The necessary step, in most cases, in affording a new home is selling the old one. However for a variety of reasons some people decided to rent out their homes instead. For many home owners renting out a home is simply not a viable option; they need to sell in order to raise the capital necessary to buy their next home and also owning two homes requires deep cash reserves. Read more
The housing market at the current time is showing a general ‘lack of direction’ according to some experts.
According to the Halifax house price rose in October 2011 for the first time in 3 months after mortgage costs fell to record lows.
House prices increased by 1.2%, but the lender warned that it was a highly mixed picture as prices fell by 0.3% over the less volatile 3 month average. Read more
Official figures have shown that around one million families and young people have been forced to rent rather than buy, over the past 5 years.
Realistically for most people it would be far cheaper for them to pay a mortgage than rent in today’s climate of high rental charges, however due to high deposit demands and tougher mortgage criteria restrictions it is near impossible to obtain a mortgage. Read more
The council of mortgage lenders (CML) figures show that per month approximately 17,000 would be first time buyers are being left out in the cold.
Banks approved 6% fewer house purchase mortgages for first time buyers in September 2011 than in the previous month of August. Strict lending criteria and absurdly high deposit requirements are continuing to keep mortgage finance out of the reach of the average first timer. Read more
Home buyers who are seeking a mortgage find out early on that their credit scoring plays an important part in the home buying process. A mortgage credit score is an automated technique used by lenders to decide whether or not to offer a mortgage.
Many responsible lenders want to know that their borrowers can comfortably afford to manage any new borrowing.
Many people are now being forced in to renting for much longer than intended due to job insecurity and a credit drought. As a result, more than a quarter of private tenants currently seeking to buy a property are now in their 40s.
A recent survey revealed that 27% of those who feel ‘trapped’ in the rental system are over the age of 40. Read more
An imminent rise in the Bank of England base rate is not expected, however the euro crisis could change things for mortgage borrowers as home owners could see re-mortgage rates soar if Greece if forced out of the euro zone.
It is warned that a continuation in the euro zone debt crisis could reduce the amount of money banks lend to home owners by eroding confidence in the financial market. Read more
Taxation is a complex issue and each person’s circumstances are different. Rental income arising in the UK is assessed under what is known as schedule A. the rental income from buy to let landlord’s portfolios is aggregated and then taxed.
According to leading analysts the Royal bank of Scotland (RBS) is one of the most ‘vulnerable’ banks in Europe.
The latest figures from the Royal bank of Scotland (RBS) have shown that their share of the mortgage market has almost halved in the past year. The lender had a14% share of gross mortgage lending in the third quarter of 2010 however this has now fallen to just an 8% share in the third quarter of 2011. Read more
Many experts have for sometime predicted further falls in home ownership and even higher rents and reports have shown that there are more than 1.5 million people on waiting lists for social housing in England alone.
Chambell Robb, chief executive of housing charity Shelter has stated that “millions of people across the country remain desperate for an affordable place to live”. Read more