find accommodation, but no new fresh properties to offer them. ‘Supply and demand’ is what drives the rental sector and with a lack of supply and strong demand prices will inevitably rise. With certain properties that are in sought after areas with good accommodation we have already seen tenants pitching offers above asking prices to secure the let. So it’s an awfully good time to buy to let. If you can find/raise the finance,” says Doerr. For more information log on to www.goadsby.com. Or contact the Bournemouth office on 01202 544644.

LADDER Price Knowledge

Valuations can vary slightly from one estate agent to another so it’s a good idea to do your own research. Visit www.zoopla.co.uk where you can get a solid value estimates of all the 27 million properties in the UK, not just the 4% which are ‘in play’. There’s also comprehensive data on the turnover rate in every UK street, value changes and a Q&A forum. If you want to find houses which have recently dropped their askingprice, log on to www.propertysnake.co.uk.

SNAKE Overseas Red-Tape

When buying overseas, don’t leave your brain at the airport and take risks you wouldn’t take here. Check that the company sorting your purchase is a member of the Association of International Property Professionals (aipp.org.uk). Some countries have different purchasing rules – some countries apply VAT of around 20% to purchases while others, such as Bulgaria, won’t allow foreigners to have a freehold at all. Do your research and seek specialist advice.

LADDER Foreign Bargains

Prices all over the continent have been in freefall, with bargains galore if you choose correctly. Property experts are tipping Annecy in southeastern France to become a major property investment hotspot. Other countries tipped for good investment include, Turkey (13.1% increase in tourism), Calabria in Italy (fantastic beaches, new airport and 3 billion (£2.6 billion) of EU infrastructure investment), and the Costa Calida in Spain (new airport, rock bottom prices). For more see www.property-abroad.com/buyers-guide.

SNAKE Tax Rises

This can certainly dampen your financial income. You think you’ve made a mint on your buy to let investment, but when the time comesfor selling, any profit could be swallowed up by the tax man as it is liable to a massive 40% in capital gains tax. Get help and advice from the experts. Find a buy to let tax specialist accountant via the institute of chartered accountants www.icaewfirms.co.uk.

SNAKE Credit-Rating Issues

Make sure your finances are all in order. Just one late bill can scupper your mortgage, and after all your saving, it pays to be organised andensure that everything is in check. Firstly, check for any errors in your credit rating. You can get a free trial from the main agencies (Equifax.co.uk, experian.co.uk, callcredit.co.uk). Secondly,register your vote. Absence from the electoral roll is a common black mark.

LADDER Mortgage Market Improves for First Time Buyers

Research from unbiased.co.uk, found that perceptions of what people can afford when it comes to income multiples have remained on the pessimistic side over the last 12 months, with the average now being placed at just 3.3 times an individual’s salary. One fifth (22%) of Brits think they can only get between 0.5 and 2.5 times their salary and almost a quarter (24%) believe lenders would restrict a home loan to up to 3 times their salary. But the reality is that many lenders are now relaxing their lending criteria, offering around 4 times or more to an individual’s income. “Lenders have recently re-entered the high loan-to-value space, meaning that borrowers do not require such a large deposit in order to get an affordable mortgage,” says Karen Barrett, Chief Executive of unbiased.co.uk. An increasing number of lenders are now offering 90% LTV deals, meaning especially first time buyers who were previously priced out of the market can now look to see whether they can access an affordable deal.”

LADDER Big Deposit

The bigger your deposit, the lower the interest rate you’ll end up paying. Make sure you keep abreast of your mortgage-rate changes, visitmoneysupermarket.com for the latest deals. Borrowers with a significant deposit can take full advantage of these historically low mortgage rates. Figures from the Council of Mortgage Lenders show that there were 45,000 loans for house purchases advanced in March, up 25% from February, with the number of first-time buyers increasing 27% to 17,300. In 2009, the BBC reported that the average UK house price was £224,064 and the average deposit needed to secure a mortgage works out at an est. £32k, no mean feat for a first time buyer! Banks are traditionally looking for a deposit of between 15-30%.

You can move into one of  my own flats in Bournemouth now, brand new just 18 months ago, without needing to qualify for a bank loan today.

