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INCREASE IN THE AVAILABILITY OF MORTGAGES
2nd Dec 2009
James Edwards, Managing Director of Town & Country Property Services comments on a recent “Trends in Lending” report by the Bank of England and the Monetary Policy Committee’s decision to maintain the bank base rate at half of one per cent.
“This is now the eighth consecutive month that the bank base rate has continued to stay at half of one percent and was fully anticipated by the market. The MPC have already effectively pumped £175bn into the UK economy to help it emerge from recession but the decision to provide a further £25bn suggests that this was necessary to kick start the economy further.
A recent report by the Bank of England on “Trends in Lending” commented that mortgage lenders expect an increase in the availability of mortgages in the last quarter of 2009 and we have seen some evidence of this emerge during the last month or so. The number of mortgage deals typically available to brokers by the beginning of November had risen every week for nine weeks, to the point where now there are approximately 2,600 products available. Although these are modest numbers in comparison to twelve months ago they do represent more than a 20% increase.
There has been some real competition emerging amongst the major lenders with almost weekly price adjustments being announced and these have almost all been reductions in rates. Several months ago the very best deals were largely for those borrowers requiring less than 60% of a properties purchase price or value, whereas with this element of competition there are now some very attractive rates at up to 70% and 75%.
Expectations are that the current 0.5% base rate looks set to stay static for some considerable time possibly until 2011 and only increase to 2% by 2012. This is reflected in recent mortgage borrowers’ preference for an increase in the proportion of variable rate mortgage deals being arranged in the market. Last month we witnessed a significant reduction in the demand for fixed rates with around 55% of all mortgages arranged during October being fixed deals, down from almost 70% the previous month. This would appear to suggest that customers feel more confident that the low interest rates are likely to persist and is supported by a pickup in demand from first time buyers - the historic lifeblood of the housing market.” -
MAB Comment On Latest Base Rate Decision
4th Aug 2009
MORTGAGE ADVICE BUREAU COMMENTS ON LATEST BASE RATE DECISION
James Edwards, from Mortgage Advice Bureau comments on the Bank of England’s decision to hold the base rate at 0.5%.
“The Monetary Policy Committee’s decision to hold the base rate this month is not a surprising one. In recent months, the cost of borrowing has all but lost any linkage to the Bank Base Rate and any further cut is largely unnecessary as far as many borrowers are concerned, except those who have base rate tracker mortgages without a minimum rate.
“It would appear that the MPC has this month paused for breath after six consecutive monthly reductions. Following on from these cuts to the base rate and the ongoing injection of funds into the system, the MPC has decided to take a step back and see whether these attempts to kick start the market have had an effect.
“Low interest rates are good news for borrowers, but bad for savers, and a consequence of fewer people being attracted to save is that there are fewer funds available to lend out in the form of mortgages. Therefore, the situation as it stands is about the availability of money, and the capacity for lenders to be able to lend. We have now reached a point in the cycle where the MPC are employing alternative tactics and are taking a step back in order to analyse the effects of previous actions. This month’s decision is a welcome one and we wait with bated breath to see what the longer term outcome will be, however the first tentative signs have been encouraging.”
James Edwards heads the Mortgage Advice Bureau based in Town & Country's branches accross Worcestershire. To make a no obligation appointment to see how the latest base rate decision affects you please call any of our branches or our head office on 01905 610710. To listen to a podcast from our industry expert visit http://www.mortgageadvicebureau.com/townandcountry and click on MAB-TV on the home page.
Your home may be repossessed if you do not keep up repayments on your mortgage.
A fee of up to 1% of the mortgage amount may be charged depending on individual circumstances. A typical fee is £95.
Notes to Editors:
Mortgage Advice Bureau was established in 1995 and is headquartered in Derby. The company now has the largest broker operation of its kind, stretching from Newcastle to Exeter, with over 400 branches nationwide.
MAB 3386 -
Reliable Independent Mortgage Advice
4th Aug 2009
Town & Country are delighted to announce that they have joined forces with Mortgage Advice Bureau, one of the UK’s leading independent mortgage brokers with over 500 offices nationwide.
Managing Director, James Edwards is delighted that they can now offer a completely independent mortgage service to their clients. Their new financial adviser Richard Hollowood is able to service existing customers of Town & Country as well as potential new customers looking to move home, re-mortgage to reduce their monthly outgoings or to get onto the property ladder for the first time. You may have to pay an early repayment charge to your existing lender if you remortgage.
The mortgage and housing market and general economy is experiencing a tough time, and James comments, “In this turbulent time it is more important than ever that people seek independent and impartial advice. Despite current market conditions, Richard will be able to access thousands of mortgage products including exclusive deals, many of which are not available directly from lenders, and this equips us to meet most of our clients’ requirements.
