The latest news from Bill Tandy

Welcome to the latest edition of the Bill Tandy newsletter! It has been a great month for the property market, with an increase in sales. This month we take a look at how much you could save by re-mortgaging your property. Thinking about purchasing this month? We've put together some key negotiation tips you should be conscious of this month.

 

Further into our newsletter it's good news for first-time buyers as many lenders are now allowing smaller deposits to help buyers get onto the property ladder. Finally, we're pleased to say rental growth has picked up for the sixth month in a row, as demand for rental properties continues.

 

 We hope you enjoy this months edition.

Eco Friendly Homes Playing an Important Role

 

Climate change has received immense attention recently with urgent calls to reduce the contributing factors to carbon emissions, rising sea levels, and rising temperatures. The UK has committed to reduce its CO2 emissions to net zero by 2050; and this commitment cascades to all markets, including property. This commitment is a great achievement for the UK, with it being the first first-world country to pass law to such a commitment. 

Sadly, the amount of greenhouse gasses produced from heating properties has increased since 2014. Heating our homes accounts to a staggering one seventh of overall UK emissions. Our increased use of fuel can be resultant from heat escaping from properties through walls, windows and ceilings during winter. Luckily, the Government have called an end to the rise in fuel consumption and are devising a plan to battle the emissions producing more energy efficient homes. They are behind an initiative called Future Homes Standard, which is planned to be in full operation by 2025. 

Having more energy efficient homes is a great ambition for all. It will lead to lower carbon emissions, reduced energy bills, and upgraded housing. In 2025, all new build homes will have to abide by the initiative to have clean technology to heat homes instead of the current fossil fuel burned for gas boilers. The construction sector and developers are at the heart of this revolution with their designs crucial to meeting this goal. 

 
The Housing Minister, Esther McVey, said that “industry has told us some homes built using modern methods can have 80% fewer defects and heating bills up to 70% lower. Homes built using modern methods can be of higher quality, greener and built to last. I want to see a housing green revolution.” 2020 is set for an environmental transformation, with the property market a strong contributor to this.

Easter Eggstaraganza 

Saturday 4th April 

 

Follow the Woodland Trail to find the Easter Bunny who's giving everyone free chocolate.

Click here to read Easter Eggstaraganza .

 

How much could you save by re-mortgaging?

 

Homeowners whose fixed rate mortgage deal has ended could save hundreds by just re-mortgaging!

When a fixed mortgage deal ends, you are usually automatically put onto the lender's Standard Variable Rate (SVR), which can cost borrowers more each month in repayments than if they actually re-mortgaged onto a new fixed rate deal.

Here are some examples to show you the savings when switched:-

How much could you save re-mortgaging with 40% equity in your home?

If a homeowner owned 40% equity in their home, they would look for a mortgage deal at 60% Loan to Value (LTV).

• The average SVR currently stands at 4.41%*
• The average two year fixed rate at 60% LTV is 1.67%*
• The average five year fixed rate at 60% LTV is 1.90%*

With a property valued at £250,000, mortgage borrowers looking to re-mortgage at a 60% LTV would be looking to borrow £150,000.

Using a mortgage repayment calculator, you can calculate that if this borrower was on the average SVR on a mortgage term of 20 years, they would be paying £941.70 per month.

 

If they re-mortgaged onto a two year fixed rate deal at the average rate of 1.67%, this borrower would pay £735.61 per month in repayment, a reduction of £206.09 per month.

 

If this borrower were to re-mortgage on a five year fixed deal at the average rate of 1.90%, they would pay £751.74 each month in repayment, a reduction of £189.96 per month.

How much you could save re-mortgaging with 25% equity in your home?

Those homeowners who own 25% equity in their home would look for a mortgage deal at 75% LTV.

• With a two year fixed rate average at 75% LTV, which is currently at 2.29%
• With a five year fixed rate average at 75% LTV, which is currently at 2.49%

If your property is valued at £250,000, a homeowner would look to re-mortgage at a 75% LTV, borrowing £187,500.

 

On the average SVR of 4.41% and a mortgage term of 20 years, repayments on the average SVR would be £1,177.13 per month.

 

Re-mortgaging onto a two year fixed deal at 75% LTV at the average rate detailed above, repayments would be £974.50 per month.

 

If the homeowner re-mortgaged onto a five year fixed deal at 75% LTV at the average rate detailed above, it would make their monthly repayments of £992.65, a reduction of £184.48 each month.

How much could you save?

There are many deals available offering rates below the average, which means for some borrowers, bigger savings could be made.

 

If you speak to a mortgage broker, they’ll be able to give you the best options for your circumstances.

Contact us today for more information or help finding the right mortgage deal for you.

 

 

 

 

*Moneyfacts.co.uk

 

How you can get negotiation-ready this March

 

According to a recent source, 30% of surveyed homeowners stated that they didn’t attempt to negotiate on the price when purchasing a home.

 

22% of these respondents indicated that this was due to a lack of knowledge, confidence and skills in house price negotiation tactics.

