London & Country Blog

Cost of raising a child in excess of £218,000

James Cotton — Fri, 03 Feb 2012 14:26:28 +0000

The most recent report from LV= shows that the cost of raising a child has increased by more than 3% in the last year. The total cost of raising a child from birth to the age of 21 is now measured at an eye-popping £218,024. The biggest factors in the cost are education and childcare [...]

What’s new in the mortgage market?

David Hollingworth — Tue, 31 Jan 2012 17:53:43 +0000

The last few years have been a difficult time for the mortgage market and the industry and borrowers alike have become used to the fact that there have been fewer mortgage options available as a result. However there have been some positive moves in the market in 2012 and some mortgage lenders are even showing a [...]

You’ve never had it so good

JaneHarrison — Tue, 31 Jan 2012 17:38:14 +0000

That is, it’s never been such a good time to buy life insurance. Rates have fallen in recent years as advancements in medical science have helped people live longer. However, the falling trend in rates could be about to end as two factors are likely to impact on the cost of this all-important cover. Firstly, [...]

What the papers say – 28th and 29th January 2012

Lisa Parker — Tue, 31 Jan 2012 10:42:57 +0000

The Financial Times reported this weekend on the wide variety of mortgage news over recent weeks. Homeowners can now secure cheaper fixed rate deals than a year ago with some lenders, while others such as Nationwide have increased both tracker and fixed rates. The Times, Sunday Telegraph, Sunday Times and Sunday Express all carried news [...]

What the papers say – 21st and 22nd January 2012

Lisa Parker — Mon, 23 Jan 2012 16:07:03 +0000

The Times looked this weekend at the various factors that can have a bearing on borrowing levels, including student loans, the number of dependants a person has, and even whether or not they have had a landline installed. Brokers were keen to point out that affordability calculators offered by most lenders online are just an [...]

Mortgages at their most affordable since 1997

James Cotton — Tue, 17 Jan 2012 17:17:27 +0000

Mortgage payments for new borrowers are now more affordable than they have been for 14 years according to new research from Halifax. The lender looked at average monthly mortgage costs as a proportion of disposable income for new borrowers – both first time buyers and homemovers. It found that in the 4th quarter of 2011, [...]

What the papers say – 14th and 15th January 2012

Lisa Parker — Mon, 16 Jan 2012 17:14:40 +0000

Despite an uncertain outlook for the mortgage market and a recent increase in rates by lenders including ING, experts in this weekend’s financial press suggested that there are still competitively priced deals to be found. The Times warned however that borrowers should watch out for extra costs attached to ‘best-buy’ rates, as many lenders have [...]

What the papers say – 7th and 8th January 2012

Lisa Parker — Mon, 09 Jan 2012 16:50:12 +0000

The plight of the First Time Buyer continues into the New Year, with the Sunday Times reporting that, despite lenders introducing more competitive rates, deals remain costly and hard to obtain, largely due to the size of deposit now required. Experts in the Sunday Express also suggested that a squeaky clean credit record and minimal [...]

The Majority of First Time Buyers Seek Help from Mum & Dad

David Hollingworth — Fri, 23 Dec 2011 13:56:17 +0000

It will come as no surprise to many that first time buyers have been having a hard time of things recently and figures from The Council of Mortgage Lenders do little to change that view. It has published research of the first time buyer market that helps shed light on just how big an impact [...]

FSA Publishes Common Sense Mortgage Rules

David Hollingworth — Wed, 21 Dec 2011 15:09:54 +0000

The Mortgage Market Review (MMR) is a major piece of work that the regulator has been conducting over the last couple of years in a bid to lay down the rules for mortgage lending to follow in future. The new rules have been received favourably as the consultation begins to move into the final phase [...]

A bridge too far?