Mortgage Advice Bureau offers advice on mortgages from the whole of the market together with protection products from a choice of insurers, giving customers’ peace of mind, but equally importantly making sure they are able to keep their home should the unexpected happen. Protection products available include unemployment cover, critical illness cover, income protection, mortgage payment protection and buildings and/or contents insurance.
Richard comments, “Good customer service is paramount. I will conduct every mortgage as if it were my own and offer a premier service, ascertaining needs and making recommendations as to what is the most suitable product. I arrange all the paperwork, manage the application and liaise with the lender throughout to make the process as smooth and stress free as possible and look forward to giving excellent professional advice to Town & Country’s customers.”
To make a no-obligation appointment, call Town & Country on 01905 610710 or visit their website http://www.mortgageadvicebureau.com/townandcountry for more information and details of our latest best mortgage deals.
Your home make be repossessed if you do not keep up repayments on your mortgage.
A fee of up to 1% of the mortgage amount may be charged depending on individual circumstances. A typical fee is £95. -
Surprise mortgage approvals jump
4th Aug 2009
Mortgage approvals for house purchases in Britain rose more than expected in February, according to official figures from the Bank of England.
There were 38,000 approvals in the month, up from 32,000 in January.
There was also the biggest net repayment of consumer debt since records began in April 1993.
Consumers repaid £245m worth of credit more than they took out in February, having taken on an extra £165m of credit in January. -
Rise in mortgage approvals
4th Aug 2009
Mortgage approvals signal change
A rise in mortgage approvals by the major banks for the third month in a row has brought some cheer to the housing market.
The British Bankers' Association (BBA) said that there were 28,179 mortgages approved for house purchases in February, up from 24,278 in January.
But the figure was still 31% lower than a year earlier.
The figures come as cheaper mortgage repayments have pushed down one measure of UK inflation.
The BBA said that the greater market share of mortgage lending by the major banks was a key reason for the growing approvals figure.
"Most new mortgage lending is being done by the High Street banks, but demand is, of course, being moderated by the impacts of the recession," said BBA statistics director, David Dooks.
Key figures
The figures show that gross mortgage lending by the major banks rose to £3.9bn in February, up from £3.4bn in January and a 9.8% annual rise.
Mortgage repayments have become much cheaper for many as interest rates have fallen with the Bank of England bank rate currently standing at 0.5%.
"The increase in buyer enquiries... is now feeding through into actual transactions," said Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors (Rics).
"BBA figures demonstrate that mortgage approvals have risen for three consecutive months.
"Even so, the actual level of activity still remains not that far away from historic lows and it would be premature to conclude that some semblance of order has returned to the housing market." -
Report Shows Some Signs Of Levelling Out But Consumers Still Lack Confidence In The Market
4th Aug 2009
Member of the National Association of Estate Agents (NAEA) reported that the current market is levelling out; however there are still signs of uncertainty. July’s figures clearly show that there is still a lack of consumer confidence, with less people entering the market.
There was however, stability reported in the number of sales agreed, number of viewings before a sale is secured, the time between instruction and the sale and percentage of agreed sales that have fallen through.
Chris Brown, president of the NAEA, comments: “The figures reported by agents in July show that there is still an indication of stability in the market, however consumers continue to adopt a ‘wait and see’ approach in the hope that there will be an improvement in the market.
“Consumers are feeling anxious and have every right to be with the Government’s inability to reassure the market, especially over the issue of Stamp Duty. Decisive action in this area is needed as we are concerned that the anticipation of the suspension of stamp duty may halt the transactions in the housing market even further.”
House hunters still lack confidence
The number of house hunters has dropped considerably in July with an average of 192 on agents books compared to 226 the month before. There could be a number of reasons for this reduction in numbers. This figure can be in part attributed to the holiday season, however it also continues to indicate that consumers have lost confidence and are adopting a ‘wait and see’ attitude with the hope of seeing an improved market in the near future. We are also concerned that the recent Stamp Duty comments will cause a further hiatus in the market.
Housing stock increases slightly
The number of properties on agents books in July increased by a fraction up to 95 from 94 in June. However, there is a dramatic difference shown from the year before where the figure stood at 45, indicating that people do want to sell but that houses are remaining on estate agents’ books for longer.
Sales per agent remain stable
Sales have remained the same this month at 6 sales per agent. This is still down from the same time last year where an average of 10 sales was recorded. However, the stability of this figure shows that there are still sales being made even in a traditionally quiet time of the year, which is positive.
