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The Bank of England has reduced interest rates to a record low of 1% from 1.5%.
Back in October last year, the Bank of England rate was 5%.
Great news for house buyers, especially with tracker mortgages, but of course bad news for savers.
Of course this is the 5th interest rate cut in five months and I believe this will help to stimulate the housing market.
Already I have seen some loosening in the market and some banks are willing to listen and offer mortgages.
The media/press continue to churn out the bad news, which is not helping, but we as independent mortgage brokers are making headway and getting mortgages for our clients, today, this week, YES THIS WEEK.
I’m not saying its easy, but we are constantly in contact, on a daily basis with banks and building societies checking on the latest deals around.
It may suprise you to know that certain banks and building societies put out offers for just a couple of days, before withdrawing them after selling the multiple that they wanted… Thats where we come in and win as independents, because we hunt out the latest deals.
I do feel sorry for the savers, but with interest rates lower, those on tracker mortgages especially, have benefitted by having reduced mortgages, meaning these mortgage holders will have more money to spend in the local and national economy, which is good for us all.
So with all the savings you have made on your mortgage, go spend some in the local restaurants and shops and do your bit, but don’t spend it all, save some, put it into Gold, prices still going up and you can invest in a gold bar for less that £80….
If you would like to change your mortgage to a tracker or fixed rate, give me a call 01276 670777
Michael
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Wherever you look its “Doom and Gloom”, I try not to watch too much TV news, I mean how many times can you listen to the news presenter read out bad story after bad story, without getting peed off.
Last week the housing minister Margaret Beckett, said it was a good time for 1st time buyers to be buying homes. She was slammed for not recognising that our recession problems are not over. But I would like to defend her.
Yes that’s right, well up to a point. You see, it is a good time for first time buyers to be “looking” at property, so they can get a feel for the market. Now you notice that I didn’t say buy…
Of course they could buy if they have a big enough deposit and they can negotiate another 5-10% off the curent asking prices.
Most people who are desperate to move, are waiting for the price of homes to reach what they percieve to be the bottom of the market. When will this be?
Well in my opinion, sometime later this year I believe the value of houses will stop falling, then prices will stick for a while and the start to rise next year. Maybe not as dramatically as before, but they will rise in the foreseeable future.
And our 1st time buyers have to be ready. Now compared to this time last year, there are not as many mortgage products available, but there are a few alternatives and I would be glad to talk to you about your options, just give me a call 01276 67077
So I believe first time buyers should be taking a look at the market and getting a feel for the market.
As a 1st time buyer, what kind of deposit do you need?
Well the ideal customers from a lot of the banks and building societies point of view is a customer who has 20-30%, because the mortgage lenders are worried that the value of houses, still has another 10% to go down yet, so they want to minimize the risk they take..
But 10 and 15% deposit mortgages are available, but they come at a cost. If you want further information and options, call me and we’ll talk
Bye for now
Michael
www.mumsltd.co.uk
I was contacted by the local press for comments and to give advice for first time buyers, thought you might be interested in some of the things I told the reporter Halima Sadat the reporter for the Local news paper, Aldershot and Camberley News.
Michael Usher of Michael Usher Mortgage Services says in the first instance it is important to get sound advice from an independent financial adviser.
“At the moment, things can change very quickly, so keep an eye on the market because there will be some better lending opportunities in the next few months,” he said.
“I think the base rate will stay low for the rest of the year, so it could be a good idea to get a low fixed rate mortgage for two or three years.
“At the moment, lenders are not lending to low deposit borrowers because house prices are still falling, which means that the value of their loan in relation to that of the property is not so certain.
“But something has got to give and already there are one or two mortgages about with an interest rate of 4.9% against a 15% deposit.
“All we need is for one brave lender to start lending to low deposit borrowers and then the rest will be forced to follow.”
Commenting on the latest announcement from the government that it will offer state insurance for banks in an effort to shore them up and encourage lending to businesses and individuals,
Mr Usher continued: “The government’s recent decision to act positively is a welcome move.
“The intention to buy up bad assets and guarantee others forms a large part of these sweeping measures. Hopefully, a more balanced approach, with cushioning from the peaks and troughs we’ve seen lately, will bring confidence back to lending.
“It may take some time before we see these measures improve opportunities and offerings for first-time buyers, but they should filter through eventually.”
You can read the full report here
We get offers all the the time….
And I have to say that 3.3% would be a good rate, but this is what is called the “Headline” rate, just to “oik you in” as the actor Mark Benton says in those famous Nationwide television ads.
Now I have to tell you that you have to jump through hoops to get a rate like that, but I’ll be clear and tell you something…(I have never been one to talk BULL)
But today I can achieve a two year fixed rate mortgage of 3.89%…Now this is obviously subject to status and you will need a deposit of 25-30%. Will it be available tomorrow, I don’t know.
Now you might say, “that’s a hefty deposit” but for some people who have equity in their houses already it is not. And believe me I have met many people still on standard variable rates, or of fixed rate mortgages that could do better by switching to fixed rate.
But for some it seems like too much trouble to change your mortgage, but if your are going to save money in the long term, YOU REALLY should consider taking the plunge and ask for advice. Thats what we are here for.
Other deals today include 4.99% fixed mortgage with a 15% deposit. Again subject to status.
LOCAL MARKET CONDITIONS
I am going to doing a series of recorded interviews with local estate agents to get a feel for the market and I will be publishing those on this blog in the near future.
So if you live in Camberley, Farnborough, Yateley or Aldershot, come back to this blog soon.
Michael
In a previous life I was a DJ.
I have decided to put on a disco in aid of the Phyllis Tuckwell Hospice on Saturday 2009 at the Pine Ridge Golf Club in Camberley.
You can find all the details here, but I also made a couple of videos with my brother Sean, where we discuss the Auction, Raffle, who is coming and some of the songs we might play on the night
PART 1
Part 2
was a
Hi,
Getting a tracker mortgage is a good idea right now, sound obvious doesn’t it.
For instance the 0.5% cut to 1.5% last week means a saving of nearly £50 per month on a tracker mortgage of £200k.
Although not all lenders are passing the recent interest rate cuts to their customers.
Nationwide, Norwich & Peterborough or Skipton building societies are among a number of lenders who have not automatically passed on the saving.
Actually there was a deal with the Cheltenham & Gloucester (C&G) where some customers got a home loan at 1.01% below bank rate, should interest rates fall again, they could be just paying of the capital only.
You see it pays to keep in touch with your local, friendly mortgage adviser.
Take care talk soon.
Michael
Need advice, please call 01276 670777. I’d love to speak to you.