No Stamp Duty payable either!

Do you wish you could get on the housing ladder but can’t get a mortgage, or save for a big deposit?

Want to own your own home, but can’t save as you spend all your money renting?

You don’t need 15-20% deposit to buy my flat and you don’t need to go through the complicated, time consuming bank qualifying process. My flat has:

Lounge & Kitchen * Double Bedroom * Bathroom * Communal Gardens

If like many others you want to take advantage of this offer all you need is £2,000 to get you going and £175 per week, as well as a job and the ability to make the payments.

I provide the finance and you can transfer to a bank mortgage at any time.

The purchase price is fixed, but you gain from any price growth! Also, any improvements you make to the property you get the benefit, and if the value of the property increases you also get the benefit, the same as any other home owner.

Redecorate, carry out home DIY – YOU benefit from any added value by enhancing YOUR home.

Perfect if you are;
- A first time buyer struggling to get onto the housing market
- Struggling to raise a large deposit
- Currently renting but want to own your own home
- Have impaired credit and can’t raise finance
- Have recently moved to the UK

So, if you thought that home ownership would never happen to you, contact me today as this opportunity will not last long.

Call me on 07766 470386, or fill in this Contact Form now.

Own your home from the moment you move in, without needing to qualify for a bank loan today.

No Stamp Duty if you’re a first time buyer.

Do you wish you could get on the housing ladder but can’t get a mortgage, or save for a big deposit?

Fed up of paying dead rent? We have the answer you’ve been looking for!

A super 2 bedroom, ground floor flat with its own private entrance and 2 off street parking spaces.

Lounge * Kitchen * 2 Double Bedrooms * Bathroom * Off Street Parking

This is how it works

The purchase price is £168,000

There is a minimum deposit of £8,000

You will pay instalments of £261 per week, using a loan that works exactly like a bank mortgage.
You can then refinance to any other bank loan later, when you are ready. This method lets you get on the property ladder NOW, without the huge deposit banks are currently demanding.

The purchase price is fixed, but you gain from any price growth! Also, any improvements you make to the property you get the benefit, and if the value of the property increases you also get the benefit, the same as any other home owner.

Redecorate, carry out home DIY – YOU benefit from any added value by enhancing YOUR home.

This is 100% home ownership, and not shared equity or a Housing Association scheme.

You could move into your new home in as little as 7 days, with fully approved solicitor contracts.

Perfect if you are;
- A first time buyer struggling to get onto the housing market
- Struggling to raise a large deposit
- Currently renting but want to own your own home
- Have impaired credit and can’t raise finance
- Have recently moved to the UK

Interested? … You should be! Just fill in the contact form, or call Les or Angela on 07766 470386

I found this brilliant article on the web recently, and thought about all the conversations I have with potential new home owners who can’t decide if Rent to Own is for them. For many the choice seems simple – either you want to carry on renting, or you want to become a home owner TODAY. Read on… and please let me know your thoughts.

After many hours walking along a path through a dense forest, most of which passed by without you seeing a solitary soul, you finally accept you’re very, very lost.

Your map appears to have been one that Columbus decided was out of date, your compass really didn’t like being left in your bag with your trusty magnet and the bears appear to have eaten your bread crumbs that would have guided you back to the highway and the sanctuary of your car.

You’re probably feeling anxious and vulnerable, but wait a second, isn’t that a clearing up ahead?

Yes, yes, it is, there’s a break in the trees because you can see shafts of sunlight streaming down and lighting up the forest floor. Hopefully an unobscured sight of the sun should give you a clue as to which way you are heading.

As you approach the opening you can see the path in front of you splits into two. At this point you suddenly recall the conversation with the wiry, tousled, one-toothed nut-job that tried to sell you a map at the gas station the previous evening.

In between cackling, chugging on a bottle of some liquid that looked suspiciously like urine and eying you up and down mockingly, you remember him mentioning an ancient clearing, but what exactly was it he said?

Suddenly you remembered something about the Fork of Indecision. At the time you disregarded it as the ramblings of an old loon trying to scare the tourists into buying maps and provisions.

Damn, you wish you’d bought the map now and those old tins of spam seem oddly enticing as your last sandwich disappeared hours ago.

