One in three mortgages to expire after retirement age

It has recently been reported that more than one in three new mortgages being taken out today will extend beyond the borrower’s 65th birthday, the Council of Mortgage Lenders (CML) has said.

Extending mortgage terms and the older age at which buyers are now able to climb on to the property ladder mean that nearly 35% of new home loans are not expected to be redeemed until the borrower has passed the nominal retirement age of 65, the CML reported on its website. In light of the financial crash we must ask ourselves, is this sensible lending?

The articles goes on to say that in recent times, a growing proportion of mortgages extending beyond the age of 65 have been taken out by home movers, now accounting for around half the total. This is very concerning if borrowers do not have sufficient repayment vehicles to take care of outstanding mortgage balances following retirement. This situation also adds significant pressure on those over the age of 65 to continue working to ensure the mortgage repayments are being serviced if they do not have the funds to redeem it in full.

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Buy or Sell, Which Comes First?

Trying to sell your home at the same time as buying a new one can be a challenge that often seems impossible, as there are so many variables needed to make both processes perfectly align. Realistically, one will happen before the other. There aren’t many of us that are in a position to buy before we sell, but selling before you buy has many clear advantages.

Buying a new home can be a difficult time in itself, but naturally that process also has to run alongside selling your current home. For the majority of us, this means legal fees, stress and worry. Having to handle paperwork, research and deadlines for both processes around the same time can be eased by the structure of selling first.

Here at UK Home Buyers, we offer a proven and effective process to aid in quick house sale. Here’s a breakdown of the advantages of selling before you buy. Continue reading

Top Tips For Finding Schools in a New Area

One of the most important choices you will ever make for your child, as a parent, is school placement. We’re all aware that our experiences as children shape us as adults and as the majority of your children’s day is spent learning at school, finding the right fit is essential, but no easy feat. When moving house, finding a new school can present a whole other set of challenges, especially if your child’s current school is putting them on the right path towards lifelong learning.

Change is difficult when you’re a kid, but at the same time, we adapt best to challenging situations when we’re young. Though it might be a rocky road to start with, so long as you place your child in a place where they’ll continue on the right path, they’ll be settled in no time. Here’s a list of things to consider when moving, helpful especially when rushing through a quick house sale, along with top tips on how to get this difficult process right.

The Early Years

The quality of education is important throughout the entire timeline, but in the younger years, children are less reliant on independent study so the weight is fully rested on their school and you. When your child is young, their most familiar environment by far is the home environment, a loving space where they feel safe and supported. Going to school can be daunting for young children, as they’re removed from everything they’ve grown to know so far in life. This time should also be exciting, learning new things and responsibility, but if placed in the wrong school, this important experience can turn sour. Continue reading

Is the New Buy to Let Tax Unfair?

The Institute of Chartered Accountants [ICAWE] in England & Wales, has attacked the Chancellor’s controversial new tax on buy-to-let tax as “unfair and unreasonable”.

It suggests the new legislation is “unthought-through” and predicts it will lead to “extreme confusion”. It also suggests that some landlords will not be able to cope & will ultimately put them out of business, massively impacting the UK’s property market, distorting it and making life most difficult for first-time buyers.

The newly proposed tax has been included in the Finance Bill which currently progresses through parliament. It has been suggested that this new tax on rental income will be bought in between 2017 & 2020. The new regime will stop landlords offsetting their mortgage interest costs against the rental income before calculating the taxable profit.

George Osborne’s intention is to “create a more level playing field” between property investors and owner-occupiers who, as Mr Osborne said, do not enjoy tax relief on interest payments. Continue reading

Common pitfalls to look out for when selling to quick cash buyers.

Most people’s property is their most valuable and important asset. The UK Property Market is cluttered with corporate entities claiming to be cash buyers, offering quick sales in exchange for a reduction in the price of the property.

Whilst many of these companies are regulated by the Property Ombudsman and carry the relevant professional indemnity insurance, there are a number of companies who operate unscrupulously and will do anything to make money.

Buying anything fast for cash is a risky business in an uncertain market, like the property market in the UK today.

With uncertainty surrounding the future of the base rate and the economy as a whole, you have got to ask yourself what is in it for the cash buyer?

Various strategies exist in the market today;

– Buying and reselling immediately for profit
– Buying, refurbishing and reselling for profit
– Buying and holding for rental income
– Buying and refinancing to hold for long term rental profit, effectively recycling the same funds

All of the strategies above are reliant on the cash buyer purchasing well below the current market value. Continue reading

What Are Commission Free Auctioneers?

Over the last few years a new breed of property auctioneers have entered the market. These auctioneers do not charge the seller a fee to sell their property at auction, instead they charge the buyer. Great news if you are looking to sell your property quickly in auction, or is it?

