London & Country Mortgages blogLondon & Country Mortgages blog

Home sales reach highest level in three years

James Cotton — Fri, 14 Jun 2013 09:48:37 +0000

The amount of homes sold in the UK over the past three months reached its highest level since January 2010 according to the latest housing market survey from RICS, the Royal Institute of Chartered Surveyors. The survey which polls RICS own member surveyors says that sales are expected to rise over the next three months [...]

Have fixed rates hit rock bottom?

Pete Gettins — Wed, 12 Jun 2013 15:04:53 +0000

It’s been a long time since swap rates – money market rates that influence the cost of mortgages – have been worth talking about, but the last couple of weeks have seen 5-year rates jumping significantly. Only at the start of May 5-year money was comfortably below 1%, but are now knocking on 1.5%. They’ve [...]

Mortgage market on the up

David Hollingworth — Wed, 29 May 2013 14:06:46 +0000

The mortgage market is one that has been light on good news ever since the credit crisis hit, changing its face almost overnight. The tightening of criteria and tougher deposit requirements meant that there was little of cheer for those looking for a new mortgage. However there has been something of a turnaround in market [...]

What the papers say – 11th and 12th May 2013

Lisa Parker — Tue, 14 May 2013 16:18:38 +0000

The Financial Times reported this weekend on Government plans to make landlords responsible for checking tenants’ immigration status. Experts claimed that it was unacceptable to expect the property industry to deliver the Government’s immigration policy, and more rules imposed on landlords could only result in higher costs for tenants. The National Landlord Association already runs [...]

New house prices

Pete Gettins — Wed, 01 May 2013 12:15:55 +0000

Figures released by the Halifax today suggest that new build properties have increased in price by 12% in the last five years, now costing on average almost £234,000. In contrast Halifax’s house price index suggests the average overall price in January ’08 was £191,000 compared to £162,000 at the end of 2012 – a drop [...]

What the papers say – 13th and 14th April 2013

Lisa Parker — Tue, 16 Apr 2013 15:26:28 +0000

Both the Financial Times and the Sunday Times reported this weekend on recent figures from the Council of Mortgage Lenders, showing that the number of Buy-to-Let mortgages advanced during 2012 reached its highest in 4 years. Several lenders, including BM Solutions and the Nottingham Building Society, have cut rates in recent weeks, but experts warned [...]

Britons still ambitious to be homeowners

Robert Payne — Fri, 12 Apr 2013 15:37:27 +0000

Recent CML research shows the percentage of the adult population aspiring to own a home is nearing its lowest level in the last 30 years. Despite this, at 79%, it remains the aspiration of the vast majority. 18 – 25 year olds have shown the largest change in sentiment, with a reduction of 10% aspiring [...]

Benefit changes

Nicola Kingsley-Rowe — Fri, 12 Apr 2013 10:53:34 +0000

Various changes to the benefit system come into force this month, once again highlighting the danger of over reliance on the State as the safety net to provide for you and your family should you be unable to do so yourself. The first change to be rolled out from April 1 is a reduction in [...]

Green shoots

Pete Gettins — Tue, 09 Apr 2013 16:38:33 +0000

Spring might not be in the air but it seems the banks are feeling frisky if last week’s credit conditions survey is anything to go by. There was better mortgage availability in the first quarter of 2013, we’re told – though I’m never entirely sure whether “available” means there were more of them around, or [...]

What the papers say – 6th and 7th April 2013

Lisa Parker — Tue, 09 Apr 2013 15:36:53 +0000

With interest rates continuing to fall and lenders competing for the best-buy top spot, brokers reported in this weekend’s financial press that set up fees are on the increase again. Bigger arrangement fees are used to push down interest rates, and the Guardian and Sunday Express urged borrowers to take these into account when assessing [...]

House prices unchanged in march

David Hollingworth — Thu, 28 Mar 2013 18:49:44 +0000

The Nationwide House Price Index has indicated that UK house prices remained unchanged in March, taking into account seasonal adjustments. That puts the average house price at £164,630 and although there is no monthly change it does represent an annual increase of 0.8%, which is the first positive house price growth since February last year. [...]

Are mates mortgages an option?

David Hollingworth — Thu, 28 Mar 2013 16:12:59 +0000

Mates Mortgages has become a commonly used phrase particularly when the previous Housing Minister referred to them as a possible solution to some of the woes of aspiring first time buyers. The term sprang from the growing trend of borrowers clubbing together to pool their resources, both in terms of pulling together a larger deposit [...]

What the papers say – 23rd and 24th March 2013

Lisa Parker — Wed, 27 Mar 2013 09:58:29 +0000

Last week’s Budget announcement was at the heart of the weekend’s financial press, and mortgage news centred on the new Government ‘Help to Buy’ scheme. There are 2 parts to the initiative, the first of which launches next month and allows buyers of new build properties to take a 20% equity loan from the Government [...]

Budget 2013: New help to buy scheme – how it works

James Cotton — Thu, 21 Mar 2013 17:22:56 +0000

The big news for prospective homebuyers in this week’s budget was the launch of the new help to buy scheme. It is aimed at helping people buying their first home or move up the housing ladder – specifically those who are struggling to find a big enough deposit. There are two parts to the scheme [...]

