Your Garden Is A Valuable Asset
When considering home improvements for your property, it is vital that you don’t neglect the outside of the house. A garden improvement project could add value to your home so that when you come to sell, it is worth more money as it will be more appealing.
First of all, give the garden a bit of a tidy. Cut the lawn, trim back bushes and get rid of any litter and weeds that are about. If there is any tatty furniture or plant pots then get rid as eye sores like this could put people off when they come to view your home.
A great way to improve the garden quickly and without spending a lot of money is to add some flower borders in. If you already have some flowers in the garden give them a good feed so that they look healthy and pretty. In winter consider planting some winter plants like poinsettias.
Adding in a water feature is something that everyone loves in the garden so why not put one in? They don’t have to be huge but the sound of running water can be really therapeutic and can instantly attract people to your property as they will be able to imagine themselves relaxing in it.
Many people are concerned today with green issues so show you care by adding something green in. Even a wooden seating area with solar powered lights or something simple like that could interest green buyers and boost the value of your property.
You need to ‘stage’ the garden so that potential buyers can see themselves in it. Some strategically placed garden furniture made of lovely natural woods can make the garden look really lovely.
If you have a garage then you might want to consider converting it into additional living space – it could make a great playroom for the kids! If you don’t quite want to spend that much then you can simply leave the space very tidy so that buyers can see the potential.
If you have a small garden at the front of your home, consider having a drive put in, as many people are reluctant to put an offer in on a property where there is nowhere to keep the car. A driveway will attract those that are in need of a driveway for their vehicle.
One of the most important things to remember is that whatever improvements you decide to do, ensure that the garden is easy to look after as high maintenance gardens are off-putting to buyers.
Remortgaging is a great way to finance a garden improvement project, and you may also be able to benefit from a lower interest rate when you get a new deal too!
Marcus Selmon writes for Just Commercial Mortgages.com the UK’s No.1 site for the latest commercial mortgage rates and commercial property finance news.
Falling Property Prices and the Economy are Two Sides of the Same Coin – Look Closely at One and Take Advantage of Both
Since the housing bubble burst in 2007, property values have gradually fallen across the UK. And, with many experts predicting that prices are unlikely to recover in the short term, many homeowners are faced with the prospect that the value of their homes are going to remain subdued for the foreseeable future.
Many borrowers have looked at switching their home loans onto the best remortgage deals to save money. And, it is also possible to remortgage your home in order to raise the cash required to undertake improvements designed to increase its value.
The most recent statistics from the Halifax Building Society indicated that house this quarter were 3.7% lower year on year, with the standard home costing £161,000. These statistics are approximately in line with those figures released by Nationwide Building Society. Housing economist for Halifax Martin Ellis commented: “The underlying trend in house prices continue to be one of modest decline”.
House prices look set to continue falling until homes become more affordable and until mortgage finance becomes more readily available. An associated problem is that many people are struggling to build up a sufficient deposit to buy a home, thanks to record low interest rates.
How You Can Increase the Value of Your Home: Updating your kitchen – According to a leading lender in the UK, one of the best ways to add value to your home is by adding a new kitchen. You may be able to finance such a project by obtaining a remortgage and unlocking the equity in your home.
The same lender stated that the project that adds the most value to a property is concerting the attic into an additional bedroom, especially when you add in an en suite bathroom. This can potentially add thousands to the value and can make the property attractive to a whole new set of buyers.
Redecorating – Redecorating can be a low cost way of making your home more attractive and is third on the Halifax’s list of ways in which to add value. Again, a remortgage can help you raise the funds you need to redecorate your home.
The garden is something that buyers look at in detail, especially for buyers who have children. By landscaping the garden and making it homely and pleasing to the eye, you can add value and make your property more sought after.
Landscaping – Don’t neglect your garden, many people buy properties based on the look of a garden. Gardens and other outdoor space, when professionally designed and landscaped, can give significant value to your property.
If you’re worried about the value of your home then there are ways in which you can maximise your property’s value. And, the best remortgage deals can not only help save you money on your repayments but also raise the funds you need to undertake the work.
Howard O’Gollegos writes for Just Commercial Mortgages.com the UK’s No.1 site for the latest commercial mortgage rates and commercial property finance news.
