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What the new government should do to support first-time buyers

September 2, 2024September 2, 2024 interestratesinfo

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During the recent general election campaign, one key point of difference in the parties’ housing policies was that the Conservative Party pledged to introduce a new Help to Buy scheme, whereas Labour proposed alternative housing policies, largely focused on social rent.

Now elected, Labour is already pushing ahead with housing initiatives including greater powers and flexibilities in the Affordable Homes Programme, increased local authority funding for housing (to be announced in the next Budget) and changes to the Right to Buy.

Should you overpay your mortgage?

September 2, 2024September 2, 2024 interestratesinfo

A growing number of homeowners have turned their attention to mortgage overpayments as they look to fight back against higher interest rates.

Santander, one of Britain’s biggest mortgage lenders, reported a 78pc rise in the amount overpaid by its customers between 2022 and 2023 – but it’s not always the best course of action.

Paying extra on your loan repayments can reduce the interest being clawed back by your lender and speed up the process of becoming mortgage-free.

‘Ants are everywhere’: Labour MP’s tenants reveal condition of flats

September 2, 2024September 2, 2024 interestratesinfo

A Labour MP rents out flats with black mould and ant infestations, the BBC has discovered.

Jas Athwal, the newly-elected MP for Ilford South, owns 15 rental flats, making him the biggest landlord in the House of Commons.

In one block of seven flats owned by Mr Athwal nearly half the tenants said they had to regularly clean their bathroom ceilings to remove mould.

Mr Athwal has now also admitted his flats do not have the correct property licences required under a scheme he introduced as Redbridge Council leader.

Sharp rise in rental homes being sold as landlords flee buy-to-let sector

September 2, 2024September 2, 2024 interestratesinfo

Landlords continue to flee the private rented sector with many actively looking to cut the size of their buy-to-let portfolios, leaving thousands of renters looking for somewhere new to live.

Analysis by TwentyEA had already revealed a substantial increase in landlords exiting the market or downsizing their portfolios.

Figures released last month showed that that the number of properties ‘for sale’ that were listed ‘to let’ in the past three years had risen dramatically.

What keeps landlords in the buy to let business? New findings

September 2, 2024September 2, 2024 interestratesinfo

A new survey appears to lift the lid on why landlords remain in buy to let, despite the tax and regulatory controls now making the sector so challenging.

Paragon Bank surveyed 500 landlords with up to three properties and with declared ambitions to build larger portfolios.

Halifax offers first-time buyers bigger mortgages of up to 5.5 times income: Is it a good idea?

September 2, 2024September 2, 2024 interestratesinfo

First-time buyers could now be able to secure bigger mortgages when applying with Halifax.

The mortgage lender announced today that it is making £2billion available for first-time buyers who need to borrow up to 5.5 times their annual income.

To be eligible for what Halifax is calling its ‘First-time buyer boost,’ buyers will need a total household income of £50,000 or more, which will need to come from employment.

They will also need to be purchasing a property with a deposit of at least 10 per cent.

First Time Buyer mortgage payments show big drop from peak

September 2, 2024September 2, 2024 interestratesinfo

Rightmove says the average first-time buyer mortgage payment is nearly £150 lower than the mortgage rate peak in July 2023.

Rightmove’s weekly mortgage tracker shows how average mortgage rates have decreased since the peak in July 2023. The average monthly mortgage payment for a typical first-time buyer is now £949, compared with £1,096 in July 2023, a saving of nearly £150 (£147), or 13%.

Mortgage extensions can cost tens of thousands – new data

August 27, 2024August 27, 2024 interestratesinfo

Mojo Mortgages’ data has revealed that extending a mortgage from 25 to 35 years can cost the average first-time buyer an extra £87,180.

John Fraser-Tucker, head of mortgages at Mojo, says: “Our research has found with the current average mortgage rate for a two-year fix (75% LTV) at 5.44%, the total cost of an average-priced house (£285,000) varies significantly on the loan term.

Buying a home ‘more stressful’ than selling, homeowners say

August 27, 2024August 27, 2024 interestratesinfo

According to the survey, 34.8% of UK adults believe buying a home is more challenging and stressful than selling, with 27.8% claiming it to be the other way round. The remainder didn’t know.

Mortgage lender calls for support for landlords over new EPC targets

August 27, 2024August 27, 2024 interestratesinfo

The government must find ways to ‘incentivise and support’ landlords to achieve new energy performance targets.

This is the message from mortgage lender Skipton Building Society which has reacted to the Labour announcement all landlords must meet an Energy Performance Certificate (EPC) rating of Band C by 2030.

The building society is offering and delivering free EPC Plus assessments to all of its members to help improve energy efficiency awareness.