All posts by Holley Samuel

Our Policy During the COVID-19 Outbreak

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At The Mortgage Hub we have been working on a contingency plan to assure our clients still receive the excellent service standards that we have always achieved.

We have full remote access to all our systems should any or all of us be required to self-isolate. We want to reassure our clients that it will be business as usual during this current (COVID-19) Coronavirus outbreak and we are working hard to make sure that happens.

During this period, we are available to conduct appointments via a phone call and or over email.  This will ensure that clients can still conduct any arrangements speedily and with ease.

For visitors to our branch, the health and wellbeing of our clients and employees is of utmost importance and we are following official guidance from the UK Government. For example, our branch will be an environment where we will not shake hands with clients, staff are educated on prevention and we have elevated our already high standards of hygiene.

We believe that even during these challenging times people in Scotland will continue with buying and selling property to take advantage of the recent rate changes, and we are on hand to ensure our clients get the best mortgage deal possible.

We will monitor the situation closely and navigate this period with the health and wellbeing of everyone in mind.

If you would like to make a telephone appointment, please don’t hesitate to contact our team who will be more than happy to help.

Thank you for your support.

Interest Rate Cut – Should You Remortgage Now?

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With the interest rate cut announced earlier this week, should you remortgage now?

Following the interest rate cut, you may wonder how it will affect your mortgage rates and if you should remortgage.

The Bank of England cut interest rates this week in a bid to support the economy during the Coronovirus outbreak. Rates were reduced from 0.75% to 0.25% taking borrowing costs down to the lowest level in history.

What is remortgaging?

Remortgaging is when you take out a new mortgage on a property you currently own. This would be to replace your existing mortgage or to release money from your equity. At present, around 30% of home loans in the UK are remortgages.

Your mortgage is a huge financial commitment and by having the cheapest mortgage deal available to you can save £1000s each year.

Why remortgage?

There are several reasons you may consider remortgaging:

  1. Your current deal is about to end. Your mortgage deal is likely to be fixed for two or five years, after which you will be put onto the lender’s standard variable rate which is likely to be higher. Start looking for a new mortgage around three months before your current deal is about to end.
  2. You want a better rate. If you’re tied to an initial deal, you may have to pay a large early repayment charge which can be as much as 5% of your outstanding loan and you may have an admin fee to pay on top. However, the savings could outweigh this so get the correct advice.
  3. Your home’s value has gone up. You may find that if you have more equity you qualify for a lower loan to value band, and eligible for a better rate.
  4. You are concerned about interest rates rising. If you’re on a variable rate you may want to fix it for peace of mind.
  5. You want to overpay. Your current mortgage may not allow you to make overpayments.
  6. You want to borrow funds. If you want to release equity, make sure this is the most efficient form of borrowing. We can help you to work out if this is the most affordable and cost-effective option.

What will happen to mortgage rates now?

As a result of this cut in interest rates, some mortgages will get cheaper – for example if you are on a tracker mortgage, your repayments will be lower. These people will save around £25 per month per £100,000 or mortgage whereas those on a fixed rate won’t notice any change.

It will take a few weeks to filter through, and we will see the rates of new mortgage fixes drop making a good time to remortgage.

Lender response 

Several lenders have already said that they will offer their customers a 3 month mortgage holiday for those affected by the Cornovirus and people could try to create a small cash-buffer by seeing if they can save money by switching their mortgage.

The extent of the impact of Coronavirus on the housing market is yet unknown, although the Bank of England governor suggested that the UK economy could shrink in the coming months.

For savers, the news isn’t so welcome as saving rates have been low for a long time and this cut could lead to further reductions in rates.

Talk to us if you want to find out if this new rate could save you money. We offer phone appointments at a time to suit you.

Investing in Property in Scotland – Glasgow Tops Buy to Let Yields

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According to the latest research from Sourced Capital, Scotland currently offers the best buy-to-let yields in the UK.

Buy-to-let yields here in Scotland are currently 5.8% with Glasgow hitting an average of 7.8% followed by West Dunbartonshire at 7.2% and Inverclyde at 7.1%.

Compare this to England, the average buy-to-let yield is just 4.1% with the Burnley hitting the highest average with 6.6%. Wales currently has the worst yields at 3.6%.

House prices in 2019 were generally stagnant in England, Wales and Northern Ireland with Scotland outperforming the rest of the UK. This was a result of Brexit uncertainty and also the slowdown in the run up to the General Election. Although the market seemed to stall somewhat, rental yields saw a boost due to a fall in property values coupled with high rental demand.

Late last year there was a flurry of activity with a strong market in January with both Zoopla and Rightmove reporting the highest ever activity from buyers. This also applied to investors looking to get a foot in the door and get a good deal before prices retain momentum and the returns tighten.

