Housing market given £1bn injection in Budget 2009

A £1 billion injection into the housing market was announced by Alistair Darling to ease the pressure on homeowners, help meet future demand for properties and allow the construction industry to recover.


By Kara Gammell

For borrowers who are struggling to pay their mortgage as they seek new jobs, the government has extended the higher level of support in the Income Support for Mortgage Interest (ISMI) scheme for a further six months. The scheme, announced in the Budget and which covers mortgage interest payments for people recently unemployed, allows homeowners to claim state benefits to help you pay interest on their mortgage.

Almost £80m of the funding will be spent on the HomeBuy Direct, the Government’s shared equity mortgage scheme. The scheme, designed to help up first-time buyers into affordable home ownership, will also help participating house builders by enabling more first-time buyers to purchase their newly built properties.

Gillian Charlesworth, director of external affairs at the Royal Institution of Chartered Surveyors (RICS) backed the Government's decision to use the scheme as a way of helping buyers who are suffering as a result of restrictions on mortgage lending.

“Although the money is welcomed, it must be accompanied by better marketing of the scheme, possibly through high street estate agents. Extending the scheme will provide a boost for first-time buyers and can help avoid high loan-to-value mortgages, she said.

Fionnuala Earley, chief economist at Nationwide Building Society, said: “The extra funding should, in theory, increase the availability of housing options. However, previous experience has shown the administrative challenges of managing such initiatives means we should be cautious about expecting these measures to have an immediate impact.”

For homeowners who do not qualify for ISMI, a new scheme was launched this week.
The Homeowners Mortgage Support (HMS) scheme will help eligible homeowners who have suffered a temporary loss of income but are not on benefits, get back on track with their finances by cutting their mortgage interest payments for up to two years.

To be eligible for HMS, homeowners need to switch to an interest-only mortgage will be asked to pay as much as possible each month.

This will give homeowners who are experiencing money problems the time to find a new job or to recover their income, without the added concern and stress of potentially losing their home.
But some experts said that this scheme is a case of too little, too late as figures from the Conservative Party show that over 28,000 home owners have been thrown out of their homes as a result delays in implementation after the scheme was first announced last December.

Peter Bolton King, chief executive of the National Association of Estate Agents, said: “This scheme has taken months to come to fruition since it was announced last November and thousands of people have had their homes repossessed in the meantime. It is a scheme which is to be welcomed for the support it will give to homeowners. “However, more detail is needed on those major lenders that have not signed up for the Homeowner Mortgage Support Scheme but have promised to set up similar schemes of their own.”

http://www.telegraph.co.uk/finance/personalfinance/how-budget-affect-me/5201521/Housing-market-given-1bn-injection-in-Budget-2009.html

House prices fall slightly in April

• The price of a typical house fell by 0.4% in April
• Housing measures in the budget are welcome, but are unlikely to turn things around
• Economic fundamentals will continue to dominate housing market prospects
  

Headlines	April 2009	March 2009
Monthly index * Q1 '93 = 100	300.0	301.1
Monthly change*	-0.4%	0.9%
Annual change	-15.0%	-15.7%
Average price	£151,861	£150,946

* seasonally adjusted

Commenting on the figures Fionnuala Earley, Nationwide's Chief Economist, said:

"The price of a typical house fell by 0.4% in April. This reverses some of the rise seen in March, but is in line with our expectations, given the current economic conditions. April's decline leaves the average price of a typical house at £151,861, down 15% from 12 months ago. The 3-month on 3-month rate of change, generally a smoother indicator of the short-term trend in prices, improved to -3.1% in April from -4.1% in March."

It’s Good to Talk !

NO DEPOSIT required (or is it Equivalent 100% Mortgages are available)

As Mortgage Brokers we too have seen the frustrations and hurdles created by lenders in the current market to secure , in their eyes, safer and more profitable lending , but in the process been part of a system which for some time now has seemed to neglect the obvious .