Buying a protection policy online may have pitfalls

Nicola Kingsley-Rowe — Mon, 18 Mar 2013 15:47:06 +0000

A recent poll by The Protection Review showed that 62% of advisers have concerns about the emerging execution only protection market where clients select and buy their own life insurance on line. The availability of online policies is intended to make the protection market more accessible, allowing individuals to buy policies without advice and help bridge [...]

Falling mortgage rates help house sales hit two-and-a-half year high

James Cotton — Thu, 14 Mar 2013 12:29:11 +0000

House sales have hit a two-and-a-half year high according to new figures from the Royal Institute of Chartered Surveyors (RICS). In its latest House Market Survey, RICS said that February saw an uplift in house sales thanks to increasing market stability in recent months. It also said that improving access to mortgage deals, as a [...]

Borrowers locking into fixes as mortgage rates fall

James Cotton — Thu, 14 Mar 2013 11:43:36 +0000

New figures from the Bank of England highlight how mortgage rates have been improving in recent months as lenders have fought it out to offer best buy rates to borrowers. The figures show that the average two-year fixed rate mortgage (for someone borrowing 75% of the property value) available to borrowers in February was 2.87%, [...]

What the papers say – 9th and 10th March 2013

Lisa Parker — Tue, 12 Mar 2013 13:39:31 +0000

The plight of the First Time Buyer has been widely discussed over recent years, but this weekend’s financial press reported on the often overlooked problems experienced by ‘Second Steppers’ – those looking to take the next step up the property ladder. The Times and the Observer looked at the Lloyds Second Stepper Annual Review, which [...]

It could be you . . .

Pete Gettins — Tue, 05 Mar 2013 10:43:50 +0000

News that Bank of Ireland is spontaneously hiking rates for thousands of borrowers will undoubtedly cause consternation – not to mention outrage – to those affected. Especially since their mortgage rates are pegged to the (unchanged) Bank of England Base Rate. Whatever the rights and wrongs (ok, there probably aren’t many votes for “right” but [...]

Cancer patients struggle with bills

David Hollingworth — Thu, 28 Feb 2013 19:16:13 +0000

Recent research from cancer charity Macmillan Cancer Support has revealed that around 27,000 cancer patients could be behind with their fuel bills and owe their fuel providers almost £3million. The poll of cancer patients indicated that more than half were worried about the cost of heating their homes over the winter. As a result three [...]

Could base rate fall further?

David Hollingworth — Wed, 27 Feb 2013 16:13:27 +0000

The Bank of England Base Rate will have been at its current record low level of 0.50% for four years if the Monetary Policy Committee (MPC) elects to hold it next week as anticipated. Although the mortgage market has been difficult in recent years the low Base Rate has meant that some have been able [...]

Hello, Goodbye

Pete Gettins — Fri, 22 Feb 2013 14:12:45 +0000

Surely only the hardest of hearts will ever forget the trauma of New Year’s Eve 2011, when the peaceful village of Ambridge was rocked by the first squalls of new-born Henry, and the ungodly shriek of Nigel Pargetter plummeting to a presumably sticky end. Nor indeed are we likely to forget the outstanding gaffe of [...]

The cost of a child continues to climb

Nicola Kingsley-Rowe — Thu, 07 Feb 2013 17:37:28 +0000

The average cost of raising a child has risen to £222,458 according to research just published by life insurance company, LV=. The cost, which covers the period from birth to the age of 21, includes education, although not the cost of private school which would add a further £100k-£200k depending on whether the child boards. [...]

What the papers say – 2nd and 3rd February 2013

Lisa Parker — Tue, 05 Feb 2013 11:07:35 +0000

Record low interest rates were once again reported across the financial press this weekend, as HSBC dropped their 2 year fixed rate to a headline grabbing 1.98%, marginally undercutting lenders such as Chelsea and Yorkshire Building Societies who have released 1.99% deals in recent weeks. Experts in the Sunday Times urged borrowers to consider the [...]

A happy new year? It looks like it

Pete Gettins — Mon, 04 Feb 2013 13:25:51 +0000

Goodness me, has January gone already? How on earth did that happen? It’s been a busy few weeks, and your devoted product team are feeling a tad punch-drunk from the constant shifting in the market. So the month end seems like a good time to reflect on how 2013 started and what hints – if [...]

Mortgage Lending by Building Societies Rises

David Hollingworth — Fri, 01 Feb 2013 17:27:23 +0000

Building Societies have, like the rest of the mortgage market, gone through their share of ups and downs since the credit crisis hit. A number of long established Societies no longer exist as standalone brands, having been saved by or swallowed up by larger mutual Societies. However, many have managed to deal with the difficult [...]

Springboard to a new home?

David Hollingworth — Fri, 01 Feb 2013 09:19:00 +0000

Barclays is the latest lender to look at providing an innovative solution to the single biggest problem facing many first time buyers, a big deposit. As the mortgage market has tightened, lenders have pulled away from offering mortgages to those with small deposits and only a handful offer mortgages to those with just 5% to [...]

