Somerset

Despite the imminent rate rises recently announced by certain major lenders, buying will remain cheaper than renting for the vast majority of the UKpopulation however, it can be really tough to save enough money to buy your first property.  NICK WEBB of HOBBS & WEBB offers some useful advice on how first time buyers can benefit from the following new schemes which are designed to encourage regular saving for those who want to get on to the housing ladder.

After the problems of the last decade caused by fluctuating house prices, ‘over lending’, self-certified mortgages and interest only loans, the major lenders have become much more cautious about who they lend to and how much they are prepared to offer.  Lending to the credit-impaired has reduced dramatically; the minimum deposit required to secure a mortgage is now typically in the region of 15% to 20%, with many first time buyers obliged to find in excess of £20,000.

This means that potential buyers need to take every advantage to raise the necessary funds. Nick Webb suggests that building a good relationship with your bank could help when it comes to a loan application but that does not necessarily mean that they will lend you what you want.  Some lenders (such as Nationwide Building Society) are now offering Save To BuyAccounts that allow would-be buyers to devote their tax-free savings allowances towards house buying. This could be worth an additional £1,000 to £2,000 per year. 

For some institutions, these new schemes are also linked to preferential arrangements that can mean a lower than normal deposit is required (as little as 5%). The only condition on the saver is that they do need to contribute regularly to the scheme. 

Another lender (Halifax) will offer to provide a cash boost to a buyer’s account when they move into a new home. First time buyers receive a £600 payment into their savings account if they build their savings balance by £150 for ten out of the twelve months before they apply for a first time buyer mortgage with the bank. To qualify, savers can use any of the bank’s savings accounts. 

For those who already have access to a suitable deposit, there are some exceptional mortgage deals available. The Council of Mortgage Lenders (CML) said its year-on-year figures improved for the sixth month in a row after its members lent £10.5 billion in January and believes the 24^th March deadline for the end of the stamp-duty free period for first-time buyers on properties under £250,000 has boosted activity.

Several lenders are offering rates as little as 3.19% on a five year fixed period, with competitive arrangement fees for up to 75% loan to value. These are unlikely to remain for too long, as continued uncertainties in the Eurozone threaten to tighten access to international funds and push up rates in the second half of the year. 

What is clear is that for many first time buyers, their savings behaviour needs to change. There is a factor called ‘Generation Rent’, which shows that people who do not yet own their own homes are generally less likely to save (for any objective) than those that do, but is has to start with a clear and firm financial commitment from the buyer.

As a member of the Guild Of Professional Estate Agents, Hobbs & Webb know that buying your first home can be confusing and stressful. That’s why we offer free advice on the process, what it might cost, what you should do to be in the best position to buy, how long it might take, and some essential tips in choosing the right partners (such as lenders and solicitors).

So why not give us a call and let the local, professional experts give you a helping hand.’

 For more information on how Hobbs & Webb can help you move, telephone  01934-644664 or visit www.hobbsandwebb.co.uk

Share

{ 0 comments }

      It seems hard to believe but this month it is 2 years since my daughter Abii and I opened our doors in Winscombe – obviously time really does fly when you’re having fun! Seriously though, many of my friends and former colleagues thought I had lost the plot opening a new estate agency in the teeth of one of the worst economic recessions since the 1930′s and yes, it has been tough. Despite 25 years as a residential agent and having worked through a number of downturns over those years, this one is without doubt the trickiest.

However the good news is that it is possible to detect a slight shift in the market of late, in fact we have had a superb month for new sales agreed during January and February. Many of those properties that have been for sale for a considerable period of time are starting to sell as the supply of new properties coming to the market slows down and demand increases.We are finding there is a pool of buyers who are in a position to proceed, either because they are in rented, have a buyer on their own property or simply have the funds to buy another home without selling their existing one. Clearly this is very positive but it is important to remember this pool of able buyers may not last indefinitely.

A true recovery in the market place will only take place if first time buyers can be helped to get onto the property ladder and lending criteria relax somewhat. Getting first time owners into the system will get the whole market moving and it seems there are some Government backed schemes out there to do just that. Unfortunately it would appear the majority of these are focused on new developments and whilst the national house builders and construction industry need help too, a sale of a brand new property does not create another buyer free to purchase on the general residential market. The chain simply ends with the sale of the new house, at least in the short term. In my view, consideration should be given to extending these schemes to include the entire market, not just the limited new homes sector.

As a nation of home owners, a strong property market helps us all and by that I don’t mean one with prices spiralling out of control, but a good steady market that helps the economy and creates a feel good factor – something right now, we could all do with.

