Category: Blog

It was reported by the BBC at the end of last week that mortgage application approvals are on the rise in the UK, according to high street banks. Despite a slow start to the year, UK banks are now suggesting that approvals are on the rise, offering more first time buyers and home movers the opportunity to move onto or upwards on the property ladder.

The Highest Figures For 6 Months

The British Bankers Association (BBA) has released figures which suggest that, in February 2015 37,453 homes were bought whereas in March 2015, 38.751 were purchased. Whilst this is still 14% lower than last year, it is important to understand that this is the highest figure which we have seen for six months.
It is believed that the reason for the number of application approvals is due to low mortgage rates having been introduced over the past few months, with five year fixed-rate deals available for less than 2%.

Mortgage Rates Continue To Fall

At the end of the day, as mortgage rates continue to fall, it is expected that we will see a rise in those applying, however where the confidence comes from is that the approval rate is higher. Just over a year ago, we saw the Mortgage Market Review (MMR) roll out which made it increasingly difficult for many to secure a mortgage. This saw a shake up in the rules surrounding affordability and ultimately, meant that many, who would previously been granted a mortgage, were no longer able to be approved.
With changes like this just twelve month’s old, it’s promising to see the number of applications back on the rise. Of course, we’re still a long way off seeing rates at that which they once were, however if you’re considering either remortgaging or buying for the first time, it’s important that you take the time to speak with a specialist mortgage advisor. In many cases, having the input from a professional advisor can ensure your application is successful and that you’re confident that your circumstances will meet the required eligibility levels.

Affordable Fixed Rate Deals

With a number of different competitively priced fixed-rate deals having rolled out in recent weeks, it’s important that both first time buyers and home movers take these into consideration. By fixing the interest rate for anything up to ten years, it’s possible to know that repayments won’t change at all during this time. As such, from an affordability perspective, it’s now possible to know exactly what will be owed each month and allow borrowers to calculate their overall outgoings.

If you’re dreaming of owning your own home but are struggling to save up a large enough deposit whilst paying both rent and monthly bills, you could well benefit from the ‘Help To Buy‘ scheme. This government initiative was created to help those saving to buy their own home (or in some instances move themselves up the property ladder) do so without having to save for years to hold a sizeable deposit. It means that, in short, it’s now possible to buy a new-build or existing home up to the value of £600,000 with just a 5% deposit.
Given that many have been needing to save at least a 10% deposit when not using the scheme, or in some cases, 20% or more, above all, it makes becoming a homeowner easier to achieve and makes it a reality, not just a dream!
The ‘Help To Buy’ scheme is split into two main options, ‘Equity Loans‘ and ‘Mortgage Guarantee,‘ both of which are the perfect way to realise your dream of either becoming a homeowner or moving up the property ladder, with the most suitable depending entirely upon what it is you’re looking to buy.

Equity Loans

When taking out an equity loan through ‘Help To Buy,’ the government will lend you up to 20% of the value of a new-build home. The key factor here is that equity loans are only available on new-build homes, however given the rate at which they’re being built in the UK, that shouldn’t pose too much a problem for most looking to jump on or up the property ladder.
In addition to the 20% borrowed from the government, you’ll need to put down your own 5% deposit, which means you’ll end up only needing to take out a mortgage with a 75% loan to value. This means you’ll be able to get a better rate than if you were needing a mortgage for 95% of the property price whilst being in a position to keep repayments down. You won’t pay any interest on the 20% borrowed from the government for the first five years.
Equity loans are available both to first time buyers and those already owning their own homes but who are looking to move but are struggling to afford to do so due to the equity required to put down as a deposit on your next home. The home you buy must be a new-build and can only be up to the value of £600,000. Other criteria state that you mustn’t own any other property and that you cannot sublet your new property under the scheme.

