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Report suggests shared ownership is misunderstood and under used
Shared ownership could help thousands more home buyers in the UK to get onto the housing ladder but research has found that this growing lending sector is under used and misunderstood. With house prices rising at a faster rate than most salaries and people continuing to struggle to get onto the property ladder, shared ownership is a potential solution for many, yet is often overlooked despite having been introduced 30 years ago. The research from the Leeds Building Society has identified a number of key myths around shared ownership including the belief that a shared ownership mortgage is more difficult to place than an ordinary mortgage. It also found that people think that shared ownership properties are in less desirable areas, that it’s more expensive than renting, that it’s difficult to qualify unless you’re on a very low wage, or a key worker and that it is like a consolation prize and not real ownership. ‘In a nutshell, the lack of understanding around shared ownership boils down to these five distinct points,’ said Louisa Sedgwick, head of intermediary distribution for Leeds Building Society. ‘In reality, these beliefs are inaccurate and there is an abundance of information for intermediaries, and the borrowers they serve, available from housing associations, the Government and lenders to help them understand how shared ownership could work for them,’ she added. She pointed out that while many housing developers or associations are linked to specific intermediaries in certain areas, there’s nothing to stop individuals approaching their own broker about shared ownership. ‘At this stage, many clients will have been assessed, certainly in terms of eligibility for shared ownership, by the relevant Housing Association before going to consult an intermediary, meaning the process for the broker can actually be fairly straightforward since they only need to place the mortgage,’ explained Sedgwick. ‘A mistaken public perception exists that shared ownership homes may be badly maintained, poor quality properties in poor, or less desirable, areas. Again, this is far from the truth. London provides an interesting example and showcases the fact many shared ownership properties offer a desirable home and community environment to live in,’ she pointed out. ‘Properties available through the scheme can be found in prestigious and sought after areas such as Notting Hill. What’s more, the availability of shared ownership properties extends far beyond London to desirable areas across the UK including Harrogate, Chester and York. ‘Shared ownership schemes are found across the UK as housebuilders are often obliged to include a proportion of affordable housing, some of which will be for shared ownership, regardless of where they are developing,’ she added. In terms of cost she explained that while many believe the monthly payments required to live in a shared ownership property hover somewhere between those paid for a full mortgage and rent, in reality, monthly payments for shared ownership properties could be lower than either full ownership or private renting. Indeed, a report published by the National Housing Federation in 2013… Continue reading
Less than a third of people with mortgages know what interest they pay
One in three mortgage holders in the UK have no idea what rate of interest they are paying, despite market speculation that an interest rate rise is on the horizon which could increase their repayments. The research from consumer organisation Which? Mortgage Advisers has found 32% of mortgage holders were unaware of the rate of interest on their mortgage with just 29% sure of their exact rate. Some 89%of home owners who knew their exact interest rate felt informed about the impact of a potential rate rise on their finances, yet this fell to only 58% for those who didn't know their mortgage rate. With widespread market and media speculation about a potential increase in interest rates, more and more mortgage lenders are offering fixed rate deals which enable consumers to take advantage of current low rates. Separate analysis by Which? Mortgage Advisers found a 55% increase in the number of fixed rate deals on the market over the past two years, with fixed rate deals now making up 77% of the products on the market. Seeking independent mortgage advice is crucial to finding the best deal for your individual circumstances and there could even be potential savings to be made. According to our survey, 34% of home owners are currently on a standard variable rate mortgage, the default mortgage rate once a fixed rate deal ends. The analysis shows that those people could be in line for a saving of up to £123 a month if they switched to a two year fixed rate deal. ‘With interest rates so low, we have seen a significant increase in the number of fixed rate mortgages available and a surge in households looking to take advantage of these deals ahead of any potential rise,’ said David Blake from Which? Mortgage Advisers. ‘That said, it's important to remember that fixed rate deals typically have higher rates than trackers, for the time being at least, but fixing now could potentially save you money in the long term. Now is the time to seek independent mortgage advice if you are concerned about the impact a rate rise might have on your finances,’ he added. Which? Mortgage Advisers top tips include knowing your interest rate so that you'll have a better idea of how much your repayments could change in the event of a change in the Bank of England base rate. Also, understanding your mortgage deal by making sure you know if you are on a fixed term deal, tracker, or standard variable rate as an increase in the base rate will mean different things for you depending on the type of deal you're on. People should check how long is left on their mortgage deal and if your mortgage is a fixed term deal, check when this rate will end as you will most likely default onto a standard variable rate, generally at a higher interest rate, once it does. It also recommends look at options… Continue reading
Bucharest real estate markets have seen strong sales in 2015
A stable economic environment and growth potential has resulted in the commercial real estate market in Bucharest, Romani, gaining momentum with sales expected to be close to €800 million by the end of 2015. This year has continued the growth trend begun in 2014 and saw a real estate market dominated by more courageous players, according to the latest analysis report from real estate firm Colliers International. It forecast at the beginning of the year that the Romanian investment market would see sizable transactions value exceeding the €100 million threshold, and international investors either entering or consolidating their positions on the local market. The report says that outsourcing businesses are still the prominent pillars of the office sector, as Romania becomes more visible for reputable BPOs, SSCs and IT companies, with focus on Bucharest, but also secondary cities. More than 60,000 people are currently employed in outsourcing activities and forecasts provision up to 150,000 in the next five years. Characterized by vibrant activity, office sector in Bucharest is on the verge of a new era of premium quality deliveries in what is to become a half million square meter office hub by 2020 in the Floreasca Barbu Vacarescu area. ‘Aligned with our expectations from the beginning of the year, real estate market has been characterized by general positive evolution for transactional activity for all sectors. Relying on good macroeconomics indicators, the year brought more intense consumption and higher interest in investment,’ said Ilinca Paun, managing director of Colliers International. ‘With take-up picking up and vacancy rates reporting low record levels, developers felt confident enough to start projects across the entire market. Industrial sector will add new stock to the static inventory registered in the past years, while investment market continues to post remarkable results this year also, with total volume expected to reach Euro 800 million by the end of the year,’ added Paun. The report says that the Floreasca Barbu Vacarescu sub-market stands out as the new CBD area in Bucharest. The modern stock of buildings in the area was subject to the biggest part of the demand, with 215,000 square meters leased in the past five years. The area will continue to be in the spotlight in the years to come with 155,000 square meters of GLA of office space being planned for development. Nevertheless, the competition in the sub-market becomes fiercer with each new announced development, the report says. According to Andreea Paun, associate director of office agency at Colliers International, Romania not only has become an attractive destination for the outsourcing industry, but has also changed the way it’s being perceived by large companies. ‘Romania is no longer seen solely as a cost effective destination, but rather a value added generator and valuable talent pool. Similar to previous years, the business services industry has driven most of the office demand. We foresee this trend will grow stronger in the future as renowned outsourcing companies are… Continue reading