For further information please contact Marilyn Mansfield on 01934 843016 or info@mmansfield.co.uk

Share

{ 0 comments }

Over the 23 years I have been an estate agent I’ve conducted over a hundred open houses, they are hard work but the benefits to the client can be fantastic!

An open house is where, for perhaps three hours on a Saturday or Sunday afternoon a seller’s property is open to the public and manned by one of our experienced sales team.

Prior to the open house a lot of work needs to be done. We will advertise the property in the newspaper as an open house the Wednesday before, change the property websites description to advertise the event, send out invitations to all buyers registered in the price range letting them know about the open house, phone out the property booking viewings at appointed times and even put up flags, bunting and balloons to really draw attention to the event. You really want to create a ‘buzz’.

Our first open house took place on the 28th of January where we made eight viewings on the property which took place over a two hour period, as a result we received four offers and have managed to agree a sale £7000 above the asking price! As you can imagine our client is very happy, as not only did they achieve a better price, they no longer have to keep their home spotless waiting for the next viewing to take place.

We’ve had an excellent start to the year with sales to date doubling what was achieved in 2011 and with high levels of buyers registering we feel this will continue in the coming weeks. If you would like to talk to me or members of our team, please call on 01275 872238 or email your enquiry to clevedon@reedsrains.co.uk

Share

{ 0 comments }

Marilyn Mansfield, from M Mansfield Estate Agents, Winscombe talks about the property market in Somerset

It seems hard to believe but this month it is two years since my daughter Abii and I opened our doors in Winscombe – obviously time really does fly when you’re having fun!  Seriously, though, many of my friends and former colleagues thought I had lost the plot opening a new estate agency in the teeth of one of the worst economic recessions since the 1930’s and, yes, it has been tough.

Despite 25 years as a residential agent and having worked through a number of downturns over those years, this one is without doubt the trickiest.

However the good news is that it is possible to detect a slight shift in the market of late in fact we had a superb month for new sales agreed during January. Many of those properties that have been for sale for a considerable period of time are starting to sell as the supply of new properties coming to the market slows down and demand increases. We are finding there is a pool of buyers who are in a position to proceed, either because they are in rented, have a buyer on their own property or simply have the funds to buy another home without selling their existing one. Clearly this is very positive but it is important to remember this pool of able buyers may not last indefinitely.

A true recovery in the market place will only take place if first time buyers can be helped to get onto the property ladder and lending criteria relax somewhat. Getting first time owners into the system will get the whole market moving and it seems there are some Government backed schemes out there to do just that. Unfortunately it would appear the majority of these are focused on new developments and whilst the national house builders and construction industry need help too, a sale of a brand new property does not create another buyer free to purchase on the general residential market. The chain simply ends with the sale of the new house, at least in the short term. In my view, consideration should be given to extending these schemes to include the entire market, not just the limited new homes sector.

As a nation of home owners, a strong property market helps us all and by that I don’t mean one with prices spiralling out of control, but a good steady market that helps the economy and creates a feel good factor – something right now, we could all do with.

For further information please contact Marilyn Mansfield on 01934 843016 or info@mmansfield.co.uk

Share

{ 0 comments }

Why rent when you can buy was a familiar slogan years ago when it was cheaper to buy than rent however things changed in 2007 when mortgage lending dried up and since then the number of people renting has steadily increased year on year. Many first time buyers stick with renting as they believe that the costs to buy a property will be too high and out of their reach, which may not be the case. My advice to first time buyers is not to stretch yourself financially and instead purchase a property within your budget, even if the property is smaller than what you would have first wanted you are still on the property ladder and paying off your own mortgage and not someone else’s. 

Subject to your income you would need a 10% deposit to secure a 90% mortgage however with a 15% deposit this will get you a much better interest rate and make the purchase more affordable, there is a growing trend of parents and grandparents assisting their children with either all or some of the deposit on the basis that this could potentially be repaid to the parent when property values have risen from the increased equity. Other options are to purchase a property through a housing association on a shared equity or ownership basis which would reduce down the amount of deposit required although the housing association will benefit from any increase in the price of your property. The first step for anyone thinking about entering the property market is to gets some free advice as to the costs involved, this is done by an adviser completing a fact find/ cost of buying analysis  which gives you detailed information on buying costs and mortgage payments.

 Contact Buzz Homes,104 High Street, Worle BS22 6HD. Tel 01934 519111

Share

{ 0 comments }