Pete Gettins — Thu, 15 Dec 2011 17:21:56 +0000

Much consternation in media today following the Daily Mail’s front page story about helping so-called mortgage prisoners trapped by negative equity. John Humphries on the Today programme seemed particularly exercised by the idea when interviewing our own David Hollingworth. So what’s going on? And would a rather stretched metaphor help any? The first thing to [...]

What the papers say- 10th – 14th December 2011

Lisa Parker — Wed, 14 Dec 2011 17:35:01 +0000

Changes in the mortgage market, both in terms of rate and criteria, were the subject of much discussion in the financial press this week. The Sunday Telegraph considered how the increased cost of funding, resulting from the eurozone crisis, has led to mortgage rates gradually starting to increase over recent months, while the Sunday Times [...]

Make sure you get the best mortgage deal in 2012

James Cotton — Thu, 08 Dec 2011 16:19:44 +0000

With 2011 fast drawing to a close and attention turned to shopping, cooking and partying anyone can be forgiven for not considering their mortgage. But once we’re into the New Year there should be no excuse for making sure you get the best deal on what is likely to be your biggest monthly expenditure. Whether [...]

First Time Buyers – beware end of stamp duty holiday

James Cotton — Thu, 08 Dec 2011 16:19:26 +0000

First time buyers should move quickly in the New Year as the Government’s stamp duty exemption comes to an end in March. When buying a new home, you need to pay stamp duty (or Stamp Duty Land Tax to give it its full name) as a percentage of the value of the property you’re buying. [...]

What the papers say- 3rd and 4th December 2011

Lisa Parker — Tue, 06 Dec 2011 09:10:32 +0000

The financial press this weekend urged borrowers to prepare for a second credit crunch by reviewing their mortgage now while deals are still competitive. The Financial Times, Telegraph and Sunday Times all reported that many lenders have already increased rates, and analysts predict further rises next year as the Euro Zone crisis forces up the [...]

Housing equity withdrawal remains in negative territory

David Hollingworth — Wed, 30 Nov 2011 17:30:24 +0000

Bank of England data released today shows that home owners are continuing to favour paying down their mortgages rather than borrowing more against the value of their homes. Housing Equity Withdrawal (HEW) for quarter two of this year was again a negative figure of more than £9.1bn. This compared to -£8.9bn in Q1 – another [...]

Autumn statement confirms end of stamp duty exemption

David Hollingworth — Wed, 30 Nov 2011 17:29:43 +0000

This week’s Autumn Statement from the Chancellor was not expected to bring much news for the housing market, but it did confirm that the relief on stamp duty for first time buyers would come to an end in March next year. Stamp duty is normally paid on any property purchase above £125,000 but in 2010, a [...]

Troubles in Europe push mortgage rates higher

James Cotton — Fri, 18 Nov 2011 16:06:28 +0000

Once again this month the Bank of England Base Rate was held at 0.5%, but the ongoing chaos, panic and uncertainty surrounding the current debt crisis in Europe has been having a knock-on effect on the cost of mortgages. LIBOR, the London Inter-Bank Offered Rate at which banks lend money to each other, has been [...]

A virgin chained to a rock

Pete Gettins — Thu, 17 Nov 2011 13:06:27 +0000

Richard Branson has a name for securing a very good price for himself and on the face of it, he’s got another good deal with Virgin Money’s acquisition of Northern Rock which was announced today. Virgin Money is paying under £750m and leaving the taxpayer on the hook for a possible loss of £650m since [...]

Credit agency offers seven tips to help you get your first mortgage

James Cotton — Thu, 17 Nov 2011 09:21:14 +0000

Times are still tough for first time buyers and getting a mortgage is often the hardest part of getting on the property ladder. There’s been some good news recently with big lenders like Woolwich and Nationwide relaunching 90% LTV (Loan To Value) mortgage deals for new customers, but a 10% deposit still requires a big [...]