Remortgage Applications Continue to Surge to Make the Most of the Low Base Rate Before it Rises in 2012
Whilst interest rates have been at their record low of 0.5 per cent since spring 2009, speculation is rife that the Bank of England will raise rates in the near future. “Bank rates cannot stay at this level indefinitely”, said Governor of the Bank of England Mervyn King in May 2011, adding “at some point it the Base rate will return to more normal levels.”
It has been suggested that the Bank was preparing to increase the rate by 0.25% in the first quarter of this year, but it decided to hold back on increasing rates after it was the news that the UK economy had gone into negative growth in the last quarter of 2010 was reported.
What Does This Mean for Mortgage Borrowers? An increase in the cost of borrowing will be a chief worry for homeowners who presently are on a tracker or a variable rate mortgage. The variable rate mortgage product is one in which the rate of interest on the loan is evaluated periodically and altered by the lender, usually tracking the rate set by the Bank of England’s MPC.
Any increase in the cost of borrowing will clearly affect borrowers and their finances, especially if they have this kind of mortgage product. The increase in repayments is likely to come as a shock, particularly as homeowners have been benefiting from historically low rates for an unprecedented period of time.
For instance, if the Bank of England increased the rate of interest by merely 0.5% to 1%, it would be liable to inflate monthly repayments by approximately £43 on an standard £150,000 tracker mortgage. In these wintery economic times, with inflation skyrocketing, this additional £516 a year would be likely to cause a lot of financial pain.
And, an increase in interest rates is not a problem that will only affect a minority of borrowers. It is estimated that somewhere in the region of two thirds of UK homeowners have variable rate mortgages and so it is not surprising that more and more people are starting to look for remortgage deals to ensure their mortgage repayments remain affordable.
Figures Show Many Now Remortgaging to Hedge Against Interest Rate Hikes: An organisation called the Council of Mortgage Lenders, who represent almost all mortgage lenders in Britain confirmed that remortgage figures had increased by almost a fifth in the first quarter of this year following the announcements by the Bank of England.
A statement issued by the CML said: “The huge rise in remortgage activity is likely to be linked to the expectations of an increase in interest rates.” The figures are also up on the same period last year.
Fixed rates have been particularly popular with homeowners looking to remortgage. With an estimated eight million households at risk from increased mortgage payments, borrowers have been turning to fixed rate remortgage deals to protect themselves against interest rate hikes.
Fixed rate remortgage deals guarantee your monthly repayments for a period of time. You can normally fix your repayments for between two and five years, meaning that your monthly outgoings won’t change; irrespective of what happens to interest rates. You can budget as you know exactly what you will pay each month whilst also protecting yourself against interest rate increases.
Howard O’Gollegos writes for Just Commercial Mortgages.com the UK’s No.1 site for the latest commercial mortgage rates and commercial property finance news.
Revotation, Rebuilding and Repairing – It Can All Be Achieved Through a Remortgage
With a recovery in the property market still some time away and more and more lenders regaining their appetite for remortgage lending, increasing numbers of Brits are putting their plans to move house on hold. Instead, many homeowners are choosing to improve their home by redecorating or extending.
Plenty of families will need an extra bedroom for a new baby, they might want to add a conservatory to give extra space for entertaining guests, or are they might even be thinking about adding a proper Granny annexe for visitors, or Grannies.
The government is encouraging homeowners to either build their own homes or to extend and renovate their existing properties. The Housing Minister, Grant Shapps, recently suggested that the government will ‘put its money where its mouth is’ in terms of helping people with building projects. If you are considering any building work, there are a number of factors you have to consider before you begin.
You will need plans drawn up for the new build if you are planning an extension to your property. These will need to be professional as they would need to be submitted to the local council, and used by the builders. You can sometimes have these done by a surveyor but it is best to have them drawn up by an architect for more precise plans.
Always make sure that you shop around for the best tradesmen for the job. Take recommendations from friends or family if you can and obtain several quotes to compare prices. And, make sure that the work is going to add value to your home and that the improvements will be in keeping with the demands of the local property market.
Once you have these in place, you or your builders will need to apply for planning permission from the local council. Usually, the builders are the ones who will deal with the planning permission side of things.