Mortgage Guarantee

A mortgage guarantee is, in short, a mortgage supported by the ‘Help To Buy’ scheme. In theory, it’s no different to any other type of mortgage except the fact that lenders are able to purchase a guarantee on loans. Through this scheme, the lenders who take part are in a position to offer home buyers higher loan to value mortgages (up to 95%).
If you take out a mortgage which has a mortgage guarantee from ‘Help To Buy,’ you’ll still be responsible for all repayments. What the scheme does, however, is offer lenders a guarantee on a percentage of the mortgage, making it easier for borrowers to be able to take out the mortgage they need to purchase their ideal home.
To qualify for help under a mortgage guarantee, the property can be either a new-build or existing home up to the value of £600,000. You mustn’t own any other property and the mortgage you take out must be repayment not interest only.
In addition, the deposit cannot come from any government scheme and a mortgage guarantee cannot be used in conjunction with an equity loan and the size of the mortgage cannot be more than 4.5 times your income.
Above all else, ‘Help To Buy’ is there to help both first time buyers and those who are looking to move up the property ladder, either due to an expanding family or the wish for a bigger home.
If you’re considering either buying your first home or are looking to move, either into a new-build or an existing property, why not give us a call on 0800 756 7794 to discuss your options and to let our expert mortgage brokers offer you invaluable advice and find the most suitable mortgage for you.
Here at Search Mortgage Solutions, we offer NO BROKER FEE mortgage advice meaning it won’t cost you a penny, whilst ensuring you receive the very best guidance and, above all else, the right mortgage for you.

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30 March 2015 | By Paul Thomas
Brokers are bracing themselves for further cuts to mortgage rates as zero inflation keeps a lid on fixed-rate pricing.
Early last week, the Office for National Statistics reported that inflation had hit a record low – 0 per cent.
Brokers predict a fall in swap rates, which have fallen significantly since the beginning of March, as a result of the dip in inflation, which also means base rate is likely to stay lower for longer. In fact, Bank of England chief economist Andy Haldane has said a cut to base rate may be needed if low inflation persists.
Since 1 March, two-, five- and 10-year swap rates have all fallen by around 20 basis points and they have edged down slightly since the inflation announcement. This has led some lenders to reduce their fixed rates, including Halifax, Accord and Platform, while HSBC has introduced a new 2.19 per cent five-year fix.
Brokers believe falling swaps and hints from the Bank of England that rates are not set to rise in the near future will keep a lid on fixed-rate pricing or even lead to lenders cutting rates further.
Coreco director Andrew Montlake says he does not foresee mortgage rates rising in the current environment.
He adds: “For the mortgage market, this could mean we see a fall in the costs of fixed rates once more as swap rates continue to edge down. It will be interesting to see if lenders do want to push the boundaries of fixed-rate pricing to the lowest levels we saw a few weeks back or if they are happy with the current pricing levels.”
London & Country associate director of communications David Hollingworth says: “People are starting to talk about base rate going even lower. That and zero inflation have fed through into swaps, so that could arrest any increases in fixed rates.
“Already one or two lenders have sharpened up their rates.”

16 March 2015 | By Paul Thomas
Asking prices are just £30 below their peak, according to online estate agent Rightmove.
This month the average asking price reached £281,752 – £30 off June 2014’s peak. On an annual basis, prices were up 5.4 per cent.
Excluding inner London, the average price asked of first-time buyers was £169,414 in March, up 7.6 per cent annually. Second-steppers were asked to pay an average of £235,205, a 7 per cent increase on the previous March.
Rightmove says higher demand and larger buyer deposits are reducing the impact of the Mortgage Market Review.
Rightmove director and housing market analyst Miles Shipside says: “The distraction and uncertainty of an election typically force sellers to price more keenly, though this is often short-lived.
“The MMR laid out a much needed longer-term framework for responsible lending, but within a year its dampening effects have been muted by high demand outstripping supply in many locations and by buyers putting down larger deposits. The price of property coming to market is now just £30 off the record set nine months ago. The MMR has been a positive restraint on what buyers can afford to pay and has assisted in lessening the price rise pace.
“However, with new-build levels remaining low and only a small increase in properties coming to market compared to last month, the supply side is still a critical but missing part of the jigsaw if pent-up demand is to be satisfied.”

