Property Market Updates

Hi, I’m Jordan, CEO of Jordan and Halstead and today, lets talk mortgages…

Sometimes mortgages aren’t exactly the simplest thing to understand and with the introduction of “No Deposit” or “100%” mortgages, that muddies the water even more so today lets take a look at the benefits and differences between a traditional mortgage and a no deposit one.

Skipton have recently introduced an all new product offering first time buyers a chance to buy a home with no deposit required and it’s been causing a lot of interest but also a lot of confusion and hopefully today, I can help clear up who it’s for and what it actually entails!

Firstly, it’s worth noting that to qualify for Skipton’s “No Deposit” mortgage, There are also a few requirements and things you’ll need to know:

• These mortgages are for first time buyers only
• You need a track record of paying your rent and bills (for the last 12-18 months)
• Your mortgage repayments can’t be higher than your historic rent payments with no missed payments on debt of credit commitments
• You can borrow up to a maximum of £600k or 4.5x your income
• It’s only available with a 5-year fixed rate mortgage at 5.49% interest
• You must be over 21
• You can be eligible with a partner
• New build flats are ineligible

So, with that out of the way, let’s look at how Skipton’s product and a more traditional mortgage compare…

• The obvious difference between the 2 being that you won’t need to save up a hefty deposit if you’re using a 100% Mortgage but that also means that you’ll need to have up to 18 months of perfect credit and rent payments while with a traditional mortgage, you’re going to need to have saved a considerable amount of money to pay your deposit which can be hard to do if you’re renting and finding it hard to save.
• One important difference to note is that while short term, you might be able to secure a mortgage, in the long term, you may well end up paying more.
  The average UK mortgage rate sits at 4.78% while Skiptons’ is 5.49%.
  That doesn’t sound like a lot but on a 220k mortgage, paid over 25 years, you could end up paying up to £27,487 more over the course of your mortgage, paying back a total of £404,904 compared to £377,417 on a deposited mortgage.
• The last key difference for me is a simple one, choice.
  There are so many options available should you be able to pay a deposit while you have very limited options should you take the no deposit route.
  It will make it harder for you to shop around to find the best deals BUT at the same time, does give you a solid option to get on the property ladder should you struggle to be able to save for a deposit.

As a product, I’m all for zero deposit mortgages as a way to allow more people onto the property ladder, it’s a great opportunity for long term renters to finally secure a home of their very own but if you’re in a position to pay a deposit though saving or the bank of mum and dad, in the long term you’ll save yourself a substantial amount of money.
These are definitely two very separate products for two very different audiences and I’d do my research and preparation before deciding on either.

As always, I’d suggest speaking to a financial advisor before committing to either option but I hope this brief guide will give you a better idea of the options available to you!

If you’d like a more in depth look at my thoughts and opinions on these mortgage products, please watch the Youtube video below where I go into much more detail.

https://www.youtube.com/watch?v=C3dZZ0t5Bsg&t=3s

Thanks for reading!

The COVID-19 lockdown that came into place here in the UK back in March brought most house moves to a grinding halt. Here at Jordan & Halstead, we watched as estate agents and prospective buyers across the country were left frustrated as the property market stalled and home buying needed to either be postponed or cancelled. Fortunately, the lockdown has been lifted and the housing market is back up and running. 

If you are someone who wants to move home but is still uncertain about how the coronavirus has changed things and what exactly you can and can’t do, then you’ve come to the right place. Here, we’re going to look at exactly you should expect from the property search and home move process while the COVID-19 pandemic continues to impact how we do things. From preparing for safe physical viewings and removals to potential delays and making offers – let’s take a look at buying a property during the COVID pandemic. 

Can I move house now that the lockdown has been lifted? 

Yes, now that the housing market is back up and running since lockdown has been lifted, it is possible to move home across the UK in England, Scotland, Wales and Northern Ireland. Estate agents are open and working – including the team here at Jordan & Halstead, who are always on hand for a chat about how we can help you – viewings are taking place again, and surveyors, conveyancers and removal firms are all working again too. 

However, we are far from being back to normal. While the property market is back in gear, delays are to be expected and all parties involved in a house move are expected to remain flexible. Hygiene measures, social distancing and other extra measures also need to be adhered to during the process. 

