Latest Property News | Warwick Estate Agents

Details: Published: 17 July 2024; Hits: 1530

More rate cuts are being announced by lenders all the time as they vie for business and anticipate the Bank of England base rate fall, which may believe could be as soon as August 1.

Yorkshire Building Society’s second rate cut in a fortnight includes:

• For remortgage borrowers and home buyers, a three-year fix at 80% LTV is down from 5.29% to 5.04% with no fee and free standard valuation;
• For purchase only, a two-year fix at 75% LTV is down from 4.89% to 4.69% with a £1,495 fee and free standard valuation; and
• For remortgage only, a five-year fix at 75% LTV is down from 4.59% to 4.49% with a £1,495 fee, free valuation and legal fees

Meanwhile Santander is cutting rates including:

•   Selected resi fixed rates for new borrowers down by as much as 14 bps;
•   Selected resi fixed rates for product transfer by up to 11 bps;
•   Large loan fixes by up to 11 bps and large loan two-year trackers by 15bps; and
•   Buy-to-let rates reduced by between 4 and 13 bps

And Accord is cutting…:

•   Two-year fixed rates and two-year trackers for BTL investors reducing by 10 to 15 bps;
•   Three-year fixed rates reducing by 25 bps; and
•   Five-year fixed rates reducing by 20 to 25 bps.

TSB is launching a three-year fixed for first-time buyers, home movers and remortgage borrowers with a £495 fee and rates starting from 4.75% while also cutting rates on:

•   Five-year fixes for remortgage up to 90% LTV by up to 20 basis points;
•   Two and five-year fixes for first-time buyers and home movers up to 85% LTV by up to 15 bps;
•   Three year fixes for FTBs and home movers by up to 10 bps;

And TSB is making further cuts to selected BTL rates:

•   Some two-year fixes for purchase and remortgage down by 10 bps;
•   Some five-year fixes for purchase and remortgage down by 15 bps;
•   Some two, three and five-year fixes for product transfer down by 10 to 15 bps.

Finally Saffron for Intermediaries is cutting as follows:

•   Large loan five-year fixed rate for owner occupiers at 80% LTV, is dropping by 60 bps from 5.37% to 4.77%, while the £1,495 fee remains unchanged;
•   Two-year fixed for owner occupiers at 80% LTV is being cut by 30 bps from 5.67% to 5.27% with the same £999 fee;
•   A retro-fit two-year fix at 80% LTV is going down by 40 bps from 5.67% to 5.27% also with a £999 fee;
•   Buy To Let five-year fix at 75% LTV with a £2,500 fee is going down by 20 bps from 5.87% to 5.67%; and
•   BTL two-year tracker at 75% LTV with a £1,995 fee is being reduced by 10 bps from 6.09% to 5.99%.

Details: Published: 27 June 2024; Hits: 1566

Affordability concerns are prompting many first-time buyers to consider moving more than 30 miles on average from their preferred location to get their foot on the property ladder, research suggests.

A study of 1,000 aspiring homeowners from saving and investing app Moneybox found 39% are actively looking at properties in neighbouring areas beyond where they currently live to improve their chances of securing a property which meets all their needs.

Those surveyed were most willing to compromise on location in order to afford a garden (66%), a spare bedroom (53%), an en suite bathroom (48%), a driveway (47%) or a garage (44%).

The study also revealed financial reasons were not the only things motivating potential homebuyers to look further away, with some looking for more peaceful or serene surroundings (38%), or safer neighbourhoods with lower crime rates (32%).

Aspiring first-time buyers in Wales are looking furthest afield, considering properties an average of 38 miles away. While hopeful buyers in London and the South East are prepared to move up to 33 and 37 miles respectively.

Despite affordability challenges, homeownership remains an important goal for the majority of first-time buyers in the UK (79%), with 62% viewing it as a key to unlocking financial security, up 6% from last year.

Brian Byrnes, head of personal finance at saving and investing app Moneybox, said: “Market volatility over the past few years has really highlighted how compromise is often the key to getting on the property ladder as a first-time buyer. It's great to see how first-time buyers have been adapting to make their dream of owning a home a reality and we see this resilience and commitment every day among our customers.

“However, we also believe that more could be done to help first-time buyers navigate current market conditions with greater confidence. Interest rates and house price growth now mean that more people will struggle with affordability and so it’s never been more important to save a suitable deposit.

The study also found 35% of those surveyed feel optimistic about becoming homeowners and 22% have even managed to save more than expected towards their deposit in the last six months.