Lower stamp duty bills for new purchasers are causing first time buyer deposits in the UK to go up by 15% a year, according to a recent analysis.
The Wimbledon estate agents Robert Holmes, have said that the average deposit was £29,127 in January, which is an increase of 7% in comparison to December 2014, with first-time buyers saving the largest amount for their deposit since July 2013, a year and a half ago, as savings from December’s stamp duty changes come into effect.
Much Awaited Stamp Duty Reforms
Chancellor of the Exchequer George Osborne announced long-awaited reforms to the ‘slab’ stamp duty system at the end of last year. These revisions will benefit some 98% of buyers. These changes have reduced upfront costs for lots of first-time buyers meaning they can use the extra available cash to build their deposit. The average first-time buyer paid around £1600 before the graduated system was introduced, which saves them roughly £900.
In the report it was also said that rising purchasing power is reflected in the average first-time buyer Loan-to-Value (LVT) ratios, and that these have fallen 1.1% over the latest three months; indicating that deflation and increasing wages are allowing first-time buyers to save up larger deposits.
First-time buyer homes have in turn increased in price, with new buyers paying an average of £160,304 in January. This is up 12% in comparison to a year ago. Deposits are now 75.4% of a first-time buyer’s income in comparison to 70.6% a year ago.
However, whilst stamp duty has saved first-time buyers money that they can invest in their property, house prices have been given an upwards push due to the changes. Previously, the property values would cluster around the thresholds, but now people can simply ask for more (ie it makes no difference now if a property is worth £250,000 or £250,001).
The report was written by Adrian Gill, a director of estate agents Your Move and Reeds Rains Your Move who said: “A fusion of economic factors is alleviating some of the financial burden of forming a deposit. Wages are starting to recover and inflation has fallen to a record low, meaning buyers have slightly more cash to play with day to day. Stamp duty fees were slashed for many new buyers when the government reformed the old slab system, freeing up further funds. It’s still difficult to save, with savings rates tied closely to the low base rate. But it’s easier to put cash aside than it was a year ago.”

First time buyer deposits in the UK are soaring by 15% a year due to lower stamp duty bills for new purchasers, according to a recent analysis.
Robert Holmes, an estate agents in Wimbledon mentioned that the average deposit was £29,127 in January, an increase of 7% in comparison to  December 2014, with first-time buyers saving the largest amount for their deposit since July 2013 a year and a half ago as savings from December’s stamp duty changes come into effect.
Long Awaited Stamp Duty Reforms
At the end of last year, Chancellor George Osborne announced long-awaited reforms to the ‘slab’ stamp duty system; these changes will benefit some 98% of buyers. These revisions have reduced upfront costs for lots of first-time buyers meaning they can use that cash to build their deposit. The average first-time buyer paid around £1600 before the graduated system was introduced, saving them roughly £900.
The report also said that rising purchasing power is reflected in the average first-time buyer Loan-to-Value (LVT) ratios, and that these have fallen 1.1% over the last three months; indicating that deflation and increasing wages are allowing first-time buyers to accumulate larger deposits.  Prices for first-time buyer homes have in turn increased, with new buyers paying an average of £160,304 in January; this is up 12% in comparison to a year ago. Deposits now represent 75.4% of a first-time buyer’s income in comparison to 70.6% a year ago.
House Prices Have Been Pushed Up
The irony is that while stamp duty has saved first-time buyers money that they can invest in their property, house prices have been pushed up due to the changes. This is because whereas before the value would cluster around the thresholds, now people can simply ask for more (ie it makes no difference now if a property is worth £250,000 or £250,001.
Adrian Gill, director of estate agents Your Move and Reeds Rains Your Move who wrote the report said: “A fusion of economic factors is alleviating some of the financial burden of forming a deposit. Wages are starting to recover and inflation has fallen to a record low, meaning buyers have slightly more cash to play with day to day. And stamp duty fees were slashed for many new buyers when the government reformed the old slab system, freeing up further funds. It’s still difficult to save, with savings rates tied closely to the low base rate. But it’s easier to put cash aside than it was a year ago.”
London Continues To Attract
However, London is still very popular as a cultural capital and professional hub and continues to attract buyers from other areas, despite the higher average price tag. Inner London still remains very expensive, but there are other family-friendly, affluent areas that remain more attainable; such as Wimbledon, where demand remains strong among young professionals. 
The data also demonstrated that there were 21,200 first-time buyer completions in January 2015 – this is some 19% lower than 26,100 at the end of last year. A fall in first-time buyer numbers is to be expected between December and January generally due to the Christmas lull. However, in the run up to the election property went going up in price in London in February by 2.1%, or £5,729.

