Reeds Rains Property Blog

Property News from Reeds Rains

All You Need to Know about MMR

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In April all lenders were required to change the way that they assessed residential mortgages.  Historically lenders had used simple multiples of the applicant’s income to dictate how much they would lend and although underwriting had become more complex with other factors taken into account there was still a focus on the “top line” of applicants income.

 On the 26th April this year, all that changed and lenders were required to look at the customer’s ability to make the payments, not just at the current pay rate but also at a notional figure taking into account the fact that rates are likely to rise in the short to medium term.

At the time there was a great deal of scaremongering that went on, thankfully, whilst the scrutiny that lenders do apply to potential mortgage applicants has risen most of the scare stories have proven unfounded.

What has become clear however is that consumers still don’t really understand how the changes apply to them.  A recent survey by TSB showed that only 51% of aspiring homeowners had even heard of the Mortgage Market Review (MMR), which by consequence means that almost half of people looking for a house don’t understand, or in some cases even know about, the changes.

MMR is primarily designed to ensure that people only borrow what they can reasonably afford to repay so it is encouraging to read in the same report, that 41% of those who were aware felt that the rules would ensure this.

As with most things getting professional advice is always a great starting point; borrowers have to remember that this is almost certainly going to be their largest purchase and for most people is their single largest outgoing each month, so getting good advice, listening to that and acting on it is a sound idea.

There are a number of things that can be done in preparation for that meeting and we always advise our customers to have taken time to prepare a few basics before coming in to see an adviser;

·         Think about your expenses after you have moved, these will likely to be different to where you currently live and certainly will be significantly different for those who are still living with parents.

·         Document these expenses and look at what is left over to pay a mortgage and the associated protection policies.

·         Start saving as early as possible, even if it isn’t a huge amount each month

·         If you have had financial difficulties in the past get a copy of your credit report. This won’t necessarily stop you getting a mortgage but may mean that an adviser has to look at different option.  Non disclosure of any historic financial problems is viewed very badly by lenders so be very upfront about the problems and the reasons for them

·         Check that you are on the electoral role, if a lender can’t find you, they are unlikely to want to lend you money.

By John R Hargreaves, Financial Services Director, Reeds Rains Estate Agents

 

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

An administration fee of £499 will be payable when you sign the professional fee agreement upon mortgage application.

Joe Dale is Acomb Cricket Clubs player of the month for July

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Reeds Rains Branch Manager Andy Jacques with Joe Dale, Acomb Cricket Clubs player of the month.

Reeds Rains is delighted to announce Acomb Cricket Clubs player of the month for July. The player of the month Award recognises an individual player from the Acomb Cricket Club who has demonstrated outstanding performance for the club.

Congratulations to Joe Dale on successfully winning the award for July. Joe played 3 times for the 1st 11 during the month of July (1 game rained off).  He scored 3 successive half centuries; with a match winning 58. He has also been successful with further scores of 73 against Sessay, and 72 against Pickering taking catches and wickets along the way. Joe also enjoys supporting All Out Cricket Coaching in York, and helps by coaching boys and girls across all ages and abilities.

The Acomb Cricket Club, which is in division one of the local league, is a family orientated club with history dating back to 1925 with teams in the York & District Senior League, the York Vale League as well as the Pilmoor Evening League.

Andrew Jacques is the Acomb branch manager for Reeds Rains who works alongside the club. He comments: “Joe has worked hard and achieved some great results and we are delighted to be able to offer support by sponsoring the local cricket club.  Joe is a very capable player with lots of talent and commitment who is willing to share his experience with others, especially the next generation of young cricketers.”

If you would like to find out how Reeds Rains can help you buy or sell your property then visit the Acomb branch at 1 Carr Lane, York, North Yorkshire, YO26 5HT or call 01904 782621(*) for more information.

(*)Calls may be recorded for training and/or monitoring purposes.

