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Em Morley

New buy-to-let lender enters the market

Published On: February 5, 2016 at 12:35 pm

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Categories: Finance News

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A new buy-to-let lender has today entered the market.

New Street Mortgages is to launch its initial products with distribution open to customers via London & Country and the LSL mortgage networks of Pink and First Complete.

Fees

The lender will offer procuration fees of 0.5% on buy-to-let mortgages and has plans to extend its distribution outlets and offers later on in the year.

New Street’s lending process offers online decision-making, in conjunction with a broker portal that offers real-time case tracking. In addition, the service will offer access to underwriter notes. The firm says that by using this process, it will be possible for some customers to secure a mortgage inside five days.

In addition, there will be an ‘Advance’ range, which can analyse market sector risk and borrower profiles, in order to provide customers with a better deal where client circumstances permit.

New buy-to-let lender enters the market

New buy-to-let lender enters the market

Modern

Adrian Whittaker, Sales Director at New Street Mortgages, stated, ‘mortgage lending is ripe for modernization-and that’s what New Street is all about. The mortgage application process has not kept up with the technological advances that we have seen in other industries, for broker and customer alike, which means getting to the mortgage decision can be slow and uncertain.’[1]

‘If you combine this with the extra time that brokers need to invest in every application following the MMR, it often feels that writing mortgages is harder now than it has been in the past. At New Street, we believe that the mortgage application process should be digital, modern and transparent-and beneficial for brokers and customers alike,’ he continued.[1]

‘New Street Mortgages’ analytically-driven and modern approach to the mortgage process is bringing mortgage lending into the digital age, promising transparent decision-making and tailored solutions which cater to the individual needs of today’s consumers,’ noted David Finlay, Director of Distribution at Northview Group.[1]

‘As part of the Northview Group, New Street’s launch will complement the existing focus of Kensington Mortgages and position the Group as a brand which caters for borrowers across the mortgage market. Mortgage lending has become a slow and time-consuming process, but New Street’s use of intelligent data-driven credit profiling will offer the market fast and consistent decision-making to more straightforward cases,’ Finlay conclude

[1] http://www.propertyreporter.co.uk/finance/new-btl-lender-launches.html

 

66% of BTL mortgage applicants unaware of regulations

Published On: February 5, 2016 at 11:37 am

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Categories: Finance News

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An alarming new report from Direct Line for Business shows that over half of new buy-to-let mortgage applicants are unaware of new and upcoming regulations.

Accidental landlords are least likely to be aware of any changes, according to the research.

Concern

66% of applicants were found to be unaware of either the alterations to Mortgage Tax Relief. This rose to 71% of accidental landlords. Mortgage advisors believe that these type of landlords account to 17% of new applications, with buy-to-let applications increasing by 29% during the course of the last year.

In addition, data from the report shows that just 7% of mortgage advisors believe that the Mortgage Credit Directive (MCD) will have a positive effect on the sector. This was in comparison to 59% who believe it will have a negative impact.

Alterations to mortgage tax relief are also set to be brought in from April 2017. As a result, landlords will no longer to be able to remove mortgage interest payments before working out their tax bill. Instead, they will receive a tax credit equivalent to 20% basic-rate tax on the amount. The changes in Stamp Duty from April 2016 are also set to test landlords and second-property owners.

66% of BTL mortgage applicants unaware of regulations

66% of BTL mortgage applicants unaware of regulations

Changing

‘The new EU legislation on mortgages, coupled with the Government’s increase in buy-to-let taxation, could significantly alter the buy-to-let market,’ said Nick Breton, Head of Direct Line for Business. He said his firm, ‘would encourage any mortgage applicants to think carefully about the new law and how this could impact on them as a landlord.’[1]

‘With house prices in the UK rising by 7% in the year leading to October 2015 and with the estimated average deposit standing at more than £61,003, it is imperative that landlords are able to maintain a suitable amount of property to house the population of young people saving up to buy their first property, or those seeking a temporary stay in a town or city,’ he continued.[1]

[1] http://www.propertyreporter.co.uk/landlords/71-of-accidental-landlords-unaware-of-new-regulations.html

 

House price growth rises again

Published On: February 5, 2016 at 10:38 am

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Categories: Property News

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The January Index from the Halifax indicates that house price growth continued to accelerate in Britain during the last three months.