For those looking to invest, now is a great time to invest in property as the market is still finding its feet.

What’s more, it has been reported that the cost of buy-to-let mortgages has fallen year-on-year. This fall in the cost of borrowing is great news for landlords as they can move to more competitive fixed rate mortgages. The biggest drop has been for five-year fixed mortgages whereas falls for two-year fixed rate buy-to-let mortgage offers were more modest.

With the current record low rates on offer landlords should act fast as interest rates could rise back to more normal rates in the not too distant future.

The decision by the government four years ago to introduce a 3% surcharge on second homes caused a mini-boom as landlords rushed to buy properties to beat the deadline and many of these landlords are coming to the end of fixed-rate mortgages and will find that the market is more favourable.

If you are looking to invest in property, talk to us at The Mortgage Hub for the best possible deal for your circumstances.

Prepare Your Property for a Sale

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If you are thinking of buying a property and selling your existing home, it pays to make sure you get the best price possible and without your property languishing on the market. Therefore it’s important to present your home in the best light possible in today’s competitive market. This could mean more than a quick dust, hoover and tidy-up before viewers come round. Here are some other proactive steps to take when preparing your property for sale.

Online listings

Take a bit of time to choose an agent who markets their properties well online, as these days, this is where most buyers start their property search. Good, representative photos are crucial and you can make the most of this process by making sure your home is clean, tidy and dressed in a way that helps people imagine living in the space. This might mean removing pieces that are overly personal, such as photographs or artworks that are to your personal taste, and considering steps like dressing a dining room table or bedroom. Again, a good estate agent will be able to advise on this and the process should be shaped by who they advise your target market should be, whether you’re in  popular area with young families or sitting in the ideal first home of a young professional couple. Property descriptions and floor-plans also need to be accurate so viewers aren’t left disappointed when it comes to visiting.

Kerb appeal

Following on from the first impressions given online, kerb appeal is very important when potential buyers make it for a viewing. Practical steps you can take to boost your property’s kerb appeal are basic things like making sure the outdoor areas are tidy and gardens are well-kept. Depending on the season, you can consider doing a bit of planting to brighten things up. Cleaning windows and doors and making sure paintwork is fresh can all make a huge difference. Making access to your property as easy as possible is also a good idea – ensure there’s a parking space, keeping pathways clear and communal closes clutter-free too.

Property presentation

The same rule of thumb applies as when taking your marketing photos in terms of making your property as appealing as possible, keeping it tidy and clutter free. Think about the atmosphere of your home when someone walks in and consider how lighting, smells and temperature all affect this. This might mean replacing or cleaning overhead light bulbs, airing out unused rooms or asking friends and family to look after noisy pets or children! Give rooms the right purpose, so if you are marketing your property as three bedrooms, but one is currently a dining room or storage space, it might pay off to set it up as a bedroom for viewings. Don’t put off those repairs needing done any longer, but get things fixed up in advance of viewings, otherwise you are leaving opportunities for viewers to pick fault with your property. Any refresh to painting or decorating should be kept as simple and neutral as possible too. It’s all about creating an inviting space; somewhere people can imagine living and putting their own personal stamp on to.

Get advice

Talk to us at The Mortgage Hub about the best mortgage product for your circumstances. We can look at the whole of the market and talk you through the process, whether you’re upsizing or downsizing.

A Rise in Buyer Demand

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The latest House Price Index from Zoopla shows that UK city house price growth has hit a two year high of 3.9%. In addition, figures show that housing demand was up 26% over the first few weeks of this year compared to the same period in 2018 and 2019.

This means that city house price growth is at a 2 year high. HMRC data shows that in December last year sales were 11% higher than the same period in 2018

Northern regions registered stronger price growth throughout 2019 than many of the southern cities, although there are signs that the spread of price growth across the country has been narrowing in the last few months.

A summary of factors including house affordability, position in the current housing cycle, time to sell and price achieved indicate cities where the momentum in growth over the last quarter of last year will carry into next year.

According to Zoopla, Nottingham, Edinburgh and Glasgow rank as the top three cities with the strongest prospects for 2020 indicating that they will be towards the top of a relatively narrow range of price growth this year.

An examination of market fundamentals by city – including housing affordability, position in the current housing cycle, discounts to asking price and time to sell all indicate cities where the momentum in growth over the final quarter of 2019 will likely carry over into 2020. The ranking for all cities is shown in Table 2 along with the current annual growth rate.

Nottingham, Edinburgh and Glasgow rank as the top three cities with the strongest prospects for 2020, indicating they will be towards the top end of a relatively narrow range of price growth this year. During the four weeks to January 20th this year, the demand for housing has ‘bounced’ with a 26% more people looking for a home than the same period in 2018 and 2019. In fact, all cities apart from for Belfast have recorded an increase in demand compared to the last 2 years.

