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Wednesday, 02 September 2009 13:41 |
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Rightmove just released the results of their consumer confidence survey – 78% of people now feel that UK house prices will not fall any further over the next year.
Take this in the context of the recent Nationwide figures, where property prices have actually risen 3.2% in 2009, then it certainly looks like we’ve hit the bottom (yawn).
However, when dealing with property values, you can never underestimate confidence - as it’s what helps to drive the market. Once people believe that the property falls are over and prices may actually start to rise then a new sense urgency comes into play that they may miss out. Remember the two great drivers of market forces – fear and greed.
Let’s face it, this is what allows the estate agents (with their big ties) to look you in the face and tell you truthfully that if you don’t put an offer in today then someone else will buy tomorrow. Hmm, maybe it’s not such a good thing after all.
Self Cert mortgages – just 2% of the market.
Another report this week by Evaluate Technologies says that self certification mortgages now account for just 2% of mortgage deals available (and even that figure seems high to me).
As I reported a few weeks back, the self-employed who relied on self certification mortgages are definitely one of the main casualties of the mortgage squeeze. Until more of these products are released, many people will be stuck with their current mortgages and houses unable to move until new self cert mortgages with higher loan to values are available.
Tip of the week 1 – Do you have an offset mortgage? Then read this:
Most offset mortgages work in two different ways; if you want to make overpayments, you can pay money:
1. into your current account, so any savings will offset against your mortgage amount, or
2. pay lump sums off from your actual mortgage, and then drawdown them back down at a later date.
Well, just be careful about option 2 because some lenders have started to review these accounts and where they believe the loan to values have reduced, they can refuse to allow your drawdown payment.
If you always make overpayments into your current account, you should always be able to access your funds.
Tip of the week 2: Do you have a commercial mortgage?
For those of you who have commercial loans, you may be familiar with the new policy of banks making it compulsory for you to take out life insurance to support your loan.
We have come across a number of these cases recently, and there is a definite pattern emerging. What is that pattern, you may well ask? Well, we can save you money and often get more suitable cover than you have already.
I know I may sound like a broken record, but the fact remains most people have life cover, but it usually isn’t setup in the most efficient manner.
So, if any of these relate to you…
1. Have life cover, but it’s not setup in trust.
2. Got your cover direct from your bank.
3. Have a joint life policy.
…then we are here waiting for you.
Call one of our advisors today for more information 01424 205 373
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