In my city, buying a home seems like a pipe dream. A one-bedroom apartment costs more than I make in one paycheck. However, for those who are in a good space, The Oofy has compiled an interesting spread on potentially buying an investment property prior to purchasing your own first home. This move can help you establish your credit worthiness and outline your priorities for future lender options while having someone else help out with the mortgage and growing the capital on your home just in case.

Key Takeaways:

• Just as if you were purchasing a first home, you will need to look into reputable lenders willing to bank on a first-time buyer, even if your first property purchase is for investment.
• You should work on building up a reputation and followers via social media, who will be interested in what you have to offer.
• Decide if your investment is a designated flipper, or whether you prefer to rent it lease it.

“If you are young, and looking to buy an investment property without your first home, look no further!”

Read more: https://theoofy.com/51014/buying-an-investment-property-before-the-first-home/

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The author states that Norfolk is a place one can easily fall in love with. Norfolk has lots of beaches that are dramatic and one example is vast Holkham which is popular with holiday makers. There are also many beautiful houses in the area. The author states they are uncountable and gives examples such as Houghton Hall and Sandringham. Norfolk is said to have a beholding majesty of its own according to Sir John Betjeman. Lucy Harley-McKeown was raised in Norfolk and later became a journalist. She states that Norfolk has a lot more to offer than the usual references to Alan Patridge and Delia Smith. Norfolk according to her, has great places one can grow up with which include the countryside and the coastlines that extend for thousands of miles. There is also the cultured city centre in Norfolk that has idiosyncratic shops. Another professional who has recently moved back to Norfolk county after staying in London for a long time states that Norfolk has a romantic charm that reminds one of the simple life and life as it was meant to be. One of the blessings of Norfolk is its accessibility. But the author states that it is also a curse. And people who come to Norfolk have chosen it for all the right reasons.

Key Takeaways:

• Norfolk is easy to love with its romantic charm, dramatic beaches, and countless beautiful houses.
• Famously, Norfolk does not have a motorway but the A11 makes traveling by car slightly easier.
• It’s not overly populated as you can find a place to park or take a stroll through the sand dunes.

“If you’re looking to make the move, here’s our pick of the best places to live in Norfolk, and the sort of thing you can expect to find.”

Read more: https://www.countrylife.co.uk/property/move-norfolk-best-places-insiders-tips-youll-get-money-195444

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Latest research from Moneyfacts has shown that ten years after the last financial crisis, the average mortgage rates have decreased by half. Also because of the competition in the market that is increasing, many more people have the opportunity to get a mortgage and get a leg on the housing ladder. This data has been analyzed by Moneyfacts since March of 2009 when the Bank of England made the last six consecutive interest rates cut. The average two year fixed mortgage rate has fallen. This fall is from 4.79 percent ten years ago to 2.49 percent today. The average five year mortgage rate has also fallen by significant percentages. It has also been seen that product availability for mortgages has seen a steep rise due to stiff competition in the market. The first time buyer sector has recorded the most growth with available mortgages increasing at 130 times to remain at its current 91 position today. Ten years ago, according to the experts, it would have been difficult to imagine a data such as these but it is happening. This is a good trend for the market.

Key Takeaways:

• These findings from Moneyfacts UK were its latest to date since the Bank of England made the last of the recent six consecutive interest rate changes.
• The data shows that there has been a fall in the two year fixed mortgage rate from 4.79 percent then to 2.49 percent now.
• The competition has been intensified in the market so as to attract more borrowers such that product availability has soared considerably.

“The latest research from Moneyfacts can reveal that, a decade on from the financial crisis, average mortgage rates have almost halved, with heightened competition encouraging more borrowers to get onto and move up the housing ladder.”

