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Cheap mortgages will boost house prices....
Sibley
Posts: 1,557 Forumite
http://www.express.co.uk/posts/view/295347
This will beat up the bears today.
Front page headlines. Think of all those home owners who will see and discuss at tea break. :rotfl:
There were 57,301 loans of 85 per cent or more of the property price, up from 43,379 in 2010
Friday January 13,2012
Have your say(1)
HOMEOWNERS are enjoying the cheapest mortgages on record thanks to historically low interest rates, new figures show.
On average people are paying £494 a month, a figure that represents just 15.4 per cent of their take-home pay.
At the height of the credit crunch four years ago homeowners were forking out an average of £601 in monthly mortgage payments – or 20.5 per cent of their take-home pay.
There was also good news yesterday for first-time buyers. The number getting their initial step on the property ladder increased markedly last year as banks became more willing to lend to those with only a small deposit.
There were 57,301 loans of 85 per cent or more of the property price, up from 43,379 in 2010.
The favourable lending conditions are likely to continue after the Bank of England left the base interest rate at its record low of 0.5 per cent yesterday for the 34th consecutive month.
On average people are paying £494 a month, a figure that represents just 15.4 per cent of their take-home pay
David Newnes, director of LSL Property Services, owners of Your Move, said: “Right now property buyers have a great opportunity to get hold of highly affordable mortgage finance. The Monetary
Policy Committee’s commitment to keeping bank rate at just 0.5 per cent has allowed lenders to push mortgage rates lower and lower and many borrowers are making hay as a result.
Despite bad economic signs emerging from the eurozone, lenders have so far held firm and are offering great value.
“Whether this will continue if the economic gloom spreads to our shores is yet to be seen, but the resilience of low rates so far is a very encouraging sign.”
SEARCH UK NEWS for:
Peter Rollings, of estate agent Marsh & Parsons, said: “Rock- bottom mortgage rates have provided a real financial fillip for homeowners and with interest rates unlikely to climb in the next year borrowers should be able to enjoy incredibly low repayments for some time yet.
“For prospective buyers who have been sitting on the sidelines, there is a real window of opportunity to invest in bricks and mortar while rates are cheap.”
A number of banks and building societies cut their interest rates last year as they battled for a share of an increasingly competitive market.
Buyers were able to take advantage of rates dropping below three per cent for two and three-year fixed deals and below five per cent for five-year deals.
Andy Gray, head of mortgages at Barclays, which published the research, said: “With the cheapest ever mortgage deals offered to homeowners last year and the fiercely competitive mortgage market, the average monthly mortgage payment was at its most affordable level in a decade.”
Richard Sexton, director of online surveyors e.surv, said: “The market has defied the wider problems that afflicted the economy in the latter half of last year. The improvement in 2011 is modest, but when taken against the backdrop of the eurozone crisis and turgid economic growth, it’s clear the market demonstrated real staying power last year.
“Banks have made a concerted effort to increase the amount they lend to first-time buyers, which is reflected in the big jump in higher loan-to-value lending.”
Steven Lees, director of SmartNewHomes, said: “We are seeing a range of new affordable mortgage products coming on stream. As a result we expect to see first-time buyers make a noticeable return to the market this year.”
This will beat up the bears today.
Front page headlines. Think of all those home owners who will see and discuss at tea break. :rotfl:
There were 57,301 loans of 85 per cent or more of the property price, up from 43,379 in 2010
Friday January 13,2012
Have your say(1)HOMEOWNERS are enjoying the cheapest mortgages on record thanks to historically low interest rates, new figures show.
On average people are paying £494 a month, a figure that represents just 15.4 per cent of their take-home pay.
At the height of the credit crunch four years ago homeowners were forking out an average of £601 in monthly mortgage payments – or 20.5 per cent of their take-home pay.
There was also good news yesterday for first-time buyers. The number getting their initial step on the property ladder increased markedly last year as banks became more willing to lend to those with only a small deposit.
There were 57,301 loans of 85 per cent or more of the property price, up from 43,379 in 2010.
The favourable lending conditions are likely to continue after the Bank of England left the base interest rate at its record low of 0.5 per cent yesterday for the 34th consecutive month.
On average people are paying £494 a month, a figure that represents just 15.4 per cent of their take-home pay
David Newnes, director of LSL Property Services, owners of Your Move, said: “Right now property buyers have a great opportunity to get hold of highly affordable mortgage finance. The Monetary
Policy Committee’s commitment to keeping bank rate at just 0.5 per cent has allowed lenders to push mortgage rates lower and lower and many borrowers are making hay as a result.
Despite bad economic signs emerging from the eurozone, lenders have so far held firm and are offering great value.
“Whether this will continue if the economic gloom spreads to our shores is yet to be seen, but the resilience of low rates so far is a very encouraging sign.”
