In case you’re looking for advice on your mortgage on 400k or for any property purchase in general, we’ve got some information for you. There’s been a great deal of activity over the last year or so involving mortgages. Many of those taking advantage of the post-referendum affordability measures were not aware of the changes to borrowing costs and the associated implications for affordability. While the main focus has been on the effects on home affordability for the self-employed and the family income earner, some important questions have also been raised about how the borrowing changes could impact families who are not currently homeowners but plan to join the ranks. This article will help you understand the main issues and scenarios with which to think ahead.
There is no straightforward answer to this, but rest assured that lenders have begun examining the data and figures provided by the Office for National Statistics concerning the performance of repayments across the mortgage market over the past year or more. It is no longer a case of ‘if’, but ‘when’. The key indicators that lenders use, such as the Purchasing Managed Funds index (PMI) and Producer Price Index (PPI), do indeed indicate a tightening in lending standards. It is expected that the number of people on one of these plans will increase from around eight thousand currently to around eleven thousand in the coming year.
On the plus side for borrowers, it is now widely accepted that the effects of tighter borrowing costs will lead to an increased number of months with repayments to be outstripped by the amount of growth in incomes over the same period. In fact, according to the ONS’s pre-released Autumn Forecast, the average monthly performance over the next twelve months is seen to fall by two percentage points, from ten thousand to eight thousand pounds. With monthly increases of about one percent, the effect on mortgage affordability for borrowers now becomes evident. But will this trend extend beyond the next twelve months? And how much further ahead is it likely to extend? These are questions which we shall explore in the following article…
First, we will see if the forecast of falling mortgage payments and increasing incomes can be sustained through the next twelve months, or if any significant changes are to be seen beyond then. To do this, we need to consider the key indicators of tightening, which are published by the Bank of England’s Office of Productivity and Development. These include tightening of insurance cover and tougher criteria for obtaining credit. Using the Office’s own measures of the effectiveness of these measures (which we will discuss later), we can assess whether there are any signs that these indicators are leading the Bank of England into a greater tightening cycle.
For example, the tightening of criteria for obtaining credit has had a significant impact on the number of loans that are granted in the short term. A relatively small number of loans are granted on a first-come-first-served basis, with a much greater share of them (about a third) going to those who have had their applications turned down previously. While we would expect tightening of criteria to reduce the demand for loans, it is not clear from this data how many of the two-thirds of applications that were turned down are actually being turned down now.
In addition, we know from the Office’s Productivity and Development statistics that house building activity has picked up in the past year. So while we may be seeing a rise in the number of mortgages granted on the basis of equity in the property, it seems likely that many of these will be subsequently refinanced in the future as house prices continue to rise. This seems to imply that the number of people buying homes in the short term is likely to rise again in the next twelve months, which would imply that the level of property values across the United Kingdom will rise again in the medium to long term. But this will mean that the UK’s mortgage market is unlikely to be impacted in the short term by any interest rate hikes that are expected to occur in the immediate future.
Homebuyers who are thinking about buying a property in the north of England or the Scottish Islands should take a look at the homebuyer’s market in Zeeheld, Dorking and Brentford – three areas in London that are enjoying very rapid growth in the property market. One of the fastest growing areas in London is Zeeheld, with improvements being made in this area on a regular basis. The former industrial town of Dorking is being developed as one of the world’s leading leisure centres, while the northern part of the town is seeing a regeneration boom due to the building of the London Diamond tower. The town of Brentford lies under the London Borough of Camden, which is one of the most liveable places in London. Other areas of high population density around the city include Finchley and Bowys branches of the London Borough of Camden.
If you are looking at buying a home for the family, you should consider the new town of Haggerston, which is a leafy suburb that is only two miles from central London. The housing developments in Haggerston are mainly geared towards students and young professionals. You will find that the commute time to work is not too long, and there are many state of the art facilities including a state of the art gym and swimming pool. In this part of London, the average household budget is above the national average.
You may have noticed that I have put the word “amazing” before “housing”. What you need to know is that there is some very good housing in London. There are two types of housing that are popular right now. The first type of housing is the kind that the bank or lender would give you a mortgage on; the second type of housing is less popular and is called the imputed property. An imputed property is where the seller gives you an agreed value for the house and you pay a certain amount of rent.
As you can see, the mortgage on 400k in Haggerston is a great investment. For two years or more, you should be able to pay off the loan. If you purchase a house at a good location, you should be able to sell it for a nice profit. A mortgage on 400k in Haggerston for a long term bonds payment makes sense.