In December 2013′s Autumn Statement, Chancellor George Osborne announced that the loophole allowing non-residents to avoid paying Capital Gains Tax (CGT) after selling a residential property in London; would be closed: cue predictable hysteria from some industry experts about house prices falling as foreign money would inevitably be pulled out of London.
Lawsons & Daughters, an estate agents in Hammersmith & Fulham mentioned in a recent post that this was a long time coming; and, in many ways, is quite fair as it evens out the playing field between overseas investors and UK-based buyers.
The new CGT rules will affect individuals and private companies based outside the UK that own residential property in the UK and will cover homes that are used by the owners as private residences or that are rented out as investments. Tax rates will roughly mirror those for UK residents, with individuals and trusts taxed at up to 28%, and companies at 20%.
However, while foreign buyers should be aware of the new changes and prepare accordingly, we don’t think that closing this loophole will discourage foreign investment in property in the capital’s housing stock. Despite the fact that there’s been a recent increase in stamp duty and that a mansion tax may be introduced in the UK if the Labour Party form a government in May; the UK remains a good bet.
This is because rising property prices, along with the stable economy and the political and legal systems, make London a great option for investors from all over the world. A London property is a must-have for property developers from areas such as Asia, the Middle East and Russia and due to the problems in the Eurozone, Italians and recently Greeks have been snapping up London property.
Chinese buyers are particularly keen to purchase prime London property, due to the fact that the renminbi is undervalued and there are massive gains to be made. According to government figures, the amount of so-called investor visas given to  Chinese nationals mean that at least £1m has been put into the UK property market, which has doubled in the year to the end of September 2014. Chinese nationals accounted for 43% of all investors, which is the highest proportion of any country.
Property in prime London is seriously in demand as there is a desperate shortage, pushing prices up. Last year, just 3,900 homes worth £1m or more were sold in Central London according to official figures and supply could fall further if overseas owners don’t sell their properties. There’s also a lack of quality stock on the market, meaning that high-end luxury apartments are especially sought-after, which is why investors are seeking out riverside property, with Knight Frank reporting that foreign purchasers bought 80% of homes on offer at Thameside housing developments.
25% of the four developments were taken by buyers from the Far East and about 20% from the Middle East, with 40% of all the homes in the scheme sold to investors. These same investors seeking convenient superior transport links and double digit growth potential in the value of their properties are now turning their attention to areas adjacent to the hot spots in prime central London, including Fulham, where prices increased by 16.4% last year. The abundance of parks, open spaces, great schools and ‘village atmosphere’ makes the borough perfect for those looking to experience the best of London. The area’s seen an increase of affluent professionals in the banking and hedge fund industries move for this reason, as well as those looking for bigger properties in order to start families.

If you are considering purchasing a property in London, where you buy can be the key to how much the property will be worth in the future, as well as the facilities and commuting opportunities that will be available to you if you reside in a particular area. Here, we will look at where you should be buying in London over the next two years and why.
Ealing Broadway
Ealing Broadway is currently a highly desirable area for families living in London, featuring lovely parks, wide open spaces and good schools. More affordable than other areas of London such as Hammersmith, property buyers should seriously consider purchasing property in Ealing Broadway.
With Crossrail building a new station that is set to begin service in 2019, commuters and residents will benefit from faster, more reliable transport services to central London, as well as the rest of the UK, making Ealing Broadway the ideal place for London commuters to call home.
Average Property Price: £696,256
Camberwell
If you want the rarity of commercialism and community working in perfect harmony in London, Camberwell is just the place for you. Although the area is frequented by students from local universities, this area is also popular with young families due to its well-considered primary schools.
There are a number of new housing developments currently in Camberwell, so there will soon be a lot of property on the market that’s particularly appealing for families and first-time buyers.
Average Property Price: £451,345
Manor Park
Property prices will soon be on the rise in Manor Park, one of the London areas that will benefit the most from the Crossrail development. As well as being a great area for investment, Manor Park is also home to a lively high street full of restaurants, cafes and shops that reflect the area’s multicultural atmosphere.
Young professionals and families are already taking advantage of the comparably low prices in Manor Park, for which property experts predict up to a 50% increase in property prices following the completion of the Crossrail development.
Average Property Price: £304,258
These up-and-coming areas are just a selection of those available in London that will prove to be both an excellent investment and a great lifestyle choice. If you are purchasing a property and need a mortgage broker in London, Search Mortgage Solutions offer a simple, fast and hassle-free service that will help you finance your property. Contact us today by calling 0800 756 7794.