Having researched this market over the last 12 months I have discovered that while it’s great that you don’t pay any auctioneers fees, you may still find yourself worse off by selling through one of these commission free auctioneers for a number of reasons.

1. This is maybe the biggest problem, the auctioneers will typically charge the buyer a staggering 5% or minimum of £5000 plus VAT!! While you may be thinking that this does not affect you, it does, and here is why.

Any buyer looking to purchase your property at auction will take this figure into account when bidding for your property, so if for example the buyer has a budget of £70,000 to buy your property they will only bid up to £64,000 at auction because they are taking into account the £5000 plus VAT = £6000 fee that they will have to pay the auctioneer.

This means that via a conventional auction they buyer would of paid £70,000 and even after you have paid the auctioneer their fee you would be substantially better off. Continue reading

Home Renovations That Add Value to Your Home

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When it comes to selling your home you want to make sure that you get a good, fair price – after all, it’s your family home and it’s filled with memories and renovations that you’ve made it make it your own over the years.

As such you want to ensure that your efforts aren’t overlooked – more than anything, you want to make sure that you get the kind of money that the property deserves having invested thousands of pounds into it since moving in.

Here, we take a look at a few home renovations that add value to your home so that you can feel happy with the price you are given when you put your home on the market ahead of your next house move. Continue reading

The Future of the Bank of England Base Rate

Many experts feel that today’s very low base rate will remain at rock bottom until the end of 2016.

All the evidence is suggesting that inflation will stay low for years to come, giving the central banks no reason to increase the base rate which sets the benchmark for mortgages, overdrafts and loans.

Mark Carney, Bank of England governer has announced that the Bank of England’s monetary policy committee had voted to increase the base rate from 0.5% to 0.75% with further rises to around 2 – 2.5% by the end of 2016. Carney has further suggested that this could well be postponed for several years and in fact he may finish his five year term in 2018 without even raising the base rate once.

Carney is supposed to have targeted a 2% inflation rate for August, but he was way off with a 0% inflation rate recorded. Oil prices are extremely low and it has been suggested that inflation could even be negative this side in 2015. Continue reading

Sell House Fast Industry

Selling your home, is it as easy as it sounds…By Jon Nuttall

Many people considering selling their property assume it will be a seamless simple transaction that will be dealt with by others. Those who have sold or tried to sell a property recently will know this is not the case.

With lending institutions becoming more and more difficult and certain areas of the country struggling to recover from the crash back in 2007 / 2008 selling your home could prove to be slow, traumatic and extremely stressful. There are many factors to consider when selling your home, some of which have been detailed below.

The first thing a seller will need to do is instruct an estate agent.

The world of estate agents continues to change and there are a number of different options available to sellers. The traditional approach is to instruct a local estate agent with a shop frontage and high street presence who will upload the property to the main portals [Rightmove / Zoopla etc], erect a for sale sign outside the property and advertise it in the local press.

A local estate agent will typically charge between 1 – 2% of the agreed sale price plus VAT. The estate agent will visit the property, measure up, take photos and prepare the description for marketing purposes. There will be limited input from the seller at this stage.

More and more vendors are choosing to instruct the services of an online estate agent generally due to the reduced cost associated with dealing with them. Typically, they will charge between £300 – £1,000 but the seller may have to take their own photos and email them over to the online agent with details of what rooms the property comprises of and the condition of each room…. Is it possible to be confident selling a house that you have not been inside? Continue reading

London House Prices: Only 2 Boroughs Below £300,000 Average

Thanks to the world economic events over the past few years, the UK as a whole has noticed plenty of change when it comes to the housing market and the prices for properties. The majority of the country has noticed a slump in property prices – leaving a lot of people with recent mortgages in negative equity – however in other parts of the country, particularly in the South, this couldn’t be further from the truth. Particularly in London, house prices have soared with the demand for housing rising due to the expanding population, and as a result of this the average prices for the area have been boosted beyond what has been experienced by the rest of the country. It seems as though there is a definite divide between the north and south of the country – with very opposing experiences when it comes to property sales.

Astonishingly, across London as a whole, the average cost for buying a house has now broken the barrier of £475,000 for the first time ever recorded. This is shown by records that are held by the Land Registry, and these figures showed that last month alone, the property prices in London rose by an astonishing 0.7% – making the increase much higher than anything experienced across the rest of the country, where prices are rising much more slowly, if at all.

Benefitting from the most significant annual price increase was Newham, with property prices in that area rising by a huge 17.5%, meaning that the average price of property there broke the £300,000 barrier for the first time. This shift means that there are now only two areas where this barrier has not yet been broken. The first of these is Barking and Dagenham in the east of London, where the price for the average property is £277,044, and Bexley, in the south-east of the city, where the average is slightly higher at £289,750. Continue reading