Data from the report shows that house values rose by 2.2% in the period, taking the average value to £212,430. Prices were also found to be up 9.7% year-on-year and by 1.7% compared to December 2015.

Upward pressure

Martin Ellis, Housing Economist at the Halifax, said that the quarterly increase followed two months of below 2% rises.

‘The imbalance between supply and demand continues to exert significant upward pressure on house prices,’ Ellis noted. ‘This situation looks set to persist over the coming months. Further ahead, increasing affordability issues, as price increases continue to exceed wage growth, are likely to curb housing demand and cause price growth to ease.’[1]

Mr Ellis went on to say that confidence in market remains strong, according to the most recent Halifax Housing Market Confidence Tracker. The final quarter of 2015 showed that a majority of people believe that typical property values will be higher in twelve months time.

Supply shortage

An increase in price growth is being driven by a lack of supply, according to Randeesh Sandhu, Chief Executive Officer of finance provider Urban Exposure. Sandhu also noted that the lack of housing supply is due to developers having a lack of skills and key materials.

‘Far more needs to be done to boost development, particularly in London where average house prices in over half of London neighbourhoods are now £500,000 or more,’ he observed.[1]

Rob Weaver, director of Investments at property crowdfunding platform Property Patner, agrees with Sandhu’s observation. He also said that sales in central London continue to drop off, but those in the outer boroughs are thriving.

‘Potential buyers are hunting for more affordable housing, attracted by regeneration in places like Thamesmead and Woolwich and of course, Crossrail,’ Weaver said. ‘We’re also seeing a spike in activity in the market as buy to let landlords rush to seal deals before the stamp duty 3% hike in April.’[1]

House price growth rises again

House price growth rises again

Rush

‘Britain simply can’t build homes fast enough to keep up with demand,’ observed Jonathan Hopper, Managing Director of Garrington Property Finders. ‘With demand likely to be boosted even further by the Bank of England’s admission that an interest rate rise could remain firmly off the table for the rest of the year, 2016’s strong start is unlikely to be a blip.’[1]

Mark Posniak, MD of Dragonfly Property Finance, believes that further house price growth is almost inevitable. He said, ‘with interest rates unlikely to move for some time and people generally confident about their jobs and the economy, demand is also very strong. People’s fear of being priced out of the market is tangible at present. This is especially the case in London and the South East.’[1]

‘While logic suggests house price growth will ease as affordability issues increase, our relationship with the property market is nothing if not emotive. Prices rise in this way only adds to demand and so the growth continues,’ he added.[1]

[1] http://www.propertywire.com/news/europe/uk-house-price-index-2016020411522.html

 

Rightmove Reports Busiest Ever Month for Traffic in January

Published On: February 5, 2016 at 9:23 am

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Rightmove has reported its busiest ever month for traffic, with visits up by 21m in January compared to the same month last year.

The property portal also says that leads to agents and developers reached a new record high of more than 4.9m.

The surge in traffic follows a decline in available stock for sale, meaning it is likely that visitors could not find many new listings to browse.

There were over 127m visits to Rightmove last month, up by around 20% on January 2015 and surpassing the previous record of 118m set in August last year.

Rightmove Reports Busiest Ever Month for Traffic in January

Rightmove Reports Busiest Ever Month for Traffic in January

Phone and email leads also beat a past record of more than 4.8m set in July 2015.

In total, Britons spent the equivalent of over 2,000 years browsing Rightmove in January. The busiest day was Tuesday 26th, which saw 4.7m visits.

Additionally, page views for the month hit a new record of 1.7 billion, meaning that people searched through more than 1m more pages of property than in January last year.

The most popular areas that people searched for were London, Bristol, Cambridge and Milton Keynes.

Miles Shipside, the Director of Rightmove, comments on the data: “These January statistics should give both sales and letting agents confidence that an active year with plenty of business opportunities lies ahead.

“While January is usually a very busy month for home hunting, the scale of these records shows just how habitual Rightmove has become when people are starting their property search.”

He continues: “As Rightmove is the only place where people can search over 1m properties for sale and to rent, it’s clear that buyers, renters, sellers and landlords are all using us to search the whole market.