First time buyers feel the pressure
June’s figures report that the percentage of first time buyers is down to 10.7%. Again this could reflect the star to of the holiday season. However, it is evident that first time buyer’s confidence has been fluctuating dramatically over the last year and whilst some continue to be willing to dip their toe into the water others will need greater enticement to get on the ladder. -
NAEA Poll Shows The Adverse Effect The Delayed Decision Regarding Stamp Duty Is Having On The Property Market
13th Aug 2008
A survey of members conducted by the National Association of Estate Agents (NAEA), has produced one of the largest responses from estate agents with over 1350 replies demonstrating what a contentious issue the recent stamp duty 'announcement' is and the effect it has had on the property market.
Alarmingly, just a week since the announcement the results indicate that 25% of agents now claim that a sale has fallen through as a direct result of the Chancellors comments. Whilst a staggering 92% of agents believe the Chancellors remarks have increased consumers concerns.
Over the past four days members were asked a series of questions relating to the recent speculation that the Chancellor may grant a stamp duty holiday in Autumn. The results clearly demonstrate agent’s strong feelings on how this situation has been handled and the impact this has had on the market to date.
Peter Bolton King, Chief Executive of the NAEA comments: “Instead of the Government formulating a careful plan outlining their thoughts clearly and concisely with a clear time frame in mind, this comment was simply made off-the-cuff. This is not particularly helpful in the current climate. It seems that there had been little regard to how this speculative comment might impact on what is already a delicate market. These figures clearly show the effect that this ‘loose’ statement has had on consumers and the property market as a whole, none of which are encouraging.”
The NAEA then went on to ask members ‘have any applicants asked whether they should buy now or wait to see what the Chancellor says in the Autumn Pre-Budget Statement’. 75% of respondents stated ‘yes’ whilst only 25% of agents said ‘no’.
A further question then asked ‘have any current purchasers asked whether they should buy now or wait and see to what the Chancellor says in the Autumn Pre-Budget Statement’. A worrying 62% of respondents answered ‘yes’ whilst only 38% of agents said ‘no’.
Peter continues: “I understandably have been taking a plethora of concerned calls from members, some of whom are already starting to feel the impact this comment has had on ready and waiting purchasers. The result being people who have already agreed to purchase a property are now asking what they should do. Consumers are confused and with this uncertainty transactions in the market have been and will continue to slow down. From past experience we know that announcements concerning future changes can have a dramatic effect on the entire market and can cause huge distortions. Already, consumers are adopting a wait and see attitude but the worry is how long will it last?”
Finally, when the respondents were questioned whether they think the Chancellor should wait until the Autumn Statement before making any further comment about helping the market a resounding 92% answered ‘no’ whilst a meagre 8% of agents said ‘yes’.
Peter concludes: “Whilst a stamp duty holiday, if immediately put into place, will of course help ease the woes of consumers temporarily, we continue to appeal to the Treasury to carry out a complete overhaul of stamp duty and put in place a complete package of measures. Consumers need reassurance and whilst a stamp duty holiday will help alleviate some financial pressures they are currently experiencing it will not help propel a resurgence in the market place in the long term. There are many factors facing the property market that need care and attention to help alleviate the problems consumers currently face, for example; liquidity, deposits needed for first time buyers and repossessions. The Government needs to turn its attention to all these factors not just one at a time.
“Clear and immediate decisions in this area need to be made. Sometime in Autumn is not good enough! The Government need to clear up this uncertainty as soon as possible to help minimise the disruption to the market place and help the British economy move forward. We would welcome the opportunity to meet with the Treasury to try and help overcome this problem.” -
Property Market Stable - Consumer Confidence Low
27th May 2008
Members of the National Association of Estate Agents (NAEA) reported that the picture is still very regional but elements of the market are stabilising. Members reported stability in the sales agreed, the number of viewings before a sale is secured and the average difference between asking and sales price.
Chris Brown, President of the NAEA, comments: “The figures from the April report suggest that the market is stable, however, consumer confidence is still dented. Properties supply is good but buyers are being cautious. It is apparent from the survey results that some people are adopting a ‘wait and see attitude’, watching the market, before making any decisions. Many, especially first time buyers, will be feeling the results of the credit crunch and tighter lending leading to them being unable to move onto the ladder or up the chain. Some agents are also finding it difficult to stop sales falling through as people get ‘cold feet’ or fail to secure mortgages but we must remember that this happens in the best of markets.
“However, what people need to remember is that the market is stable and we are not seeing massive price drops. There are still strong economic factors at play, such as high employment and low interest rates and sales are still taking place. Moreover, people need places to live and property purchase remains a good long term investment.”
Market stability
Number of viewings before a sale is secured remained stable at 14. This is indicative of buyers remaining cautious but still committed and is only up by two viewings on the same time last year. The average difference between asking and sales price remained at 4.7%, showing that although there is still a dislocation in this area sellers may be being more realistic.