With the increasing amount of price comparison sites that have popped up over the past few years, many people seem to be making the mistake of using a price comparison site instead of a mortgage broker.
Price comparison sites are often promoted very well so it is no surprise that many people use them, but there are certainly flaws in this way of finding a mortgage that may lead to you not actually getting the best mortgage for you.
In this blog post, we’ve pulled together some of the reasons that you should be using an experienced mortgage broker over a price comparison website.
Expert Advice
Mortgage brokers are often experienced in their field and have most likely learned more about finding people the best mortgage than you’d be able to learn yourself, no matter how deep you research.
Even if the mortgage application process seems simple to you, you can be sure that a mortgage broker will be able to have a valuable input. Additionally, mortgage brokers can provide advice that is personalised to each case, taking into consideration your personal circumstances, meaning you can get all of the information and advice you need to find the best mortgage for you.
In comparison, price comparison sites don’t provide this information, simply offering advice that is applicable to as many people as possible.
The information that price comparison websites offer is mostly based on price, and any other factors that may affect the mortgage that you could choose (of which there are many), are simply ignored.
Exclusive Deals
As well as finding borrowers the best deals, mortgage brokers also work to find exclusive mortgage deals from providers. These offers aren’t available on price comparison websites and may turn out to be the best mortgage that you could get so if didn’t use a mortgage broker then you may miss out on these.
Protection
A mortgage broker has a duty of care for all those that they are providing advice to. Although a mortgage broker will always strive to give you the best advice, you have the insurance of knowing that if they don’t provide advice that you think is adequate, you can complain and may even be compensated.
However, if you were to find a mortgage through a price comparison site and choose it by yourself, later on if turns out to be unaffordable then you won’t have that extra layer of protection.
Here at Search Mortgage Solutions, we have a whole team of professional and experienced mortgage brokers who can help you find the best mortgage for you. If you are looking for a mortgage broker in Birmingham then look no further than us! If you would like some more information about our services, feel free to contact us and we’ll be happy to help.

We’re still early in the New Year, and 2015 is young, and that means another year of property fluctuations is in the pipeline. 2014 certainly had its fair share of talking points with regards to property, and it’s fair to say that an awful lot of them revolved around the ongoing drama of property prices in London. However, our very own city of Leeds also made numerous appearances, particularly due to its status as one of the most affordable UK cities to rent a property in. So, what can we expect from the next 11-and-a-bit months? Here are a few predictions from various analysts:
Growth in Property Prices
Over the course of 2015, house prices are expected to grow, although, as we mentioned in a previous blog, these rises are anticipated to be far slower than most of the recent trends have been. A general consensus among property gurus seems to be that a 4% rate of growth is a realistic expectation, but the reasons behind this figure are varied. It could happen as a result of…

• Nervousness in London. There’s a theory that London house prices will remain largely unchanged for the next 12 months, and that should restrict rising property prices as a whole.
• Election uncertainty. Until the result of the May election, housing market activity should be lower. However, the ongoing stamp duty changes are likely to have little or no effect.
• Low Bank rates. Some have suggested that interest rates could sink to record lows this year, and this development will undoubtedly have a knock-on effect on the property industry.

Added Demand for Homes
Demand for homes is not set to go up across the board. There’s a growing attitude in London that the breaking point has been reached with regards to prices, and so people are choosing to move out of the capital. However, other factors like above-average wage increases are expected to raise the demand in other areas, and thus prices are expected to pick up across the country as a whole.
Obviously there are many potential changes on the horizon with regards to UK property, and lots of uncertainty too, but remember that the Search Mortgage Solutions team remain on hand to guide you to the best mortgage deals, no matter what the climate might be. To get in touch with the best mortgage broker in Leeds, call 0113 367 2899 or email enquiry@searchmortgagesolutions.co.uk today.