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UK mortgage applications hit five month high

Approvals for house purchases have hit a five-month high in June as the Uk housing market starts to recover from a weak start to the year according to figures by the bank of England on Monday.

In June 65,519 Mortgages were approved which is the highest level since January 2018 and up from 64,684 in May.

These figures are one of the last economic indicators published before the Bank of England’s monetary policy committee (MPC) meets on Thursday. The MPC is expected to raise interest rates by 0.25 percentage points at the meeting.

The recovery in mortgage lending during 2018 have previously been driven by remortgaging rather than house purchase prices, but in June we saw that change with the approval for remortgages falling from 51,669 to 47,895.

Looking at these two figures together the amount of mortgage approvals in June fell slightly from 129,753 to 128,118 even though house purchase approvals rose, this is down to the fact that remortgages went down slightly.

Looking at other lending. Consumer credit growth continued at the same rate as the previous month. The amount borrowed on credit cards rose by £600m and other loans increased by £1bn this means that lending has increased by 8.8% in the last year.

Members of the MPC have pointed to the consumers readiness to borrow as a justification for an increase to interest rates.

Thursday should bring further information.

For further information in relation to this article: https://www.ft.com/content/eb430a46-93d5-11e8-b747-fb1e803ee64e

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

If you would like to discuss this, or any anything else, contact our advisers today on 01202 937444 or visit our other websites to speak to a mortgage broker in Reading or a mortgage broker in Bournemouth

 

 

 

 

 

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A third of millennials face renting for their entire life

A recent report by the resolution foundation who aim to improve the standard of living for low and middle-income families said that 40% of millennials (born between 1980 and 1996) were living in rented accommodation by the age of 30. Which is twice as many as those born between 1965 and 1980.

The government has advised it is already putting policies in place to improve the housing market.

In order to help millennials, The Labour Party has already proposed a cap on rent increases, along with three-year tenancies and a licensing scheme for landlords.

The foundations report said that ‘generation rent’ needed much more help and it called for more affordable homes for first time buyers to be built. As well as better protection for those that rent. The report also stated that although renting is a reasonable choice for people who have few ties, the private rented sector is far less fit for purpose for those with children because of lack of security.

The amount of families privately renting has gone up by 600,000 compared to 15 years ago. Today, 1.8 million families with children are reported to rent privately.

You can read more about the findings from the resolution foundation here; https://www.resolutionfoundation.org/

If you would like to see if you can get on the property ladder call and speak to one of our advisers who can go through this with you, even if you cannot borrow at the moment they can send you away with a plan to make this more doable in the future.

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

If you would like to discuss this, or any anything else, contact our advisers today on 01202 937444 or visit our other websites to speak to a mortgage broker in Reading or a mortgage broker in Bournemouth

 

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New ‘Professionals only’ deal sees individuals borrowing up to 5.5 times their salary

This week we saw Clydesdale bank launched their new offering which now allows professionals to borrow up to 5.5 times their salary instead of the 4 times salary that most lenders offer.

There is however strict criteria in place for you to be able to apply for one of these mortgages. To start with you need to be earing at least £40,000 a year, and your job needs to be on the list that the bank has put together. An example of these jobs being. Accountants, architects, chartered surveyors, dentists, doctors, pilots and solicitors. However, in return people that fit in this criteria will only need to put down a 5% deposit. The interest rates start at 2.14% for 2, 3 and 5 year fixed rate deals.

In current years we have seen lenders loosening their belts on lending criteria however none have gone as far as Clydesdale, is this a sign of things to come, and will other lenders on the high street follow suit?

If you would like to discuss borrowing through us we can put you with the right lender for you with the deal that best suits your needs.

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

If you would like to discuss this, or any anything else, contact our advisers today on 01202 937444 or visit our other websites to speak to a mortgage broker in Reading or a mortgage broker in Bournemouth

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No change for a year on Flat and Maisonette Prices

According to the office for national statistics (ONS) millions of Flat owners have seen no growth at all in the value of their homes over the past year. This is the first time we have seen anything like this for six years.

One of the main contributing factors to this is that a quarter of the Uk’s Flats and maisonettes are in London which at the moment is seeing a fall in property prices.

However, in contrast house prices have actually risen by 3% this year, the ONS have advised this is the lowest increase since august 2013. We touched on this subject last week, the full article can be found here https://homelinemortgages.co.uk/mortgage-industry-news/uk-house-prices-growth-at-slowest-rate-for-5-years

Figures have shown a big difference between the north and the south with average property prices in London falling by 0.4% and prices in the east midlands rising by 6.3% and 5% in the West Midlands.

With changes like this, it’s a good time for people looking to buy…

If you would like to discuss this, or any anything else, contact our advisers today on 01202 937444 or visit our other websites to speak to a mortgage broker in Reading or a mortgage broker in Bournemouth

 

 

 

 

 

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Thinking of becoming a buy-to-let landlord?

There are many things to take into account when you become a buy-to -let landlord, we take a look at where are the most successful areas to buy.

According to existing buy-to-let landlords University cities offer the best yields, Data from Totally Money have revealed that Liverpool, Manchester, Middlesbrough, Newcastle and Edinburgh are top performers for landlords.

The Analysis which looked at over 580,000 properties also revealed that London was one of the worst areas, The North of London came out the worst with poor rental yields. Outside of London, Bournemouth’s BH14 and Crew’s CW12 areas were the worst performing.

Go Compare have recently launched a service which allows you to see which UK city is best to be a landlord this can be accessed at – https://www.gocompare.com/new-interactives-content/best-cities-for-landlords/#/

Please be aware that by clicking on to external links you are leaving the Homelinewebsite. Please note that Homeline are not responsible for the accuracy of the information contained within the linked site(s) accessible from this page.

Go compare look at other factors as well as yield, average property price, population under 35, number of properties available and rental price growth. This site can help indication as to which location would give you the best return.

If you would like to discuss this, or any anything else, contact our advisers today on 01202 937444 or visit our other websites to speak to a mortgage broker in Reading or a mortgage broker in Bournemouth

 

 

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