Looking to buy a house?

Enable’s IFA’s in Bishop’s Stortford like many others have seen that according to the Nationwide housing market appreciation continued at 4.4 per cent in the year to late January. Meaning the average price of a home in the UK stands at £196,829. Nationwide chief economist Robert Gardner says “the labour market appears to have significant forward momentum. Employment has continued to rise at a robust rate in recent months and, while the pace of earnings growth has slowed somewhat, in inflation-adjusted terms regular wages continue to rise at a healthy pace.”  “But the market is already characterised by a shortage of stock, with the Royal Institute of Chartered Surveyors reporting that the number of properties on estate agents’ books remains close to all-time lows”.

Alongside this the average deposit for a property has risen 15 per cent in the past year and currently stands at over £80,000 according to one mortgage broker. And the data, from the Mortgage Advice Bureau, says a typical buyer’s loan-to-value fell to 68.2 per cent in December, representing an annual decrease of 1.1 per cent. The broker firm says this is the lowest LTV seen since June 2010, and suggests borrowers are shouldering more of the cost of their house purchase themselves.

The continuing volatility of the market can be seen by other data from Mortgage Advice Bureau, which shows that affordability - based on the typical buyer’s income expressed as a percentage of property price- has been worsening for three months. If you are struggling to make sense of it all Enable's experienced IFAs are happy to talk you through mortgage options.

Your home could be at risk if you do not keep up your repayments

Source: Estate Agent today

Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE 

How to decide when it’s the right time to buy a house?

Since the Autumn Enable’s IFA’s in Bishop’s Stortford have been following the news like many others about whether or not there will be a fall in house prices.  With Britain's runaway housing market expected to at least take a dip this year as the combination of new mortgage rules and the threat of rising interest rates brings house prices down.  It might seem to many a good reason not to buy but many experts are saying ay the market is more complex than the headline figures may at first suggest.

At the end of last year the Centre for Economics and Business Research (CERB) suggested that the UK housing market was at a "turning point" and the organisation expects 2015 to see 0.8 % decline in house prices.  In London the decline is expected to be even more substantial; according to CEBR, they may fall by as much as 2.6 %.

If there's a chance that house prices are about to fall, it may seem risky to buy at what could be the peak of the market – but many experts advise that waiting in the hope of a serious drop in prices does not always pay off.

One reason for buying a house sooner rather than later is that it might prove to be a sound investment in the longer term even if prices fall next year. By 2019, house prices across the country are expected to grow by 30 per cent, with the greatest boom occurring in the south east of England, where 37% increases are forecast.  Housing market predictions do not always turn out to be correct, but demand is continuing to rise and there is no sign of a dramatic increase in the supply of new home, so house prices are likely to rise in the medium to long term. Enable’s Independent Financial Advisors can help you look at mortgages that work best for you.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Wanting a Mortgage?

Enable's experienced Independent financial Advisors in Bishop’s Stortford can see why many lenders expect the proportion of mortgages approved to fall significantly in the third quarter of this year.

Tighter checks on borrowers as a result of the Mortgage Market Review and a tightening by some lenders on loan-to-income ratios on larger loans have been given in a recent Bank of England credit conditions survey were given as reasons for the fall in approvals in the next three months.

Lenders also expect more tightening on LTI ratios over the next three months, which will also have3 an effect although they also expect the availability of mortgage credit to fall only slightly.  The survey says: “Lenders again expected the approval rate to fall significantly in Q3. Some lenders noted that changes introduced as a result of the Mortgage Market Review might reduce approval rates somewhat. “In addition, some lenders suggested that a tightening in lending standards on large loans with high LTI ratios may also push down their approval rate a little.”

Mortgage Advice Bureau head of lending Brian Murphy says: “Wider availability of credit is a welcome sign that the mortgage market is returning to normal and it would be a travesty if this over-due pickup after years of stagnation is quashed by over-eager efforts to keep house prices in check.”

If you want to review your mortgage or are looking at taking out a mortgage Enable IFA’s are here to talk you through your options.

Your home could be at risk if you do not keep up the repayments.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

New rules for the UK mortgage market..

Mortgages in the UK have been big news again with the implementation of MMR recently. The MMR was born out of the economic downturn and will effectively cement the more conservative lending environment we have seen in the UK since the end of 2008 more permanently into the market.

The mortgage market will now be overseen by the Prudential Regulation Authority and Financial Conduct Authority with more proactive regulation in stark contrast to the soft-touch regime of the FSA in the run-up to the financial crisis.

So what does it mean?