What the papers say 12-13th November 2011

Lisa Parker — Tue, 15 Nov 2011 17:01:06 +0000

What the papers say- 12th and 13th November 2011 The Financial Times and Sunday Times reports that 2 lenders have increased their SVR (standard variable rates) without the Bank of England base rate changing and discuss the possibility of other less well capitalised banks following suit. The Sunday Telegraph and The Times attention is drawn [...]

No movement from the MPC, but plenty elsewhere

Pete Gettins — Mon, 14 Nov 2011 09:22:26 +0000

The Bank of England announced no change to either base rate or the asset purchase scheme at their November meeting, to nobody’s surprise. Having just announced an unexpectedly large round of quantitative easing last month (which will take four months to carry out ), it’s unlikely we’ll see any further move before February 2012 – [...]

What the papers say- 5th and 6th November 2011

Lisa Parker — Mon, 07 Nov 2011 16:56:30 +0000

The Bank of Mum and Dad is still a necessity for many First Time Buyers, and the Telegraph reported this weekend on the number of mortgage deals which now allow parents to use equity in their own home rather than having to find money for a deposit. Experts suggested that these types of deal would [...]

Standard Variable Rates are just that…variable!

David Hollingworth — Mon, 31 Oct 2011 19:05:00 +0000

Two lenders in the Lloyds Banking Group stable are increasing the standard variable rate (SVR) charged to its mortgage borrowers. From tomorrow the Bank of Scotland and The Mortgage Business will increase the SVR charged to existing mortgage borrowers from 4.84% to 4.95%. Bank of Scotland and TMB no longer lend so it is those [...]

What the papers say- 29th and 30th October 2011

Lisa Parker — Mon, 31 Oct 2011 17:06:22 +0000

Recent research from the Council of Mortgage Lenders shows that around 1.8 million borrowers are currently sticking with low Standard Variable Rates, but with fears of a second credit crunch looming, experts in this weekend’s financial press urged homeowners to consider securing a mortgage deal while they still can. The Telegraph reported that the average [...]

Coventry launches new mortgage deals with no early redemption charges

JaneHarrison — Thu, 27 Oct 2011 11:56:09 +0000

Coventry Building Society, the UK’s third largest building society, has just launched a new range of capped and fixed rate mortgage deals that have no Early Repayment Charges (ERCs) within the capped or fixed rate period. This range of products is ideal for borrowers who are either looking for the security of a fixed rate [...]

What the papers say- 22nd and 23rd October 2011

Lisa Parker — Tue, 25 Oct 2011 18:52:14 +0000

Housing Minister Grant Schapps has been criticised recently for encouraging mortgage lenders to offer longer term fixed rates of up to 30 years in order to give borrowers more security, and experts in this weekend’s financial press continued the discussion. Brokers pointed out that longer term rates are far too inflexible as they lock borrowers [...]

What the papers say- 19th October 2011

Lisa Parker — Fri, 21 Oct 2011 15:34:58 +0000

With poor rates available for savers both the Daily Mail and Daily Express encourage borrowers to explore whether their savings will give a better return if they are used to offset their mortgage debt. They highlight how an offset mortgage works and how rates on offset mortgages, that used to charge a premium for this [...]

Another push for long term fixed mortgages

James Cotton — Fri, 21 Oct 2011 08:38:12 +0000

You could be forgiven for feeling a sense of déjà vu on hearing that Grant Shapps, the Housing Minister, is calling on lenders to provide more long term fixed rate mortgages of up to 30 years. This was originally put forward by the Miles Review during Gordon Brown’s tenure as Chancellor, in a bid to [...]

Bank of England says economic woes may mean higher mortgage rates

James Cotton — Wed, 19 Oct 2011 11:47:13 +0000

After the release today of the Bank of England’s latest Monetary Policy Committee (MPC) minutes, you’ll probably see many scary headlines saying the Bank of England considered even more Quantative Easing (QE, aka printing money) than the £75 billion voted for. £100 billion in fact. Let’s balance that by pointing out that they also considered [...]

