Recent research by LSL Property Services PLC the owner of Capital Fortune’s mortgage network, Home Loan Partnership, suggest that 94% of UK tenants aspire to become a first time home buyer but more than half (54%) stating they would not be in a position to do so immediately. They would hope to be homeowners however, within the next five years. The Company found that only 7% of prospective buyers believed they could afford to purchase a new home in the next 12 months.
Following our announcement on the new Government Funding Scheme for Lending, we indicated our concern that it may be interpreted by Banks as simply New Funds for Lenders and that any funds obtained through the scheme need to be targeted at the market the Government sought to help – first time buyers.
In the last week, the Pound Sterling has risen against the Australian Dollar by 6.5%, prompting a number of British Expats down-under to look at reducing the cost of their UK expat mortgage by switching their mortgage lender to obtain a much better expat mortgage deal.
This Friday will see the latest possible date that someone will be forced to retire at the age of 65, after the current regulations associated with retirement will subside and could herald a new era for mortgages for over 65s.
An investigation is currently underway by the Financial Services Consumer Panel (FSCP) and is looking into whether interest only mortgages have been mis-sold. Following guidance from the FCA, many lenders have tightened criteria around interest only and mortgage holders now require some form of vehicle at the end of the mortgage term in order to repay the original loan.
In England alone, there are more than 200,000 properties that were bought as holiday lets or second homes. Beauty spots such as the Lakes, the Peak District, Wales and the Norfolk coast are very popular locations and some people choose to buy a holiday let abroad.
The Government’s NewBuy scheme has just celebrated 6 months in existence having been introduced in April this year. The Scheme looks to support a difficult housing market. Since its launch the scheme has proved a huge success, with a number of lenders now offering 95% mortgages requiring modest deposits from as low as 5%. The new homes mortgages are potentially available up to a maximum purchase price £500,000.
The Daily Mail online recently reported that two divorcing solicitors lost a fortune on legal fees, fighting over their £3.2m home. The former husband and wife returned to court recently following the expensive separation, this time to argue over maintenance payments.
It is recognised that there is a severe housing shortage of new homes nationally and this is particularly so in London and the South East. This has been compounded by the availability of credit for new build houses . As the UK population increases and more people head for the lager conurbations, the shortage of new build houses for town planners, local and national Government is a pressing problem.