Demand for housing in Edinburgh remains strong overall with 6% annual growth in prices over 2019. However, demand has levelled out in the first 4 weeks of the year compared to the last 2 years.

If you would like to take advantage of the predicted growth this year by investing in property in Edinburgh or Glasgow, talk to us at The Mortgage Hub about securing the best mortgage for your circumstances.

Scotland Popular with Cash-Rich Buyers

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The Scottish prime property market is outperforming the rest of the UK, resulting in a rise in cash-rich buyers seeking property to boost their investment portfolios.

The property market in England has been somewhat stagnant with properties taking much longer to sell than their counterparts in Scotland. Property has taken an average of 69 days to sell according to figures from Zoopla, whereas the average time to sell a property in Scotland has been just 32 days with homes in Glasgow and Edinburgh selling the fastest. In addition, Edinburgh property rose by 5.4% – the highest growth in the UK.

In Scotland, homes selling for more than £1 million went up by 21% in the year from June 2018. In Britain as a whole, this figure is just 5% according to Lloyds. What’s more, the postcodes dominating these million pound homes are in Glasgow and Edinburgh.

According to research from Knight Frank, since 2016 the top ten postcodes for million pound home sales are in Edinburgh’s New Town and Morningside and Glasgow’s West End. In addition, there are new hotspots such as Murrayfield in Edinburgh where £1 million property transactions have risen by an incredible 50%.

Why is this happening?

Transport links to Scotland are strong, with Glasgow and Edinburgh international airports having direct links to the US and the Middle East. In addition, the number of private jet departures from Edinburgh and Glasgow’s airports have been on the increase for the last five years.  Buyers can purchase property with stunning architecture and scenery whilst the locations are also highly accessible.

Apart from the long term gains that investors are seeing when investing in property in Scotland, there are many areas in which the long and short-term rental markets are performing well.

What’s more, buyers from the USA have been helped by the increase in the value of the dollar.

Great schools and a high quality of life area also a pull for families moving here from overseas, with high ranking state and private schools and world-class universities. There has also been an uplift in cash-rich buyers from south of the border for these very reasons.

House prices

Scotland is a great investment area for capital appreciation. Average house prices are predicted to rise by 14% over the next two years according to PwC. The average house price is still more than 30% lower than the rest of the UK.

Golfing locations

Scotland is the home of golf and the sport has been played here since the 15th century and as such, short term lets are in high demand especially in areas such as St. Andrews. Property here featured in the top ten for number of £1 million sales as the draw for wealth Americans and Europeans remains strong. Many people who have previously rented here are choosing to buy a second home in the area.  An apartment with two bedrooms in St. Andrews will set you back around £1 million rising to £6 million plus for a four bedroom home with views over the Old Course.

Lord of the Manor

Investors from overseas are still looking towards purchasing hunting lodges, castles and vast estates. The value of property here in Scotland is high compared to England – with properties with over 100 acres setting investors back around £1.5 million according to Knight Frank. Alongside the historic properties, there has been a rise in demand for luxury conversions and penthouses in Edinburgh, boosting the £1 million plus sales.

Looking to invest?

If you are looking to invest in property our experts at The Mortgage Hub are here to help. Whether you’re looking to finance a second home or improve your investment portfolio, talk to us for the best deal for your circumstances.

Remortgaging Figures Rise by 13% Compared to Last Year

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If you are considering remortgaging, you will be among a soaring number as homeowners are taking advantage of lenders’ end-of-year price war. In fact, we have now hit a two-year high.

You could lock in a good deal in time for 2020. In October, a total of nearly 38,000 mortgages were approved for those switching to a new deal – this is up 12.7% on October 2018 according to UK Finance. In addition, the number of mortgages approved for house purchases has risen 3% year-on-year to nearly 47,000 against an Election backdrop.

As we move towards 2020, lenders are competing for the business that’s out there and as a result, there are some incredible deals to be had. The last quarter of the year is typically busier for remortgaging as banks and building societies try and win over new customers and hit their lending targets. This encourages people who are on the lenders’ standard variable rate (SVR) to remortgage and because people have previously taken out a fixed deal at the end of the year many people are coming to the end of a fixed term.

This uplift in the mortgage market tends to offset a subdued market for lending to people buying a home at the end of the year and waiting until more homes are listed for sale in the spring.

Several lenders are offering incredible fixed two year deals for those with a 40% deposit as well as great deals if buyers have a 25% deposit. Rates are slightly higher for those who want to fix for five years and several lenders have five year fixed rates below 1.6%.

Although the housing market has been more muted than previous autumns due to Brexit and the General Election, the housing market has shown signs of a slight autumn bounce. However, high property prices and stretched affordability in many areas are pulling down the market – especially in southern England.