You need to find out if you need any permission from local government to carry out the work. In most instances, the answer is yes. If the building works include erecting a new building, extending or altering your current home, or adding extra fittings to a building (such as an extra window), then it will more than likely require planning permission. The designs will need to be checked by your local planning officers to ensure it complies with building regulations.
If you are completing the work yourself, then you will need to submit the plans for planning permission, but if you are outsourcing the work to a contractor or building firm then they will need to do this for you. Make sure you know whose responsibility it is before you start.
The first thing you need to arrange before you doing anything else is the finance to complete the work. Lots of people start looking for competitive remortgage rates long in advance of the job to make sure they have access to the requisite level of funds; bearing in mind most building works run over budget!
There are a number of reasons why a remortgage is a useful way of raising the money you need for your building project. Firstly, you can use the available equity in your property to add value to your home; indeed some lenders will agree a remortgage based on the ‘when finished’ valuation of your property. In addition, remortgage rates are often lower than rates on other types of borrowing. This means you can benefit from a low interest rate not only on your additional borrowing but also on your main mortgage. With interest rates currently at a record low level, remortgaging can help you avoid the need to move home by providing the cash you need to extend or refurbish your current residence.
Howard O’Gollegos writes for Just Commercial Mortgages.com the UK’s No.1 site for the latest commercial mortgage rates and commercial property finance news.
The Property Market is a Buyer’s Market – What Can Seller’s Do To Tip The Scales?
The Royal Institute of Chartered Surveyors has recently issued a report stating that sellers are returning to the property marketplace, though it tempers this optimism with news that the overall picture remains “subdued”. A growth in the supply of properties for sale in April has probably increased the downward motion of house prices, and suggests supply is outstripping demand.
Many buyers have been demonstrating a growing interest in viewing properties, but they are holding back due to a lack of mortgage finance available at competitive rates. April’s sudden good weather added to the increase in viewings completed, however only wealthy buyers with available capital able to put down a sizeable deposit are likely to be able to capitalise from the current low prices on the market.
A Housing Spokesperson from the RICC recently stated that the increase in houses on the market is positive news for potential buyers, although there still does not seem to be much going on in the way of buying and selling, and he doesn’t expect this to change any time soon.
A research survey from Rightmove.co.uk, showed that over 60% of people believe that the value of properties will either remain unchanged or increase over the next year or so, which shows that the consensus opinion is that property prices will at least not fall in the near future.
Interestingly, the number of “price pessimists” who forecast that property prices will be lower again in one year’s time has fallen from just under a third to just under a quarter. If you happen to be one of the fortunate few to have saved enough for a deposit, you might be able to take advantage of an opportunity that comes along once in a generation, purchase property cheaply now and you could see its value increase in the next few years.
It is vital to bear in mind that those buyers who have the capability to place a larger deposit, typically one of more than 10%, are likely to get access to a better mortgage rate. Others might find it hard to access finance in the current wintery economic climate.
Those who manage to secure the necessary funding to buy new properties or to move up the property ladder should consider a remortgage. As the cost of borrowing is still at an all-time low, those who are approaching the end of their fixed term mortgage deal might benefit from accessing reduced monthly instalments. They can do this by checking remortgage deals, and finding a new mortgage with a rate. Monthly savings could be set aside to finance a deposit with which to buy more expensive property at a later date.
People who have been unable to finance a brand new property may still have the option of remortgaging their current home, either to raise capital to upgrade the existing property, or to simply obtain a cheaper deal which can help with monthly outgoings. Obtaining a further advance remortgage may also allow you to secure your debts against your home, as mortgage interest rates are generally much lower than those on unsecured debts.
If you are hoping to sell, and you can’t afford to decrease the asking price of your property to entice a buyer, one option could be to investigate remortgage deals, and put on hold your planned move for a year to 24 months. The reason for doing this is to make sure you have lower monthly outgoings on your mortgage with a remortgage.
Reducing your repayments will allow you to put aside extra cash. With property prices unlikely to fall much below their current level, you could find yourself in a much more advantageous position in a couple of years when you decide to move house.
Howard O’Gollegos writes for Just Commercial Mortgages.com the UK’s No.1 site for the latest commercial mortgage rates and commercial property finance news.