What the papers say – 15th-16th October 2011

Lisa Parker — Tue, 18 Oct 2011 09:10:41 +0000

With 319 different offset schemes now available both the Financial Times and Independent encourage borrowers to explore whether their savings will give a better return if they are used to offset their mortgage debt. As the Sunday Times indicates the housing market recovery has stalled although some lenders are launching new products to try and [...]

Fewer vendors put their homes up for sale in September

JaneHarrison — Wed, 12 Oct 2011 08:40:21 +0000

The RICS (Royal Institute of Chartered Surveyors) UK Housing Market survey for September revealed a fall in the number of new homes being put up for sale during the month as a result of the uncertain economic outlook. 5% more surveyors than the previous month reported that the supply of property fell rather than rose. [...]

What the papers say- 8th and 9th October 2011

Lisa Parker — Mon, 10 Oct 2011 16:28:42 +0000

With the launch of the first 2 year fixed rate under 2%, experts in this weekend’s financial press were keen to warn borrowers that they need to lock in now before lenders start to push rates back up over the coming weeks. The Financial Times , Sunday Telegraph and Sunday Times also highlighted the importance [...]

L&C scoops life insurance award at the Cover Excellence Awards

James Cotton — Fri, 07 Oct 2011 16:31:23 +0000

We’re delighted to have picked up a new life insurance award last night at the Cover Excellence Awards in London where L&C was named Protection Intermediary of the Year. The annual awards, hosted by Cover Magazine, aim to reward the achievements of those in the health and life insurance industry. This is the first time [...]

House prices fall in September, but property and mortgage affordability is improving

James Cotton — Thu, 06 Oct 2011 14:23:09 +0000

UK house prices fell by 0.5% in September according Halifax’s latest monthly house price index, taking the average house price to £161,132. Prices for the third quarter (July to September) were up 01% on the previous quarter – the first quarterly rise since the beginning of 2010 and on an annual basis, house prices are [...]

What the papers say- 1st and 2nd October 2011

Lisa Parker — Tue, 04 Oct 2011 09:44:56 +0000

This weekend’s financial press brought hope for First Time Buyers, with the Mail on Sunday, Telegraph and Independent on Sunday all reporting on lower rates for those with small deposits. Lenders including the Cambridge Building Society, the Post Office and Aldermore all have options above 90% loan-to value, although brokers warned that securing a loan [...]

Building Societies report growth in mortgage lending

David Hollingworth — Fri, 30 Sep 2011 15:32:33 +0000

The Building Societies Association (BSA) has reported encouraging lending figures for August. Mortgage approvals lifted by 10% on July this year and were up 17% compared with August 2010. Gross mortgage lending reached an 11 month high in August lifting to £2.1bn and marked an increase of 8% on the figures for August 2010. [...]

Mortgage? It all depends on your score

David Hollingworth — Fri, 30 Sep 2011 15:12:59 +0000

The mortgage lender Kensington recently conducted a survey of brokers to establish where they felt problems arise when placing a large mortgage case. The results showed that the single biggest factor is lenders applying tighter credit scores to that type of borrower. So what is a credit score and what’s the impact? It stands to [...]

Overpaying your mortgage while rates are low could reap rewards

James Cotton — Fri, 30 Sep 2011 09:11:07 +0000

Thousands of borrowers have been enjoying low mortgage repayments whilst the Bank of England base rate has been at 0.5% for a record 30 months. It is of course tempting to enjoy the extra cash – whether it’s to absorb other rising costs such as petrol and utilities, or to spend on more exciting things. [...]

On your lender’s SVR? Make sure you review your mortgage

James Cotton — Fri, 30 Sep 2011 09:04:02 +0000

Whilst the Bank of England Base Rate has been at 0.5% for 30 months, not all mortgage rates are as mouth-wateringly low. Many lenders’ Standard Variable Rates (SVRs) are now between 4% and 6% – well above the current crop of best buy deals, meaning you could save a lot by remortgaging. If you are [...]