Although the UK mortgage market worked well for the vast majority of consumers, following the 2007 crisis and the demise of Northern Rock the FSA acknowledged that the regulatory framework needed to be reformed, particularly with regard to risky lending and borrowing.  In 2009 the FSA began a radical overhaul of the mortgage market commencing with discussion paper 09/03, issued in October. This was the first of a series of papers entitled the Mortgage Market Review. The discussion paper outlined the FSA’s concerns regarding the UK mortgage market and invited a debate on proposed reforms.  The review had at its core two main aims: A mortgage market that is sustainable for all participants and a flexible market that works better for consumers

The jury may still be out on whether or not the MMR will really make things better not worse for consumers, particularly for the every expanding group of mortgage consumers who are self-employed. But if you are wanting to talk through the implications for your mortgage application Enable's IFA’s are here to talk things through.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Mortgage approvals

Enables’s financial Advisors of Bishop's Stortford see that UK mortgage approvals have dipped slightly in October for the first time in seven months.  Approvals in October fell to 42,808 from 43,182 in September, the British Bankers' Association said last week.

Some economists say the monthly fall in mortgage approvals could be due to some people delaying mortgage applications as they wait of the second phase of the Government's Help to Buy scheme, The BBA said there was clear evidence that Government subsidies had helped to kick start lending. "Assistance schemes for mortgages are helping first-time buyers and housing chains generally as housing market activity rises," It is also the end of the year for house buying and selling our experienced IFA’s at Enable often see things tail away a bit as Christmas approaches. The depths of winter are never usually that good time to buy or sell a house.

Meanwhile, net consumer credit rose by £12m to £79.63bn in October, as consumers borrowed slightly less on credit cards and paid-off more money on overdrafts. The BBA also noted that low loan rates were helping to stimulate demand. “Improving consumer confidence is also leading to the banks seeing higher demand for personal loans,” said David Dooks, statistics director at the BBA.  If your confidence is rising and you are interested in getting finance in place for looking for a home in the Spring Enable’s IFA’s are happy to take you through your options.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Second Step on the property ladder?

Enable's Independent Financial Advisors understand that a home to live and grow in is vital to well being.  But making that step up from a first-time buyer to a second home has risen almost threefold in the last decade. And in our experience parents like to help their children take steps forward.

A resent, Lloyds TSB report found the price difference between a typical first-time buyer flat and the semi-detached home desired by many "second steppers" has risen from £14,000 10 years ago to almost £41,000.Researchers said nearly half of first-time buyers live in flats, which average £148,502 in value. The typical price for a semi-detached house, the type of property often favoured by second steppers, stands at £189,312, meaning they face a 27% premium to trade up.Second steppers in the South East face the biggest percentage premium at 52%, equating to almost £85,000 to make the jump to their second home.

Stephen Noakes, Lloyds TSB mortgage director, said: "Second steppers face a number of tough challenges and in many ways have been the hardest hit by the subdued housing market, so it is unsurprising that they are struggling to fund the gap needed to trade up to their preferred second home. Parents have long been helping to fund their children's first home but many are now having to provide further support as they move up the ladder."

Enables Independent Financial Advisors can help you or your children to plan for your next big step with mortgage and savings advice.

Getting a mortgage for the first time...

Experienced IFA’s like enable of Bishop’s Stortford have notice that first-time buyers have been helped along by an increase in the number of mortgages available to borrowers with small deposits. This began in 2011 and has continued into 2012 there have been many lenders offering 95% deals.

According to the Mortgage Advice Bureau, the number of 95% loan-to-value (LTV) deals currently open to first-time buyers is at a four-year high, with 59 deals available from 21 different lenders.
This compares with just 25 in February 2011, nine in 2010, and three in 2009.

Liza-Jane Kelly, sales director of estate agent Marsh & Parsons, said that while stamp duty was driving sales, an increase in lending at higher LTVs was also a factor. "The number of higher LTV mortgage deals is slowly increasing, and while criteria still remains a problem first-time buyer demand for finance is by no means dead and buried," she said. "With rents rising and average mortgage rates so low, many see now as the ideal opportunity to get on to the property ladder."

Eddie Goldsmith, chairman of the Conveyance Association, said it wasn't too late for buyers who wanted to beat the deadline, "but time is running out". Buyers should make their solicitor and the property seller aware from the outset that they wanted to complete by 24 March. If you are looking for the best mortgage deal to beat the stamp duty Enable of Bishop’s Stortford can help.

At Enable we are giving away several Kindles and £50 worth of vouchers, to enter just LIKE our Facebook page http://www.facebook.com/enableflp

Get on the ladder before stamp duty goes up...

The number of mortgages taken out by first time home owners increased in December 2011 the latest figures show. Experience IFA’s of Bishop's Stortford, Enable can see that more firs-time buyers have been trying to get on the ladder before the stamp duty holiday on properties costing up to £250,000 changes.