Any Sudden Base Rate Rise Could Push Three Million Households Over the Edge
Over the last couple of years, many homeowners have enjoyed the benefit of record low interest rates. The Bank of England has kept the Base rate at 0.5 per cent for over two years and this has resulted in reduced mortgage repayments for many households. However, with interest rates set to rise, many homeowners are facing an uncertain time with experts concerned about the impact that rising mortgage repayments will have on the UK economy.
Industry watchdog the Financial Services Authority (FSA), has published guidelines for mortgage affordability. It says, “a mortgage is affordable if its level and terms allow the consumer to meet current and future payment obligations in full, without recourse to further debt relief or rescheduling, avoiding accumulation of arrears while allowing an acceptable level of consumption”.
Yet the CML has confirmed that almost three million mortgage borrowers would be unable to keep up with their monthly mortgage repayments if interest rates increase. This would mean that they have not only ignored the FSA guidelines, but also been irresponsible in the amount that they have borrowed as they have not planned ahead for increases in repayments.
When rises in the general cost of living are taken into account – inflation hit 4.5 per cent in May 2011 – the outlook for many households looks gloomy. Rising petrol costs and home energy bills are already stretching household budgets very thin and so it’s no surprise that many people have started to shop around for remortgage deals.
With interest rates set to rise, borrowers have been particularly interested in fixed rate remortgage deals. A fixed rate offers the security of fixed mortgage payments irrespective of upward moves in interest rates. However, borrowers who have considered a fixed rate remortgage deal have found that the rates available on such products have increased over the last few months.
David Hollingworth from independent mortgage brokers London and Country said: “Heightened anticipation of a hike in interest rates has led to a rapid shift in fixed rate mortgage pricing. Lender after lender has moved to increase its rates, often on more than one occasion.”
This means that many borrowers may have missed out on the lowest fixed rate mortgage deals. However, Mr Hollingworth points out that remortgage deals still represent excellent value when compared to rates in the past.
Recent research showed that the average five year fixed rate remortgage deal is now at 5.66 per cent, compared to 5.33 per cent in January 2011. On an average £150,000 interest only mortgage this equates to an additional £41.25 per month, or nearly £2,500 over five years.
With figures from the Council of Mortgage Lenders confirming that remortgage demand is still very high and on the increase, it is inevitable to say that lenders will continue to load the rates on their fixed mortgages in order to keep up with the levels of demand.
The advice really is to ensure that you do your research before entering into a contract, and to obtain the best deal possible it is a good idea to use a mortgage brokers who can seek out deals that are not available on the high street.
Howard O’Gollegos writes for Just Commercial Mortgages.com the UK’s No.1 site for the latest commercial mortgage rates and commercial property finance news.
The Mortgage/Remortgage Market is Still On Shaky Ground – Dont Expect The Recovery to be Stable
Lenders have been more and more reluctant to offer mortgages to people who are looking to buy or remortgage over the past three years, due to the financial and property market crash which began in late 2008, but it would seem that things are beginning to pick up with many sources confirming a slow but steady increase in mortgage and remortgage lending.
Those who had bad credit history or very little in the way of deposits who defaulted on loans were originally thought to be guilty of causing the financial crisis and so lenders tightened their strings. However the statistics being released showing the recovery of the markets in the UK has brought the lenders back out of their shells.
In spite of the good news, growth of mortgage lending and property prices has been slower than originally anticipated. Experts forecast a much quicker recovery with larger growth figures. These figures indicate that the market is recovering slowly, but that it still may be a long, hard road to total recovery and that home owners may have to ride out the storm a little while longer.
It is important to remember however, that the time of year can have an effect on mortgage lending figures, with the summer months being more popular when mortgages and house purchases are in higher demand. The winter months will often see a decline in mortgage lending and people looking to buy a new home.
The slowing of the mortgage lending in the winter months can often lead to a market without many buyers. During the financial crash, the fewer home buyers led by banks unwilling to lend for mortgage purposes helped to make a bad situation worse, as many home owners found it impossible to sell their properties.
Remortgage markets do appear to be recovering steadily, however it has been noticed that there are far fewer first time buyers who are looking to get on the property ladder. This is believed to be down to the fact that although lending is back on the increase, banks and other lenders are still slightly pessimistic about lending to those who do not have an extremely strong financial background, or a relatively large deposit.