For the next half an hour you stand in the clearing trying in vain to recall exactly what words of wisdom the the slack jawed yokel had imparted.  You seem to remember he said one route would deliver an imminent and gruesome death, but surely he wasn’t being serious?

What are you going to do?

My guess is you wont stand there until you starve to death. Even if one path really does lead straight into a den of evil giant badgers waiting to hack you to death just for kicks, standing in one place for the next week will yield the same net effect i.e. death.

At least moving in one direction will increase your chances of living to 50%. Not the kind of odds you were looking for when you set off hours earlier with a spring in your step and a smile on your face, but better than the alternative.

Millions of people every day land up at their own personal fork of indecision and many of them stay there staring at the alternatives, for years, sometimes decades, and never make their mind up.*

Some people are brilliant decisions makers, but there is a secret to their skill that a lot of people don’t know about, and it’s this:

They are good at it because they practice it.

Profound stuff eh?

If you have a fear or even a  more modest dislike of something, there are basically two options open to you.

The first method is to face up to it knowing that it’s only a fear, a projection in your mind. And the second option is to do your utmost to avoid whatever it is for the rest of your life.

Amazingly, most people take the latter option, the one designed to make them even more fearful.

If they have a fear of flying they don’t fly, if they have a fear of public speaking they don’t volunteer to speak and if they get uncomfortable making decisions, they don’t decide.

Imagine two friends who are complete novices at the game decide to take up golf. Both are male, both 40 years old and both of a similar build. Neither play any other sports and have never considered themselves as sporty types.

One of the guys decides he’s going to hit practice range balls every day for two hours before spending another hour on the putting green. The other chap thinks he’ll look like a total assclown hacking the ball all over the range and goes home for a nap.

A week later both guys meet on the tee for their first round together. Who do you think will win?

I once read an interview with a women who was the editor for one of the major New York magazines. Don’t ask me which one because I can’t remember or even what her name was. In fact this is probably a false memory that I’m making up unconsciously to drive home my point.

Half way through the interview the personal assistant of the editor came in carrying two dresses, one black and one white. She wanted to know which one she wanted to wear for the forthcoming photo shoot.

Without seemingly drawing breath the women pointed to one of the dresses and said, “that one”

After the assistant left the room, the interviewer amazed by her unearthly decision making powers, asked her how she did it?

Her reply was, she guessed. She then went on to explain that she adopted this policy when it came to minor decisions the vast majority of the time. It saved her time,  prevented decision paralysis and on the whole was just as likely to be effective as hours of careful deliberation.

Not only that, but it also trained her for making larger decisions and since she had adopted the ‘fake it till you make it’ approach her ability to make major decisions had improved exponentially.

Making decisions is a skill just like playing golf and the more you do it the easier it becomes, the less stressful it is and the better you get at it. Successful people get this and therefore they don’t shy away from making decisions and they certainly don’t beat themselves up when they get it wrong.

And yes, I do mean when, because everybody screws up and get’s it wrong from time to time.

You won’t get better at making decisions by making less of them any more than you’re golf game will improve whilst your down the pub getting hammered. So bearing that in mind, maybe today is the day to decide that from now on you will decide quickly, confidently and without any drama because after all, you’re only guessing.

Now decide to leave me a comment and tell me about any cool decision making tips you have or even which decision that you’ve been procrastinating on that you’re now prepared to push through with.

Source: A Daring Adventure

Recent research from Paragon provides some indicators about the state of the buy-to-let sector, particularly regarding mortgage availability.

It also gives an insight into the decisions landlords are making in terms of financial arrangements and the rise in ’one in, one out’ property substitution transactions.

The decline in buy-to-let remortgaging is likely to continue for some time. Of course, remortgaging is difficult at the moment, and for those on reversion rates it’s unappetising because of rate differentials and the fact they will lose their current SVR should they remortgage.

Also, for those on higher LTVs there are few deals available over 80% LTV.

But we are seeing an increase in the number of first-time landlords. Some may be surprised by this but demand for investment property has not gone away since the credit crunch and there are still bargains to be had.

The difficulty has been the lack of finance but for first-timers who can put together the 25%-plus deposit and choose investments wisely there are profitable opportunities.

