NR@stadiumresidential.com   For rental values and sensible advice please contact Alex Giraldin on 020 7619 6590 or email AG@stadiumresidential.com

Alternatively I would be delighted to hear from you myself. 020 7619 6584 or by email GM@stadiumresidential.com  in the meantime enjoy the sunshine because dark clouds may be forming in the distance!

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Hot Property News - June 2018

Here is a summary of the key changes and news in the mortgage and housing market for the month of June 2018.

No changes in interest rates from the Bank of England but the minutes from the last meeting has shown that there was an increase in the numbers of committee members who voted for a rate rise. The split of 6-3 show that the view on rates rising may come at some point in the summer. With mortgage rates normally rising in anticipation of rate rises, the average cost of rates will increase. A year ago, the best 2 year fixed rates started at 1% and now this is 1.3%.

More data released by the Bank of England showed mortgage lending in May grew by 3.3%. The number of mortgages in the month increased by 2.5 % to 65,000. The Bank states “lending remains above levels seen between 2009-2013 but remain modest compared to pre-crisis levels”.

TSB have made changes to the lending range, with the introduction of new “fee free” 2 year and 5 year fixed rate mortgages. The lender has also reduced 2, 5 & 10 year fixed rates up to 75% loan to value. This follows a few other lenders (notably Leeds, TMW and Tesco) who have also cut rates over the past weeks. Whether some of the major lenders do likewise remains to be seen but I believe rates will increase but perhaps less so on investment borrowing where rates aren’t quite as lean.

Accord Mortgages have improved lending policy for By To Let, with the launch of rates for First Time Landlords. This is aimed at those people who want to rent their current residential property and buy a new main residence. For clients with 25% equity, Accord offer a competitive 2 year fixed at 2.89% and 5 year fixed at 3.19%.

As I referred to them earlier, Leeds Building Society reduced rates through its Buy To Let range. The cuts are across both 2 year and 5 year fixed rates with rates starting at 2.07% for a 60% loan to value mortgage, fixed for 2 years. I still don’t think that is particularly attractive if I’m honest.

Skipton Building Society is another lender that has made reductions on the Buy To Let range, with the announcement of cuts of up to 0.23%. The rate market for investors is competitive and lenders are all looking to find their share of business in advance of any base rate rises.

Our mortgage advisor, Soporific Simon would love to help you with mortgage advice and will probably want to show you his holiday photos, despite this he is still worth talking to. Let me know if you would like a chat with him as he pollutes my office with his obsessive rants about interest rates and lenders stress testing.

June was a good month for Stadium Residential despite the stunning weather and the World Cup. We were relatively busy with new business in both sales and lettings and an increase in the numbers of both buyers and tenants. As soon as England win the World Cup everything will be fine.

Landlords and lettings agents have reacted with incredulity at the proposal by the Housing, Communities and Local Government Secretary, James Brokenshire that will give tenants a minimum three year contract but allow them to walk away earlier if they wish by invoking a tenants only break clause option.

The paper was published today with an eight week consultation period. If the core proposals are adopted huge numbers of landlords will exit the market further reducing the availability of housing – a shortfall that cannot be bridged by affordable housing providers so there will be greater homelessness. This is of course a very special brand of genius but not as absurd as the shadow government’s pledge that they would also cap private rents. You see if you could raise a mortgage at a viable rate if both scenarios became reality. Run for the hills!

I know you are bored with me saying this but to receive a sales valuation for your property please contact our Sales Manager Nigel Richards by calling 020 7619 6589 or by email NR@stadiumresidential.com   For rental values and sensible advice please contact Alex Giraldin on 020 7619 6590 or email AG@stadiumresidential.com

Alternatively I would be delighted to hear from you myself. 020 7619 6584 or by email GM@stadiumresidential.com  in the meantime enjoy the sunshine because dark clouds may be forming in the distance!

07.07.18 - Selling
By Graham McKee
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