Tag Archives: asia
Thousands of home owners with interest only mortgages have no pay off plan
Up to one in 10 home owners aged 55 and over across the UK are still paying interest only mortgages with some unsure of how they will pay off their debt. Research shows that 10% of the 1.4 million owners in this age group still paying a mortgage have an interest only deal, amounting to 143,500 households, according to research from Homewise. It also found that while the majority are confident of clearing the debt some 17%, or 24,300, admit they will be unable to clear the debt. The average amount owed by over 55s with interest only mortgages is around £91,000 with one in seven owing more than £150,000. Homewise, which offers the Home for Life Plan enabling over-60s to buy homes at discounts of up to 59% under a lifetime lease, is urging those with interest only issues to start planning ahead. The Council of Mortgage Lenders estimates that at end of 2015 there are around 1.7 million pure interest only mortgages outstanding with another 500,000 part repayment and part interest only loans. That represents a major success by mortgage lenders and the Financial Conduct Authority which has campaigned since 2012 to help borrowers focus on repaying loans and the number of outstanding interest-only loans has been cut from 3.2 million in three years. Mark Neal, managing director at Homewise, said that the mortgage industry has made massive strides in tackling the interest only issue and has helped borrowers to take action and it is good news from the research that the majority have plans in place to ensure they can pay off the capital but there are still substantial numbers who do not appear to know what they will do. Homewise’s research also shows 34% of over 55s plan to clear their interest only mortgage with cash from savings and investments while 10% aim to use pension cash to clear the debt. Another 11% are banking on an inheritance. Continue reading
Commitment to build new homes to cope with demand reaffirmed after EU vote
UK Housing Minister Brandon Lewis and Communities Secretary Greg Clark have reaffirmed that new homes are still a top priority of the Government post Brexit. At a meeting with the Home Builders Federation (HBF), whose members build around 80% of new homes in England and Wales, they reiterated the Government’s ambition to build a million more homes. They pointed out that this ambition is underpinned by a record £20 billion housing package announced in the Spending Review and Government backed schemes, including Help to Buy and Shared Ownership, which have supported over 309,000 home owners since 2010. The HBF and its members stated that all indicators show reservations and sales rates have not been affected by last week’s referendum on leaving the European Union. Members restated their commitment to driving up supply and increasing the number of new home owners. Parties spoke of their confidence in the strength of the housing market with strong demand for housing. The Government and HBF agreed to continue to work jointly over the coming weeks to ensure shared ambitions are met. ‘The action we have taken over the last six years to get the country building again has put the industry in a position of strength. We have doubled investment in housing and set out the largest affordable house building program since the 1970s,’ said Clark. Peter Andrew, HBF deputy chairman pointed out that the need for new homes continues as does the Government’s commitment to getting them built and extending home ownership to anyone that aspires to own a home of their own. ‘We were very pleased to hear the Secretary of State reaffirm the Government’s commitment to increasing housing supply. We welcome his reiteration of support for successful programmes like the Help to Buy: Equity Loan scheme which is underpinning demand and helping tens of thousands of buyers each year to take their first steps on the housing ladder,’ he said. ‘House builders remain confident in the underlying level of demand for housing and will continue to deliver the homes the country needs,’ he added. Continue reading
Spanish prime property market bounces back
The prime property market in Spain has recovered strongly with buyers from Latin America and the Middle East rising, according to the latest index report. The recovery of the market mirrors the recovery of Spain’s economy which is expected to see growth of 2.6% in 2016, more than the UK and Germany, says the analysis from international real estate firm Knight Frank. ‘Ultra-loose monetary policy by the European Central Bank and low oil prices have led to an increase in consumer spending, higher employment and rising household incomes. The market fundamentals are improving,’ said Kate Everett-Allen, Knight Frank partner, But she added that a backdrop of global uncertainty remains. The report highlights two key property market trends. Firstly, the rise of the non-EU buyer. Latin Americans now have a strong presence in Madrid, Middle Eastern buyers are active in Marbella plus Swiss purchasers in Ibiza as the profile of Spain’s luxury buyers shift. The second key trend is the strength of the €1 million to €3 million price band and nearly all of our prime markets now consider it their most active market segment while confidence is returning to Barcelona where the number of residential sales increased by 86% between 2012 and 2015 Online property searches on Knight Frank’s website by Middle Eastern web users searching for a property in Marbella increased by 164% between 2014 and 2015. A third of Madrid’s prime buyers now come from abroad. In 2015 Latin American buyers accounted for 30% of all the prime sales agreed by Knight Frank’s Madrid sales team. The report also says that the top tier of Ibiza’s property market has become uncoupled from the wider market, recording price growth of 10% in the year to April 2016 while Mallorca saw a 55% increase in the number of applications for new residential projects in the first two months of 2016 compared with the same period in 2015. Overall, the report says, rising sale volumes in Marbella suggest confidence is returning to the market. Price growth is slowly shifting into positive territory with newly built modern villas in good locations, beachfront properties along the Golden Mile and gated communities such as Sierra Blanca, Camojan and La Zagaleta outperforming the wider market. It also points out that the recent ruling regarding Marbella’s 2010 Town Plan, which affects around 15% of Marbella’s housing stock, has led to some caution for those properties affected, but it has also refocused attention on properties in established areas which comply with the 1986 Urban Plan, as well as those which sit beyond the municipal boundary in areas such as Benahavís and Estepona. Meanwhile, Mallorca’s prime market, having reached its trough in the winter of 2014, has entered a new cycle of growth. The island’s prime markets of Andratx, Son Vida and Deià remain firm favourites with British, German and Scandinavian buyers. The report also explains that in Mallorca, not only has foreign demand strengthened with sales to foreign buyers up… Continue reading