House hunters on agents’ books decline
The number of buyers on agents’ books has dropped slightly. NAEA members reported an average of 237 house buyers on estate agents’ books in April compared to 249 in March 2008.
The drop in interest could be attributed to the current market conditions, including the effects of the credit crunch and difficulties in obtaining a mortgage. These factors are making consumers more cautious and hesitant to buy as there has been indication from sources that the market might improve.
Stock levels increase
The number of properties for sale on agents’ books increased this month as NAEA members reported that an average of 84 properties were available in April in comparison to 76 the month before. This indicates a shortage of buyers but could also be a result of a seasonal increase in instructions at this time of they year.
Stable sales for agents’
NAEA members have reported that they are still selling homes, with an average of 7 sales. This remains consistent with March’s figure and the sales figures have remained relatively stable since January this year.
First time buyers remain hesitant
It hasn’t been an easy time for first time buyers over the last couple of months, and it is no better this month, as agent’s reported a drop from 8.3% in March to 7.7% in April. The credit crunch and squeeze on mortgage approvals has affected the confidence of first time buyers in the property market. It has become more difficult for the first time buyer to secure a mortgage and this may be having an effect on the number of buyers from this category. -
TOWN & COUNTRY EXPANDS
2nd May 2008
Town & Country is delighted to announce a new chapter in its history with its merger with Nigel Poole & McGinn on Friday 2 May 2008. The move greatly increases the size of the Town & Country Group, bringing 7 additional regional offices and resulting in offices in 9 locations across Worcestershire and the Warwickshire borders as well as a presence on Park Lane, London. The new Firm, Town & Country Poole & McGinn, will employ around 100 people across the region and carries in excess of 800 residential sales properties as well as over 500 properties under management.
The Firm will be headed by James Edwards and Jeremy McGinn who together bring over 30 years of agency and 10 years of commercial experience. “The enlargement of the business will enable us to offer a greater spread of services across the region, we will provide a superb office network and great opportunities for our clients and staff. The message for our clients is that it is very much business as usual, the quality personal service that has always been the hallmark of both businesses will remain unchanged” says James Edwards, Managing Director of the new Firm.
“The merging of the Town & Country and Nigel Poole & McGinn is a match made in heaven,” says Jeremy McGinn, Operations Director. “The two businesses have very similar cultures which place an emphasis on clients and staff; an offering that puts us at the top of the regional marketplace.” -
Property Boom or Bust - I don't think so...
1st Mar 2008
This week saw the Halifax adding fuel to the current media hysteria over the apparent decline in the property market. According to the lender's Chief Economist, house prices fell by 0.3% in February.
However, this was regarded by some as excellent news when compared with this week's revelations from the Nationwide Building Society who reported that in February, prices had fallen for the fourth month in a row. Moreover they said that the pace of decline was speeding up, because prices in the three months to February had been 1% lower than in the previous three.
The average house price in the UK is now around £197,000, which means that if prices fell by 0.3% the average homeowner technically just lost over £500.
So, is it time to sell-up, hide your money under the mattress and wait for prices to drop like a stone? No, the reality is that behind the headlines and the media hype are some very strong messages about the stability of the UK market and the underlying strength of the economy.
When Estate Agents market a house, they are not valuing it at a price perfect point in the same way that a supermarket values a tin of baked beans. Indeed, a good Agent is obliged to deliver their client the best possible return for their property taking into account their needs.
When selling a property a vendor can traditionally expect offers within 5% of the asking price without undue concern. Based on the average house price this could be as much as £10,000 below the asking price. How can anyone so categorically and accurately claim that prices have fallen by £500?
If the media continue to talk-up the declining market, then vendors will start to snatch any offer and Estate Agents will lose the confidence to fight to achieve the best returns for their clients. The housing crash becomes a self-fulfilling prophecy.
The Worcestershire housing market is awash with Estate Agents and houses are selling. People are moving and if you listen to the unprinted quotes from the leading lenders the message is clear: whilst the housing market has slowed over the past six months, it is supported by sound economic fundamentals. Interest rate cuts by the Bank of England are helping to underpin house prices and we can expect more of these.
The housing market has two very clear needs. Firstly, first time buyers need a way into the market. The prudence of the big lenders in favour of profits, whilst the Government turn a blind eye is unhelpful. Secondly, the cost of moving is becoming excessive as the current Labour Government capitalise on house price increases through the penal Stamp Duty regime.
It is time for the Government to step-in and help first time buyers, cut the tax on moving and for the public to have confidence that their biggest asset is, and always will be, their best asset.