It is to be hoped that this growing demand will be partly met by more lenders entering the buy-to-let fray as Aldermore and Precise Mortgages have done.

While the environment is tough it’s clear that investors are seeing the strength of the buy-to-let market and we anticipate further forays from lenders soon.

Top rate taxpayers  will be charged 28% Capital Gains Tax from midnight tonight while VAT is due to rise to 20% in the New Year, under the coalition government’s ‘austerity budget’, declared today. The new rules didn’t come as too much of a shock – proposals for CGT were originally much higher, putting the potential top rate as high as 50%.

Liam Bailey head of residential research at Knight Frank commented: ‘CGT was the main story, as the proposed increase was heavily trailed in advance. In reality the rise to 28% for high-rate tax payers is a non-issue for the housing market.

‘The rise is coming into play overnight – so there will be no sudden sell-off of second homes or investment properties. The new rate takes us back to a similar rate to where we were under the pre-2008 rules, when taper relief was able to reduce a 40% headline rate of CGT to 24%. With higher-rate CGT at 28% the argument for property investment still looks strong, and capital gains still compare very favourably with income tax at 40%.

‘The other issue of note is that with strong GDP growth forecasts for 2011 and 2012 – the inference is that the Bank of England will be encouraged to maintain a very loose monetary policy for longer than recently expected, suggesting interest rates at current levels could be maintained for longer. This would underpin house prices and also contribute to ongoing low supply in the market,’ Mr Bailey concluded.

David Adams, Chesterton Humberts‘ head of Residential, added: ‘This is a brilliant budget for UK Inc.  Prime property in London and the South East and South West should see now see stable prices while the effect on northern areas with high public sector employment is less rosy.  Some asking prices will need to be reduced in the south, but this is simply because of agent overpricing during the first half of the year, when property was in short supply.

‘It will be interesting to see how long it takes people to realise that the cost of renovating and furnishing a property will be increasing through VAT and that a considerable savings could be made by moving and refurbishing before the end of December.’

Source: http://www.countrylife.co.uk

Whilst things have eased slightly since the financial markets meltdown of 2007/8, first time buyers still face a number of obstacles if they are to afford their first step on the property ladder. With a large number of financial institutions falling by the wayside and the competitive marketplace somewhat diminished, seeking out a reputable lender that has an appetite for you may be challenging.

Banks and building societies grew during the 1990`s and 2000`s on lending to people without checking their income sufficiently and by relying on the surge in property values to cover any defaulting customers. All was fine when the economy was flying, but it came to a shuddering halt once many of the `sub prime` borrowers in the US started to default and property prices there began to tumble. Since much of this type of lending had been syndicated globally, the vast majority of lenders began to write down their security values and prepare for the worst. And the worst came.

Those that have survived now have a much stricter set of criteria for the customers they seek so as to ensure that both the risk and reward of their portfolio are in better balance. With property prices in the UK seeming to have stabilised and gained some ground in the last year on the substantial losses in values during 2008/9, lenders are becoming more proactive in growing their books and offering a wider range of fixed and variable rate mortgages.

In addition, the government has sought to stimulate demand by extending the stamp duty free property purchase to £250,000 for first time buyers. That can mean a saving of up to £2,500 which can be used to boost deposits or pay for fees.

Many experts are now encouraging borrowers to fix their mortgage interest rate for as long a period as possible. Others counter by saying that the outlook for inflation, which drives interest rate policy, is more favourable and that it is too early to fix. As ever, the advice is conflicting and it is best to look at a mortgage that suits your personal needs. Fixing gives certainty of expenditure for the period of the fix. A tracker or variable rate mortgage means that you will gain from any falls in interest rates but pay a higher price if they fall.

What has changed in recent years is the need for a substantial deposit. Finding 100% mortgages is virtually impossible and a starting point for any would be borrowers must be to have a 10% or 15% deposit before many lenders will even consider the application.

But deposit is not everything. A good credit history is essential too so if you have had any indiscretions during the past five years you may need to either wait until you build a good recent track record or be prepared to pay a significant interest rate premium on your loan. In the meantime, there are a good range of affordable 2 person tents to at least move out of the family home and in with your prospective partner or friends!