Mortgage Broker Manchester

The housing ‘part-exchange’ market was booming in 2007 and the early part of 2008 before the effect of the recession took hold. This type of transaction hit 36,799 in 2007 and 32,959 in 2008.
However in 2009 there was a very significant 69% drop to 12,164 transactions as homebuyers retreated from the market place.
Currently we are seeing an improvement in this part of the market as home purchases involving part exchange increased by 13% during 2010 to 13,732. Although this is well below the peak, it indicates that the outlook is looking more positive.
Part exchange is once again the most popular incentive for home movers looking at new build homes because the transaction is much easier with no estate agency fees and no chains involved.
House building figures are continuing to pick up with private new home development increasing by 21% between Q3 2009 and Q3 2010.

Alert for families on variable mortgages
The Bank of England has warned that millions of households face mortgage misery in 2011 because they have become vulnerable to higher interest rates.In its twice yearly financial stability report, the Bank warns that growing numbers of homeowners are at risk because they have moved off fixed rate mortgages and opted for variable rates as their fixed rate deals have expired.
Two thirds of the country’s 12 million outstanding mortgages are now on variable rate deals. This means that their interest rates ‘float’ with the Bank’s base rate which is currently held at 0.5% An increase in rates from 0.5% to 1.0% would increase the cost of an average £150,000 mortgage by £43 per month or £516 per year. The Bank is worried because many months of rock bottom rates have tempted millions of families to switch to variable rates so increasing their vulnerability to interest rate rises.
The Confederation of British Industry believes that rates – currently at a record low of 0.5% will hit 1.25% by the end of 2011 and 2.75% by the end of 2012 if the forecasts prove to be accurate.An increase in the Bank of England base rates to 2.75% would increase the average payment on a £150,000 mortgage by £202 per month, equivalent to £2,424 per year.

Four in 10 mortgage holders have no life cover.
A total of 43% of mortgage holders in Britain do not have their mortgage payments protected by life insurance, according to data from a major life insurer.The findings suggest that there are over 7.1 million people with a collective outstanding mortgage balance of £318bn who have no life insurance and mortgage protection to cover this.

A recent survey has revealed that 90% of people planning to take out a mortgage in the next year do not completely understand the difference between the main types of mortgages that are on offer.
Only 8% of respondents said they completely understood all the differences between the many variations of mortgages but 11% said they didn’t understand anything at all.
The survey also highlighted that only 26% of people who already have a mortgage feel they completely understand the differences.
This is not too surprising considering the overwhelming choice and complexity that potential borrowers are faced with when they do a simple internet search.
It emphasizes the need for people to take great care when trying to make very important financial decisions without seeking mortgage advice from a good professional mortgage advisor. It is really important that they thoroughly research which is the best mortgage product for them, taking into consideration their stage in life and current financial circumstances.
It is always important to compare like for like and to keep in mind that lender fees can play a large part in whether or not a particular mortgage deal is competitive against the many other deals on offer.
In our role as mortgage brokers Manchester we can help to guide you through the maze of information that you will need to understand to make the right decisions for you and your family.