What the papers say – 19th and 20th January 2013

Lisa Parker — Mon, 21 Jan 2013 16:14:46 +0000

The financial press this weekend looked at alternative options for those borrowing groups who often struggle to secure a mortgage. First Time Buyers in particular have found it harder and harder in recent years to get on to the property ladder due to rising costs and stricter criteria, but the Sunday Times and Independent on [...]

Post G-day Life Insurance Pricing

Nicola Kingsley-Rowe — Mon, 14 Jan 2013 10:36:12 +0000

21st December 2012 has been and gone, and contrary to the Mayan calendar the world did not come to an end, unlike gender specific pricing for insurance, which has now been consigned to history. So what does this mean for the cost of life insurance cover going forward? On the whole, prices have increased, but [...]

What the papers say – 5th and 6th January 2013

Lisa Parker — Tue, 08 Jan 2013 11:55:53 +0000

This weekend’s financial press looked to the year ahead, with the Independent on Sunday and Financial Times providing tips on getting to grips with household finances. With some of the lowest ever interest rates launched at the end of last year, borrowers are urged to review their mortgage, or consider overpaying if remortgaging is not [...]

Is It Time To Overpay Your Mortgage?

David Hollingworth — Fri, 28 Dec 2012 17:51:14 +0000

Paying off the mortgage early is something that most borrowers would welcome especially as the mortgage is usually the single biggest outgoing. Recent research from the Council of Mortgage Lenders (CML) suggests that a growing number of borrowers are taking action to try and reduce their mortgage debt more rapidly. It found that around 2.3 [...]

Cost of Renting to Outstrip House Price Growth

David Hollingworth — Fri, 28 Dec 2012 16:08:40 +0000

The Royal Institution of Chartered Surveyors (RICS) recently published its housing market forecast for the coming year. They are not the only one and there are plenty of house price forecasts around at this time of year with many predicting a fairly flat market. RICS is a little more positive in suggesting that there could [...]

Moving the Goalposts

JaneHarrison — Wed, 19 Dec 2012 16:31:07 +0000

A short time after Mark Carney was announced as the replacement to Sir Mervyn King as the next governor of the Bank of England, Carney gave a speech suggesting he might like to move away from the 2% inflation target, and instead have the Bank focus on a GDP measure. Roughly coincident with that, October [...]

Life Insurance with Added Extras

Nicola Kingsley-Rowe — Fri, 14 Dec 2012 16:29:05 +0000

Life insurance is regularly purchased on the basis of which insurer can offer the cheapest rate for the cover required; after all, there is only one circumstance when the policy will pay out, which is the death of the policy holder. However, there are some extra features that can add real value to a life [...]

Another lender pulls out of interest only mortgages

James Cotton — Fri, 14 Dec 2012 16:27:39 +0000

Newcastle Building Society has become the latest lender to pull out of interest only mortgage lending. It announced today that from immediate effect, any new borrowing must be on a repayment (also known as capital and interest) basis, although existing interest only borrowers can continue as normal with their mortgages. The move followed similar decisions [...]

2013 to be a “more stable and positive year” for mortgages says CML

James Cotton — Wed, 12 Dec 2012 17:33:54 +0000

2013 is forecast to be a more “stable and positive year” for both the housing and mortgage markets according to the Council of Mortgage Lenders (CML). In its latest market update it said that lending to first time buyers and homemovers increased in October and it expects the recent improvements to continue into next year. [...]

Interest only mortgages on the endangered list

David Hollingworth — Fri, 30 Nov 2012 16:04:34 +0000

Interest only is an area that has felt the full brunt of the tightening in mortgage lending criteria in recent years. The Mortgage Market Review (MMR) made interest only one of its key areas of focus. Although the MMR does not preclude mortgage lenders from lending on an interest only basis, many have already tightened up [...]

Act now to beat G-Day price hikes

David Hollingworth — Thu, 29 Nov 2012 13:39:28 +0000

Many of us will have already heard about the Gender Directive in the press (or seen it on our website!) but how many of us have really sat up and taken notice. This European Directive will see the use of gender as a factor in setting insurance premiums prohibited. This will take effect from 21st [...]

Funding for Lending helps improve mortgage rates

David Hollingworth — Wed, 28 Nov 2012 12:05:38 +0000

Hardly a day goes by without a mortgage lender announcing an improvement to its mortgage rates. This increased level of competition has on occasion seen some 2 year fixed deals drop just below 2% and 5 year deals below 3%. This improvement in lender appetite has certainly been assisted by the Funding for Lending Scheme [...]

What the papers say – 24th and 25th November 2012

Lisa Parker — Tue, 27 Nov 2012 11:00:10 +0000

The Times and Financial Times both reported this weekend on new low rates available from lenders including Santander and the Co-Operative Bank. Recent cuts mean that some fixed rates are now available for less than the cost of a variable rate deal, which experts agree is highly unusual. What it does do is remove the [...]