Author: colin_williams

New Mortgage Ranges On Offer In 2018

Posted on by colin_williams

It would be fair to say that the end of 2017 was an interesting time for mortgage holders and lenders. Okay, the thought of paying more money each month in mortgage payments may be more difficult or annoying than interesting for most homeowners, but given that this was the first rise in interest rates in a decade, a lot of people had to react to the Bank of England increasing the base rate, and a lot of focus was placed on mortgage ranges.

In figures provided by Nationwide, the average mortgage holder had to pay an additional £22 per month after the movement from 0.25% to 0.5% in November of 2017. With further increases likely, many mortgage holders are considering witching their mortgage to see if they can obtain a more attractive rate. The uncertainty over the future of interest rates also means that mortgage lenders have had to adapt, which has resulted in new mortgage ranges.

New mortgage ranges on offer in 2018

The changes at the end of 2017 meant that several lenders have altered, upgraded or introduced new mortgage ranges for the start of 2018. If you are looking to switch, this is the ideal time to do so. There are suggestions that the base rate could reach 1% by the end of the year, so you may need to act quickly to ensure you have an appealing rate before changes occur.

While the new ranges from existing lenders will be of interest, there is also a new name in the UK mortgage market. This is a very familiar name that you will likely know, but Marks & Spencer is entering the mortgage market through their M&S Bank arm. While the company has provided many credit solutions to their audience, their mortgage offerings represent new ground for the company.

M&S is entering the mortgage market

The M&S brand is well known and highly respected in the UK. This means that many people will take an interest in what is on offer. It is also likely that some people will naturally gravitate towards these offerings because they associate M&S with quality and assurance. These are good attributes to have when looking for finance deals and as a mortgage is likely to be the biggest finance solution a person takes out in their life, people need assurance and confidence in their finance solution.

M&S Bank will offer fixed rate and tracker mortgages, but they also look set to provide solutions that have the first-time buyer in mind. The two to five year fixed rate mortgages will have 90% loan to value (LTV) status. There is also going to be a cashback offer on some of the mortgages.

mortgage ranges

There has already been praise lavished on the offerings of M&S Bank. One financial data service, Moneycomms, has suggested that M&S Bank is providing the cheapest mortgage for many first-time buyers. There is also the fact that M&S Bank has partnered with Shelter, and has promised to provide £25 as a donation for every mortgage that has been agreed. Many consumers like to work with firms that have a conscience, and this small action could go a long way to convincing people to check out what M&S Bank is offering.

At Williams of Petersfield, we know that the mortgage process is challenging and perhaps even draining for many consumers. We are always happy to offer guidance and if you would like help on what your next step should be when buying property, please get in touch.

Midhurst: Help On Rental Costs Is Coming…Next Year

Posted on by colin_williams

In recent times, it is positive to see a greater level of assistance being offered to first-time buyers. Buying a home can be a daunting challenge, but it is also an expensive activity. The mortgage is the main issue for most buyers, but the size of deposit required to buy a house presents a sizable challenge, even in Midhurst. This is why steps like the removal of stamp duty for first-time buyers is a move that should be acknowledged and praised.

However, it would be wrong to think that only first-time buyers need assistance. The cost of renting property is also expensive, and there are many up-front costs associated with this activity. Some of the up-front costs in renting include:

  • The first month’s rent in advance
  • A deposit, sometimes up to two months’ worth of rent
  • Letting fees
  • Removal fees

According to figures provided the home.co.uk website, the average rent in Midhurst, at the end of January 2018, stands at £994 per calendar month. The average rent for a one-bedroom property for the same time-frame is listed as £676 per month and for a two-bedroom property, the average rent is £947 per calendar month.

The cost of moving in Midhurst can be prohibitive

A tenant moving into a two-bedroom property in Midhurst, and being asked to provide two months’ worth of rent as a deposit, will easily find themselves paying more than £3,000 in up-front costs to move into property. This is a huge sum of money for one person or a household to find at short notice, and you can see why this acts as a barrier to moving into rented accommodation.

You should also see that the cost of moving property on a regular basis can be very expensive, even if the tenant maintains the condition of the house and receives the majority, or all, of their deposit back. Studies find that the average letting fee is around £220 but there has been plenty of anecdotal evidence to suggest that letting fees of more than £1,000 have been applied. Returning to the Midhurst figures, the up-front costs of renting a two-bedroom property could rise to more than £4,000 in this situation.

Changes are coming in the rental market

Therefore, it is positive to hear the Government is looking to make changes in this area of the rental market. It has been announced that letting fees will be banned. There is also a motion to limit how much of a deposit can be asked for, with current suggestions saying that a limit of six weeks’ will be applied. This may still lead to a high figure, but it is lower than that two months’ rent, and it will provide a maximum figure for tenants to consider and use in their budget.

Midburst lettings

These steps are positive for tenants, but sadly, it doesn’t look as though they will be introduced this year. It is believed the Government will bring these measures in together, with spring of 2019 the likely time-frame. This means people looking to move in 2018 will not benefit, but in the future, there will be financial assistance for tenants.

If you are looking to rent in Midhurst, come and speak to the local letting specialists. At Williams of Petersfield, we provide expert guidance and advice, and we look forward to helping you soon.