Since March 2010, first-time buyers purchasing properties costing between £125,000 and £250,000 have not had to pay any stamp duty at all it was a move by the government designed to kick start the flagging housing market but from 25 March 2012 first timers will pay 1% on those homes in that price bracket.

Figures from the Council of Mortgage Lenders (CML) indicate that buyers are buying with the intention of beating the deadline to save money. With the average first-time buyer spending about £130,000, buyers typically stand to save £1,300. In December 2011, 18,700 mortgages worth £2.3bn were advanced to first-time buyers, up 7% by volume and 10% by value on November's figures.
There was also an increase in the proportion of properties bought by first-time buyers within the exempt price band from 50% to 53%, a statistic the CML said “suggested they are beginning to rush through purchases before the concession ends in March".

The CML's director general, Paul Smee, said: "We have been expecting a flow of first-time buyers on to the market as the stamp duty exemption ends in March; December's figures appear to show this has now begun.”

If you want to buy before the stamp duty goes up Enable IFA’s of Bishop Stortford can help you with your mortgage, as we have access to the entire mortgage market.

At Enable we are giving away several Kindles and £50 worth of vouchers, to enter just LIKE our Facebook page http://www.facebook.com/enableflp 

It's 2012 and here are some reasons to be cheerful

As experienced IndependentFinancial Advisors Enable have seen that confidence is vital to recovery and for some reason we Brits find that hard.  In a recent poll just one in ten Britons (9%) expect their local economy to improve in the next six months, half the level seen in America according to new research from and online survey conducted in 24 countries.

Managing Director, Ipsos MORI, Bobby Duffy, said:

“With all the frenzied talk of a global meltdown it’s easy to miss that there are actually large parts of the world economy that are still feeling pretty confident about the future.  And this is not just Brazil, India and China – the majority in many other countries like Canada, Australia and Saudi Arabia also feel their economy will improve in the next few months.  Even within Europe, which does face real dangers in the coming months, there is a stark difference between high confidence countries (like Sweden and Germany) and low confidence countries (like the UK and France). 

Only the Hungarians (6%), Japanese (6%), Belgians (4%) and the French (2%) are more pessimistic about the future of their local economy than the Brits. Even the Spanish are more optimistic than Britons (17%). By the far the most optimistic of the 24 countries are the Brazilians with 72% expecting improvement.

Enable of Bishop’s Stortford would like to play their part in helping you to be less gloomy about 2012, as we know consumer confidence has a direct relationship with real economic outcomes. 

Which Mortgage? What about offsetting your mortgage

The reality for most borrowers is the fact that their monthly mortgage payment is probably at the top end of what they can afford and they either do not have the spare cash to overpay, or they are using any spare money available for savings, to pay other debts or fund other purchases.

And with most lenders once that spare cash is paid into the mortgage, it is gone and cannot be used for anything else. This is probably why many borrowers prefer to keep their spare cash ‘liquid’ in savings accounts where they can access it for whatever they wish.

But for those who want the benefits of overpayment without technically overpaying, there is always the option of an offset mortgage. Here, instead of putting your savings into a separate account or ISA, you choose to put them in an offset pot alongside the mortgage. Instead of earning interest on the savings you offset the interest you would have earned against your mortgage, effectively overpaying.

With normal savings rates being particularly low, many borrowers with significant savings would benefit from offsetting as they would earn the equivalent of the mortgage rate on their savings. This method of overpaying also allows the borrower to keep their savings ‘liquid’ as they can always access the money from the offset pot at any time.

It is also worth bearing in mind that any interest you earn on your savings is taxable at your highest rate of income tax, which might be 20%, 40% or, as of April 50% for the highest earners. If you use your savings to overpay your mortgage instead, not only are you effectively earning interest on them at the mortgage rate, but because they no longer technically exist as ‘savings’ you do not pay any tax.  Enable can help your look at your mortgage options again.

Local Building Society's are doing there bit….

Couple of items I’ve noted recently:  Cambridge Building Society has launched a five-year fixed rate mortgage at 4.19% specifically for large loans of between £500,000 and £2m. The mutual will accept loans of up to £750,000 on an interest-only basis. The five-year fixed is available up to 75% LTV, with an arrangement fee of 0.2% or a minimum of £2,000.

Carole Charter, marketing manager at the Cambridge Building Society, said: "Larger loans are not suitable for everyone, but there are people out there who would benefit from this unique product."
She added: "The Cambridge is committed to offering a range of options for borrowers and the larger loan mortgage is a product that we feel we need to be able to offer our wealthier customers looking to purchase a house in this price range."

