Tag Archives: news
New mortgage deals create opportunity for next time movers in UK
Recent changes by lenders to raise the maximum age limits for mortgage applications are a sign of a changing culture in the UK. Changes in policies have been announced by leading lenders including the Halifax and Nationwide who have raised the age limit for mortgages to 80 and 85 respectively. Linden Homes is advising people to take this as an opportunity to step up the ladder. ‘These new mortgages offering people the chance to lend later in life are ideal for those people in their 40s and 50s who are considering a property move, but may’ve been restricted previously by the length of term they could borrow money for,’ said Tom Nicholson, the firm’s divisional managing director. ‘This is another move by the lenders to drive the market and reflects the changing habits of people renting for longer and moving up into larger homes, later in life. The new mortgage policies work the same as any other monthly mortgage repayment agreement. Providing those applying have an existing pension in place which will cover the cost of the monthly repayments, a mortgage agreement will be drawn up against the usual rigorous criteria for eligibility,’ he explained. According to Adam Champion, business development director at the New Homes Mortgage Helpline this new type of mortgage product is a sign of the times. ‘People need to see these new mortgage opportunities as a type of financial planning tool and they have their place in the market,’ he said. ‘First time buyers are getting older which over time pushes back the ages of those making the second, third or final move. These new mortgages available open up the market for those looking to make their next move as they approach retirement age for instance,’ he added. Champion stressed that these products are a positive advance for the housing market to help people make choices as they get older and shouldn’t be confused with old endowment style mortgages. ‘They work just the same as any other monthly repayment mortgage, with the debt being repaid over the term. These products give people the chance to make individual choices and find a financial product that works for them and their own situation. I am sure this will really create a great opportunity for those people looking to upgrade their property to consider the new options that now are available to them,’ he pointed out. Nicholson believes, however, that people looking to make the next house move may be missing out on securing their dream home to meet their family’s needs if they aren’t aware of what is on offer. ‘People in their 40s, 50s or 60s considering a house move will consult their bank to see how much they can borrow and may be told they aren’t in a position to get that larger home they want. What they may not have considered, is speaking with house builders offering new build homes, where potential can be… Continue reading
Average house prices in British seaside towns up over 30% in 10 years
House prices have increased by 32% across British seaside towns over the past decade, amounting to £440 per month, according to the latest research. The annual Halifax Seaside Town Review revealed average house prices have grown from £166,565 in 2006 to £219,386 in 2016, equivalent to an average increase of £440 per month. Scottish seaside towns dominate the list of areas with the greatest price growth, with seven of the top 10 located in Aberdeenshire, which for much of the period has been well served by growth in the oil and gas sector. Fraserburgh has seen the greatest house price growth with a rise of 139%, from £63,540 in 2006 to £151,719 in 2016, equivalent to a monthly increase of £735. In Macduff, average property value doubled from £66,226 to £133,567 or 102%, followed by Peterhead up 95%, Cove Bay up 94% and Newtonhill up 91%. Brighton recorded the greatest increase in value outside of Scotland with prices up 59% from £214,863 to £341,235 over the decade. Other seaside towns in England with the best price performance include Whitstable in Kent up 53%, Shoreham on Sea in West Sussex also up 53%, Leigh on Sea in Essex up 52% and Truro in Cornwall up 50%. Despite the growth of property values in Scottish seaside towns over the past 10 years, nine of the 10 most expensive seaside towns in Britain are on the South coast with eight in the South West. The most expensive seaside town is Sandbanks in Poole, where the average house price is £664,655. Sandbanks knocked Salcombe off the top spot, a position which Salcombe, in the South Devon Area of Outstanding Natural Beauty, has had since 2010. Other most expensive seaside towns located in the South West include Padstow with an average price of £443,396, Dartmouth at £401,361 and Fowey at £379,003. Aldeburgh in Suffolk at £439,379 and Lymington in Hampshire at £426,112 are the most expensive seaside towns outside the South West. ‘Seaside towns are highly popular places to live, offering sought after scenery, weather and lifestyle which no doubt come at a price. They also attract those looking for holiday properties, which add upward pressure on house prices, which our research shows have increased by an average of £440 per month since 2006,’ said Martin Ellis, housing economist at the Halifax. Despite the price performance nine of the least expensive seaside towns are in Scotland. There is a marked difference in price at top and bottom end of the scale, with the least expensive town Port Bannatyne on the Isle of Bute at £77,132. Seven of the least expensive are in western Scotland, including Girvan at £91,912, Campbeltown at £91,938 and Saltcoats at £93,479. Newbiggin by the Sea in Northumberland at £81,259 is the least expensive seaside town in England. The research found 11 seaside towns in total with an average price below £100,000. ‘Over the 10 year period, coastal towns north of the border… Continue reading
Prices rise in Dublin but fall elsewhere in Ireland
Residential property prices in Ireland increased overall by 7.1% in the 12 months to April 2016 and were up by 0.3% month on month, the latest official figures show. This compares with no change in March and an increase of 0.6% recorded in April of last year, according to the data from the Central Statistics Office (CSO), and the market is still open to some volatility with prices rising in Dublin but falling elsewhere. In Dublin residential property prices increased by 1.6% in April and were 4.6% higher than a year ago. Dublin house prices increased by 1.9% in the month and were 5% higher compared to a year earlier. The data also shows that Dublin apartment prices were 1.1% higher when compared with the same month of 2015. However, a CSO spokesman said it should be noted that the sub-indices for apartments are based on low volumes of observed transactions and consequently suffer from greater volatility than other series. The price of residential properties in the rest of Ireland decreased by 0.6% in April compared with an increase of 0.3% in April of last year. Prices were 9.5% higher than in April 2015. It means that house prices in Dublin are 33.1% lower than at their highest level in early 2007 while apartments in Dublin are 41.5% lower than they were in February 2007 while overall prices in Dublin are 35.2% lower than at their highest level in February 2007. The price of residential properties in the rest of Ireland is 35.8% lower than their highest level in September 2007. Overall, the national index is 33.3% lower than its highest level in 2007. John McCartney, director of research at Savills, pointed out that price growth in Dublin has accelerated steadily over the first four months of the year, as predicted by the firm. ‘Price growth slowed in Dublin last year as tighter mortgage lending forced people into renting. However, this slowdown was always going to be temporary. The shift to renting has forced up rents, attracting investors who are now scrapping to buy properties and driving up prices. As this continues the Dublin market may become increasingly like London with expensive properties, many of which are owned by investors,’ he explained. He said that with tighter mortgage lending introduced in February 2015, many people were priced out of the Dublin market and bought properties in Wicklow, Meath and Kildare. This drove strong price increases in those counties last year, but he added that this has diminished their attractiveness, and increasingly, families are weighing up the cost savings against the longer commute and choosing to stay renting until they can assemble the deposit to buy in Dublin. Looking ahead, Savills says Dublin house price inflation will heat-up further in the coming months. ‘The only thing preventing stronger inflation in today’s figures was the strong growth recorded 12 months ago. However, prices slowed sharply from last May, meaning that next… Continue reading