Activity is expected to pick up once Brexit is finalised.

Talk to us at The Mortgage Hub if you would like to talk to us about remortgaging and taking advantage of the current deals available.

First Time Buyer? Lenders Reduce Rates for Buyers with Small Deposits

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Competition for first-time buyers has intensified among banks and building societies. The average cost of a two-year fixed rate mortgage for those borrowing 95% of the property value has gone down by 0.02% compared to the previous month of November.

If buyers have a 10% deposit the typical rate has fallen even further dropping by 0.04% compared to the previous month of November according to Moneyfacts.co.uk.

In addition, the average mortgage rate for those with a 15% or 20% deposit have gone up month-on-month.

According to these latest figures first-time buyers or those looking for higher Loan to Value mortgages have benefitted the most over the last few months. Providers are competing for this share of the market and are driving down interest rates in a bid to attract customers. In addition, competition among banks and building societies tends to intensify during the last quarter of the year as lenders focus on meeting their end of year targets.

A reduction for people borrowing a larger proportion of their property’s value were more subdued following a warning from the Prudential Regulation Authority that the Bank of England was keeping a close eye on mortgage rates.

But lenders have now turned their attention to first-time buyers, with renewed competition in this area of the market leading to them slashing their rates.

During the summer months, competition was centred around people who had larger deposits, who represent a lower level of risk.

These rate reductions will save borrowers money on their monthly repayments and make it more likely to pass lenders’ affordability tests.

There are some very competitive rates available, so it’s pays to talk to a mortgage broker from The Mortgage Hub to get a full view of the market and the deals available. We can also look at your individual circumstances and find a deal that reflects your requirements now and in the future.

Scottish Cities Feature as the Best Places to Live and Work in the UK  

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According to the latest PwC Good Growth for Cities Index, Aberdeen and Edinburgh are two of the best cities in which to work and live in the UK and Glasgow is the most improved city.

The Index is based on a total of 11 indicators that demonstrate there’s more to life, work and wellbeing than GDP alone. It measures 42 cities across the UK in its national index in health, employment, income and skills, housing affordability, commuting times, environmental factors, income inequality, and the number of new business start-ups.

The Index uses statistics on income, jobs growth and skills development opportunities to assess how well a city is performing. Glasgow has increased in position from the last Index published due to its improvement led by a strong performance in the jobs metric where it was 11th out of 42 cities measured. In addition, Glasgow performed well with other factors including work-life balance, skills and income distribution. Recent statistics from Zoopla have also shown that not only is Glasgow one of the most affordable places to live in the UK with the strongest income to house price ratio, but is also the fastest moving property market alongside Edinburgh. 

The top city in the UK is Oxford followed by Reading but of the three Scottish cities that made the Index; Aberdeen, Glasgow and Edinburgh, Aberdeen scored above the national average in seven of the 11 indicators due to improvements in health, work-life balance, housing and affordability and income distribution. It was also top in the UK when measuring house prices compared to earnings.

Edinburgh saw increases in five indicators including jobs growth, income and work-life balance but house price increases leading to a further fall in owner occupation meant that the earnings, house price ratio was below the national average. In addition, transport was the worst performing variable.

If you are looking to buy a property in Scotland talk to The Mortgage Hub about securing a mortgage for either a residential property or an investment opportunity. We’ll be happy to help. 

Autumn Property Market Update – The Signs Are Good!

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There’s good news for the UK property market as buyers appear to have returned to the business of buying and selling homes rather than holding off until after Brexit which has been delayed yet again.

According to HMRC, in September there were 101,740 homes bought and sold, a rise of 5% compared to August this year and 2.3% higher than in September 2018. This signals an end to subdued activity in what has been seen as a suppressed housing market.

There is usually a summer lull in the housing market as people put their plans on hold whilst children are off school and they go overseas on holiday. This usually results in a September increase in activity once the schools are back on and life gets back to the usual routine.

However, with the UK now facing a January Brexit deadline combined with a slowing economy this uplift in transactions hasn’t been as strong as it has been in previous years.

A return of buyers to the market will encourage more people who are thinking of moving up the property ladder and increasing the choice for those who want to buy a home.

Data suggests that the market is dominated by first-time-buyers as their numbers hit a 12 year high in August of this year. This demand will encourage people to trade up.

According to the latest Zoopla Cities House Price Index, house prices in UK cities rose by an average of 2.4% but this was 3.1% in Glasgow. In addition, property sales were fastest in Glasgow and Edinburgh with homes taking only around five weeks to sell.

In addition, Glasgow was one of only two cities in the UK (alongside Edinburgh) not to register a discount, with properties typically marketed as ‘offers over’ and selling for 6% to 7% above their asking price.

If you are considering your next move and would like mortgage advice you can trust, talk to us at The Mortgage Hub.