It has been suggested however, that the correlation between first time buyers and mortgage lending are not quite so strong as many would think, and that there are many other factors affecting the number of first time buyers in the marketplace.
Many market experts confirm that due to the volatility of the property and mortgage markets, it is very difficult to forecast long into the future, and the forecasts must be constantly adjusted depending on new issues and trends.
As the number of mortgage and remortgage approvals have risen, so have the number of unsecured loans. Consumer lending has also increased in 2011, suggesting that banks and building societies are starting to return to the levels of lending seen before the global financial crisis.
Some experts believe that house prices will once again start to fall over the next few months. Whilst this may benefit cash buyers or those people with a large deposit, vendors may once again be facing bad news as they look to sell their homes.
Howard O’Gollegos writes for Just Commercial Mortgages.com the UK’s No.1 site for the latest commercial mortgage rates and commercial property finance news.
When Looking For Refinance, Consumers Should Look at Remortgage Options Rather Than Debt Consolidation
People want to remortgage for various reasons, including the ability to obtain a cheaper interest rate when compared with what their current mortgage lender is offering them, which is turn allows for lower monthly repayments. Remortgages are often sought when the original mortgage was offered at an introductory rate, for example a fixed term of 5 years, and then the deal comes to an end and the mortgage reverts to the standard variable rate.
As well as saving money there are other compelling reasons to consider a remortgage. Many people use the equity in their homes in order to consolidate other debts such as loans or credit cards. Others look for remortgage deals when they want to move home. Releasing the equity from your current home can fund the deposit for your new house whilst allowing you to keep your existing property as an investment. You can also use the rental income to cover your mortgage repayments.
A remortgage does not just occur when your existing mortgage deal finishes. A homeowner can choose to remortgage at any time. There is no limit or boundary on who can, or when a person can remortgage their home, although some costs may be involved.
The timing of a remortgage is totally dependent on the mortgagees. For example, a homeowner may opt to remortgage because they have a change in circumstances and may wish to swap to a new mortgage product to suit their needs.
Before you sign any contracts to remortgage your home, you should make sure that you are aware of any conditions on the existing contract, such as any exit penalties that may be incurred for paying back the mortgage early.
This penalty, known as the early repayment charge, commonly applies to mortgages that are still within the introductory rate period. So a 5 year fixed mortgage may have an exit penalty on it until the 5 years have elapsed.
Another reason that people may look to remortgage rather than starting a brand new mortgage is that the associated costs with a remortgage are generally lower.
Over recent years, many people have remortgaged their homes in order to release equity from their property. Borrowers could then use this cash to fund home improvements or to pay off other high interest debts. However, with falling house prices this has become harder over the last year or two.
Others look to remortgage as a way to cover large expenses such as a new car, or to consolidate debts that are unsecured and are on high interest rates, such as credit cards and personal loans. The interest rate can significantly be reduced by doing this.
It would almost certainly be in the best financial interest of a borrower to consolidate these debts, in order to gain a more reasonable rate of interest. The quickest and easiest way to achieve this is through a remortgage, though the current window of low interest rates is bound to come to an end sooner rather than later.
Howard O’Gollegos writes for Just Commercial Mortgages.com the UK’s No.1 site for the latest commercial mortgage rates and commercial property finance news.
A Bad Economy Lead to a Stack of Bad Debt – Make Sure You Control It Before It Controls You
It is just possible that the UK economy might be over the worst of the crisis phase of the recession, but economic output remains painfully stunted. The latest figures from analysts at the National Institute for GDP show a significant slowdown in month on month economic growth. The Institute says the figures showed a “picture of continued weakness in the UK economy”. Budget cuts, spiralling energy bills and rising fuel costs are all creating a heavy burden for the average British homeowner.
Britons are still struggling under a mountain of debt with the charity Credit Action reporting that, excluding mortgages, the average household debt in the UK is now £8,144. If households with unsecured loans are included into the figures, the average debt almost doubles, to £15,661.
The charity’s figures also reveal that each day in the UK 1,392 people will be made redundant and a staggering 337 will be adjudicated insolvent or bankrupt.
In the UK, the CAB, and organisation offering debt advice deal with over eight thousand debt problems every day. According to the CAB, the average debt in the UK is increasing and more and more people are seeking advice on how to deal with their inability to afford their monthly repayments.