Also, the Cambridge Inflation Linked Bond Receives Surge in Interest.  All applications for the five year bond must be received by 15th September 2011*. The Cambridge Inflation Linked Bond pays customers a return, at maturity, that tracks the annual rate of inflation, as measured by the Retail Prices Index (RPI), plus a guaranteed 1.00% gross p.a./AER** fixed for five years.

Andy Lucas, Head of Cambridge Direct at The Cambridge Building Society says: “We have seen surge in customer interest following the recent withdrawal of the NS&I index-linked certificate.
“Customers who want to take the opportunity to invest in a product that offers protection against the effects of inflation need to take advantage of the inflation linked products that are left in the market whilst they are still available.”

Enable Independent, IFA’s of Bishop's Stortford are here to help with savings and mortgages anytime you want to re-think your finances

Would like to be in your own home by Christmas?

Then contact us for a mortgage - we are not tied down to one mortgage provider, which means we can always find the best mortgage product from across the whole market place.

“The level of house prices, the need for larger deposits and stricter lending criteria set by banks, has combined to cut first-time buyers out of the market” says the National Housing Federation. “People need much bigger deposits now, and typically people can only get mortgages of about 75% of the price of the home.”

Getting onto the property ladder may seem like an enormous task in the current climate but it is not impossible and given all the upward pressures on the housing market it still seems like the only sensible thing to try and do. Experienced IFA’s like Enable of Bishop Stortford help you look at what can seem like overwhelming mortgage data to help you find the deal that works for you.

In the news this week Accord Mortgages, the intermediary arm of Yorkshire Building Society, has cut up to 0.45% from the cost of its 85% loan-to-value (LTV) fixed rate mortgages.

Its deals now include a two-year fixed rate at 3.74% and a five-year fixed rate at 4.64%, both available up to 85% LTV with a £995 fee.  Accord has also reduced the interest rates on its 75% LTV products by up to 0.25%.

Steve McAvan, group intermediary product manager at Accord, said: "Our new range still includes offset options, products suitable for first-time buyers and our popular tracker and fixed hybrid deals ensuring we provide brokers with a broad range of competitive products to suit the needs of their clients whilst still providing some of the best rates on the market."

Just one of many of the options Enable Independent can help you consider to meet your housing needs - we are what it says on the tin - Independent.

Property house prices - it's time to review your property investments

It may not be the most ground breaking  news but it confirms what many have long suspected.  The National Housing Federation (NHF) report says that the UK faces an unprecedented “chronic under-supply of homes” in England.  It claimed the acute shortage was a result of the difficult economic climate making mortgages difficult to obtain but that at the heart of the problem remains a chronic under-supply of new homes.

In 2010/11 just 105,000 homes were built in England – the lowest level since the 1920s.
More government investment in affordable housing would stimulate a wider, faster economic recovery and help fix our broken housing markets, according to the Federation.

It is calling for suitable surplus public land to be made available for the building of affordable homes, for local authorities to regularly assess housing need and for ministers to make a renewed commitment to building the homes the country needs. Minister Grant Shapps said government says it is making more land available for building and is investing £4.5bn in lower-cost homes that would “get Britain building again”. Shapps said: “That’s why I’ve announced plans to release thousands of acres of public land for house building.” But the NHF said Government plans represented a cut of 63% on the previous programme of government spending on homes to rent or buy.  NHF campaigns director Ruth Davison said: “What we need to do is to build new homes.”

What to talk it through? Come and talk over your property investments with an IFA at Enable Independent Ltd.

When to buy a house - Safe as Houses

In the news recently the National Housing Federation’s independently-commissioned Oxford Economics Report predicts:  Home ownership in England will slump to just 63.8% over the next decade - the lowest level since the mid 1980s – locking an entire generation out of the housing market.  According to a new study,  huge deposits, combined with high house prices and strict lending criteria, have sent home ownership into decline in recent years and the downward trend will continue for the foreseeable future.

The Federation warned the housing market will be plunged into an unprecedented crisis as it forecast steep rises in the private rental sector, huge social housing waiting lists, and a house price boom – all fueled by a chronic under-supply of homes. 

According to Oxford Economics, who were commissioned to produce the forecasts: 
In England, the proportion of people living in owner occupied homes will fall from a peak of 72.5% in 2001 to 63.8% in 2021.

In London, the majority of people living in the capital will rent by 2021 with the number of owner occupiers falling from 51.6% in 2010 to 44% by 2021.

The North East will be the only English region to see any increase in owner occupier numbers over the next decade, rising marginally from 66.2% to 67.4%.

The average house price in England will meanwhile rise by 21.3% over the next five years from £214,647 in 2011, to £260,304 in 2016,

As investors what should you do? If you own a property hold on to it if you have the capital maybe buy to let is not such a bad idea again? Enable IFA's in Bishop Stortford can help you talk through what to do.