SEARCH UK NEWS for:Peter Rollings, of estate agent Marsh & Parsons, said: “Rock- bottom mortgage rates have provided a real financial fillip for homeowners and with interest rates unlikely to climb in the next year borrowers should be able to enjoy incredibly low repayments for some time yet.
“For prospective buyers who have been sitting on the sidelines, there is a real window of opportunity to invest in bricks and mortar while rates are cheap.”
A number of banks and building societies cut their interest rates last year as they battled for a share of an increasingly competitive market.
Buyers were able to take advantage of rates dropping below three per cent for two and three-year fixed deals and below five per cent for five-year deals.
Andy Gray, head of mortgages at Barclays, which published the research, said: “With the cheapest ever mortgage deals offered to homeowners last year and the fiercely competitive mortgage market, the average monthly mortgage payment was at its most affordable level in a decade.”
Richard Sexton, director of online surveyors e.surv, said: “The market has defied the wider problems that afflicted the economy in the latter half of last year. The improvement in 2011 is modest, but when taken against the backdrop of the eurozone crisis and turgid economic growth, it’s clear the market demonstrated real staying power last year.
“Banks have made a concerted effort to increase the amount they lend to first-time buyers, which is reflected in the big jump in higher loan-to-value lending.”
Steven Lees, director of SmartNewHomes, said: “We are seeing a range of new affordable mortgage products coming on stream. As a result we expect to see first-time buyers make a noticeable return to the market this year.”
We love Sarah O Grady
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Comments
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My reply to the express.We all know it is the LIBOR rate and not know BOE base rates which know affect mortgage rates. LIBOR continues to rise making mortgage costs go up at the moment. When Greece defaults this year LIBOR will dramatically rise pushing up costs.
On top of that as house prices continue to fall and correct more people will go into negative equity and force them onto the SVR exposing them to these rising SVR costs. Repossessions will surely rise from this.
First time buyers I recommend you hang off buying as prices continue to fall and keep saving those deposits bigger for when prices bottom out.:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
Save our Savers
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Libor rates only affect people who dont have a decent mortgage deal though brit. They dont affect issued standard variable or tracker rates chap.0
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My reply to the express.
"We all know it is the LIBOR rate and not know BOE base rates which know affect mortgage rates. LIBOR continues to rise making mortgage costs go up at the moment. When Greece defaults this year LIBOR will dramatically rise pushing up costs.
On top of that as house prices continue to fall and correct more people will go into negative equity and force them onto the SVR exposing them to these rising SVR costs. Repossessions will surely rise from this.
First time buyers I recommend you hang off buying as prices continue to fall and keep saving those deposits bigger for when prices bottom out."
Where is that quote from? The English is pretty appalling if it's from a professional media outlet, and the punctuation is virtually non-existent.0 -
£494 a month is 15% of take home pay?
That's around £38k a year AFTER tax
That's no average person.0 -
£494 a month is 15% of take home pay?
That's around £38k a year AFTER tax
That's no average person.
Maybe it's household income rather than single salary.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
Its an average salary for a couple I believe.0
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£494 a month is 15% of take home pay?
That's around £38k a year AFTER tax
That's no average person.
House prices have moved away from 'a person' applying for a mortgage and owning a house to '2 people' having to work all hours god sends to afford them.
To me this is a bad thing for society as stresses rise and children are shoved into childcare and out of school clubs. Nowadays, for FTB'rs unless a very well off single person, two people will always have to walk into a building society/bank to start the unenviable grind of paying large sums for a rabbit hutch.
Sad times, but as 'the lawmakers' of the land are generally old, rich and have large houses, don't expect them ever to think of an FTBr, except on how to keep the masses trapped with ever bigger debts.
IRs will not change unless forced by external forces, if that ever were to happen to say 5-6%+, the housing market would collapse.
Repossessions in the 90's hit a max of 75k in a year with rates above 10% for long periods and many more single wage households than now. If they were to hit that now, even with double earners paying mortgages, I'd suggest repossessions would be over 1 million, easily.
That is all the proof that is needed to say that bad regulation/lending caused prices to spiral out of control and we are now in a position that any decent fall would take the country under...Have owned outright since Sept 2009, however I'm of the firm belief that high prices are a cancer on society, they have sucked money out of the economy, handing it to banks who've squandered it.0 -
BOE = in 2012 mortgages will be a lot harder to get. yeah so who's word do i take yeah? the express or those at the BOE. man thats a tough one
sibley looking stupid againMaidstone Prices - average reductions at 8.5% (£19,668) Feb 2012 - We thought the dudes were not allowed to drop prices?0 -
Libor rates only affect people who dont have a decent mortgage deal though brit. They dont affect issued standard variable or tracker rates chap.
LIBOR has hit its highest level since July 2009 this week. So while not directly impacting on mortgages. Shows the ever tightening squeeze on inter bank lending as banks continue to lock down to conserve capital.0 -
Thrug,
All I can think is, "Im Alright Jack"!0
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