 

Therefore, it goes without saying that many risk over-paying on their house purchases.

 

This can be particularly prevalent in certain age groups, such as adults between the age of 25 and 34, who reportedly suffer the most unease when trying to bargain on the price of their home, whereas those aged 65 and over report feeling more familiar with the process.

 

So, what does it take to get a better deal?

 

Best tips for negotiating house prices

1) Do your research

Make sure you research house prices in the area you are considering. These will give you a better indication of what you should be paying and what is considered too steep.

 

Looking at online portals such as Rightmove or Zoopla will provide quick access to an array of properties in your desired area.

 

If you find that other house prices are lower, there may be room for negotiation, depending on the condition of the property in question.

 

2) Ask questions

Don’t be afraid to ask your estate agent questions about the property, such as:

- How long has the property been on the market?
- Why is the vendor selling?
- Has the vendor secured their next home?

 

3) Be sure you can definitely advance with the purchase

Have you got a buyer for your current property and can you afford the mortgage payments on the property you are interested in?

 

Being in a strong position financially will go a long way to making you a desirable buyer.

 

4) Determine the maximum price you are prepared to pay

 

It's a good idea to have a clear idea of your limits, so that you can control the conversation and keep calm when it comes to it.

 

5) Be realistic

It is possible to offer up to 10% lower than the asking price.

 

However, be careful not to insult sellers, particularly by pointing out flaws in the house or offering too low, as this could lose you the property if there are other interested parties.

 

6) Get the estate agent on your side

It is in the estate agent's interest to help their client receive genuine offers, so showing them that you are ready and serious about buying will be fed back to the current homeowner.

 

The buying and selling process often hinges on a certain level of trust, as both parties seek assurance about the other's commitment and readiness to move forwards.

 

No one wants to waste time on a sale that could fall through, so whilst it's key to be level headed, don't let that affect your actual interest.

 

7) Be open to re-negotiating

Although it is better to be sure before making a commitment, you can re-negotiate until the exchange of contracts.

   

8) Don’t get carried away

The negotiation is not the most crucial part of buying a home.

 

Most importantly, this is your life and your future home.

 

Do you need help buying or selling in 2021? Talk to our agents today for a comprehensive valuation or to browse the latest listings in your area.

 

 

Good news for first-time buyers as lenders allow smaller deposits

 

Over the last 12 months, first-time buyers have found it more difficult to move forwards with their purchase plans, as low-deposit mortgages became increasingly scarce.

 

Now that lenders have begun to re-introduce their 10% deposits, the current situation is looking up for new homeowners, as the number of available products at 90% loan-to-value ratio rose by 29% in the first two weeks of February.*

 

It is estimated that around £5 billion is currently being held up in the first-time buyer’s market due to the COVID-19 pandemic, as many future homeowners have decided to delay their move until they have greater financial stability and job security.

 

Are you looking to try again with your first property purchase?

Nine in ten 90% mortgages were withdrawn from the market in the wake of the COVID-19 outbreak last spring. 

 

Nearly a year on, first-time buyers have been handed a serious boost, with the majority of lenders now offering low-deposit mortgage deals and reducing the restrictions they put in place on how much of the deposit could be 'gifted' by friends or family members.

 

To learn more about your prospects as a first-time buyer, please visit our website.

 
*Moneyfacts

Rental growth picks up for the sixth month in a row

 

The rental market has picked up for a consecutive sixth month, suggest sources in the property sector, with reports showing a 4.3% increase in January – which is 0.2% higher than the 4.1% figure in December.*

The South East topped the rental growth market, seeing a 10% increase in rents over the last 12 months.

The lowest rental region in the UK was the North East, with an average rental cost of £539 per month, whilst the highest region being Greater London had an average rent of £1,556; an approximate difference of 288% for the country's capital.**

What are the main reasons for this rental market growth?

Cost is an obvious drive for rental growth as we continue to see house values rise.

 

From 2007 to 2017, the property market saw the average UK house rise in price by just shy of £40,000, which has had a knock-on effect to tenants.

Another possible factor could be that – in the last 12 months – more and more people are becoming tenants due to so called ‘risk factors’, for instance, lengthy 25-year mortgages and not wanting to worry about house depreciation over time.

 

This has been amplified by those who have decided to rent for longer, such as first-time buyers delaying their purchase plans.

Changes in society also play a massive part in the rental market, as households are embracing the ability to move out easier and not being committed to a given property.

How we can help

With a tried and tested method to support landlords, we can help you maximise your property investments and make smart choices with your portfolio.

Contact a member of our team now to explore your options.

 

*Letting Agent Today
**Statista

 

 

Mad Hatter's Tea

Thursday 9th April 

 

Enjoy an afternoon tea in the school holiday's with fun, craziness, singing and dancing.

Click here to read Mad Hatter's Tea.

Wedding Open Day

Sunday 19th April 

 

If you are planning a wedding for 2020 or 2021 this wedding day is a perfect chance to see dressed rooms.

Click here to read Wedding Open Day.