“The busiest ever start to the year gives a very confident outlook for the coming months, with some of the surge possibly coming from investors looking to make last minute deals before the changes to Stamp Duty come in on April 1st, as well as first time buyers looking to see if any of the schemes could help them get a foot on the property ladder.”1

We recently reported that landlords are rushing into the market ahead of buy-to-let tax changes this year. Find out more about the forthcoming amendments here: /landlords-rushing-to-avoid-buy-to-let-tax-changes/

Additionally, the Help to Buy London scheme launched at the start of this month, which could create heightened activity in the capital.

1 http://www.propertyindustryeye.com/its-a-record-rightmove-reports-busiest-month-for-traffic-ever/

The Average House Price at Each London Underground Station

Published On: February 4, 2016 at 4:04 pm

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Categories: Property News

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Are you looking to invest in the London property market ahead of buy-to-let tax changes this year? Or maybe you’re one of the homebuyers looking to take advantage of the London Help to Buy scheme, which launched on Monday?

Whichever way you’re going to buy, if you’re considering the property market in the capital, it is vital that you pick the best place to purchase.

Thanks to online estate agent eMoov, you can now compare house prices across the London Underground with the firm’s alternative Tube map.

For each of the 280 stations on the Underground, eMoov has found the average house price in that area.

Last year, we published a similar map, which shows how much it costs to rent near each Tube stop. And the two maps show some similarities…

Take one of the cheapest rental prices for example. Renting in Hatton Cross cost just £324 per month back in September, and indeed, it is still one of the cheapest places to buy this year, with house prices around £292,000.

Dagenham Heathway also has some affordable properties – the average house costs just £238,000. However, renting in this area was more expensive last year, at £796 a month.

While not all rent prices/house prices correlate, expensive spots are pricey across all tenures.

Properties in Hyde Park Corner go for an average of £1.9m, while tenants will need a huge £2,920 per month to rent there. However, rents are cheaper in Piccadilly Circus, at £2,256 a month, while house prices average a whopping £2.6m.

Landlords are reminded that buy-to-let investors and second homebuyers will be charged an extra 3% in Stamp Duty after 1st April, which is causing many investors to rush into the market now in order to beat the deadline. Find out more: /landlords-rushing-to-avoid-buy-to-let-tax-changes/

Those looking for help with saving for a deposit can apply for Government-backed equity loans of up to 40% of a new build property’s purchase price worth up to £600,000 through the Help to Buy London scheme. For more information visit: /help-to-buy-london/

Use the map to find out where you can afford to buy: https://media.timeout.com/images/103113857/image.jpg

London Landlords to Receive Cashback on Old Boilers

Published On: February 4, 2016 at 1:22 pm

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Categories: Landlord News

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The capital’s first boiler replacement scheme has been launched, announced by the Mayor of London, Boris Johnson.

The London Boiler Cashback Scheme is offering £400 in cashback when old, inefficient boilers are replaced to 6,500 of the capital’s homeowners and private landlords.

London Landlords to Receive Cashback on Old Boilers

London Landlords to Receive Cashback on Old Boilers

The scheme works on a first-come, first-served basis, so landlords are being encouraged to apply early.

Private landlords or their letting agents must be accredited with the London Rental Standard in order to be considered. They can apply for cashback on more than one property, so long as they meet the scheme’s requirements.

Replacing an old, inefficient boiler with a new, efficient version can be beneficial in many ways; a more efficient boiler can mean average savings of £340 per year, as well as a warmer, more comfortable home. It also substantially reduces the risk of carbon monoxide poisoning.

It is hoped that the scheme as a whole will significantly cut carbon emissions and improve air quality across London.

If you are considering applying for the scheme, the following rules apply:

  • The current boiler must be 70% or less energy efficient – usually a G rated boiler that is either gas, LPG, solid fuel or oil fuelled – in working order and the main boiler used to heat the property.
  • The replacement must be a gas boiler that is A rated – at least 90% energy efficient – or a renewable/low carbon heating technology.
  • The installer must be a Gas Safe registered installer, a Microgeneration Certification Scheme (MCS) certified installer or equivalent, or a member of a competent persons scheme, such as OFTEC or HETAS.

When you apply, you must provide details of the boiler to be replaced, along with those of the heating engineer. You will then receive a voucher, after which the boiler can be replaced.

Vouchers are valid for 12 weeks from the date of issue, in which time the boiler must be installed. To receive the £400 cashback, you must then send back proof of installation, along with the voucher, no later than ten working days after the expiry date of the voucher.

For more information on the scheme, details of how to apply and the terms and conditions, visit: www.london.gov.uk/boilers