House sales increasing

House sales have increased despite gloomy fortellings by much of the media. Property transactions rose by 11% in the last month according to the latest survey of property transactions from HM Revenue and Customs. House sales in England and Wales rose from 146,000 in April to 157,000 in May. This compares with last years totals of 148,000 in May. Overall, the number of properties changing hands is up 11% in the last three months compared with the same period last year.

Jerome Thompson from Reef explained " The figures should be treated with some caution because there is no doubt that the expected introduction of Home Information Packs in June caused a rush of sellers trying to beat the deadline. An added factor is the expectation of interest rate rises which may have driven some buyers to sort their mortgages before further increases by the Bank of England."

www.you-can-remortgage.co.uk

Tony Blair's legacy : Housing price boom ?

During Tony Blair's prime ministership, house prices have risen from an average of £68,000 in May 1997, to £197,000 today, leaving the typical home buyer having to borrow £125,000. This compares with average borrowing of £47,000 when TB took office.
Average interest rates in the last ten years stand at 5.9% compared to 8.8% in the previous decade.

How have you been affected by the last ten years? TELL US YOUR STORY.
Jerome Thompson http://www.you-can-remortgage.co.uk/

No deposit mortgages

Increasing house prices mean that nearly half of first time buyers have insuficient savings for a deposit to buy a property.

Council of Mortgage lenders figures show that first-time buyers accounted for nearly 45% of all purchases 10 years ago but fell to 36% last year. The figures reveal that it has never been harder for first-time buyers to place that first foot on the property ladder, with average house prices at £179,935 in England and Wales.

Unable to borrow enough using the traditional three times income multiple, borrowers are turning to brokers to source funds from more imaginitive lenders. A few Lenders have responded by introducing 100% mortgages and in some cases a combination of a mortgage with an unsecured loan at up to 125% of the property value. Income multiples have also increased with up to 5 times single or joint income available. Other lenders have introduced lending which also takes into account parents income.

Sam Cook from WFM explained "If you are renting or if you want to be a first- time buyer, you should talk to an independent mortgage broker. They can explain all of the costs involved in buying your first home and establish if buying is an affordable alternative to renting. We provide a fee free consultation to see whether buying is possible."

Jerome Thompson www.you-can-mortgage www.you-can-remortgage

Rents rising.

The supply of rented properties could not keep up with demand in May according to the latest figures from ARLA.
Rents rose for the forth quarter for each type of property. Periods where properties lie unoccupied have fallen to an average of 24 days.

Why RENT when you could BUY?

For advice on 100% mortgages and buying without a deposit go to www.you-can-mortgage.co.uk

Reef Financial Services

Open Market Homebuy schemes more popular

The Governments Open Market Homebuy Scheme (omhs) is increasing in popularity after a slow start.
The scheme was introduced in October to help public sector key workers and other eligible individuals purchase a home that would previously have been unafordable. It works by providing two equity loans , each worth about 12.5% of the property value to run alongside a mortgage of 75% of the property value. No interest is charged on the equity loans.
The average purchase price of properties bought through the scheme is around £160,000 with a mortgage of £120,000.
For further information on the scheme, log on to www.housingcorp.gov.uk
Jerome Thompson www.you-can-mortgage.co.uk

Remortgages used to clear debts

Clearing debts incurred on credit cards, car loans and home improvements account for nearly two thirds of all remortgage enquiries according to Reef Financial Services.

Reef spokesman Jerome Thompson explained " We are contacted by many people who have stretched their financial resources to the limit. Unfortunately not all lenders will conduct a proper fact find into affordabilityand as a result, if any hicup in income occurs it can lead to dificulties. Anyone considering borrowing should ensure that their adviser or lender has explained the full cost of borrowing, that it is affordable, taking into account possible interest rate rises and that they are protected in the event of unforseen events like unemployment or sickness. Adding short term loans to a mortgage is not always the most cost effective or advisable solution and a reputable broker will consider all the options for their clients."

Reef Financial Services www.you-can-remortgage.co.uk

House price growth

House price inflation for May hit 10.3 % pa according to the Nationwide House price Index.
The last rise in interest rates and the financial market expectation of at least one more is likely to dampen demand on housing and expectations of further house price growth during the rest of 2007.
Jerome Thompson www.you-can-remortgage.co.uk

Landlords unaware of Tenant deposit laws

The government introduced a Tenant Deposit Scheme in April to protect tenants deposit and provide an arbitration process to resolve problems beteween landlords and tenants. Under the scheme landlords are legally obligated to join a scheme nominated by the government.

Recent surveys showed that just 24% of landlords knew about the scheme and understood its details.

For further information go to www.direct.gov.uk/en/TenancyDeposit/

Jerome Thompson www.you-can-remortgage.co.uk