Tour de France Coming To Hebden Bridge

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Hebden Bridge is on the route of this years Tour De FranceCalder Holmes Park in Hebden Bridge has been announced as an official Grand Depart Spectator Hub. The family-friendly hub will be able to host up to 8000 spectactors on 6 July and will feature a big screen, spectator entertainment and locally produced food close to the town centre and local transport links. Fans can come early and stay all day, soak up the unique atmosphere of the town, and 'release your inner cyclist'.

We thought it would be a bit of fun to take a look and see what property you could buy in Hebden Bridge whatever your budget.


£525,000

4 Bedroom Detached - Wellside, Hebden Bridge, HX7

Beautiful stone detached family home with open views, and backs onto fields.


£450,000

4 Bedroom - Wadsworth, Hebden Bridge, HX7

Detached family home constructed in 1910, elevated location with stunning valley views.

 

£325,000

4 Bedroom - Palace House Road, Hebden Bridge, HX7

Victorian terraced property within easy walking distance of the train station and centre of Hebden Bridge.

 

 

£275,000

3 Bedroom - Cragg Vale, Hebden Bridge, HX7

18th century semi detached cottage, (2 cottages converted into 1) with private rear garden backing onto farmland.


Offers in the region of £150,000

2 Bedroom - Lower Chiserley Billy Lane, Hebden Bridge, HX7

A character property with lots of period features, in the heart of the countryside, but close to amenities. Stunning views across the valley.

 

Shakespeare's Birthday

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Today would have been William Shakespeare's 450th birthday!  

Shakespeare is synonomous with Stratford-Upon-Avon, but he made reference to many locations throughout England, and for a bit of fun we've found some properties that make reference to Shakespeare.

1.  For those on a tight budget, or who want to invest, how about this 1 bedroom flat on Shakespeare Street, Wallsend  Offers in the region of £50,000.

 2. Another investment opportunity on Shakespeare Street, Burnley.  £46,500 for a 3 bedroom house.

 

3. A 3/4 bedroom bungalow in Shakespeare Avenue, Chester  £300,000.

4. An extended 4 bedroom semi on Stratford Road, Birmingham for £315,000.

Scotland House Price Index - January 2014

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Scottish house prices show no negative response to Independence debate
 

  • House prices up £1,680 in January – largest monthly increase for 50 months
  • Average Scottish prices rise by £6,073 – largest annual increase since September 2010 
     

Donald MacLellan, Chairman of Walker Fraser Steele Chartered Surveyors, part of LSL Property Services, comments: “The enthusiasm of property investors suggests the Independence debate is having no impact on confidence within the Scottish housing market. Scottish prices are up £1,680 in January. Five consecutive months of rising prices indicate the market has bounced back fast as it gathers the fruits of the wider economic recovery. Whether or not the possibility of Scottish Independence throws up all sorts of question marks, such as the economic cost of a separate monetary system for Scotland, currency risks, changes to stamp duty and land tax, the property market seems currently unaffected. And whether some businesses are alarmed by the prospect of the use of a currency other than sterling, a development that might lead to a rise in transitional risks as well as large business costs, with corresponding implications for jobs, as yet there is little obvious impact. Banks such as RBS and Standard Life have threatened to leave Scotland altogether and decamp to England, possibly causing a drop in net lending. But if a yes vote for independence looked like the more probable outcome, we would expect this uncertainty to have manifested itself in property prices. As we can see, there has been no such impact on the housing market.

“2014 recorded the highest volume of sales in a January since 2008. Increased lending and mortgage availability are reaching heights not seen since before the recession as first-time buyers return to the market en masse. Mortgage finance – for those who can access it – is at its cheapest for some time. This is sustaining activity in all sections of the market, specifically buy-to-let investors and homeowners looking to upgrade. The spring market in Scotland will see more lending to first-time buyers thanks to cheaper rates, a boost in high loan-to-value mortgages and the support of Help to Buy. The lack of supply in properties in Scotland is boosting competition between new and previous buyers, propping up prices. The property market doesn’t appear to think things are set to change any time soon.”

Read the full LSL Scotland House Price index 

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