Preparing for property viewings

There’s a very good chance that you will be expected to perform virtual viewings of a property before actually attending for a physical viewing. Virtual visits are becoming part of the ‘new normal’ when it comes to marketing and buying property here in the UK, and your estate agent will advise you to thoroughly research any property you intend to view online first. 

When attending a physical viewing, you’ll be asked to refrain from touching surfaces – the host will likely have left doors, windows and cupboards open to avoid the need for touching handles and surfaces. You’ll also need to bring the appropriate PPE (personal protective equipment) such as face masks and gloves. 

You’ll need to maintain proper social distancing whilst visiting a property for a physical viewing. Part of this might mean limiting the number of people you bring with you to the viewing. 

Making an offer for a property

Generally speaking, you are free to make an offer on any property as you would under normal circumstances. However, it is worth noting that the risk of one of the involved parties needing to delay the move is much higher – if someone begins showing symptoms or is diagnosed with the coronavirus and needs to self isolate, the entire process can be pushed back for a matter of weeks. 

Of course, if you do make an offer and it is accepted, there’s a good chance you might want to make additional visits to the property. In these cases, the same measures that are implemented for initial viewings should also be adhered to here – social distancing, hygiene measures and reduced contact. If you need to schedule tradespeople to visit the property for an inspection, then the same applies here again. 

Moving into your new property

Removal firms are also back up and running, meaning that you can now plan to move all of your belongings into your new home. However, as with other aspects of your house move, the process is subject to delay and removal firms may need to be flexible. As such, we recommend that you get in touch with your removal firm as early as possible into the process. 

You should also try to perform as much of the packing as possible. Your removal firm may have measures in place to do this for you safely, so it’s recommended that you inform them as to your plans regarding the packing. 

Get in touch

Planning your house move during the COVID-19 pandemic? We know it is an uncertain and frustrating time. If you’re looking for more guidance and advice, don’t hesitate to get in touch with the team here at Jordan & Halstead. We are back up and running and we are always on hand to help our clients and customers with what they need.

Staying up to date on property markets is vital to making the best decisions when it comes to buying, selling, letting or renting your home. Even in more rural areas where the market is smaller or slower than metropolitan areas, knowing what’s going on in your are can be the difference between a quick, profitable sale and a long-drawn out process with no end in sight.

At William Gleave Estate Agents, we are passionate about helping our customers make the right choices when it comes to their property, which is why I’m putting together Monthly Market Updates to show the customers at our William Gleave office exactly how to get the most out of their home.

To find out more about the market in Flintshire and North Wales, keep on reading.

As we can see, the number of instructions made in August 2019 compared to the same period last year has decreased slightly, and there have been 1700 instructions over the course of the year.

The number of sales agreed has also slightly decreased since this period last year, with 1205 sales agreed year to date.

There average value of homes in Flintshire is £184,762, which is down 4.54% from the same period last year.

All these figures tell us that this is a good time to buy a new property or increase a rental portfolio.

To find out more about how to make the most out of your local property market, contact the team at William Gleave, a part of JH National today.

Thanks for reading,

Jordan

The team at Jordan and Halstead are passionate about the work we do, and keeping our clients up-to-date about the property market. We believe in giving our customers all the information they need to make an informed choice about their home and the market they are in.

In these Monthly Market Updates, I’ll take you through the way the property market looks in your area, so you can make informed decisions about your home, finances and when the right time is to buy, sell, let or rent your home.

Read on to find out how the property market in Chester is looking, and what you can do to make the most of the market in your local area.

In August 2019, the Chester market saw a decrease in the number of new instructions of around 15%, and overall saw over 2112 market instructions year to date.

However, we also saw an increase in the number of sales agreed over the course of the year of around 10%, with a total of 1410 sales agreed. 

In the last 12 months, we also saw the average value of Chester properties drop by 5.3%, leaving the current average home value at £258,916. 

All of this data tells us that this is a great market for buyers. If you’re considering buying for the first time, purchasing a second property or looking to expand your rental portfolio, now is a very good time in the market to do so.

Contact our team today to find out more about your options and see how you can take advantage of the current property market.

Thanks for reading,

Jordan.