Uk
British women say strict mortgage rules are discriminatory
A number of women who apply for mortgages in the UK believe that they have been discriminated against by lenders because starting a family would have an impact on their finances. Getting a mortgage in the UK has become tougher since new regulations were introduced in 2014 and applicants are now asked to fill in a form detailing their monthly outgoing, including things like gym membership, and how they would fair when interest rates rise. Now new research shows that 25% of women have intentionally not disclosed plans to start a family as they fear this would lead to their application being refused and 9% said they have been discriminated against by lenders over their plans to have children. Indeed, the research from comparison website uSwitch also found that 11% would delay having a child in order to secure a mortgage while 48% save up to cover payments during maternity leave. The research also found that the pressure of disclosing information for a mortgage application is having a significant emotional impact. Some 71% of women who concealed their family plans from lenders experienced high levels of stress and anxiety during the mortgage application process. Overall 27% of women think the current affordability criteria is out of step with modern family finances and many said savings should be taken into account. ‘There is a strong feeling that mortgage lenders, rightly or wrongly, may be penalising women for starting a family,’ said Tashema Jackson, money expert at uSwitch. ‘A worrying outcome is that some female mortgage applicants are feeling forced to withhold information from potential lenders. Not only can this have severe implications in terms of invalidating any mortgage offers, but it is causing stress and anxiety for home buyers at a critical time in their life,’ she pointed out. ‘While it’s vital that lenders help people only borrow within their means and ensure they can afford future payments, it’s not fair for lenders to make blanket assumptions. Those planning a family may be able to manage their repayments even with a drop in household income, thanks to careful planning or savings,’ she explained. ‘We believe lenders should be making decisions based on a broader picture of an applicant’s financial situation, including the amount that they have in savings, rather than on assumptions about a woman’s personal circumstances or intentions,’ she added. She also pointed out that anyone who feels that they may have been discriminated against for any reason should lodge a complaint with the mortgage provider and if there is no resolution they can go to the Financial Ombudsman Service. Continue reading
Auckland property market gets boost after three cooler months
The average sales price of a property in Auckland, New Zealand increased by 1.9% in September to $836,275, the latest published data shows. The median sales price reached $790,000, a rise of 4.6%, the data from real estate firm Barfoot & Thompson also shows with the firm also reporting an extremely active month with sales up 3.4% month on month and up 41.6% compared to a year ago. Peter Thompson, managing director of Barfoot & Thompson, said that nearly a third of all homes sold were for in excess of $1 million, which is the highest number of $1 million plus homes ever sold in a month. ‘You have to go back to June this year to see a similar lift in values in one month to that we experienced in September. In part the price surge may be down to buyers getting in ahead of the new regulations around equity ratios for investors, which came into force in October, but without doubt an element of the traditional lift that comes with spring was there,’ he explained. Some 11.9% of all homes sold were properties for under $500,000. This is significantly lower than the 14.3% of sales in August in this sector or the 31.8% recorded in September last year. New listings at 1,940 were the highest in a September for 12 years, and created a reasonable level of choice, he also pointed out, which has given a boost to the residential real estate market following three months of cooling. ‘Whether September’s prices have set a trend for the remainder of the year has yet to be seen,’ said Thompson who also pointed out that new regulations for international buyers are due to come into force in November and these have coincided with a tightening of requirements around the export of money out of China. ‘In the last week of the month there was a falloff in sales made under the hammer at auctions, and there was less pressure on buyers to make immediate decisions. This end of the month development carries with it a note of caution that September’s prices may not prove to be the start of a new round of increases, and that buyer’s may not be prepared to overstretch themselves to secure a property. The future direction of prices still remains at the crossroads,’ he added. Continue reading
UK property demand now higher outside of London, says market report
Demand for property in the UK is now higher outside of London, increasing by 5% since the second quarter of the year, according to latest market intelligence report. Bexley remains the hottest spot in the UK with demand climbing a 3% quarter on quarter to 77%, followed by Watford at 72%, Bristol at 71%, Reading at 68% and Barking at 65%. The rest of the top 10 is made up of Sutton at 64%, Cambridge at 67% and Medway, Havering and Brentwood all on 64%, the property hotspot index from online estate agent eMoov shows. The London Borough of Ealing has seen the most drastic turn around in property demand with growth of 74%, although at an index figure of 38%, demand in the area is still relatively low. Aberdeenshire is the coldest spot in the UK with demand at just 10% and demand in the area has halved since the third quarter of 2014. Highland is the only other Scottish region in the top 10 coldest spots, with demand at just 17%. Westminster at 15% and Kensington and Chelsea at 17% are the only London entries, with the other six coldest locations all located in the North West. Camden is the fifth biggest faller over the course of the year, with demand reducing by a quarter year on year with Westminster down 33% and Islington down 15%. The rest of the year’s biggest fallers are again, located across the north of the country. ‘In early 2014, we predicted the ripple effect London as an individual, market would have on the UK property market. Although there are pockets of the capital that have enjoyed sustained demand, it’s the commuter belt that is currently top for property demand in the UK,’ said the firm’s chief executive officer Russell Quirk. ‘The uncertainty of the situation in Aberdeenshire and the local oil industry, seems to have had serious repercussions to the local property market. Not only is it bottom, but demand has halved in just a year. Unfortunately there can only be one consequence to property prices in the area, which is inevitably a drop,’ he added. Continue reading
