Investment
Research suggests UK home owners over 50 with a mortgage could get a better deal
One in three home owners in the UK aged over 50 still have a mortgage and many have never tried to renegotiate for a better deal, new research shows. Mortgagees in this age group have still got around £50,000 to pay and one in 14 think they have been prevented from moving their mortgage to a more competitive deal because of their age. The research by the Saga Equity Release Advice Service also shows that of those home owners in their 70s who still have a mortgage on average they have £40,000 to pay. While many of those in their early 50s still have years of working life to chip away at their debt, around one in seven people in their 70s are faced with having to use their weekly pension to pay off what’s owed instead of using it to enjoy their retirement as they had planned. Saga says that shopping around for a new mortgage could help people pay it off quicker but one in 10 over 50s say they are concerned about their lenders maximum borrowing age and it appears they are right to be worried as 7% say they have been prevented from moving their mortgage to a more competitive deal because of their age. ‘Millions of older homeowners have found themselves abandoned by mortgage lenders and stuck in uncompetitive deals because of the unfair age restrictions that many lenders have in place,’ said Alex Edmans, head of retirement at Saga Personal Finance. ‘If these people had access to a better deal they wouldn’t have to pay as much back each month which would leave them with more money to enjoy their retirement. For those in retirement struggling to meet their monthly mortgage costs it may be worth considering a lifetime mortgage to help ease the burden of the monthly repayments,’ he explained. ‘This may not be suitable for all, so it is well worth speaking with a specialist adviser, who would consider all alternatives and review whether any state benefits could help provide some relief. It is also extremely important that people discuss their options with their family or loved ones and we advise our customers to do this before taking out a lifetime mortgage,’ he added. Continue reading
Research shows fewer homes being built on greenbelt in England
The number of new homes built within the greenbelt in England halves over the last 10 years after peaking in 2001, new research shows. Less than 100,000 have been built on these type of open spaces, which are meant to prevent urban sprawl into the countryside, since 1995, but most are in the area around London. The research from real estate firm Countrywide also shows that the 96,000 greenbelt land homes built in the last decade made up 3.5% of the 2.7 million homes built in England. However, demand for new homes and a shift in development southwards saw 48% of all greenbelt development occurring around London in 2014 while four areas, Blackpool, Gloucester, Burton and Morecambe, have seen no new house building at all since 2011. A breakdown of the figures shows that the number of new homes built on greenbelt each year has halved since the early 2000s, falling from a peak of 6,700 homes in 2001 to 3,248 in 2014. The trend started before the downturn too. Despite a 36% rise in the number of homes built in England between 2001 and 2007, the numbers built on greenbelt fell by 46%. Last year just 3,250 homes or 3% of all homes were built on greenbelt, down on 2013 and the long run average. Over the last five years development on greenbelt has increasingly been on land surrounding growing cities in southern England, which the firm says reflect the demand for housing and a wider trend of new home delivery concentrated in the South of England. In 2014 the 1,575 new homes built on London greenbelt, accounted for 48% of all greenbelt development in England, up from 38% a decade ago. London has also seen the most homes built on greenbelt since 1995 at 39,100. Local authorities can grant permission for development in the greenbelt in special circumstances where the benefit from development outweighs perceived harm to the greenbelt. While there is debate, and conflicting guidance about specifics, broadly these may include significant economic benefits, replacing buildings and in some instances housing or other social need. ‘While development is generally prohibited within the greenbelt a small number of homes are given permission to be built. Many of these development sites would be at odds with common perceptions of greenbelt. Rather than picturesque countryside being concreted over, these sites were either brownfield, infill schemes or unused land with little amenity value,’ said Johnny Morris, group research director at Countrywide. ‘Sustained pressure, particularly in the South, to get more homes built and government plans to take a tougher line on local authorities with out of date plans, will likely see more homes built on greenbelt in future years. Just returning to the rates of development on greenbelt seen in the early noughties would yield an extra 5,000 new homes a year,’ he explained. ‘Research by Countrywide published earlier in 2015 showed around the 80 railway stations in… Continue reading
UK home owners increasingly looking to remortgage to a better fixed deal
Up to one in six UK home owners are considering remortgaging over the next six months as the ongoing mortgage price wars cut rates, new research has found. They are targeting average savings of £99 a month, equivalent to £1,188 a year, according to the study by The Nottingham Building Society Nottingham. This comes as Council of Mortgage Lenders figures show that lending for remortgaging increased 15% month on month in recent data and industry experts are forecasting a surge in remortgaging in response to recent rate cuts which have seen five year fixed rates drop below 2%. The Nottingham's research shows five year fixes are the most popular choice for customers considering remortgaging and 27% of potential remortgaging customers would choose a five year fix and 21% a two year fix. The research shows strong demand for fixed rate deals as around three quarters of those considering remortgaging would choose a fixed rate deal. The study found 12% would ideally fix for longer than five years. Just 7% of those surveyed would choose tracker rates while 4% would consider discount deals and 7% say they would choose a standard variable rate. ‘The mortgage price war is interesting to existing home owners who are keen to take advantage of the record low rates. With interest rates expected to rise in the coming years then now could well be the right time for many to consider whether there are savings to be had,’ said Ian Gibbons, senior mortgage broking manager for Nottingham Mortgage Services. ‘Potentially savings are higher than the average £99 a month people are looking for. Someone with a £150,000 mortgage who moved from a deal at 4% to one at 2% could be around £3,000 a year better off,’ he explained. ‘However, to secure the best remortgage deal it is important to look at more than the base rate. You need to search the whole market and to be aware of the product fees that may be charged. A great rate won't save you much if you have to pay a high fee,’ he added. Continue reading