Yet, the cost of living continues to impact disposable income for the majority (57%) making it harder for many to save for a deposit alongside rising house prices (51%).

According to the research, first-time buyers are now saving 18% less towards their first home deposit than a year ago, down from £344 to £286 a month.

17% are also eagerly awaiting the General Election to see what support may be provided to aspiring first-time buyers by a new government.

Byrnes added: “As we enter the final weeks before the General Election, it is clear that more needs to be done to address housing supply and sustainably boost homeownership - without further inflating house prices. However, many of the solutions needed are complex and will take some time to bear fruit.

“That is why we’ve been campaigning to future-proof the Lifetime ISA, a hidden gem of a savings product that has supported a whole generation of first-time buyers, buying their first home far sooner than would have otherwise been possible due to the fantastic 25% government bonus on deposit savings.

“We believe first-time buyers deserve all the help they can get and so we are calling on the next government to futureproof the Lifetime ISA and help more people save more money towards their first home deposit.”

Details: Published: 27 June 2024; Hits: 1445

Major lenders have started cutting their mortgage pricing in anticipation of an interest rate cut in the coming months.

The Bank of England may have held the base rate last week but with inflation now at 2% and the General Election just a week away, there are hopes that an interest rate cut could come in August or September.

Lenders are already looking to drum up business, with Barclays, HSBC and Coventry Building Society cutting rates earlier this week.

Barclays currently offers the lowest rate on the market for buyers at 4.23% for a five-year fix on a 60% loan-to-value.

Average rates are still at 5.96% for a two-year fix and 5.53% for five years, according to Moneyfacts.

Nicholas Mendes, mortgage technical manager for broker John Charcol, suggested more cuts are coming.

He said: “We can anticipate that lenders will escalate their strategies significantly over the next few weeks.

“Following last week's Monetary Policy Committee (MPC) decision and with important wage data and general election results on the horizon, markets are likely to anticipate further reductions in bank rates. On Friday, the 5-year money rate was at 3.82%, indicating that lenders certainly have room to lower 5-year fixed rates even further from their current levels.

“Interestingly, last week saw SONIA swaps holding steady at 5.2% since May 7th—the longest stable period since the benchmark's inception in 1997. This stability has enabled lenders to avoid continuous repricing and focus on enhancing their service levels in preparation for the next repricing battle, reminiscent of earlier this year.

“The timings of competitor repricing will likely be from next week, considering the forthcoming general election announcement.”

Details: Published: 20 June 2024; Hits: 1521

Average UK house prices rose for a second month in a row during April, Land Registry data shows.

The latest Land Registry House Price Index puts the provisional estimate for annual growth at 1.1% in April, up from 0.9% in March.

It is the second consecutive month of growth.

Average prices were also up on a monthly basis by 0.3%. This puts the average UK house price at £281,373.

Of English regions, annual house price inflation was highest in the North West, where prices increased by 3.8% in the 12 months to April 2024.

London was the English region with the lowest annual inflation, where prices decreased by 3.9% in the 12 months to April 2024.

Commenting on the report, Tom Bill, head of UK residential research at Knight Frank, said: “House price growth this Spring has effectively been squashed by rising mortgages rates and the fact supply is growing faster than demand. Higher-than-expected services inflation today will only increase downwards pressure on prices, with the first rate cut not expected for another four months. That said, demand per listing has rarely been lower in recent years, which means buyers who do their homework may find themselves in an advantageous position.”

The time lag with Land Registry records means many of these deals will have been completed earlier this year or at the end of 2023 and don’t necessarily reflect current market sentiment.

Nick Leeming, chairman of Jackson-Stops, said: “Despite gloomy weather so far this year, vendors are still driven to get their homes on the market. At Jackson-Stops, we've witnessed this momentum firsthand with an 18% uptick in new property listings hitting the market, as vendors look to take advantage of robust buyer demand. The expanding inventory provides much-needed supply for buyers who have been hampered by limited choices over the past few years and signals a step-change in the market – vendors now need to be competitive with their listing price to standout.”

He said regional hotspots for Jackson-Stops such as Chipping Campden, Midhurst and Sevenoaks saw a significant uptick in new buyer enquiries, demonstrating the demand for homes in popular commuter towns and rural hubs across England.

Leeming added: “It's worth noting that the General Election had not yet been announced during this period, so next month's figures will reflect the impact of political change. However, early indicators from the Jackson-Stops network suggest that the election has had little impact on buyer and vendor sentiment. Life's pivotal moments continue to drive housing transactions regardless of the political climate. The ‘must-move’ market persists, while activity at the higher end has gained momentum.”