A problem for many individuals is that they are paying high rates of interest on these unsecured loans and credit cards. It’s not unusual to pay over 10 per cent on a personal loan and over 15 per cent on a credit card. For homeowners in this position it can often be worth considering the remortgage rates on offer in order to raise extra cash to consolidate these debts.
This choice has the extra strength of allowing all debts to be incorporated into one overall monthly instalment, which makes for much easier budgeting and fewer late penalty fees from credit card companies. It will reduce the clutter of bills, loan repayment letters chasing borrowers for money and could also reduce the overall burden of your monthly debt repayment. If like many of struggling people across the country you have taken a pay cut at work or are finding it hard to cope with the widely publicised rising cost of living, this could be a solution.
This may mean that you’re looking to reduce your monthly repayments until your circumstances and finances improve. Remortgaging to a fixed rate contract would allow you to budget more easily, and remove the stress of how you will repay your debts from month to month.
It is vital to consult a remortgage professional before taking action, because some important calculations would have to be drawn up. It might be wider to pay off the consolidated portion of the debt in a shorter space of time instead of over the entire life of the mortgage. This is something that can easily be achieved through a mortgage that offers the facility for overpayments.
If you have missed payments on loans or credit cards you may find that the number of remortgage rates available to you is limited. However, there are lots of lenders that will consider remortgages for applicants who have experienced credit problems.
Remortgaging in order to secure your debts and reduce your monthly outgoings is a good option; however it is important to act quickly as interest rates are set to increase in the near future.
Howard O’Gollegos writes for Just Commercial Mortgages.com the UK’s No.1 site for the latest commercial mortgage rates and commercial property finance news.
Some Remortgaging Complications You Should Be Ready For If They Arise
There is still a lack of commercial mortgages and business finance in the property according to a new study from a leading UK property group. Jones Lang LaSalle’s 2011 Lenders’ Expectations Report has uncovered that lenders see a difficult twelve months ahead as the anticipate lending less in 2011 than they did in 2011.
Before 2008 it was possible for first time buyers to buy without putting down a deposit. 100 per cent mortgages were widely available and some lenders even combined this with an unsecured loan to lend up to 125 per cent of a property’s value.
But since the crash, lenders do not offer such contracts as they are too high a risk to them, so it is now essential to have a deposit of at least 10%, or even 15% for many lenders before they will consider the application.
The majority of lenders will now only lend a total loan of 80% of the home’s value. First time house buyers now have to fund a hefty deposit to achieve the goal of owning their own house, and this sadly means that they tend to be priced out of the market.
In addition to being bleak news for first time house hunters, this extreme change in lending indicates that many existing property owners who do not qualify for remortgage deals are subsequently unable to switch mortgage lenders. If the existing loan on a home is in excess of 80% of the property’s value, then the borrower will find it hard to access a similar percentage arrangement elsewhere.
This means that people looking to remortgage now have to wait for lenders to increase their LTV limits or for the value of their property to rise. With the UK economy continuing to struggle it is unlikely that either of these things will happen in the short term.
Homeowners who have large amounts of equity built up in their property should not have issues with obtaining a good remortgage deal, and remaining with your existing mortgage lender would make the process quicker and more simple.
Lenders frequently contact borrowers shortly before the expiry of their existing fixed or discounted rate deal and offer them a range of options. These are often called ‘retention’ products and they are aimed at discouraging borrowers from remortgaging elsewhere.
If you are in this position, it is wise to shop around and compare remortgage rates before you take a deal offered by your current lender. Make sure you take any costs incurred as part of a remortgage into account when deciding whether to stay put or to switch to another provider. Costs can include valuation, arrangement and legal fees.
If you are in need of sound advice on choosing the best product for you, you might want to discuss your plans with your current lender or with an independent mortgage broker. By law your current lender can only advise on their own products and services, brokers must give impartial advice and often have access to deals not available on the high street. Brokers do charge for their services however, so you should investigate as many broker rates as possible and take time to make your mind up before you agree to take a broker on.
Howard O’Gollegos writes for Just Commercial Mortgages.com the UK’s No.1 site for the latest commercial mortgage rates and commercial property finance news.