If First Time Buyers are not buying houses because they are not able , then not many people will be moving , and I can confirm, if people didn’t already know, FTB’s have not been getting much in the way of help.

On the back of this perception we as Advisers, Estate Agents , Lenders and Local Government bodies, probably all professionally qualified and considered to have at least average intelligence, have either been confused , put off , had no interest or simply caught out by the Governments’ initiatives to get the property market moving again.

This failing in communication and lack of effective marketing has clouded the assistance available to the buying public , that through Government funding , there are ways that buyers ,not just FTB’s , can buy homes with little or no deposit, and in some cases secure a more competitive mortgage rate than finding a 10% minimum deposit from their own savings.

This funding is not just restricted to the type of property and an arrangement that a Builder/Developer has organised via a Government Scheme but there are schemes available to buyers regardless of the property.

There may be a moral stand with some people that by making a contribution from their own funds shows commitment or in the present employment climate , should people be entering into a mortgage , however , I will leave the morality question to those wiser than myself.

Therefore in conclusion we can confirm that assistance is available, albeit with slight ‘red tape’ issues attached, but becoming easier and more streamlined, always subject to terms, conditions and qualification , which in the past has put many off even asking, but for spending a little time many people could buy a home and not realise it.
If you don’t ask you don’t get !

For more information ring HomeSearch Direct on 01228 515515 and ask for any of our Mortgage Advisers.

Gary L Pollard CeMap,CertPFS ~ Director
Homesearch Direct Ltd

Subject to Terms, Conditions and Qualification
Homesearch Direct Ltd is an Appointed Representative of Personal Touch Financial Services Limited which is an Authorised and Regulated by the Financial Services Authority.
We do not charge a fee for mortgage advice however a fee paying option is available. Our typical fee is 1% of the loan amount.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Babies Everywhere !

Carlisle based Mortgage Adviser Jo McRoberts returns to work on after a spell of Maternity Leave , Domestic and Motherly duties having had a baby boy last year (Bobby).

Jo returns suitably ‘rested’ and firing on all cylinders ready to give advice to her loyal band of clients and First Time Buyers. Most will be eager to see how she can weave her magic in a slightly different market to when she left ,albeit she kept in touch with affairs whilst juggling her other duties. Give her a ring on 01228 – 515515

Homesearch Partner Andrew Scott and his wife ( another Jo) celebrated the birth of a baby girl (Ruby) last month .Both Mother and daughter are home and doing well although Andrew is looking tired . Well Done both ! We didn’t know Andrew had it in him !

NAEA — slivers of better news amid the gloom

ESTATE agents across the UK reported a slight increase in activity at the end of 2008, according to the National Association of Estate Agents.

After 12 months of misery, the NAEA's monthly market survey for December – traditionally a quiet month – revealed some positive signs in the market.

The number of house hunters registered with agents rose from 186 in November to 200 in December, while the number of properties available for sale on the average agent’s books increased from 87 to 100 over the same time period.

While many agents had expected a fall in activity in December, the number of sales per agent held at six – still a very low figure historically – while the number of first-time buyers as a percentage of new sales rose for the fifth month in a row.

Agents surveyed also reported an incremental increase in house prices.

NAEA president Chris Brown said: “After 12 months of misery, it is heartening to see that some agents across the country performed better than expected at the tail end of 2008. However, nobody should be under any illusion that the housing market’s difficulties have finished.

“Rather, these figures should be taken as hopefully suggesting that the market is, in some areas, beginning to bottom out. This process in itself will be a long one, and any recovery will require help from Government to succeed – most immediately in the form of a complete suspension of stamp duty.

“The reported increase in house prices can be seen as a statistical outlier that hopefully signals the direction in which, with small steps, 2009 will take us.

“However, agents in many parts of the country are still struggling to survive and thousands of potential homeowners are still in need of help from the Government and a commitment from the major lenders to free up credit.”

n Meanwhile, the NAEA has called for the Government to co-ordinate an ‘over-arching recovery plan’ to boost the economy after the Financial Services Authority revealed that repossessions increased by 92 per cent in the third quarter of 2008.