Read more: https://moneyfacts.co.uk/news/mortgages/mortgage-rates-halve-since-financial-crisis/

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It is estimated that more than fifty percent of the mortgages that are available to home buyers in the UK now have more than forty years term limit. But that was not always the case in the past. It used to be a third of mortgages about five years ago. The standard mortgage terms, according to data from Moneyfacts, an independent mortgage monitor, is approximately twenty-five years. But competition has made companies to extend the mortgage terms. This was done to make borrowers be able to meet their monthly repayments schedule and also to meet the strict affordability requirements that such mortgages require. It was seen from the data that the number of mortgages that were at a maximum term of 25 and 30 years were decreasing while those with terms of 40 years and above are now increasing. Along with extending mortgage terms, borrowers are also extending the age at which a borrower can be when his mortgage ends. The age limit is now being extending to 75 years which did not use to be the case some years ago.

Key Takeaways:

• Independent monitoring agency for mortgages, Moneyfacts.com, states that after some years ago only some mortgages had such terms that were very long for their customers.
• Mortgages businesses are making it more better for borrowers and they do this by extending the terms of their mortgages so as to reduce the monthly payments.
• Mortgages with 25 years maximum terms have fallen sharply in recent years between march 2014 and today and are now accountable for only 2.47 percent of residential products.

“Over 50 per cent of all mortgage products available to home buyers in the UK currently have a standard maximum term of up to 40 years.”

Read more: https://www.estateagenttoday.co.uk/breaking-news/2019/3/40-year-mortgages-help-buyers-beat-stricter-affordability-rules

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As young adults enter the housing market with limited funds, parents and grandparents are often footing the bill. When this happens, the would-be property owner isn’t incurring financial strain and isn’t considering the additional costs. There are several ways to help both parties out. Researching and understanding the location is crucial. Before agreeing to buy, consider the ease of travel, what taxes and bills could be expected, or how safe it is. Avoid being sucked in by perceived amenities that could carry their own additional fees. Research alternative options such as sharing a property with other tenants or leases that may be preferable to an outright purchase. Finally, don’t spend the money just because you have it and research to get the best value possible.

Key Takeaways:

• Data suggests that first-time homebuying is a struggle for those under 30.
• More than half in the under thirties age bracket need help from older relations to make their first home a reality.
• Young adult homrbuyers often seek out culturally stimulating surroundings to live in. Yet, it’s wise to remind them their permanent home should be in a safe area with educational avenues.

“Understanding that a property purchase should be a long-term decision is vital.”

Read more: https://www.propertyreporter.co.uk/property/top-tips-to-help-you-buy-a-house-for-your-children.html

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Buying a house usually means having to apply for a mortgage, which can incredibly intimidating for many people. There are so many different types, so it is important to understand which one is the best for your current situation. A buy-to-let mortgage is typically good for a property that an owner wants to rent out. Before considering the buy-to-let mortgage, property owners must consider if they can afford to do so and think about extra fees, such as landlord fees. Most importantly, when the owner reaches the end of their interest-only mortgage, they will still need to pay off the original price of the house. To sum, mortgages can be confusing, but it is important to plan and educate before applying for one to make the process as smooth as possible.

Key Takeaways:

• There are many different mortgages available for those looking to buy a house.
• Buy-to-let mortgages are usually interest based, so the payment only covers the interest of the loan.
• Relying on rent can be risky since there could be problems with payment or vacant months in the year.

“With a residential mortgage, the difference between the loan-to-value and the asking price makes up the deposit that is paid, and this can be as little as five per cent.”

Read more: https://www.express.co.uk/life-style/property/1107479/mortgage-rates-uk-buy-to-let-property

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The affordability of mortgages in the UK varies widely by region. Across the UK as a whole, mortgage holders pay just under 30% of disposable earnings on mortgage repayments. In London, however, this number is just under 50%. Scotland and Northern Ireland feature the most affordable mortgages, with homebuyers paying under 20% of average earnings on repayments. Looking at geography in more detail, Copeland, Cumbria residents have the most affordable mortgages (paying only 13% of earnings), while Hackney residents pay the most (61%).

Key Takeaways:

• Data has shown that the biggest spenders in proportion to their repayments are Londoners when how much owners pay for their mortgages is considered to how much they earn.
• Many borrowers in London and the East End were paying just under half of their earnings on the loan for their homes.
• The good news for first time buyers, homeowners and a boost to the property market is that national affordability for property has remained flat.

