The Bank of England released figures today showing an 18 month high in mortgage approvals this further underpins the view that the housing market continues to strengthen.

Still, to mix my metaphors, with every silver lining theres a dose of reality. The latest data from the Bank of England has revealed that major lenders are expecting to increase mortgage fees in the coming months, to compensate for a reduction in spreads. Or, to take another view, because they can.

What does this mean? Well, it will probably effect the residential mortgage market the most, as lenders will be looking to reduce their rates as the market gets more competitive but may well be countering these rates with higher fees.

At the moment though, we are seeing (almost on a weekly basis) a reduction in residential mortgage rates, and if you have a low loan to value with provable income, then there are some very competitive rates about. For lifetime trackers rates, they start from 2.79% (free legals and valuation, £995 fee) to 5 year fixed rates from 4.99%. Worth considering for the Tip of the Week 1 below.

TIP OF THE WEEK 1: Buy To Sell Strategy.

Using buy to let mortgages for properties that you may want to sell on within a couple of years has become increasingly expensive with the lack of suitable mortgage products. Most deals have big arrangement fees and big exit fees that cut into the profit so; here are a couple of options which are proving quite popular:

1.   Get a residential offset mortgage use your offset funds to draw down the money first, and buy the property for cash. Once sold, put your money back into your drawdown mortgage and you are good to go again. No ongoing arrangement fees, no exit fees and being a cash buyer you can expect to beat down that purchase price. So thats a triple win.

2.   Use a buy to let mortgage with no early redemption charges. For example 6.54% variable with £1495 arrangement fee and no early redemption charge. But I prefer the first option if you can arrange it if you have a low (or no) mortgage this really is a no-brainer if you plan to sell from the off.


TIP OF THE WEEK 2: Think creatively about how to nurture Estate Agents contacts.

Another top tip from our top property investor Greg Jackson you can find him here for more information www.propertyinvestmentcoach.co.uk

Having had lots of contact with Estate Agents, I knwo for a fact that there is nothing more annoying for them or more fruitless for hopeful investors then wehn the particular investor simply asks for some kind of priority when a potential great deal crops up.

Agents have dozens of investors on their books the vast majority of them could be referred to as opportunists who fail to stand out from the crowd.

Most investors think that just being interested is good enough and will ensure great deals being presented to them. Unfortunately, because Estate Agents are, contrary to some peoples beliefs, human beings and because there are other investors wanting the deals too you have to stand out from the crowd and be different.

All things being equal, the Estate Agent can control who they offer deals to. They want a simple, easy and rewarding life. They also, being human, will like to be kind to those who show them some kindness or consideration.

So what do I recommend?

For me, I have the perfect bait to sweeten the Agents. I speak to lots of people as a result of my extensive local marketing. Every single one of these people wants to sell their house quickly (thats why they speak to me).  However, the vast majority are not desperate to take my low offers. Therefore I explain when negotiations break down, that they need a good Estate Agent now, because they cant afford to accept a wholesale price from the likes of me.

90% of the time I manage to get their permission to pass their details on to my Agent contacts. This usually results in an easy instruction for an Agent and lots of Brownie points for me!

Do I get deals from the Agent s because if this?

Not many, no I actually dont believe this route is a sustainable route, to be honest I prefer to control my local marketing and get deals that way. However, I have had the odd deal here and there. What I do get from the Agent is total support regarding market analysis and help on valuations when needed. Either way I get what I want for free from a very grateful Agent. However, just one great deal a year makes it worthwhile!

Try to stand out from the multitudes you can guarantee that the vast majority of bargain hunters will be doing no more than begging to be put on the Agents investor list you can do better than that by thinking creatively!