“Worryingly, these figures appear to show that the six month delay on repossession orders that many of the banks announced at the end of last year was not taken soon enough,” said NAEA chief executive Peter Bolton King.

“It is also an urgent reminder that the measures taken by the Government to release credit into the market must begin to take swift effect.

“Most importantly, it demonstrates the vicious cycle of recession – in which unemployment leads to missed mortgage payments and repossessions, which in turn discourages banks from lending and, ultimately, stops potential buyers getting onto the property ladder in the first place.

“The Government and the banks must abandon scattergun rescue packages and co-ordinate on an overarching recovery plan to pull us out of this morass as quickly as possible.”

reproduced from http://www.estateagencynews.co.uk/news/news-0209b.asp

Mortgage market "coma" could end soon

Other mortgage lenders are likely to follow Nationwide's lead in cutting rates on fixed-rate deals, according to comparison site Money Expert.
Nationwide has announced it will reduce the rates on its two-year and five-year fixed rate mortgages by up to 0.3% from 16 May 2008. Matthew Carter, divisional director for mortgages at Nationwide, said the reductions were a result of a recent fall in the rate at which banks borrow from each other to fund their lending to consumers.

Sean Gardner, spokesperson for Money Expert, said: “Nationwide says it is cutting rates in response to the Bank of Englands £50million rescue deal for the mortgage market aimed at encouraging lenders to start lending again, which is a sign that at last something is starting to move.”

The move is a welcome sign that the mortgage market is coming out of its coma, according to Gardner, with more lenders likely to follow suit. However, he added that availability of mortgage products remains a problem for borrowers.

"The Council of Mortgage Lenders figures show lending for house buying at their lowest since 1975 and there’s very little hope that things will get better during the rest of the year.

“If you've not got a substantial deposit nowadays or equity in your house then your choices are still severely limited. On average, if you are remortgaging you now need a deposit of 15.5 per cent if you take out a fixed or variable mortgage.”

Jo on maternity Leave

Carlisle mortgage advisor Jo McRoberts is due a new addition to the family, Jo who has given many of you valuable advice and help on buying your new home, left work last week to put her feet up for the last few weeks before her new arrival is due. Jo is expected to return to work on a part time basis after the baby is born. In the mean time, other advisors will look after her work and her clients. Please feel free to call us or drop in for a chat and see how we can help you find the best mortgage or re-mortgage deal.

Lizzy disappears for a good cause !

When Homesearch Property Adviser Elizabeth Hodgson heard about our intention to help Olivia Story she was the first member of staff to commit to raising money.
Lizzy who is getting married next year felt what better way to help than a sponsored slim and get fit at the same time.

Whilst all the staff were heard to say “but you don’t need to lose weight Lizzy” with a target date of the 15th May , she has already lost 2 stone and is looking great.

Lizzy is hoping to lose even more and render Andrew Scott , Director, even more penniless than he pleads already !

Watch this space for the 3 Peaks Challenge where Ashley Graham, Andy Pearson and Stephen Taylor attempt to conquer some of the countries highest peaks , at this rate without any training. Fools we all cry! They are not as young as they used to be !

Local Mortgage Advisor Returns

New Mortgage Advisor, Mark Keeler, based at our Whitehaven Branch, returns to his home town after working in Carlisle . Mark, previously 11 years with Your Move and other local financial institutions, brings with him a wealth of Mortgage and Protection experience and invaluable local knowledge of the present Property Market. Living in Whitehaven with his wife Kerry and 2 young children , Mark will also cover other areas of West Cumbria.

To speak to Mark about your Mortgage or ReMortgage
ring 01946 690111.