“The affordability of mortgages has remained stable across the UK over the last ten years despite soaring house prices and interest rate rises, a report by Halifax has revealed.”

Read more: https://www.whatmortgage.co.uk/news/mortgage-affordability-region-fare/

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Many Britons are told that loyalty doesn’t pay but mortgage lenders are now offering deals to their loyal customers that shows that it pays. These deals, termed product transfers, are usually not advertised so new customers do not get to learn of them. There is now pressure for these deals because according to research figures, many people are switching mortgage products in record numbers. These companies are using these to keep their customers satisfied. To find these deals, one would hopefully use a mortgage broker. An example of such a company is Newcastle Building Society. The company offers rates of 2.39 percent to existing customers but for the same product varies the rate to 2.59 for new customers. But there is a cache to the deals. They come with a fee that is higher than the fee for new customers. Experts say that they are not surprised about this recent trend in the market.

Key Takeaways:

• Although many times Britons are told that it doesn’t pay to be loyal, the new secret deals mortgage banks are offering to their loyal customers shows that it pays.
• The number of Britons who are looking for these deals are increasing and sometimes the banks don’t even advertise these deals to the public.
• NewCastle Building Society is an example of a mortgage provider who offers rates of 2.39 percent to existing customers in comparison with 2.59 for new customers.

“Recent figures from trade body UK Finance show that 331,500 homeowners switched mortgage product with their existing provider in the last three months of 2018, compared to 291,900 homeowners during the third quarter.”

Read more: https://www.thesun.co.uk/money/8564412/the-secret-mortgage-deals-that-banks-wont-advertise-but-are-offering-to-loyal-customers/

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Despite Brexit anxiety in the UK, the UK Finance company has revealed that first time home buyers hit their highest number in 12 years in 2018. Despite this positive news, the market is still stagnant in other areas due to Brexit uncertainty. One indicator of this is the huge increase in remortgage figures that saw a steep rise of 10.8 percent in 2018. This is due to the fact that people do not want to move home rather they want to extend and improve their existing properties and also because people are looking for low rates. But why the positive impact on first time buyers? This is due to government support like reducing the amount on stamp duty and other schemes that favor first time buyers. But if there is no freeze on stamp duty for older homebuyers, where do you think first time buyers will go next? They will be caught in the current trap the system currently has. The government has to do more to improve the market.

Key Takeaways:

• While new home buyers are in a good position, existing home owners tend to have more challenges in purchasing a new home.
• Part exchange, where an existing home owner can have their property purchased by a new build company, is one way of opening up the housing market.
• New build development leads to less issues than traditional home-buying and satisfies multiple markets at once.

“Brexit uncertainty continues to have a huge impact, with many would-be homemovers reluctant to look for new properties if they do not need to.”

Read more: https://www.mortgagestrategy.co.uk/housing-watch-make-it-easier-for-people-to-move/

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Helen Frampton set a personal goal of buying her own home before she turned 30. Currently a 28-year-old chartered surveyor, Helen started saving money while she was at university. After graduating, she shared a rented place with a friend, but then she decided to move back in with her father. To save money, she cut personal spending. Helen’s plan was to buy a big enough house that she take in lodgers, and to put up a large deposit so as to reduce monthly mortgage payments. In January 2018, she fulfilled her dream, putting £62,000 down to purchase a £277,500 detached house in the Daventry countryside.

Key Takeaways:

• Helen Frampton finally made herself a homeowner after several years of cutting costs, not going out on nights out, and living with her dad.
• Helen made it her goal that she would buy herself a home before she became 30 years old so she started saving when she was in University.
• Just after she graduated she was staying with a friend until the landlord decided to put the house for sale and then she moved in with her dad.

“The first-time buyer also cut back any unnecessary outgoings like cancelling her gym membership and switching to a sim-only contract.”

Read more: https://www.thesun.co.uk/money/8782265/single-first-time-buyer-spent-seven-years-saving-62k-deposit-for-278k-four-bed-house-near-coventry/

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