FITNESS FUNDRAISING FOR OLIVIA

Homesearch Direct Raise Money And Awareness For Meningitis


In the summer of 2006 Olivia Story contracted meningitis, which developed into meningococcal seoticemia and as a result, Olivia suffered the loss of three limbs. Her parents thought she would never walk again. They were proved wrong.

Oliva needs certain equipment to help her lead as near to a normal life as possible. The NHS only provide basic prosthetics limiting activity and full movement potential, however with ongoing fundraising Oliva’s parents will be able to afford the latest technology and help towards a more rewarding future for Olivia.

To help with this, Homesearch have decided to hold several events over the year to raise money and awareness for Olivia:

· 3 Three Peaks Challenge www.3peaks.info/doing.co.uk
· Cockermouth Triathlon www.tri247.com/event.co.uk
· Sponsored Weight Loss

Watch this space …………………………………………………………

Why Use An Agent To Sell Your Home?

There isn’t an estate agent in the country that hasn’t been told by a member of the public at least once that home-owners really have no need of his or her profession. It might be a very tempting thought, but the reality might just be very different indeed.

What you are paying for when you employ an agent is firstly that firm’s expertise and experience in assessing a sensible guide price, and then controlling the sale from start to finish. Secondly, you are paying for the access to the market through their date base and marketing abilities - which is something that can only be built up over many years.

Agents start earning their keep right at the beginning of the sale process. A home-owner might ask three of four agents for appraisals of the property’s value, and the temptation is usually to opt for the highest. If you offer the house for sale at too high a price then the property might stick on the market for months or even years. The biggest factor in achieving a good sale is to pitch the asking price at the right level; in a strong market the seller might well see offers above that price, but the starting point has to be in the right place. The best person to do that is an established agent with strong local knowledge.

There are many sides to this expertise, and one of the most important – one of the most often overlooked - is the agent’s data base. Your agent will invariably have marketed homes like yours in the recent past, and of course each home will only have been bought by one person. So, if 25 people viewed a property then there are still 24 out there who are looking for a house or apartment of that style in that price range. That’s a very valuable pool of potential purchasers.
Another key to selling a home - quickly and for the best price - is having the right access to the right buyers. Agents have developed these over many years.

If you are thinking of buying a house then one of the very first things you are going to do is drive into the nearest town, walk down the High Street and look in the agents’ windows. Then, having seen a couple of likely properties, you go in and emerge moments later with the printed particulars. It’s also true to say that the standard of presentation – of the offices, the staff, and the printed details – has to be at the right sort of level for that section of the market.

The internet plays an important part in house hunting. These days most property sites will include photographs and location maps. There are also the really big estate agency portals which bring together hundreds of separate agencies. The properties being handled by HomeSearch Direct will also be found on rightmove.co.uk and thinkproperty.com, and the size and breadth of these sites makes the eyes water. For example, right now there are 850,000 individual homes displayed on rightmove.co.uk, and the site is visited more than 17 million times a month! They are also heavily and expensively marketed, and they are the ones that always pop up first when you go into a search engine.

Once a sale is agreed, a good agent will play a very important part in managing the sales process. It can be a difficult and emotional experience for both buyer and seller – researchers always say that it’s second only to divorce in terms of stress – and no matter what problems occur you can be sure that an experienced agent will have come across them before and will know the best course of action.

It’s also true to say that there is no substitute for using trained property consultants when you are reaching that final price. There is an art to agreeing a sale, and agents know the value of patience and not losing sight of the objective. It is always, always in your agent’s interest to get the very best price for your home.

A lot of sales aren’t straight forward unfortunately, but that’s where good agents really earn their fees. We act as the middle man between buyer and seller, and we have the expertise and the experience to do so. If a vendor’s temper starts to fray then we act as a buffer and make sure that isn’t communicated to the purchaser. You would be surprised how many sales nearly fall through over the negotiations over the garden shed or the washing machine.

Some vendors will always be tempted to act as their own estate agent, but believe me, more often than not it ends in tears. Very few people try it a second time!’